Operating profit for GS Caltex’s base oils and lubricants division declined 7% to ₩125.6 billion won (U.S. $91.8 million), compared to ₩116.9 billion won.

Sales revenue for the division decreased 9% to ₩577.5 billion, from ₩525.5 billion.

Thai Oil

State-owned Thai Oil reported that net profit for its lube base oil business dropped 75% to ฿225 million (U.S. $6.1 million) in the first quarter, compared to ฿886 million baht.

Sales revenue for its lube base oil business declined 14% to ฿5.4 billion, compared to ฿6.3 billion.

Thai Oil noted that base oil price and its spread over fuel oil in the first quarter dropped compared to the same period last year, because higher supply from capacity expansion in API Group II and Group III put pressure on the market. The average price for 500 solvent neutral base oil was down $66 per metric ton at $981/t in the first quarter, compared to $1,047/t in the same period last year. Meanwhile, the spreads over high sulfur fuel oil were down by $113/t to $527/t in the quarter, compared to $640/t.

The decrease was coupled with the demand for base oil in the region not having recovered, the company noted, adding that market conditions slowed down during the New Year and the Chinese New Year.

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

Thai Oil said its plant’s base oil production rate was down 9 percentage points in the first quarter at 70%, compared to 2023’s first quarter. First-quarter Group I production was unchanged at 52,000 metric tons.