SK Innovation NDR PT 2011Aug Daeshin final...Global oil demand : Underpinned by „Asia-Pacific...
Transcript of SK Innovation NDR PT 2011Aug Daeshin final...Global oil demand : Underpinned by „Asia-Pacific...
Technology-driven Global Energy Company
August 2011
This presentation contains forward-looking statements with respect to financial conditions, results of operations and business of
SK Innovation, and plans and objectives of the management of SK Innovation.
Statements that are not historical facts, including statements about SK Innovation’s beliefs and expectations, are forward-looking
statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results or performance of SK Innovation to be materially different from any future results or performance
expressed or implied by such forward-looking statements.
These materials are not an offer for sale in the United States of the securities of SK Innovation or any of its subsidiaries or affiliates.
No such securities may be offered or sold in the United States absent registration or an exemption from registration under the U.S.
Securities Act of 1933, as amended, and at present there are no intentions to register any offering of such securities in the United States
or to conduct a public offering of such securities in the United States.
I. Corporate Transformation
III. 2Q11 Financial Performance
IV. New Growth Momentum
V. Appendix
P. 3
P. 13
P. 27
P. 36
II. Industry Dynamics & Business Strategy P. 6
Tech Enabled
Global Energy
Company
3
Enhancing
Accountability
& Transparency
“Company in Company”
Management System
Maximizing Biz Potentials,
Enhancing Value Chain
Through Restructuring
Holding
Company
(2007)
CIC
(2008)
Independent
Management
(2011)
E&P R&D
※ As of January 1, 2011
The corporate transformation is a turning point for strengthening the competitiveness
of SK Innovation and each subsidiary company
Challenges
Vision
Changes in the Global
Industry Landscape
Tech Enabled Global
Energy Company
Strengthen
Core
Competitiveness
Transform
Corporate
Culture
Enhance
Expertise
of Biz
Value
Maximization
4
Industry Dynamics
Business Strategy
Mid-term Vision Strategy
II. Industry Dynamics & Business Strategy
Global oil demand : Underpinned by „Asia-Pacific Region‟ demand growth
Growth in „Asia-Pacific Region‟ supports global oil demand
- Recently, Global oil demand forecast decreased to 1.2 MM B/D (-0.2MM B/D) from initial forecast of 1.4 MM B/D,
due to weakness in OECD economies
- However, Asian demand growth showing solid trend (+2.4 MM B/D, 2011~2012)
6
[Oil Demand Growth 2009 ~ 2012] [Global Oil Demand Outlook]
-2.0
1.0 -0.020.3
2009 2010 2011 2012
0.8
1.8
1.2 1.2
2009 2010 2011 2012
<Americas/ Europe/ FSU>
<Asia/ Middle East/ Africa>
Source : IEA Global Oil Market (’11. July)
(MM B/d)
Source : IEA Global Oil Market (’11. July)
80
82
84
86
88
90
92
94
Volume
(MM B/d)
84.9 Mil B/d
91.0 Mil B/d
Regional capacity additions : Moderate / Refining Margin : Solid trend
(MM B/d)
[Global Capacity Additions]
(Source: IEA, Medium-Term Oil & Gas Markets, ’11. June)
7
0
2
4
6
8
10
Singapore Complex GRM
Source : Bloomberg, Macquarie, Company (’11. Jan)
($/Bbl)
[Singapore Refining Margin Outlook]
“The Golden Age”
0
1
2
3
2009 2010 2011 2012 2013 2014 2015 2016
Europe Amercia
M.E. FSU & Others
Asia Asia (trend)
“Need to consider
Shutdowns&
