(LEAD) SK Innovation shifts to Q3 profit on lubricants, stronger refining margins - Yonhap News Agency

SEOUL, Oct. 29 (Yonhap) -- SK Innovation Co., South Korea's major energy company, said Thursday it swung to a net profit in the third quarter from a year earlier, driven by improved refining margins and stronger earnings from its lubricants business.

In the three months that ended in September, the company swung to 2.64 trillion won (US$2 billion) from a net loss of 94.3 billion won in the same period last year, it said in a press release.

"Petrochemical product export margins improved amid low utilization rates at refineries in the Middle East and restrictions on diesel exports by Russia. The lubricants business also posted a record operating profit in the third quarter despite a shortage of base oil," the company said.

Operating profit jumped over sixfold to 3.7 trillion won in the third quarter from 585.63 billion won a year ago.

Sales rose 39.7 percent to 28.77 trillion won from 20.59 trillion won during the same period.

"We will focus on ensuring a stable supply of petrochemical products and strengthening our core business competitiveness amid geopolitical uncertainties stemming from prolonged tensions in the Middle East," a company official said.

SK Innovation expects earnings to remain strong in the fourth quarter, supported by scheduled maintenance at major refineries worldwide and export restrictions in key exporting countries.

For the January-September period, the company posted a net profit of 3.61 trillion won, reversing a net loss of 1.25 trillion won a year earlier.

Operating profit surged to 9.35 trillion won from 153.33 billion won, while sales rose 34 percent to 82.22 trillion won from 61.24 trillion won.

The logo of SK Innovation Co. as provided by the company (PHOTO NOT FOR SALE) (Yonhap)