South Korean lubricants blender Michang Oil Ind. Co. reported an 8% bump in operating profit on a 5% increase in sales for the quarter ending March 31.
The company reported ₩12.8 billion (U.S. $9.9 million) in net income for the quarter ending March 31, improving from ₩11.8 billion in the same period last year.
Sales in the first quarter increased to ₩107.7 billion, compared to ₩102.5 billion. The company’s net income jumped 97%, from ₩7.8 billion to ₩14.9 billion, thanks to a ₩5.2 billion increase in “other income” and a ₩3.7 billion decrease in “other costs.”
Michang manufactures automotive, marine and industrial lubricants, along with transformer oils and process oils, among other products. Its earnings report breaks out performance for products by kiloliters sold and sales revenue during the first three quarters of last year.
The company produced 43,682 kL (39,000 metric tons) of lubricants in the first quarter, a 19% decrease from 53,667 kL.
Domestic consumption of Michang’s lubricants rose 16% to 15,710 kL in the first quarter. Domestic sales of lubricants increased 13% to ₩35.6 billion in sales in the quarter.
Michang exported 27,972 kL of lubricants in the first quarter, a 20% decline from 34,890 kL. Despite the sharp year-on-year drop in lube export volumes, sales revenue of exported lubricants decreased only 2% to ₩46.3 billion.
Michang manufactures automotive lubricants, transformer oils, white oils, rubber process oils and fuel additives at its plant in Ulsan. Its plant in Busan produces the same products – except for fuel additives – along with marine lubricants.