SK Chemicals stays profitable despite 45% drop in Q3 OP

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SK Chemicals reported a 45 percent decline in third-quarter operating profit as rising raw material costs and unfavorable market conditions weighed on earnings, although the South…

SK Chemicals reported a 45 percent decline in third-quarter operating profit as rising raw material costs and unfavorable market conditions weighed on earnings, although the South Korean chemical maker remained profitable amid a prolonged industry downturn.

The company said Monday that operating profit on a standalone basis fell 45 percent from a year earlier to 16.4 billion won ($12.2 million), while revenue rose 8.2 percent to 402.1 billion won.

The decline in profitability reflected challenging conditions across the chemical industry, including higher feedstock prices, a weaker exchange rate environment and fluctuations in crude oil prices.

Despite these pressures, SK Chemicals maintained a positive operating profit through its specialty materials business, particularly copolyesters and other high-performance products.

The company said it would continue improving cost competitiveness in its core businesses through operational optimization while expanding sales of higher-value products.

“We will strengthen the cost competitiveness of our main businesses, including copolyesters, through continuous operational optimization, expand sales of high-value products and establish a stable operating system capable of responding flexibly to external changes,” an SK Chemicals official said.

Copolyesters are high-performance thermoplastic resins produced by modifying conventional polyester formulations using multiple monomers.

Known for their glass-like transparency and attractive appearance, they generally offer greater resistance than conventional polyethylene terephthalate (PET) to chemical exposure and absorption involving acids, organic solvents and cosmetic ingredients.

On a consolidated basis, including subsidiaries SK Bioscience and SK Multi Utility, SK Chemicals reported third-quarter revenue of 740.8 billion won, up 21.5 percent from a year earlier.

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