SKC’s profit drops 45% last year on low demand for petrochemicals

2023.02.07 11:53:01 | 2023.02.28 14:06:02

SKC’s profit drops 45% last year on low demand for petrochemicals [Image source: SKC]이미지 확대

SKC’s profit drops 45% last year on low demand for petrochemicals [Image source: SKC]

SKC Co., a chemical unit of South Korea’s No. 2 conglomerate SK Group, reported a 45.1 percent decline in profit last year due to a plunge in demand for petrochemical products.

Operating profit in 2022 was 220.3 billion won ($175.8 million), compared with a 401.5 billion won profit a year earlier, according to regulatory filing Monday. Sales rose 38.6 percent on year to 3.14 trillion won. The company swung to a net loss of 66.7 billion won.

For the fourth quarter of last year, sales increased 18.8 percent to 763.7 billion won, with an operating loss of 24.3 billion won.

Among SKC affiliates, the copper foil business for batteries remained in positive growth territory. SKC plans to expand the proportion of products from high value-added businesses this year and proceed with the construction of a semiconductor glass substrate plant as planned.

SK nexilis Co. plans to complete construction of a Malaysian plant this year and reach an agreement with global battery manufacturers for mid- to long-term supply deal. Business buyouts remain an option designed to strengthen its capabilities in materials for electric vehicle battery and semiconductor suppliers.

SK nexilis generated 810.1 billion won from copper foil business last year, with an operating profit of 98.6 billion won. Compared with 2021, sales increased 18.1 percent and operating profit 22.9 percent.

Chemical business led by SK picglobal Corp. and SK pucore Co. posted 1.70 trillion won in sales and 140.9 billion won in operating profit last year. Sales jumped 54.7 percent from a year earlier, but operating profit dropped 57.6 percent due to lower demand for its flagship products such as propylene glycol.

SK enpulse Co.’s semiconductor material business posted 598.2 billion won in sales and 28.8 billion won in operating profit last year. The figures were up 23.4 percent and 29.1 percent, respectively, from the previous year. The positive numbers were attributed to strong sales of high value-added products such as CMP pads that flatten wafer surfaces despite a global slump in the semiconductor market.

SK ie technology Co., which produces battery separators, announced Monday that it turned to an operating loss of 52.3 billion won. Sales was down 2.98 percent to 585.8 billion won with a net loss of 29.7 billion won.

By Kim Je-gwan and Minu Kim

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