SK Innovation and SK hynix, two major subsidiaries of SK Group, announced strong first-quarter earnings. File Photo by Stephen Shaver/UPI | License Photo
SEOUL, May 2 (UPI) -- South Korean refinery company SK Innovation announced Friday that its first-quarter operating profit almost tripled to $1.3 billion from a year before.
The company also logged $12.84 billion in sales during the three-month period, up 72.92% from a year before.
SK Innovation Chief Financial Officer Kim Yang-seob noted that the rising oil prices benefited the company. After the Russian invasion of Ukraine in February, the crude oil price shot up.
"Due to the unstable energy supply from geopolitical conflicts, the rise in oil prices and improved margins contributed to higher earnings in all business areas, including the refinery business," Kim said in a statement.
"However, an unstable management environment and volatile market conditions have continued more than ever," he said.
Last week, SK Innovation's sister company SK hynix also disclosed its financial results during the January-March period.
The world's second-largest manufacturer of memory chips saw its first-quarter operating income more than double to $2.26 billion from a year before, up 43%.
"Consumption of some IT products slowed down from the start of the year amid ongoing challenges, including the supply chain issue," SK hynix said in a statement. "SK hynix responded to customer demands in a flexible way, while focusing on profitability management, resulting in handsome earnings."
SK Innovation and SK hynix are two major subsidiaries of SK Group. Thanks to the two companies' performance, SK Group nudged past Hyundai Motor Group to become the No. 2 conglomerate in South Korea in terms of assets, according to the Korea Fair Trade Commission last month.
Samsung Group remained atop the list.
"The competition to become the No. 2 group is stiff between Hyundai Motor and SK. In terms of sales, Hyundai is still ahead of SK," Seoul-based business tracker Leaders Index Park Ju-gun told UPI News Korea.
"The rivalry is expected to get even stiffer down the road. I think SK Group is expected to take the upper hand as its battery business is very promising amid the electric vehicle era," he expected.
The share price of SK Innovation and SK hynix went down Monday 0.73% and 1.78%, respectively, on the South Korean stock exchange.