closures”
Global Capacity Additions
- In ‟12, IEA reports +1 Mil B/d from America, FSU, etc ( However, Shutdowns & Closures status must be considered)
- After ‟09, Capacity additions within Asian region displays moderate trend, especially from China
Singapore Refining Margin Outlook : Solid trend throughout the medium-term
8
Resilient fundamentals, despite uncertainties in global economy
[ Asia PX/PTA Growth Outlook]
(KTA)
[Asia Ethylene Spread Trend]
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PX Growth
PTA Growth
(Source : PCI PX WSD Report 2010, Nov)
0
100
200
300
400
500
600
700
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 202002 2003 2004 2005 2006 2007 2008 2009 2010
Upturn Cycle
Rebound from
down-cycle &
economic crisis
“uncertainties, Opportunities”
($/MT)
2011 (E) ~
Source : CMAI, DataStream, Company
※ Spread = Ethylene FOB Korea - Naphtha NEA CFR
Asia Ethylene Spread Trend
- Strong rebound from down-cycle & global economic crisis in 2008 ~ 2009
- Expectation of resilient spreads, despite recent economic uncertainties
PTA Growth in Asia-Pacific : Exceeding PX growth by „double‟ from 2012 ~ 2016
Accelerating global expansion through JV partnership
[ LBO Global Expansion][ New PX Project ]
PX 1,000KTA BZ 560KTA
PX Adsorption
Isomerization
Toluene Disproportionation
Toluene
Mixed Xylene
C9+Aro
0
20,000
40,000
60,000
80,000
100,000
계열 1 계열 2 계열 3 계열 5 계열 6
#1/2 LBO
24,300B/D
(Ulsan)
#3 LBO
9,000B/D
(Dumai)
#4 LBO
13,300B/D
(Spain w/ Repsol)
#5 LBO
26,000B/D
Being progressed• • •
(b/d)
Pursing Regional Leading PX Player
Enhancing product portfolio mix
JV partnership with JX Energy (SK 50%)
PX 1 mil MT/A, CAPEX \960bn, Start-up: 1Q14
Solidifying Leadership in Group III Base Oil
Targeting environment-friendly premium market
“Global Top-tier
Lubricants Company”
JV partnership with JX Energy (SK 72%)
26,000B/D, CAPEX \350bn, Start-up: 2Q12
9
“Operatorship”
Mid-term E&P Aspiration : Global Leading Independent E&P Company
0
20,000
40,000
60,000
80,000
100,000
120,000
09.1Q 09.2Q 09.3Q 09.4Q 10.1Q 10.2Q 10.3Q 10.4Q 11.1Q Mid-term
YLNG Others
Brazil Vietnam
PERU534 Mil BOE P1
(End of 2010)100,000 B/D
Production
(BOE/D)
11. 2Q
Mid-term Target
1 Bil BOE (P1)
Global Leading
Independent E&P Company
Farm-out of high-risk
exploration blocks
M&A (Production blocks)
Houston Tech. Center
Develop Niche Tech.
with SKI’s R&D Center
Portfolio Rebalancing
Competitive Technology
[Mid-term Aspiration for E&P Business]
Pursuing “Global Leading Independent E&P Company” with operatorship capabilities
- Portfolio Rebalancing Strategy / M&A options on production blocks
- HR & Technical Excellence through Houston E&P Technical Center
10
2011
Sales 44 trn
2012
Sales 56 trn
2015
Sales 70 trn
2020
Sales 113 trn
Technology Driven Company
Creating New Growth Momentum
Biz-Model Innovation
Focusing on Green Growth
: Battery, Green Biz, New Energy
Tech-based Globalization &
Global Leading E&P Player
Targeting Global Market &
Strategic Partnership
As-is
To-be
11(Unit: KRW)
2010 Financial Highlights
2Q11 Financials
2Q11 Business Analysis
III. 2Q11 Financial Performance
Exploration & Production
Oil equivalent reserves (P1) : 534 mn BOE
2011 Production (E) : 60,000 BOE/D
SK Energy *
Korea’s No. 1 energy provider
Asia’s No.4 CDU capacity of 1.1 mn b/d
SK Global Chemical *
