South Korean lubricants blender Michang Petroleum Industry Co. reported a 43% jump in operating profit on a 2% uptick in sales for the quarter ending June 30.
Operating profit climbed to ₩14.4 billion (U.S. $10.7 million) in the second quarter, compared to ₩10.1 billion in the same period last year.
The company reported that net income surged 483% to ₩15.7 billion won in the quarter, compared to 2.7 billion. Sales rose to ₩105.8 billion, compared to ₩104 billion.
Net income for Michang surged 483% to ₩15.7 billion for the second quarter, boosted by the operating profit increase and an 87% drop in the “other losses” category to ₩1.5 billion won.
The blender 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 six months of this year.
Domestic consumption of the blender’s lubricants declined 16% to 31,455 kL (28,000 metric tons) in the first half of this year, compared to 37,414 kL. Domestic sales of the company’s lubricants rose 8% to ₩70.9 billion, compared to ₩65.7 billion.
Michang exported 53,965 kL of lubricants in the first six months of this year, an 18% decline from 65,555 kL. Sales revenue for exported lubricants increased 1% to ₩89.7 billion.
The company sold 3,208 kL of transformer oils in South Korea in the first half of this year, a 13% decline. Domestic sales revenue for transformer oils decreased 12% to ₩4.5 billion won, compared to ₩5.2 billion won.
First-half export sales volumes of the company’s transformer oils rose 16% to 1,901 kL. Sales revenue for exported transformer oil jumped 46% in the period to ₩3.9 billion, compared to ₩2.7 billion.
Michang produces 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 – as well as marine lubricants.