Posted December. 20, 2017 08:20,
Updated December. 20, 2017 09:03
SK Holdings, the holding unit of SK Group, has received its first dividend in two months after making an investment in a U.S.-based shale gas company. This is the first time the company has received dividends by making a foreign investment.
SK Holdings said Tuesday that it recently has been paid 100 billion U.S. dollars (10.85 billion won) in dividends from U.S.-based shale gas gathering and processing (G&P) company Eureka Midstream Holdings. The South Korean conglomerate invested over 100 million dollars in the G&P company in October as part of its efforts to strengthen its midstream capabilities in the global natural gas business. SK collected about 1/10 of its investment only in two months.
The profit is a dividend for the fourth quarter of 2017 reflected based on estimation and the company will earn quarterly dividends in the coming year and beyond. SK Holdings says it expects good quarterly dividends thanks to a boom in the shale gas industry.
The company’s main source of revenue came from dividends it receives from subsidiaries and royalty fee. But since the appointment of its CEO Jang Dong-hyun in March, the company has been aggressive in making overseas investments in order to become a global investment holdings company. “This investment has been made after three years of careful review and preparation,” said SK Holdings. “We believed our expertise and know-how in the energy business would produce synergistic effects.”
More than half of the company’s investments of 1.7 trillion won made this year went to overseas. In July, SK Holdings invested in ESR (E-Shang Redwood Group), a leading logistics company in China, and Turo, the No. 1 peer-to-peer car sharing company in the United States. In addition, the company is diversifying areas of investment, making investments in Chinese meat processor Kerchin and clothing companies, such as Canada-based Mackage and U.S.-based Alice + Olivia.