SK (034730) Q2 2024 earnings summary

Executive summary

• Operating profit and income before tax increased, driven by a semiconductor industry turnaround and strong ICT business results.

• Portfolio rebalancing included the merger of SKI and SK E&S to create an integrated energy portfolio and enhance growth potential.

• Operates as a holding and investment company with diversified business segments including energy, chemicals, IT, telecom, materials, and life sciences.

• 2024 H1 consolidated revenue was ₩63.8 trillion, with operating profit of ₩2.25 trillion.

• Maintains a strong financial position with a consolidated asset base of ₩215 trillion and equity of ₩83 trillion.

Financial highlights

• H1 2024 consolidated revenue: ₩63.8 trillion; operating profit: ₩2.25 trillion; net income: ₩1.18 trillion.

• Consolidated operating profit rose 10.1% YoY to KRW 0.76 tn.

• Income before tax turned to profit YoY.

• Major unlisted subsidiaries saw combined revenue decrease 25.2% QoQ, but increase 0.3% YoY; EBITDA down 25.4% QoQ and 13.5% YoY.

• H1 2024 consolidated debt ratio: 159%.

Outlook and guidance

• Focus on portfolio innovation, future growth in advanced materials, bio, green, and digital sectors.

• Continued investment in battery, semiconductor, and green energy businesses.

• Favorable results expected in 2H24 for SK E&S as power generation output recovers and cost competitiveness is maintained.

• SK pharmteco and SK siltron anticipate earnings recovery in 2H24 as new orders are booked and wafer demand rises.

• IT Services expects both quantitative and qualitative growth in 2H24, driven by digital factory and cloud business expansion.