SK On posts 80.5 billion won operating loss in Q3... expects gradual sales recovery in Q4

[Financial News] SK On recorded revenue of 1.5263 trillion won and an operating loss of 80.5 billion won in the third quarter of this year.
According to third-quarter results announced by SK Innovation Co., Ltd. on the 29th, SK On’s sales volume declined, and the base effect of one-off earnings recorded in the previous quarter led to decreases in both revenue and operating results compared with the previous quarter. SK On explained that while it continued companywide cost-cutting and operational efficiency efforts, its underlying profitability, excluding one-off factors, showed an improving trend.
SK On expects sales to recover gradually in the fourth quarter as major customers increase their sales volumes. It anticipates that demand in North America could gradually recover, based on major customers’ sales trends and policy support in some regions. It expects electric-vehicle support policies in major European countries and growing preference for locally produced products to have a favorable effect on the European market.
An SK On official said, “We expect market uncertainty to persist, and have decided to continue optimizing production and supply operations in line with customer demand, as well as companywide cost-cutting efforts,” adding, “We plan to actively pursue additional ESS orders to sustain the improving trend in our earnings.”
On the same day, SK Innovation Co., Ltd. said SK On had made meaningful progress in expanding orders for energy storage systems (ESS) in North America and securing a supply chain for lithium iron phosphate (LFP) materials for ESS.
SK On has signed a supply agreement with U.S.-based NeoVolta for about 9 GWh of LFP pouch cells for ESS, and has also signed agreements with L&F Corp. and POSCO Future M to supply LFP cathode materials for ESS.

[email protected] Kim Dong-chan Reporter