Strategic product mix with Olefin & Aromatic
Ethylene: 860,000 ton/yr
Propylene: 980,000 ton/yr
B/T/X: 4,018,000 ton/yr
SK Lubricants **
World No.1 Group III Base Oil Producer
Base Oil: 26,000 B/D
Lubricant: 5,800 B/D
Grease: 6,000 ton/yr
* Spin off into SK Energy and SK Global Chemical as of Jan. 1, 2011
** Spin off into SK Lubricants as of Oct. 1 2009
Research & Development
I/E Materials : LiBS, TAC Film, FCCL
HEV, PHEV, EV Battery
Green Energy : GreenPol, GreenCoal, Biofuel
13
5 Year Revenue Profile
5 Year Operating Profit Trend
23,652
27,788
45,737
35,828
43,863
0
10,000
20,000
30,000
40,000
50,000
2006 2007 2008 2009 2010
(bn KRW)
1,165
1,480
1,820
908
1,714
0
500
1,000
1,500
2,000
2,500
2006 2007 2008 2009 2010
(bn KRW)
※ 2010 Operating Profit is KRW 2.0 trillion including SK Lubricants
(KRW bn)
Sales 52,606.4 43,679.1 53,706.4 17,068.4 17,177.9
Operating Profit 2,028.6 1,186.1 2,231.5 1,192.0 451.3
- SK innovation 240.6 329.8 328.4 146.4 94.3
- SK energy 1,409.5 109.9 1,109.1 715.4 97.1
- SK global chemical 124.1 683.8 468.3 242.9 129.4
- SK Lubricants 254.4 62.6 325.7 87.3 130.5
Non-Operating Profit -1,028.8 -309.2 -694.5 11.2 -43.4
Pre-Tax Income 999.9 876.9 1,537.0 1,203.2 407.9
EBITDA 2,518.3 1,962.8 2,933.4 1,324.1 583.4
※ 2011 based on K-IFRS
1) 2008~ 2010, SK Energy Consolidated
2) Operating profit breakdown: Standalone basis
2008 2009 2010
14
1Q11 2Q11
1) Net debt = Interest bearing debt – Cash & Cash equivalents
2) 2008~2009, SK Energy Consolidated
3) 2010~2011.1H based on K-IFRS
(KRW bn)
Assets 24,942.8 24,667.3 29,405.4 30,913.1
- Cash & Cash Equivalents 4,067.4 2,827.7 3,072.8 2,091.8
Liabilities 17,274.1 16,559.8 17,854.0 18,408.8
- Debt 11,370.7 9,298.6 10,818.8 9,499.0
(Net Debt) 7,303.4 6,470.9 7,746.0 7,407.2
Shareholders‟ Equity 7,668.7 8,107.5 11,551.4 12,504.3
- Paid-in Capital 468.6 468.6 468.6 468.4
Net Debt to EBITDA 2.9 (x) 3.3(x) 2.7(x) -
Net Debt to Equity 95% 80% 67% 59%
2008 2010
15
1H112009
※ 2008 numbers reflect the SKICO merger as of Feb. 1, 2008
2009 numbers reflect the spin-off of SK Lubricants as of Oct. 1, 2009
16
Facility Investment 988.2 623.1 273.4 335.0
- Refining 680.2 270.4 126.9 64.6
- Petrochemical 223.6 258.3 113.7 6.4
- Lubricants 4.6 12.4 - 73.6
- Others 79.8 82.0 32.8 190.4
Marketing Investment 119.4 81.9 40.9 27.0
E&P 451.4 315.9 395.7 128.0
R&D, etc. 99.9 73.7 96.6 28.2
Sub-Total 1,658.9 1,094.6 806.6 518.2
Equity Investment 106.0 64.4 128.3 140.3
Total 1,764.9 1,159.0 934.9 658.5
(KRW bn) 2009 2010 1H112008
※ 2008 numbers reflect the SKICO merger as of Feb. 1, 2008
2009 numbers reflect the spin-off of SK Lubricants as of Oct. 1, 2009
17
EBITDA 2,518 1,963 2,933 1,908
Dividends Income 44 28 29 10
Asset Disposals 114 366 278 260
CAPEX 1,659 1,095 807 518
Equity Investment 106 64 128 140
Interest Expense 400 413 334 164
Dividend Payout 195 195 195 195
Corp. Tax 70 140 273 150
Free Cash Flow 246 450 1,503 1,011
(KRW bn) 2009 2010 1H112008
18
Strong crude price and healthy middle distillate demand led to favorable refining margin
Refining Margin Trend : Strong Dubai Crude Oil : Strong
Dubai Crude Oil ($/Bbl) ($/Bbl)
Due to Japan earthquake and electricity shortage
issues in China, Middle Distillates displayed strength
Gasoline margins remained stable owing to strong
trends in Asia and M.E. despite weakness in U.S.
