SK Chemicals Reports Q3 Sales of 298.3 Billion KRW and Operating Profit of 23.9 Billion KRW

SK Chemicals announced on the 6th that its third-quarter standalone operating profit increased by 21.3% quarter-on-quarter to 23.9 billion KRW. During the same period, sales decreased by 3.5% to 298.3 billion KRW.

Despite the demand contraction in upstream industries caused by the global economic crisis, SK Chemicals defended its performance by implementing a high-value-added product portfolio strategy in the Green Chemicals business division and expanding sales of existing and introduced drugs in the pharmaceutical business division.

Sales in the Green Chemicals business division for the third quarter were 199 billion KRW, down 6.0% from 211.6 billion KRW in the previous quarter, and operating profit was 17.4 billion KRW, down 43.5% from 30.8 billion KRW in the previous quarter. Operating profit declined due to decreased sales volume caused by weak global demand and costs incurred from approximately two months of scheduled maintenance at the Ulsan plant in the second quarter. Although sales volume decreased due to weak market conditions in upstream industries, demand for high-value-added products was maintained, resulting in a solid performance despite fierce competition with low-priced petrochemical products.

In the Life Science division, the pharmaceutical (Pharma) business posted third-quarter sales of 97.8 billion KRW and operating profit of 11.5 billion KRW. Sales and operating profit increased by 13.3% and 127.2%, respectively, quarter-on-quarter, driven by increased sales of existing natural product-based osteoarthritis treatments and newly introduced products to expand the portfolio.

Kim Ki-dong, Head of Management Support at SK Chemicals, stated, "Although high oil prices are expected in the fourth quarter and business environment uncertainties remain high, we will continue to improve performance based on a solid portfolio centered on high-value-added products and maintain steady growth through stable sales in the pharmaceutical business."

Meanwhile, due to the performance impact of its subsidiary SK Bioscience, consolidated sales and operating profit reached 581.4 billion KRW and 83.4 billion KRW, respectively.

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