SKC Reports Record Quarterly Operating Profit of 135 Billion KRW in 2Q

Q2 Operating Profit of 135 Billion Won

[Asia Economy Reporter Hwang Yoon-joo] SKC recorded its highest quarterly performance ever in the second quarter of this year.

SKC announced on the 4th that its consolidated operating profit for the second quarter of this year increased by 169.5% compared to the same period last year, reaching 135 billion KRW. Sales were tentatively estimated at 827.2 billion KRW, up 44.6%. The operating profit for the first half of the year reached 219.4 billion KRW, surpassing last year's annual operating profit.

Second-quarter results increased across all business sectors. SK Nexilis, an investee company in the copper foil business for secondary batteries, recorded sales of 157.6 billion KRW and an operating profit of 18.8 billion KRW. Maintaining a full production line system, it achieved better results than in the first quarter. In particular, by starting early operation of the Jeongeup Plant 5, it added a quarterly mass production capacity of over 10,000 tons. SK Nexilis is also accelerating overseas expansion while advancing the completion schedule of Plant 6 to secure an annual production system of 52,000 tons.

SK PIC Global, a chemical business joint venture, recorded sales of 279.6 billion KRW and an operating profit of 93.1 billion KRW. As a result of efforts to shift the portfolio to high value-added PG, actively promoted last year including securing global customers, the proportion of high value-added PG sales increased significantly. SK PIC Global plans to continue strengthening its PG-centered portfolio in the third quarter, when steady demand is expected, and secure supply stability through establishing global logistics hubs.

The Industrial Materials Business Division recorded sales of 273.9 billion KRW and an operating profit of 25.9 billion KRW. Despite rising raw material prices, both sales and operating profit increased due to growing demand for high value-added products. In particular, the operating profit margin recorded a significant increase to 9.5% compared to the first quarter. In the third quarter, it plans to respond to raw material price volatility by expanding sales of high value-added products and accelerate growth efforts in eco-friendly biodegradable materials business through cooperation with overseas unicorn companies.

The semiconductor materials business centered on SKC Solmix showed growth with sales of 112.8 billion KRW and an operating profit of 7.8 billion KRW. Sales of ceramic parts increased significantly as customer facility expansions continued. In the third quarter, the start of commercial operation at the CMP pad Cheonan plant will continue the growth momentum. In particular, production line expansion is also being considered to meet the increasing demand for ceramic parts.

In addition to improving performance, SKC is accelerating ESG (Environmental, Social, and Governance) management. Declaring this year as the inaugural year of ESG management, SKC presented goals of plastic net zero by 2030 and greenhouse gas net zero by 2040 in its Sustainability Management Report published in July. To this end, SKC signed an MOU in June with a Japanese venture company possessing unique technology for commercializing waste plastic pyrolysis oil and is strengthening ESG businesses by concretizing plans to expand biodegradable materials business.

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