GS Caltex reported ₩109 billion (U.S. $81.7 million) in operating profit for its base oil and lubricants business for the quarter ended Dec. 31, a 6% decrease from ₩116.2 billion in the same period in 2022. Sales for the quarter rose 10% to ₩512.7 billion, compared to ₩465.1 billion.

In 2023, the base oil and lubricant business’ operating profit increased 2% to ₩465.1 billion. Full-year sales were up 1% at ₩2.1 trillion.

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

Thai Oil

Net profit for state-owned Thai Oil’s base oil business fell 43% to 268 million baht (U.S. $7.4 million) in the fourth quarter, compared to ฿471 million in the same period in 2022. Sales for the quarter jumped 27% to ฿6.1 billion, improving from ฿4.8 billion. The company said the sales increase reflected the impacts of planned maintenance at its base oil refinery in 2022’s fourth quarter.

For the full year, the base oil business’ net profit dropped 25% to ฿2 billion, compared to ฿2.7 billion. During 2023, base oil sales decreased 9% to ฿25.3 billion, compared to ฿27.8 billion, which the company attributed in its management earnings analysis mainly due to lower product selling price.

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

The plant’s base oil production rate was up 33 percentage points in the fourth quarter at 76%, also due to the effects of planned maintenance in the previous year’s fourth quarter. For the full year, base oil production rate was 79%, compared to 77%.

Group I production rose to 51,000 metric tons for the quarter, up from 29,000 tons, while full-year production bumped up to 211,000 tons, compared to 205,000 tons.