“Thanks to the merger with SK Trading International and SK Enmove, SK On achieved an operating profit of 60.9 billion KRW in the second quarter this year. With the announcement of an additional merger with SK Enmove, it is anticipated that the performance improvement trend will strengthen further.
SK On announced through an earnings conference call on the 31st that it recorded sales of 8.8342 trillion KRW and an operating profit of 60.9 billion KRW. The company reported an operating loss of 66.4 billion KRW in the battery business, but thanks to an operating profit of 127.3 billion KRW from SK Trading International, which handles oil trading, and SK Enmove, which manages oil and cargo storage facilities, the integrated corporation was able to achieve a profit.
Although the battery business unit still showed a loss, the operating loss reduced by 85.6% compared to the same period last year, indicating performance improvement. The company explained that the improved operation rate of the North American plant being credited 273.4 billion KRW in Advanced Manufacturing Production Credits (AMPC) was a significant factor. This is SK On’s largest AMPC to date.
During the conference call, SK On also announced its entry into the rapidly growing North American Energy Storage System (ESS) battery market within the year. Successful entry into the ESS market is expected to sustain battery sector performance improvements despite an electric vehicle market downturn and U.S. tariff impositions. SK On mentioned, ‘We are currently discussing giga-watt (GW) scale ESS battery supply agreements with multiple clients in the U.S., and results are anticipated within this year.’
With the merger with SK Enmove, which engages in the lubricants business, SK On anticipates that from next year, the integrated corporation’s quarterly profit will exceed 300 billion KRW. SK Innovation’s board resolved on the 30th to merge its subsidiaries, SK On and SK Enmove. SK Enmove recorded an operating profit of 134.6 billion KRW in this quarter.”