Latest news with #SKInnovation
Korea Herald
22-05-2025
- Business
- Korea Herald
SK Earthon wins rights to explore offshore oil, gas in Indonesia
SK Innovation's oil exploration subsidiary completes entrance into Southeast Asia's top three oil-producing countries SK Earthon, an oil and gas exploration subsidiary of SK Innovation, said Thursday it had secured rights to explore two promising oil and gas blocks off the coast of Indonesia. According to SK Innovation, SK Earthon inked a production sharing agreement for the Serpang block near Java Island and the Binaiya block near the Maluku Islands with the Indonesian gas and oil authority SKK Migas during the IPA Convex held at the Indonesia Convention Exhibition in Banten earlier this week. The area of each oil and gas block is estimated at about 8,500 square kilometers. As the Serpang block has nearby blocks that are already producing crude oil and gas, some are projecting the site to have 1.2 billion barrels of oil and 6.3 trillion cubic feet of natural gas. For the Serpang block, SK Earthon owns a 14 percent stake with Malaysia's state-run Petronas holding a 51 percent stake and Japan's Inpex taking up the remaining 35 percent. The Binaiya block is projected to contain up to 6.7 billion barrels of gas and 15 trillion cubic feet of natural gas. SK Earthon holds a 22 percent stake for the Binaiya block while Indonesia's state-run oil company Pertamina and Petronas own 56 percent and 22 percent, respectively. SK Earthon plans to conduct geological analysis and elastic wave exploration of these two blocks over the next three years to discover drilling structures. The Indonesian contract expanded the company's already-widespread presence in the energy exploration business in Southeast Asia as it has been exploring in the waters of Malaysia and Vietnam. 'With the Indonesian oil and gas block deal, we have completed our clustering strategic map for natural resources development in Southeast Asia spanning China, Vietnam and Malaysia,' said an SK Earthon official. 'Based on our successful experiences in Peru and Vietnam, we will turn Indonesia into another promising region for resource development.'
Korea Herald
22-05-2025
- Business
- Korea Herald
SK Earthon wins rights to explore offshore oil, gas in Indonesia
SK Innovation's oil exploration subsidiary completes entrance into Southeast Asia's top three oil-producing countries SK Earthon, an oil and gas exploration subsidiary of SK Innovation, said Thursday it had secured rights to explore two promising oil and gas blocks off the coast of Indonesia. According to SK Innovation, SK Earthon inked a production sharing agreement for the Serpang block near Java Island and the Binaiya block near the Maluku Islands with the Indonesian gas and oil authority SKK Migas during the IPA Convex held at the Indonesia Convention Exhibition in Banten earlier this week. The area of each oil and gas block is estimated at about 8,500 square kilometers. As the Serpang block has nearby blocks that are already producing crude oil and gas, some are projecting the site to have 1.2 billion barrels of oil and 6.3 trillion cubic feet of natural gas. For the Serpang block, SK Earthon owns a 14 percent stake with Malaysia's state-run Petronas holding a 51 percent stake and Japan's Inpex taking up the remaining 35 percent. The Binaiya block is projected to contain up to 6.7 billion barrels of gas and 15 trillion cubic feet of natural gas. SK Earthon holds a 22 percent stake for the Binaiya block while Indonesia's state-run oil company Pertamina and Petronas own 56 percent and 22 percent, respectively. SK Earthon plans to conduct geological analysis and elastic wave exploration of these two blocks over the next three years to discover drilling structures. The Indonesian contract expanded the company's already-widespread presence in the energy exploration business in Southeast Asia as it has been exploring in the waters of Malaysia and Vietnam. 'With the Indonesian oil and gas block deal, we have completed our clustering strategic map for natural resources development in Southeast Asia spanning China, Vietnam and Malaysia,' said an SK Earthon official. 'Based on our successful experiences in Peru and Vietnam, we will turn Indonesia into another promising region for resource development.'
