[Concall] SK Innovation "2 Trillion KRW Target for Battery Business This Year" (Comprehensive)

[Asia Economy Reporter Park So-yeon] SK Innovation announced on the 31st during the '2019 Earnings Conference Call' that "the goal is to achieve annual sales of 2 trillion KRW in the battery business division this year."

An SK Innovation official explained, "The factories in Hungary and China are scheduled to begin commercial operations in the first half of this year, so including the Seosan plant, a total of three factories will be operating in the global market," adding, "Seosan is expected to operate stably as it did last year."

Regarding the impact of the novel coronavirus infection, the official stated, "Looking at precedents such as MERS, depending on whether the novel coronavirus (Wuhan pneumonia) spreads this year, it could affect the overall market conditions of the petroleum business."

As a countermeasure to changes in China's subsidy policy, the official said, "We will closely monitor the local government's stance in response to changes in the Chinese market," and added, "Considering policy risks, we will establish close cooperative relationships with local companies and organizations."

Concerning the recent battery litigation, the official remarked, "Everything reported in the media is only part of the litigation process," and "the litigation process will take a considerable amount of time." He further added, "Since nothing has been decided by the company at this time, we are not in a position to comment on the litigation."

Regarding the desulfurization facility (VRDS) progress rate, it was stated, "As of the end of January, it is 99.9%, and commercial operation is planned for March or April."

Meanwhile, SK Innovation recorded an operating profit of 1.2693 trillion KRW last year, a 39.6% decrease compared to the previous year. During the same period, sales amounted to 49.8765 trillion KRW, down 8.5% year-on-year.

This content was produced with the assistance of AI translation services.