Seoul: SK Innovation Co., South Korea's prominent energy firm, announced a return to profitability in the second quarter, driven primarily by increased earnings from its lubricants sector. The company reported a net profit of 73.5 billion won (US$51.1 million) for the quarter ending in June, a significant turnaround from a net loss of 1.03 trillion won during the same period in 2025.

According to Yonhap News Agency, SK Innovation attributed the improved financial results to enhanced margins in its lubricants business. The margins benefited from supply disruptions faced by competitors due to the closure of the Strait of Hormuz. This situation allowed SK Innovation to capitalize on the increased demand for lubricants.

Additionally, the company's performance was bolstered by higher battery sales in Asian markets and a tax incentive under the U.S. Inflation Reduction Act (IRA), further supporting the quarterly earnings. Despite the positive results, SK Innovation acknowledged the challenges posed by the uncertain geopolitical climate in the Middle East. The company emphasized its strategic focus on maintaining a stable supply of petrochemical products while adapting to market demands to sustain profitability.

In terms of operating profit, SK Innovation recorded 3.48 trillion won in Q2, a substantial recovery from an operating loss of 401.56 billion won the previous year. The company's sales also saw a significant increase, rising by 49.9 percent to 29.15 trillion won from 19.45 trillion won in the corresponding period last year.