[Corporate Tidbits]SKC CFO Shows Renewed Confidence After Prolonged Losses

(Seoul=Yonhap Infomax) Hak Seong Kim – "As a member of management, I feel a tremendous sense of responsibility," "We sincerely apologize to our investors," "This year, we will do our utmost to deliver better results to our shareholders."

Yoo Ji-han, Chief Financial Officer (CFO) of SKC Co., a key materials affiliate of South Korea's SK Group, has frequently offered apologies during the company's quarterly earnings conference calls. The reason: SKC has remained mired in losses for more than two years.

Yoo, a former executive at Samsung's Future Strategy Office, previously led business development at SK Siltron and headed the investment team at SK SUPEX Council before being appointed CFO of SKC in December 2023. Even for Yoo, steering a company through such a prolonged period of red ink was unprecedented.

However, during the most recent earnings call on the 5th, Yoo appeared notably more upbeat, with a renewed sense of confidence evident in his remarks. The tone of the call was markedly different.

While SKC posted a net loss of 52.8 billion won ($39.6 million) in the third quarter, several indicators pointed to a potential turnaround.

The operating loss narrowed both year-on-year and quarter-on-quarter. Revenue rebounded to over 500 billion won ($375 million) for the first time in two years. Notably, sales from the secondary battery copper foil business—long considered a weak spot—soared 138% year-on-year to 166.7 billion won ($125 million).

Yoo attributed the improved performance in battery materials to increased copper foil sales for energy storage systems (ESS) in North America. "We believe we have secured a clear growth momentum," he said.

He further noted that the Malaysian copper foil plant, which benefits from lower manufacturing costs, achieved breakeven in September, with production expected to surpass that of the domestic Jeongeup plant in the first quarter of next year.

SKC's EBITDA (earnings before interest, taxes, depreciation and amortization) loss shrank from 24.3 billion won ($18.2 million) in Q2 to 7.8 billion won ($5.8 million) in Q3, raising the possibility of a return to positive EBITDA in Q4.

Yoo also highlighted that the company's new glass substrate business—which accounts for a significant portion of SKC's market capitalization—is set to gain traction, with additional investments under consideration.

"While full normalization of profitability will take more time, we are seeing meaningful recovery across our businesses, with improvements in both sales and earnings each quarter," Yoo said.

Although words like "responsibility," "apology," and "regret"—once staples of Yoo's statements—were absent this time, he acknowledged that challenges remain. When an analyst congratulated him on narrowing the Q3 loss, Yoo replied, "It feels too early for congratulations. We will continue to work harder."

(Industry Desk, Hak Seong Kim) hskim@yna.co.kr

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