Despite weak demand from U.S., healthy trends from
emerging economies contribute to strong crude price
Brent displays ongoing high mark due to supply
disruption from Libya
- Oil prices under the influence of ‘supply risk premium’
0
20
40
60
80
100
120
140
07-10 08-02 08-06 08-10 09-02 09-06 09-10 10-02 10-06 10-10 11-02 11-06
Diesel/HSFO
Gasoline/HSFOSingapore Simple Margin
-20
0
20
40
60
80
07-10 08-02 08-06 08-10 09-02 09-06 09-10 10-02 10-06 10-10 11-02 11-06
U$/B (average) 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 QoQ
Dubai 75.8 78.1 73.9 84.3 100.5 110.7 10.2
Gasoline/HSFO 16.9 16.9 14.6 20.1 22.2 22.1 -0.1
Diesel/HSFO 13.2 18.9 18.4 22.5 28.5 29.8 1.3
Singapore Simple △0.60 △1.71 -0.46 -1.03 -0.09 1.67 1.76
Source : JBC, Company
19
Despite favorable margin trend, Operating profit sharply declined owing to one-off items
336.4
154.9
369.7
715.4
97.1
7,832.1 7,127.5
8,616.3
12,242.2 12,012.9
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
0
200
400
600
800
1,000
1,200
1,400
2Q10 3Q10 4Q10 1Q11 2Q11
Operating Profit Sales (Sales : Bn KRW)
2Q11 Analysis (QoQ) Major Issues
(OP : Bn KRW)
IEA release Strategic Petroleum Reserve (June 23rd)
- 28 member nations to release 60MM b/d in 1 month
China‟s diesel import duties/ New diesel specs
- Diesel import duties: 6% 0% (’11.Jul 1 ~ ’11.Dec 31)
- Tighter quality specifications (As of ’11.Jul 1)
Higher refining margins / Regular maintenance
One-off items
- Domestic price discount (3months, 100won/liter)
- Fine imposed by Fair Trade Commission
Diminishing effect of 1Q inventory gain
- End of March 108.7$/B vs. End of June 107.8$/B
※ 2010 : K-GAAP, 2011 : K-IFRS
20
Reduced spreads on China‟s tightening monetary policy and end of regional maintenance
Ethylene spreads decline from slowing downstream
demand and end of 2Q regional maintenance
Weak Polymer spreads on China‟s monetary policy
and power shortage etc.
Bearish PX spreads owing to normalization of Japan
earthquake hit facilities, regional capacity additions
and delayed purchase by PTA producers in anticipation
of lower PX price trend
SM spreads decreased on slow downstream demand
Olefin Spread : Weak Aromatics Spread : Bearish
Source : ICIS, Platts, Company
(US$/Ton)
0
100
200
300
400
500
600
700
800
900
1,000
'10/1 2 3 4 5 6 7 8 9 10 11 12 '11/1 2 3 4 5 6
PE-Naph PP-Naph
SM-Naph PX-Naph U$/Ton 2Q10 2010 1Q11 2Q11 QoQ
Naphtha 708 723 915 995 9%
PE-Naph 468 482 420 359 -15%
PP-Naph 594 573 616 601 -2%
PX-Naph 260 278 712 516 -28%
SM-Naph 446 468 491 415 -16%
21
149.7
76.6 8.8
242.9
129.4
3,207.7 2,767.4
3,291.3
3,891.4 4,186.3
-
1,000
2,000
3,000
4,000
5,000
-
100
200
300
400
2Q10 3Q10 4Q10 1Q11 2Q11
Operating Profit Sales
Olefin spreads to improve on 3Q regional maintenance
plans and increased downstream utilization on easing
power shortages in China and peak seasonal demand
* Cracker Maintenance : Singapore Shell, Shanghai SECCO,
CPC, Formosa etc. (3.6 mn MT)
Aromatic spreads to recover on regional troubles and
advent of the petrochemical peak season, despite
continued concerns on China‟s monetary policy
2Q11 Analysis (QoQ) 2H 2011 Outlook
Strong Naphtha price on rise in oil price: QoQ 9%↑
Slowing downstream demand on China‟s monetary
tightening policy and power shortage
Increased regional supply from completion of 2Q
