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(LEAD) SK Innovation swings to Q1 loss on oil price plunge

All News 10:40 May 06, 2020

SEOUL, May 6 (Yonhap) -- SK Innovation Co., South Korea's biggest refiner by sales, said Wednesday it swung to a record loss in the first quarter as declining oil prices and lower refining margins ate into the bottom line.

For the three months that ended March 31, SK Innovation shifted to a net loss of 1.55 trillion won (US$1.26 billion) from a net profit of 208.81 billion won in the year-ago period, the company said in a statement.

"A sharp decline in oil prices resulted in heavy inventory-related losses and lower demand for petrochemical products drove down refining margins. The won's weakness against the dollar was another blow to the quarterly results," a company spokesman said over the phone.

(LEAD) SK Innovation swings to Q1 loss on oil price plunge - 1

The company said it faces the worst business environment since it entered the refining business in 1962 due to the outbreak of COVID-19.

In the first quarter, the value of the company's oil inventories bought earlier plunged by 941.8 billion won due to lower oil prices, and the currency-related losses reached 272 billion won, the company said.

SK Innovation also shifted to an operating loss of 1.78 trillion won in the first quarter from an operating profit of 328.15 billion won a year ago. Sales fell 13 percent to 11.16 trillion won from 12.78 trillion won during the same period.

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