SK Innovation (096770) Q1 2026 earnings summary

Executive summary

• Achieved first LNG production and delivery from Australia's Barossa/CB Gas Field, marking a milestone as the first Korean private company to independently complete the LNG value chain from exploration to delivery.

• Secured operator status for Vietnam's $2.3 billion Quynh Lap LNG power project, targeting completion in 2030 and marking entry into the global LNG market.

• Won over half of the second Korean government ESS procurement tender, supporting expansion in energy storage systems.

Financial highlights

• Q1 2026 revenue rose KRW 4.54 trillion QoQ to KRW 24.21 trillion, up KRW 3.07 trillion YoY, driven by energy business expansion.

• Operating profit increased KRW 1.87 trillion QoQ to KRW 2.16 trillion, up KRW 2.21 trillion YoY, aided by inventory-related gains.

• EBITDA increased to KRW 2.94 trillion, a rise of KRW 1.81 trillion QoQ.

• Profit before tax rebounded to KRW 1.39 trillion from a loss of KRW 4.41 trillion in the previous quarter.

• Non-operating loss narrowed to KRW 767.3 billion, with FX loss of KRW 159.8 billion and derivative loss of KRW 461.5 billion.

• Assets totaled KRW 110.1 trillion, up KRW 4.5 trillion from end-2025; liabilities at KRW 72 trillion, up KRW 2.8 trillion.

• Net debt increased by KRW 2 trillion YTD to KRW 24.6 trillion due to higher working capital.

Outlook and guidance

• LNG portfolio expansion targets 10 million tons by 2030.

• Battery business expects improved utilization and earnings in Europe, with ESS market growth in North America.

• City gas demand to soften in Q2, with preparations for peak summer power demand underway.

• ESS long-duration business to contribute to profits starting 2027.

• Ongoing geopolitical risks in the Middle East expected to sustain oil price volatility and impact inventory effects.