1. SK Innovation Q2 2025 Earnings: Key Highlights

SK Innovation reported revenues of KRW 193.066 trillion (+2% YoY), an operating loss of KRW 417.6 billion, and a net loss of KRW 772.2 billion in Q2 2025. While revenue saw a slight increase, both operating and net income plunged into negative territory.

2. Reasons for the Decline: A Confluence of Headwinds

  • Falling Oil Prices: The continued decline in oil prices directly impacted the petroleum business and negatively affected the battery business.
  • Weakening Chemical Business: Rising naphtha prices, declining demand, and intensified price competition led to a decline in the profitability of the chemical business.
  • Intensified Battery Competition: Rising raw material prices and fierce market competition put pressure on the profitability of the battery business.
  • Fluctuations in Exchange Rates and Interest Rates: The rise in the KRW/USD exchange rate and interest rate hikes negatively impacted profitability.

3. Future Outlook and Investment Strategies: Opportunities Amid Uncertainty

SK Innovation’s future outlook depends heavily on the stabilization of international raw material prices and the competitive landscape of the battery market. Investors should consider the following:

  • Risk Management: Monitor risk factors such as raw material price volatility and increased competition, and manage risks through diversified investments.
  • Long-Term Perspective: Focus on SK Innovation’s long-term growth potential and energy transition strategy rather than short-term fluctuations.
  • Further Analysis: Conduct competitor analysis and analyze the effectiveness of derivative trading strategies to make informed investment decisions.