+ A

SK Innovation pays interim dividend of 1,600 won per share

Aug 01,2019
SK Innovation is paying an interim dividend for the third consecutive year, positioning itself as one of the highest dividend-paying stocks in the oil refining industry.

The company announced Friday it will pay a dividend of 1,600 won ($1.35) per share to people holding shares as of June 30. The dividends will total 141.1 billion won. A second dividend is possible for the second half.

Last year the company’s dividend payout ratio was 45 percent of net profits.

SK Innovation has been paying interim dividends since 2017. It has also been increasing its total dividends each year.

In 2015, it paid 4,800 won per share, which increased to 8,000 won in 2017 and 2018.

While S-Oil has been known for its dividends among oil refiners, it started reducing them last year. Industry analysts said S-Oil’s interim payout this year will be between 50 won and 100 won per share.

For the full year, S-Oil paid a dividend of 5,900 won per share in 2017, which fell to 750 won last year. In 2018’s fourth quarter, the company reported 292.4 billion won in operating losses.

S-Oil reported an operating loss of 90.5 billion won in the second quarter. It blamed major facility maintenance costs for the losses. S-Oil will likely announce the amount of its interim dividend today.

SK Innovation said it was able to keep paying high dividends due to its business structure. Rather than focusing on oil refining alone, which has been facing difficulties due to weakening global demand and slow market growth, it has been developing new product lines in chemicals and lubricants.

In the second quarter, 52 percent of SK Innovation’s total operating profit was from the chemical and lubricant businesses, according to the company.

“Innovation in our structure is helping the company pay interim dividends and increase shareholder value,” an SK Innovation spokesperson said.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]