CNA
30-04-2025
- Automotive
- CNA
South Korea's SK Innovation says refining margins will improve after surprise Q1 loss
SEOUL :SK Innovation Co Ltd, owner of South Korea's biggest oil refiner SK Energy, swung to an unexpected operating loss in the first quarter on weaker oil prices, but forecast a recovery in refining margins in the second quarter. The company posted an operating loss of 45 billion won ($32 million) for the quarter ending March 31, sharply lower than a 625 billion won profit it registered a year ago. Analysts had estimated a 393-billion-won profit, according to LSEG SmartEstimate. "Operating income declined despite improved earnings from the battery business, due to weaker international oil prices and refining margins," SK Innovation said in a statement. Operating profit from its refining business declined from the previous quarter due to concerns over a global economic slowdown, an easing of OPEC+ production cuts, and increased output in Africa and the Middle East. The company said it expects refining margins to improve in the second quarter backed by the onset of the driving season and increased cooling demand heading into summer. Battery subsidiary SK On, which supplies automakers like Hyundai Motor, Kia Corp, Ford Motor, and Volkswagen, recorded an operating loss of 299 billion won, narrower than a loss of 332 billion won a year earlier. "The battery business is expected to see increased sales in North America from the second quarter, with sustained growth throughout the year," SK Innovation said, with its battery production output and sales volume in the U.S. expected to significantly improve this year. SK On's rival LG Energy Solution said earlier on Wednesday it expected lower revenue in the second quarter ending June partly due to the uncertainty from U.S.-driven tariff policies. While SK On has been expanding its customer base, announcing supply deals with Nissan and Slate, analysts said its performance could be affected by major customer Kia's recent decision to cut its EV sales target. SK Innovation's first-quarter revenue rose 12.2 per cent year-on-year to 21.1 trillion won. Shares in SK Innovation closed 2.5 per cent lower before the earnings announcement, underperforming the benchmark KOSPI index which rose 6.6 per cent, and have dropped 15.7 per cent year-to-date. ($1 = 1,420.6900 won)
CNA
30-04-2025
- Business
- CNA
SK Innovation sinks to Q1 operating loss, sees refining margins improving
SEOUL :SK Innovation Co Ltd, owner of South Korea's biggest oil refiner SK Energy, swung to an unexpected operating loss in the first quarter, but forecast refining margins would gradually recover this quarter amid higher driving season consumption. The company posted an operating loss of 45 billion won ($32 million) for January-March, versus a 625 billion won profit a year earlier. That compared with analysts' average forecast for a 393-billion-won profit, according to LSEG SmartEstimate. The firm sank to loss as profits declined quarter-on-quarter at its refining, oil exploration and production, and lubricants businesses. Losses also deepened at its petrochemical business and persisted at its battery business as the global economic slowdown continued, the company's earnings presentation showed. First-quarter revenue rose 12.2 per cent to 21.1 trillion won. Shares in SK Innovation closed down 2.5 per cent before the earnings announcement, versus the benchmark KOSPI's 0.3 per cent fall.
Korea Herald
10-04-2025
- Automotive
- Korea Herald
SKIET secures battery separator deal in North America
SK IE Technology Co., a lithium-ion battery separator producer under SK Innovation, said Thursday it has secured an agreement to supply battery separators sufficient to power 300,000 electric vehicles in North America. While the details, such as the size of the deal and the client's name, remain undisclosed, SKIET noted that the supply is expected to be produced at either its Jeungpyeong facility in North Chungcheong Province or its plant in Dabrowa Gornicza, Poland. Separators are critical materials that separate a battery's anode from its cathode to ensure the smooth flow of electricity. The company anticipates a further increase in separator supplies, capitalizing on the escalating trade war between the US and China. The second Donald Trump administration recently imposed a total tariff of 104 percent on Chinese goods. Chinese companies, including Shanghai Energy New Materials, currently dominate the global separator market. According to market tracker SNE Research, China's market share in the battery separator industry was 88.8 percent in the fourth quarter of last year. If Washington–Beijing tariff tensions continue, demand for Korean separators will likely increase, as only a few companies in Korea and Japan manufacture separator products, according to SKIET. Following a shift in the power dynamics of the battery materials sector, SKIET has signed a long-term separator supply deal for prismatic lithium iron phosphate batteries worth 291.4 billion won ($199.8 million) with a global client. In addition, it is negotiating with multiple companies in North America and Europe to supply separators for EV and energy storage system batteries. 'Our customer diversification strategy, focusing on the North American region, is leading to visible outcomes,' said an SKIET official. 'This separator supply agreement increases the company's facility utilization rates as well as boosts sales volume, which is expected to significantly improve our profitability.' Last year, SKIET's sales revenue dropped 66.4 percent to 217.9 billion won from the previous year, turning to a loss of 244.4 billion won, primarily due to a slowdown in demand for EVs.
