SK Innovative Chemicals surges in profits

Recently, South Korea's SK Innovation released a financial report stating that the operating profit of its chemical business in the first quarter was 108.9 billion won, an increase of 97.3 billion won from the fourth quarter of 2022. During the quarter, the company's chemical sales were 2.5 trillion won.

In the first quarter of the polymer business, polyethylene gross profit was $255 per tonne, up 14% quarter-on-quarter, the company said. Polypropylene gross profit increased 14% year-on-year to $287 per ton. In the aromatics industry, the gross profit of paraxylene increased by 12.7% quarter-on-quarter to US$345 per ton; the gross profit of benzene increased by 57.5% quarter-on-quarter to US$241 per ton. The company expects paraxylene gross margins in the chemicals business to increase in the second quarter. Its polyethylene and polypropylene margins are expected to continue to improve due to strong domestic demand in China.

The operating profit of the lubricants business was 259.2 billion won, a decrease of 9.2 billion won from the previous quarter due to intensified sales competition and lower average exchange rates. The lubricants business is expected to maintain steady growth as the global supply-demand balance tightens after the driving season, despite higher oil prices increasing the cost burden, the company said.