GS Caltex

In its latest stock exchange filing, GS Caltex said the operating profit for its lubricants and base oils business fell from ₩165 billion in the third quarter of 2022 to ₩79.9 billion (U.S. $64.4 million) in the same period this year.

Sales declined 19% to ₩452.1 billion, compared to ₩558.4 billion.

Sequentially, the spread between average base oil prices and Dubai crude oil prices declined because of seasonal slowdown and strong crude oil price, the company noted in its earnings presentation. The spread was also down year to year, compared to last year’s third quarter, for both light base oils and heavy grades.

In the third quarter, the company said, the spread was $26.80 per barrel for API Group II 150 neutral and $34.20 for 500N. Sequentially, that was well down from a spread of $40.70/barrel during the second quarter for the lighter grade, while the spread for 500N increased to $48/barrel. In 2022’s third quarter, the lighter grade had a $47.20/barrel spread, while the spread for 500N was at $55/barrel.

Michang Petroleum

South Korean lubricants blender Michang Petroleum reported net profit of ₩1.8 billion in the third quarter, improving from ₩1.4 billion. Operating profit decreased 2% to ₩3.3 billion.

Sales revenue declined 6% to ₩94 billion, compared to ₩100.2 billion.

Michang manufactures automotive, marine and industrial lubricants, along with transformer oils and process oils, among other products. Its earnings report breaks out year-to-date performance for products by kiloliters sold and sales revenue during the first three quarters of this year.

Domestic sales volume of Michang’s lubricants decreased 10% to 48,177 kL (43,000 metric tons) during the first nine months of this year, compared to 53,824 kL. Domestic sales revenue for the company’s lubricants rose 7% to ₩107 billion during the nine-month period, compared to ₩99.6 billion.

Michang exported 79,192 kL of lubricants during the first nine months of this year, down 11% from 88,830 kL. Sales revenue during the period for exported lubricants increased 1% to ₩127 billion.

The company sold 4,727 kL of transformer oils over the nine-month period in South Korea, a 13% decrease. Domestic sales revenue for transformer oils declined 18% to ₩6.6 billion in the period.

Michang export sales of transformer oils amounted to 2,583 KL, a 6% increase. Revenue generated by sales of exported transformer oils rose 12% to ₩4.9 billion. The company’s plant in Ulsan produces automotive lubricants, transformer oils, white oils, rubber process oils and fuel additives. Its plant in Busan produces the same products – except for fuel additives – along with marine lubricants.