SK energy to spin off lubes business

SK energy Co.’s board has approved a plan to spin off its lubricants business as of October 1, making it a wholly owned company subsidiary. A shareholders’ meeting scheduled for September 11 will finalize the plan. The Seoul-based company will still control the business in terms of management, but will sell a portion of it. SK energy’s lubricant operations posted sales of 1.88 trillion won (US$1.48 billion) and an operating profit of 254 billion won (US$203.29 million) in 2008. According to company officers, the spin off will be to raise funds to invest in the renewable energy sector and to focus on its core businesses, which include oil exploration and refining. (July 3/16, 2009)