SK Innovation Co., South Korea's top refiner, said Thursday it logged a bigger net loss in the fourth quarter as a sharp fall in oil prices hurt the value of crude stockpile and cracking margins.
  

Net loss reached 536 billion won ($491.65 million) in the October-December period, further widening the 62 billion won deficit tallied a year ago, the company said in a regulatory filing.
  

Operating loss came at 463 billion won, while its sales declined 1.6 percent on-year to 16.11 trillion won.
  

The firm's profit was hurt by a drop in oil prices, battered heavily after the Organization for Petroleum Exporting Countries in late November refused to cut its supply in a price war against rising U.S. shale producers.
  

Dubai crude was trading at $93.52 on Oct. 1, but it shed about $40 to slip to $53.60 on Dec. 31, undervaluing inventory by local refiners, which heavily rely on imports from the Middle East.
  

For all of 2014, the refiner swung to an operating loss of 224.1 billion won, falling in the red for the first time in 37 years. Sales inched down 1.2 percent to 65.87 trillion won.
 

"Operating deficit was attributable to the sluggish refinery business in the wake of the weak global demand and supply glut. The undervaluation of crude stockpiles expanded the loss due to the plunge in global oil prices in the fourth quarter," the company said in a release.
  

Last year, the company posted operating profits in oil exploration projects, chemical and lubricant businesses, but their combined profits were outstripped by deficits in the main stay refining business.
  

Cracking business booked 406 billion won of operating profits through September, but loss in the fourth quarter dented the previous profits.
  

The company said it will not give out dividends for 2014 due to the poor performance, noting it is a "temporary change."
  

"We have pursued stable dividend growth, but decided not to offer dividends this year due to poor earnings and uncertainties in the business environment," Cha Jin-seok, the chief financial officer of SK Innovation, said during a conference call. "We are fully committed to enhancing performance this year and will continue efforts to strengthen shareholders' value."
  

It is the first time in 34 years that the company paid no dividends.
  

Shares of SK Innovation declined 3.17 percent in the Seoul bourse, while the benchmark index KOSPI shed 0.51 percent. The earnings results were released after the trading hour. (Yonhap)