maintenance season, new PX capacity additions and
Japanese earthquake recovery
Bullish Butadiene prices on increased automobile
sales and strong demand in US and Europe
- 2Q11 Butadiene Spread: $2,412/MT (QoQ 69%↑)
(OP: bn KRW) (Sales: bn KRW)
KRW 129.4 bn operating profit from weak spreads and reduced sales volume QoQ
※ 2010 : K-GAAP, 2011 : K-IFRS
22
99.6 110.9 122.1
160.1 131.4
187.6 206.0
220.5
277.8
245.2
0
50
100
150
200
250
300
2Q10 3Q10 4Q10 1Q11 2Q11
Operating Profit Sales
Brazilian government approval for sale of SK do Brasil
- Approval date: July 12, 2011
- Final deal closing : July 21, 2011
(bn KRW)
Major Issues
BOE/D TotalOil
Portion
Peru
88
Vietnam
15-1Peru
56
Yemen
LNG
2Q11 64,664 32% 21,564 5,299 24,166 12,078
1Q11 63,175 36% 20,324 6,639 21,847 12,383
2Q Average Daily Production
※ 2010 : K-GAAP, 2011 : K-IFRS
2H11 Exploration activity plans
- Colombia CPO(since July)
- Vietnam 15-1/05(since June)
- Vietnam 123(scheduled in August)
Decreased operating profit due to reduced sales volume from delayed loading
2011 average daily production to reach 60,000 BOE/D
56%60%
63%
75%
78% 76%70%
65%56% 47%
47%
47%
-
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 2011E
Peru Vietnam Brazil Others YLNG Oil Ratio
Yemen LNG
Start-up
4Q09
(BOE/D)
24,00026,000
36,000
40,000 40,40040,500
41,70044,022
73,815
66,785
51,764
60,000 *
Peru LNG
Start-up
3Q10
Vietnam 15-1
Sutuvang field
& Peru 56
Start-up 4Q08
23,000
23* Reflects Brazil asset sale to Maersk Oil as of Jan. 1, 2011
Sale of
Brazil
BM-C-8
* Gas 378 mn boe = 2.27tcf (trillion cubic feet)
Oil Gas Total
Peru 88&56
Vietnam
Peru 88&56
YLNG515 mn bbl
Others Others 19 mn bbl
128 mn bbl 406 mn boe* 534 mn bbl
400440
500 520 503
534
300
500
2005 2006 2007 2008 2009 2010
(Mn BOE/D)
Oil & Gas Ratio534 Million Barrels (P1) Breakdown
Proven Reserve By RegionProven Reserve Growth (P1)
* As of the End of Dec 2010
Gas76%
Oil24%
* As of the End of Dec 2010
LatinAmerica78.1%
MiddleEast
19.1%
Africa 0.4%
SE Asia 2.5%
24
25
Increased operating profit from strong base oil earnings owing to crude oil price stabilization
2Q11 Analysis (QoQ) Major Issues
Stable earnings to continue on healthy base oil price
- Increasing demand for environmental friendly engine oil
Lubricants plant to be completed in China
- Construction Period : May 2010 ~ Dec. 2011
- Plant Capacity : 80,000 Ton/Yr
No.4 LBO JV with Repsol well under way
- Expected start-up : End of 2013
- Plant Capacity : 650,000 Ton/Yr
59.8
112.8
75.5 87.3
130.5476.3
582.1 534.5
611.1
672.9
-
100
200
300
400
500
600
700
0
50
100
150
2Q10 3Q10 4Q10 1Q11 2Q11
Operating Profit Sales(OP: bn KRW) (Sales : bn KRW)
※ 2010 : K-GAAP, 2011 : K-IFRS
Increased earnings due to healthy market demand
- Higher sales volume and earnings owing to
increased base oil spreads and sales price
- Continued tightness in base oil market conditions
due to strong demand and limited supply growth
Lithium-ion Battery Technology
I/E Materials : LiBS / FCCL / TAC
Green Tech : Geen Pol / Green CoalTM / Biofuel
IV. New Growth Momentum
26
No.1 Production Line No.2 Production Line
Location SK Innovation R&D Center Seosan Industrial District
Completion May 2010 2012
Capacity (MWh) 100MWh 500MWh
Capacity (# of Vehicle)
HEV 70,000 ~ 100,000 350,000 ~500,000
EV 5,000 25,000
Proven Lithium-ion Battery and advanced packing technology
