GS Caltex reported ₩116.2 billion (U.S. $89.4 million) operating profit for its base oil and lubricants business in 2022’s fourth quarter, a 7% increase from ₩108.4 billion. Sales for the quarter rose 3% to ₩465.1 billion, compared with ₩451.7 billion.

For the full year, operating profit for the base oil and lubricant business fell 20% to ₩454.8 billion, down from ₩567.4 billion. Full-year revenue increased 20% to ₩2 trillion, compared with ₩1.7 trillion.

A 50-50 joint venture of GS and Chevron, GS Caltex has production capacity of 1.3 million metric tons per year of API Group II and Group III base oil at its plant in Yeosu and 9,000 b/d of finished lubricants at its blending plant in Incheon.

Thai Oil

State-owned Thai Oil’s base oil business’ net profit increased 3% to 471 million baht (U.S. $13.6 million) in the fourth quarter, an improvement from ฿457 million in the same period in 2021. Sales in the further quarter tumbled 21% to ฿4.8 billion, down from ฿6.1 billion.

For the full year, net profit fell 28% to ฿2.7 billion baht, declining from ฿3.7 billion in 2021. Full-year net profit climbed to ฿27.8 billion, a 17% improvement from ฿23.8 billion. The base oil spread for 500 solvent neutral over fuel oil weakened in 2022 compared to 2021, the company noted in its earnings discussion and analysis. “This was mainly due to regional higher production following the COVID-19 situation, which had subsided,” the company stated. “However, the Group I base oil market was still strong due to a closure of a Japanese plant and a plant maintenance in Thailand. This prevented the market from having too excessive supply.”

The company operates a base oil plant with 5,100 barrels per day of Group I production capacity. Its products consist mainly of industrial and marine lubricants, along with engine oils for older engines.

The plant’s base oil production rate – impacted heavily by its planned maintenance shutdown – was 43% of nameplate capacity in the fourth quarter, compared with 88%. For the full year, the base oil production rate was 77%, down from 91% in 2021. Group I base oil production – also impacted by the maintenance shutdown – fell to 28,000 tons in the fourth quarter, compared with 59,000 tons. For the full year, production declined to 205,000 tons, down from 243,000 tons.