SK Energy reports 16 pct rise in Q2 earnings

(ATTN: RECASTS lead; ADDS more details from para 4)
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.
ksnam@yna.co.kr
(END)