SK Enmove reported a 19% decline in operating profit to ₩217 billion (U.S. $163 million) in the fourth quarter, compared to ₩268.4 billion. Sales in the fourth quarter fell 16% to ₩1.1 trillion.

For the full year, operating profit were ₩997.8 billion won, down 7% from ₩1.1 trillion won. Full-year 2023 sales went down 6% to ₩4.7 trillion, compared to ₩5 trillion.

The company said base oil demand stayed firm in the fourth quarter despite the off season. But slumping oil prices and its impact on inventory weakened operating profit compared to ₩261.7 billion in the third quarter, the company noted in its earnings presentation.

S-Oil

S-Oil’s base oils and lubricants business reported operating income of ₩226.2 billion in the fourth quarter, a 19% decline from ₩279.7 billion. Sales revenue was down slightly at ₩836.3 billion, compared to ₩840.4 billion in the fourth quarter of 2022.

For the full year, the base oils and lubricants business posted ₩815.7 billion in operating income, a 27% drop from ₩1.1 trillion. Full-year 2023 sales revenue declined 10% to ₩3.1 trillion, from ₩3.4 trillion.

In its earnings presentation, S-Oil said the base oil price spread between the average price for base oil composite – an aggregated number including API Group I base oils – and vacuum gas oil declined from $71.40 per barrel in 2022’s fourth quarter to $59/bbl in the fourth quarter of last year.

Hyundai Shell Base Oil

Hyundai Shell Base Oil reported a 17% increase in operating profit in the fourth quarter to ₩34.7 billion won, compared to ₩29.6 billion won. Fourth-quarter sales revenue was ₩318.5 billion won, down 4% from ₩333.2 billion won.

During 2023, the company’s operating profit rose 16% to ₩146.3 billion. For the full year, sales revenue increased 4% to 1.3 trillion won.

In its forecast for this year’s first quarter, Hyundai Oilbank said it expects that – despite factors increasing regional base oil demand, such as the Chinese New Year – demand will remain flat this quarter because of China’s economic slump.