SKC Achieves Record Quarterly Earnings Since 2012 with 1Q Operating Profit of 81.8 Billion KRW

Chemical Boom and Mobility Material Growth Drive Performance

[Asia Economy Reporter Yoonju Hwang] SKC recorded its highest quarterly earnings since 2012. This was thanks to improvements in the chemical industry and continued growth in mobility materials.

SKC announced on the 30th that its consolidated operating profit for the first quarter of this year reached 81.8 billion KRW, a 175.4% increase compared to the same period last year. Sales during the same period rose 23.6% to 784.6 billion KRW.

Despite the first quarter being a seasonal off-season, the results showed significant growth due to years of continuous business model innovation, maintaining an upward trend. SK Nexilis, an investee company in the copper foil business for secondary batteries, recorded sales of 142 billion KRW and an operating profit of 16.7 billion KRW. SK Nexilis, which has maintained full operation in line with the growth of the global electric vehicle market, achieved its highest quarterly sales in the first quarter. SK Nexilis plans to further expand its performance by early operation of the Jeongeup Plant 5 in the second quarter.

SK PIC Global, a joint venture in the chemical business, posted sales of 234.1 billion KRW and an operating profit of 56 billion KRW. In addition to the high-value PG-centered portfolio shift pursued amid the COVID-19 situation last year, customer trust in supply stability and quality continued, resulting in favorable performance. Productivity improvements through process optimization during last year’s regular maintenance also contributed to the results. With the global economic recovery expected to have an additional positive impact in the second quarter, performance is projected to improve further.

The Industrial Materials Division recorded sales of 260.3 billion KRW and an operating profit of 14.8 billion KRW. Although raw material prices rose, operating profit increased by 21% year-on-year due to increased demand for high-value films driven by new IT and mobile model launches early in the year. In the second quarter, the company will continue to expand the proportion of high-value materials such as eco-friendly products. It plans to increase supply of eco-friendly PLA biodegradable packaging materials through cooperation with new clients including CJ CheilJedang and SPC Group.

The Semiconductor Materials Business posted sales of 106.2 billion KRW and an operating profit of 3.9 billion KRW. Sales of high-difficulty process CMP pads began in earnest, and sales of ceramic components increased, resulting in growth in both sales and operating profit compared to the same period last year. In the second quarter, commercial operation of the CMP pad Cheonan plant will commence, and the China cleaning plant is scheduled to be completed in July, accelerating growth and enhancing profitability.

In addition to improved performance, SKC is strengthening ESG management. Declaring this year as the inaugural year of ESG management, SKC announced in March plans to innovate its governance to a level exceeding global standards. It established the ESG Committee, Personnel Committee, and Internal Transactions Committee within the board of directors, and appointed outside directors as chairpersons of all committees, including the existing Audit Committee. Activities of each committee are expected to begin in May.

As part of its proactive shareholder-friendly policy, SKC plans to establish the "SKC Shareholder Rights Advisory Board (Financial Advisory Board)" in May. External experts including former KB Asset CEO Wonki Lee, former Korea Investment Value Asset CEO Chaewon Lee, and former Merrill Lynch Asia-Pacific Customer Management Head Namwoo Lee will participate to contribute to the continuous enhancement of SKC’s corporate value.

An SKC official said, "As a result of years of steady business model innovation, we achieved the highest quarterly earnings exceeding market expectations and expect to continue the upward growth trend in the second quarter. We will also strengthen ESG management throughout the year to firmly establish a sustainable growth foundation for SKC."

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