2002 2009
Started manufacturing LIB for electronic devices
2005
Launched Large Format LIB project for xEV application
Launched project for EV
2010
Full automation of large format
LIB production
2012
• Commercial Production
• Supply to MFTBC
• Awarded HMC
EV Project
• Partnership with
MFTBC
20122011
• Supply to HMC
• Awarded Daimler‟s
EV Project
20102009
Milestone
Contracts
27
Multiple technology areas in works for a wide range of potential applications
Applications
Energy Storage System
Automotive
Key Technology
Areas
e
Electrode
Separator
Cell/Pack
BMS
Higher Power Less Number of Cells Lower Cost
Key Competitiveness
• Thin Electrode Coating
• Highly Permeable LiBS
• Proprietary Electrolyte Additives
28
Location Line Capacity Operation Usage
ChungJoo #1~#3 58 ‘05~’09
IT
Materials
Jeung
Pyoeng
#4~#5 72 ’10
#6~#7 72 ‘12xEV
Battery
Total 202 by ‘12
SK Innovation‟s LiBS Capacity
(unit: Mn m2 /year)
Becoming a Global Top 3 player in premium LiBS market (1st in Korea)
Producing world-class low-shrinkage/heat resistant products and ultra-thin film
with superior strength and permeability
Securing global market share through capacity expansion
Anode (Positive)
Cathode (Negative)
Separator
29
Pre-marketing activities from current Demo Line
Develop continuous curling technology using infrared rays
Commercial production in 2012
2010 2011 2012
Mass productionCommercial Test
Mechanical Completion
Capacity Location
#1 Line 4.0Jeung
Pyoeng
[unit: bn USD]
Display
Mobile IT
1.50
0.88
0.46
2008 2015
0.72
Construction Start-up
SK Innovation‟s FCCL Capacity
(unit: Mn m2 /year)
( Source : Displaybank )
30
2010 2015
1.25
2.13 1.79
3.31
High-performance TAC Film for globally dominant Korean LCD makers
Growing demand for high-performance optical films
Commercial production in 2012
Mass production
Mechanical Completion
Construction Start-up
TAC Film Application
Domestic
Global
(Unit: bn USD)
( Source : Displaybank )
2010 2011 2012
Commercial Test
31
Propylene Oxide
(56%)
CO2 (44%)SK Innovation‟s
Proprietary Catalyst
Converting CO2 into value added polymer products through Green Pol™
Producing environment friendly polymer products using breakthrough technology
GreenPolTM
Clean burning with no soot or toxic gas
Superior optical properties
Enhanced barrier properties(O2/H2O)
Less expensive to make than conventional polymer products
Advantages of Green Pol™
Commercial production
Commercial Plant Construction
Market Development
2010 2011 2013
Commercial Test
2012
32
2010 ~ 2011 2012 ~ 2013 2014 ~
Technology Development
• Lab-scale Test/
• Pilot Plant Operation
Scale-up Verification
• Demo Plant Construction
and Operation
Commercialization
• Commercial Plant
Construction and Operation
Breakthrough Green Coal™ technology with reduced CO2 emission and low cost
Chemical
Products
Electricity
Synthetic
Petroleum
Current
Tech.
CO+H2
1,500℃
1,000℃
Advanced
Tech.
High Quality
Low Quality
ProductsGasifyCoal
※ Participated in Korean government-sponsored project with POSCO, government aid of 25bn KRW (’11~’12)
33
Developing bio fuel tech. to produce clean energy from marine-based biomass
Focusing on Biobutanol as another alternative energy source using catalyst tech.
Low production cost compared to Bioethanol
Current Tech.
Marine-based
Biomass
Fermentation
Advanced Tech.
