Seoul: SK Innovation Co. announced on Monday that it experienced a net loss in the third quarter, primarily due to decreased refining margins. In the three months leading up to September, South Korea’s leading refiner reported a net loss of 588.1 billion won (US$428.2 million), a reversal from a net profit of 729.6 billion won in the same period last year, as disclosed in a regulatory filing.

According to Yonhap News Agency, the company’s primary petrochemical business suffered losses due to concerns over a global economic slowdown and reduced demand from China, which resulted in lower oil prices and refining margins. Additionally, decreased demand for electric vehicle batteries adversely affected the quarterly results. SK Innovation holds an 89.52 percent stake in SK On, the third-largest car battery maker in South Korea.

The company also posted an operating loss of 423.3 billion won in the September quarter, compared to an operating profit of 1.56 trillion won a year ago. Sales declined by 11.2 percent to
17.65 trillion won from 19.89 trillion won over the same period, according to the filing.

Looking ahead, SK Innovation anticipates an improvement in refining margins in the fourth quarter, driven by eased economic downturn concerns and increased battery demand for new 2025 models. From January to September, the company recorded a net loss of 1.33 trillion won, contrasting with a net profit of 557.22 billion won during the same period last year. Operating profit plummeted by 92 percent to 155.56 billion won in the first nine months, compared to 1.83 trillion won a year ago. Sales decreased by 4.2 percent to 55.31 trillion won from 57.76 trillion won.