South Korea’s top refiner SK Innovation Co. reported a 132.1 percent gain in its fourth-quarter net income and a record-high operating profit for the full year in 2017 as its bottom line was helped by both global recovery in oil demand and lucrative non-refining division.

SK Innovation said in a regulatory filing that it posted a net profit of 365.6 billion won ($340 million) in the fourth quarter ended December, up 132.1 percent from a year ago. Sales increased 30.2 percent to 13.12 trillion won in the same period. Operating profit, however, fell 0.5 percent to 845.3 billion won during the October to December period last year.

Shares of SK Innovation ended at 204,500 won on Wednesday, down 2.62 percent or 5,500 won from the previous session.

For the whole of 2017, SK Innovation raised record-high operating income of 3.2 trillion won, surpassing the 3 trillion won mark for the second straight year. The company is the only industry player to raise 3 trillion won or more in annual operating income. SK Innovation’s net income jumped 28.6 percent to 2.2 trillion won in 2017 from a year ago. Sales reached 46.8 trillion won, up 18.5 percent on year.

An unnamed official from SK Innovation attributed the strong performance to its strategy on enhancing non-refining businesses involving chemical and lubricants to leverage against volatile oil market.

SK Innovation raised record high operating income of 1.38 trillion won from its chemical business last year, on sales of 9.3 trillion won. The company also raised 504.9 billion won in operating income from its lubricants business - the second highest amount since 509.6 billion won in 2011.

SK Innovation has been reinvesting its best earnings to bolster secondary battery capacity. It is expanding production facilities at its second battery plant in Seosan, South Chungcheong Province. It is also building a new lithium-ion battery plant in Hungary and adding two more lithium-ion battery separators.

The company will pay out 8,000 won per share in dividend for the fiscal 2017 with the total reaching all-time high of 745.6 billion won.

By Kang Doo-soon and Lee Eun-joo

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