[Market Focus] SK Innovation Jumps 14% on Hopes for Improved Second-Half Earnings

SK Innovation is showing strong performance in early trading.

As of 9:05 a.m. on June 30, SK Innovation was trading at 111,600 won, up 14.11% (13,800 won) from the previous trading day.

Investor sentiment appears to have improved following positive analyst reports on SK Innovation's earnings outlook for the second half of the year.

Lee Yongwook, an analyst at Hanwha Investment & Securities, estimated second-quarter sales and operating loss at 18 trillion won and 257.1 billion won, respectively. He also predicted, "Refining margins showed a stronger rebound in June following the recovery in May, so profitability is expected to improve significantly in the third quarter." For the battery business in the second quarter, North American shipments are estimated to have increased by 26% quarter-on-quarter, driven by Hyundai Motor's Metaplant electric vehicle production.

However, the company still faces the challenge of addressing its borrowings, which exceeded 49 trillion won on a consolidated basis in the first quarter. Lee emphasized, "For sustainable growth, the most important factor is whether the company can improve its financial structure by reducing net borrowings." SK Innovation's net borrowings amount to 32.8531 trillion won, and its debt ratio has surpassed 200%.