Fermentation
Catalyst
Technology
Biobutanol
34
Korea Refining & Petrochem Landscape
Utilization Rate
Maintenance Schedule
E&P Blocks
Holding Company Structure
V. Appendix
35
36
* The total number of service stations in Korea is 12,862 which includes 370 other service stations (End of 4Q09)
(K b/d for refining / K ton/yr for petrochem)
Ulsan CLX Incheon CLX SK Energy GS Caltex S-Oil Hyundai Total
CDU 840 275 1,115 840 580 390 2,925
Mkt Share - - 34% 31% 13% 14%
Service Stations - - 4,561 3,537 1,880 2,371 12,349
De-sulfurizer 542 161 703 313 309 189 1,514
% CDU 65% 59% 63% 37% 53% 48% 52%
Naphtha/Gasoline 82 65 147 123 40 58 368
Diesel/Kerosene 268 96 364 190 121 131 806
HSFO 192 - 192 - 148 - 340
Cracker 172 - 172 215 149 58 594
% CDU 20% - 15% 26% 26% 15% 20%
RFCC 127 - 127 93 73 - 293
HOU 45 - 45 120 73 27 265
Coker - - - - - 31 31
Ethylene 860 860 860
Propylene 980 980 980
BTX 2,720 1,045 3,765 2,800 1,000 7,565
PX 758 758 1,200 1,600 3,558
*
37
SK Global Chemical
SK Energy
* #1 NCC shutdown: Nov. 2008~Nov. 2010
Unit 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
CDU 82% 72% 69% 71% 74% 80% 75% 83% 81% 78%
Ulsan 94% 80% 77% 83% 88% 91% 87% 96% 93% 88%
Incheon 42% 47% 44% 35% 30% 44% 39% 44% 46% 47%
HOU 100% 73% 98% 100% 100% 98% 99% 99% 81% 100%
#1 RFCC 100% 100% 100% 100% 100% 99% 100% 100% 83% 74%
#2 RFCC 100% 100% 100% 100% 100% 97% 69% 100% 100% 100%
Unit 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
NCC* 72% 77% 77% 77% 77% 77% 77% 63% 96% 99%
PE 94% 100% 97% 98% 98% 86% 97% 77% 95% 95%
PP 93% 100% 100% 98% 100% 98% 100% 81% 100% 100%
PX 98% 98% 74% 86% 100% 100% 100% 100% 100% 100%
38
SK Global Chemical
SK Lubricants
SK Energy
Capacity 2009 2010 2011
Olefins#1 NCC (200 kTon/yr) - - -
#2 NCC (660 kTon/yr) - 10/4~11/4 (32 days) -
Polymers
#1 PE (220 kTon/yr) - 10/12~11/4 (24 days) -
#2 PE (190 kTon/yr) - 10/20~11/5 (17 days) -
#1 PP (183 kTon/yr) - 10/18~11/2 (16 days) -
#2 PP (193 kTon/yr) - 10/20~11/4 (16 days) -
EPDM(20 kTon/yr) - 10/18~11/26 (40 days) -
Aromatics
#2 PX (348 kTon/yr) 8/15~9/28 (45 days) - -
NRC (28.0 MB/D) 8/10~9/23 (45 days) - -
#1 PX (410 kTon/yr) 11/2~11/30 (29 days) - -
NAC (45.0 MB/D) 11/2~11/30 (29 days) - -
NRP (28.0 MB/D) - 6/21~7/25 (35 days) -
Capacity (b/d) 2009 2010 2011
# 1 LBO (12,300) 4/2~4/27 (26 days) - 3/7 ~ 3/27 (21 days)
# 2 LBO (12,000) 4/2~4/27 (26 days) - -
# 3 LBO (9,000) 11/11~12/2 (22 days) 4/27~5/9 (13 days) 10/8 ~ 10/29 (22 days)
Site Capacity (b/d) 2009 2010 2011
Ulsan Complex
#1 CDU (60,000) - 5/11~5/25 (15 days) 9/15~10/11 (27 days)
#2 CDU (110,000) 6/1~7/4 (34 days) 5/12~5/24 (13 days) -
#3 CDU (170,000) - 6/28~7/25 (28 days) -
#4 CDU (240,000) 8/26~9/28 (34 days) - 3/10~3/17 (8 days)
#5 CDU (260,000) - - 5/8~6/10 (34 days)
HOU (45,000) 4/2~4/27 (26 days) - 3/7~3/22 (16 days)
#1 RFCC (57,000) - - 5/10~6/5 (27 days)
#2 RFCC (70,000) - 6/28~7/31 (34 days) -
Incheon Complex
#1 CDU (75,000) - - -
#2 CDU (200,000) - - 6/13~7/25 (43 days)
Region (Oil & Gas)Ownership
(%)Participation
Initial
ProductionContract Period Operator
Egypt/North Zaafarana (O) 25.0 Jun. 1989 1994 Jun.1989 ~ Jan. 2013 PICO
Peru/Block 8 (O) 8.33 Jul. 1996 1996 May. 1994 ~ May. 2024 Pluspetrol
Cote d Ivoire /CI-11(O&G) 12.96 Jan. 1997 1997 Jan.1993 ~ Jul.2019 Afren
Vietnam/15-1 (O) 9.0 Oct. 1998 2003 Oct. 1998 ~ Oct. 2023 Cuulong JOC
Libya/NC-174 (O) 8.33 Feb. 2000 2004 Feb. 1990 ~ Dec. 2015 Eni N.A.
