[Asia Economy Reporter Ji Yeon-jin] SK Innovation showed strong performance in the early trading session on the 14th. The stock price rose following news that operating profit turned positive due to the effect of rising oil prices, as revealed in the first quarter earnings announced the previous day.
SK Innovation started trading at 263,000 KRW, up 1.9% from the previous day, and during the session, the stock price rose by more than 5%. As of 10:05 AM, the stock price was trading at 266,500 KRW, up 3.29%.
Earlier, SK Innovation reported consolidated sales of 9.2 trillion KRW and operating profit of 502.5 billion KRW for the first quarter. Although sales decreased by 16% compared to the first quarter of 2020, the company returned to profitability with operating profit.
Kang Dong-jin, a researcher at Hyundai Motor Securities, explained, "SK Innovation delivered a surprise performance exceeding market expectations due to the effect of rising oil prices and strong chemical business in the first quarter," adding, "We raised the earnings forecast and adjusted the target stock price upward from 290,000 KRW to 310,000 KRW."
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