South Korean base oil refiner S-Oils lubricants division reported declines in operating profit and revenue for the quarter ending June 30, compared to 2008s second quarter.
S-Oils lubricants division reported a 66.7 percent decline in operating income in the second quarter, to 16 billion South Korean won (U.S. $13.1 million), compared to 48 billion won ($39.2 million) in the year-earlier period.
Revenue for S-Oils lubricants segment was down 35.5 percent to 258.9 billion won ($211.6 million) in the second quarter, compared to 401.9 billion won ($328.3 million) in 2008s second quarter.
In its investor relations presentation, S-Oil said it anticipated business opportunities to arise later this year, mainly driven by economic recovery in the second half of 2009. It noted that demand increase was expected in China and India as the economic environment improves, along with a gradual demand recovery in the United States and Europe.
Headquartered in Seoul, S-Oil has capacity to produce 24,500 barrels per day of lubricant base oils, including 15,000 b/d of API Group II and 9,000 b/d of Group III.
As a whole, S-Oil posted operating income of 42.2 billion won ($34.5 million) in the second quarter, down 94 percent from 707.6 billion won ($577.8 million) in the year-earlier period. The company recorded revenue of 4.1 trillion won ($3.3 billion) for the quarter ending June 30, down 37.7 percent from 6.5 trillion won ($5.3 billion) in 2008s second quarter.