SK Energy reports 16 pct rise in Q2 earnings

(ATTN: ADDS SK Energy's CEO comments and more details from para 9)
By Nam Kwang-sik
SEOUL, July 24 (Yonhap) -- SK Energy Co., South Korea's top refiner, said Friday
that its second-quarter earnings rose 16 percent from a year earlier on foreign
exchange gains and increased profits from equity investment in their affiliates.

Net income stood at 301 billion won (US$241.7 million) in the April-June period,
compared with 259 billion won a year ago, SK Energy said in a statement.
Sales, however, fell 26 percent on-year to 8.93 trillion won due to decreased
refining margins, with operating profit plunging 67 percent to 177 billion won,
the company said.
Despite the strong earnings, shares of SK Energy fell 1.19 percent to 99,800 won
as of 11:27 a.m. on the Seoul bourse.
The company said its petroleum division sales fell 30 percent on-year to 5.83
trillion won in the second quarter, with its operating loss reaching 68.3 billion
won due to decreased refining margins.
SK Energy's petrochemical division posted 2.54 trillion won in sales and an
operating profit of 258.7 billion won, helped by increased demand in China.
Its oil exploration division sales rose 38 percent on-year to 151.1 billion won,
while operating profit gained 23 percent to 78 billion won.
The company also said its financial health improved during the period. Its
debt-to-equity ratio fell to 184 percent as of June from 207 percent at the end
of 2008, it said.
In a bid to tap into global market, SK Energy aims to spin off its divisions and
expand its petrochemical division by 2015, said Koo Ja-young, chief executive
officer of SK Energy. "Efficient management structures are needed to vie with
major global oil companies."
SK Energy has four divisions -- refining, petrochemicals, oil exploration and
lubricants.
Last Thursday, SK Energy's board of directors decided to separate its lubricant
division into its wholly-owned subsidiary by October 1.
The lubricant division chalked up sales of 246.7 billion won in the second quarter
and an operating loss of 73.6 billion won.
Koo also said SK Energy is pushing to enter the hybrid-car battery and renewable
energy businesses to secure new growth engines.
ksnam@yna.co.kr
(END)