South Korean base oil refiners SK Lubricants and S-Oil reported hefty increases in operating income and revenues for the quarter ending March 31, compared to a year earlier.
SK Lubricants posted an operating profit of 89 billion South Korean won (U.S. $83.5 million) for the quarter ending March 31, up 75.2 percent from the year-earlier period. Sales for Seoul-based SK Lubricants totaled 611.1 billion won, up nearly 49 percent from 410.3 billion won in 2010s first quarter.
SK operates a 21,000 barrels per day base oil refinery in Ulsan, South Korea, with API Group II and III production. The SK-Pertamina joint venture plant in Dumai, Indonesia, which is 65 percent owned by SK, has about 7,000 b/d of Group III capacity.
SK Lubricants signed a contract in June 2010 to partner with Repsol YPF on building a 13,000 b/d API Group III base oil plant in Spain. According to SKs first quarter earnings presentation, plant start-up is expected by the end of 2013.
Seoul-headquartered S-Oils operating income reached 130.4 billion won ($122.3 million) in 2011s first quarter, up 261.5 percent from the same period of last year. Sales revenue for S-Oil totaled 512.3 billion won in the first quarter, up 72.2 percent from 297.5 million won in 2010s first quarter.
Referencing findings by consultant chemical Market Associates in its first quarter earnings presentation, S-Oil said it expected a strong market to continue due to healthy demand from Asia, along with tight supply and gradual improvement of U.S. demand.
S-Oils Onsan, South Korea, refinery has 10,000 b/d Group III capacity, in addition to 20,500 b/d of Group II and 500 b/d of Group I capacity.