SK Innovation Shares Rally on Hopes for Higher Oil Prices, Wider Margins

- Advertisement -


By Kwanwoo Jun
- Advertisement -

Shares of SK Innovation Company rose on Wednesday on expectations of higher oil prices and wider refining margins.

- Advertisement -

Shares of the South Korean energy company broke a five-season losing streak and rose 8.3% to 261,500 won ($220), its fastest daily percentage gain in a month. In comparison, the Kospi stock benchmark was up 1.3% in afternoon trade.

Last month’s Nymex crude rose 3.8% to a two-month high at $81.22 a barrel after rallying on Tuesday. The increase was the biggest one-day percentage increase in more than a month to come amid concerns over little progress in US-Russian talks to ease tensions over Ukraine.

- Advertisement -

SK Innovation’s refining segment is expected to report operating profit in the fourth quarter, thanks to a wider margin than a year-ago loss, according to Seoul-based NH Investment & Securities on Wednesday.

The brokerage said the firm’s oil-refining margins are likely to improve as industrial activity in emerging economies further normalizes and borders reopen. It added that SK Innovation’s rapidly growing battery business is expected to drive further earnings growth.

Write to Kwanwoo Jun at [email protected]

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox