The logo of SK Innovation is seen in front of its headquarters in Seoul, South Korea, February 3, 2017. REUTERS/Kim Hong-Ji

SEOUL, April 29 (Reuters) – SK Innovation Co Ltd (096770.KS), owner of South Korea’s top refiner SK Energy, posted on Friday a 182% jump in quarterly profit and said refining margins are projected to stay moderate in the second quarter as tight supply and low inventory continue due to the Russia-Ukraine crisis.

The company’s operating profit rose to 1.6 trillion won ($1.26 billion) in the January-March quarter from 584 billion won a year earlier.

Revenue rose 73% to 16.3 trillion won, slightly below an average analyst estimate of 16.8 trillion won, according to Refinitiv SmartEstimate.

SK Innovation, which has a total refining capacity of 1.115 million barrels per day (bpd) at its plants in Ulsan and Incheon, said it operated its facilities at 77% of capacity on average in the quarter, up from 63% a year earlier.

Peer S-Oil Corp (010950.KS), whose main shareholder is Saudi Aramco (2222.SE), said on Thursday Asia’s regional refining margins were expected to stay firm in the second quarter, supported by seasonal demand and easing pandemic restrictions amid sustained global supply tightness. read more

Shares of SK Innovation, which also has a business supplying batteries for electric cars, were trading up 3.7%, versus a 0.8% rise in the broader KOSPI (.KS11).

($1 = 1,269.3500 won)

Editing by Jacqueline Wong

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