Leading market position in Korea's oil refining and marketing industry, with integrated business portfolio. High operating efficiency through large and integrated facilities. Vulnerable to oil refining and petrochemical business cycles as well as fluctuations in crude oil prices and foreign exchange rates. Decent operating cash flows based on reduced swings in oil prices with margins expected to moderate toward mid-cycle. Capital expenditure (capex) likely to rise, but prudent financial policy to prevent debt from materially increasing over the next 12-24 months. Highly cyclical nature of oil refining industry reflected in cash flow assessment. The stable outlook reflects our expectation that SK Innovation Co. Ltd. (SKI) is likely to maintain solid operating cash flows and a prudent financial policy, keeping its