Peru/88 Camisea (O&G) 17.6 Dec. 2000 2004 Dec. 2000 ~ Dec. 2040 Pluspetrol
Algeria/Issaouane (O) 8.5 Nov. 1991 1998 Jun. 1996 ~ Jun. 2011 Repsol-YPF
Peru/56 (O&G) 17.6 Sep. 2004 2008 Sep. 2004 ~ Aug. 2044 Pluspetrol
※ Offshore block names are bold and italicized
LNG ProjectOwnership
(%)Participation
Initial
ProductionContract Period Operator
Yemen LNG 6.9 1997 Oct. 2009 Dec. 2008 ~ Dec. 2033 Total(39.62%)
Peru LNG 20.0 2003 Oct. 2010 Dec. 2000 ~ Aug. 2044 Hunt(50%)
Oman LNG 0.8 1996 - - Shell(30%)
Qatar LNG 0.4 1999 - - ExxonMobil(24%)
39
※ Offshore block names are bold and italicized
Region Block Ownership (%) Participation Operator (%)
Kazakhstan Zhambyl 6.75 Jan. 2009 Kaz Munai Gas(73)
U.K
North Sea
P1077 (9/2b & 9/2c) 30 Jun. 2006 Nautical (35)
P1575 (9/6 & 9/7b) 30 Jul. 2009 Nautical (35)
Indonesia NE Madura I 37.5 Oct. 2003 KNOC (50)
Vietnam15-1/05 25 Apr. 2007 PVEP (40)
123 20 Jun. 2008 Santos (50)
Cote d’lvoire Cl-01 15 1995 Afren (65)
Madagascar Majunga 10 Jun. 2006 ExxonMobil (50)
Australia
WA34R 10 Aug. 1998 ENI (39)
WA-425-P 30 Feb. 2009 Hunt (30)
WA-431-P 30 Apr. 2009 Hunt (30)
U.S.A Iberia North 70 Oct. 2004 CSV
Peru Z-46 60 Jul. 2007 SK Innovation
Equatorial GuineaArea D 9.4 1995 Marathon Oil (84.6)
Block S 25 Dec. 2009 CNOOC (45)
Colombia
CPE-5 28.6 Sep. 2008 BHP (71.4)
CPO-4 50 Dec. 2008 SK Innovation
SSJN 5 50 Dec. 2008 SK Innovation
VIM-2 100 2010 SK Innovation
SSJS-1 30 2010 Ecopetrol (70)
40
1) SK C&C IPO on Nov. 11, 2009
2) SK Holdings ownership over SK Innovation changed from 17% to 31% after the tender offer by SK Holdings in Oct. 2007
and increased again to 33% after additional acquisition of SK Innovation shares (Oct. 2008~Jan. 2009)
3) SK Lubricants spun off on Oct. 1, 2009
4) Corporate name changed to SK Innovation & new subsidiaries SK Energy and SK Global Chemical spun off on Jan. 1, 2011
100 % 4) 100 % 3)
39.1%
83.1%23.2%
94.1% 42.5%
40.0%
33.4% 2)
31.8% 1)
SK Encar 87.5%
Netruck 67.3%
etc.
SK Petrochemical 100 %
etc.100 %
38.3 %
50 %
etc.
100 % 4)
41
SK Innovation Investor Relations
Tel: +82-2-2121-5061~5, 5451~8
Fax: +82-2-2121-5698
E-mail: [email protected]
www.SKinnovation.com
End of Document