SK Innovation Co., South Korea’s leading refiner and parent firm of battery maker SK On Co., said Thursday its second-quarter net losses deepened due to lower refining margins and a slowdown in electric vehicle (EV) markets.

Net losses for the three months to June widened to 639.71 billion won (US$467 million) from 120.44 billion won in the same period of last year, the company said in a statement.

“Declining refining margins weighed on the bottom line despite a steady flow of production at the company’s overseas oil fields. Increased fixed costs deriving from a lower utilization rate at its battery affiliate (SK On) amid EV slowdown also affected it,” the company said.

SK Innovation holds a 89.5 percent stake in SK On.

Looking ahead, the company expected refining margins and EV battery sales will recover from late this year, helped by seasonal demand and new EV models scheduled by carmakers.

Operating losses narrowed to 45.84 billion won in the second quarter from 106.8 billion won a year ago. Sales ros
e 0.4 percent to 18.86 trillion won from 18.73 trillion won.

From January to June, net losses widened to 737.33 billion won from 172.39 billion won in the year-ago period.

Operating profit more than doubled to 578.89 billion won in the first six months from 268.2 billion won a year earlier. Sales fell 0.6 percent to 37.65 trillion won from 37.87 trillion won.

Source: Yonhap News Agency