Bloomberg News

SK Innovation Net Beats Estimates After Brazilian Asset Sale

October 27, 2011

(Updates with asset disposal gain in third paragraph.)

Oct. 28 (Bloomberg) -- SK Innovation Co., South Korea’s biggest oil refiner by market value, reported a record quarterly profit, beating estimates, because of gains from selling its Brazilian unit.

Net income rose 1.82 trillion won ($1.7 billion) in the three months ended Sept. 30 from 284.6 billion won a year earlier, the Seoul-based company said in a filing today. That compares with the 1.2 trillion-won mean estimate of 12 analysts in a survey compiled by Bloomberg.

The sale of the unit to Maersk Oil, part of A.P. Moeller- Maersk A/S, for 1.5 trillion won led to a one-time gain that boosted profit to a record, the Korean refiner said in a separate e-mailed statement. SK Innovation said it will invest the proceeds in field development or acquisitions of overseas oil companies.

SK Innovation rose 2 percent to 179,000 won in Seoul trading at 11:22 a.m. local time, paring this year’s decline to 7.5 percent. The benchmark Kospi stock index gained 1.2 percent.

Third-quarter sales increased 27 percent to 17.2 trillion won. Operating profit more than doubled to 861.9 billion won.

Operating profit from SK Energy Co., its refining unit, reached 253.9 billion won, SK Innovation said. SK Energy accounts for 73 percent of sales.

Operating profit from its petrochemicals unit, SK Global Chemical Co., totaled 309.8 billion won with sales of 3.62 trillion won. SK Lubricants reported an operating profit of 198.5 billion won with sales of 694.3 billion won.

SK Innovation spun off its petroleum and petrochemical businesses in January into wholly owned units, SK Energy and SK Global Chemical.

--Editors: Ryan Woo, Aaron Sheldrick.

To contact the reporter on this story: Sangim Han in Seoul at sihan@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.


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