Profits Down for SK Enmove, S-Oil


Profits Down for SK Enmove, S-Oil

The base oil and finished lubricant businesses of SK Enmove and S-Oil both reported declines in profits for the quarter ending March 31, while joint venture Hyundai Shell Base Oil posted a small increase in profit.

SK Enmove

SK Enmove posted an operating profit of ₩220.4 billion (U.S. $162 million) for the first quarter, a 15% decline from ₩259.2 billion in the same period last year.

Fourth-quarter sales also fell, by 13%, to ₩1.1 trillion, compared to ₩1.3 trillion.

Sequentially, the company noted operating profit for SK Enmove improved 2% from last year’s fourth quarter, driven by factors such as steady demand and volume effects that offset a dip in base oil margins.

The company said it expects base oil demand to pick up in the second quarter with the onset of the peak driving and motor oil demand season.


The base oil and lubricants business of S-Oil logged operating income of ₩155.7 billion in the first quarter, a 21% drop from ₩195.8 billion. Sales revenue for the quarter rose reached ₩766.9 billion, a 1% increase from ₩762.5 billion.

S-Oil said in its earnings presentation that the spread between its composite base oil price – which includes API Group I base oils – and vacuum gas oil fell to $52 per barrel in the first quarter, compared to $65.80/bbl in 2023’s first quarter. the first quarter spread was also down from $59/bbl in the previous quarter due to lagging impact from increased feedstock costs.

The company expressed optimism that base oil fundamentals will strengthen in the second quarter on rising seasonal demand and scheduled maintenance shutdowns at base oil refineries.

Hyundai Shell Base Oil

Hyundai Shell Base Oil, the joint venture between Hyundai Oilbank and Shell, reported operating profit of ₩32.4 billion for the fourth quarter, a 5% increase from ₩30.8 billion.

Fourth-quarter sales declined to ₩312.2 billion, an 18% decrease from ₩379.7 billion.

Hyundai Oilbank said in its earnings presentation that base oil price spreads remained weak in the first quarter because of sluggish demand from major importing countries in the region, such as India and China.

Related Topics

Asia    Base Stocks    Business    Earnings    Finished Lubricants    Korea, Republic Of    Region