Thai Oil reported that net profit for its base oil business fell 60% in the second quarter, compared to the same period last year. Sales were pressured by competition from plants that reopened following maintenance shutdowns, the company said, noting that average base oil prices and the spread over fuel oil declined year-on-year because of a tightened market during that period last year.
Year on year, the average price per metric ton for 500 solvent neutral was down by $151 to $1,274/t in the second quarter, compared to $1,425/t. The spread over fuel oil prices was down by $429 to $608/t, compared to $1,037/t.
Net profit for Thai Oil’s base oil business dropped to 549 million baht (U.S. $15.3 million) in the second quarter, compared with 1.4 billion baht in the same period last year.
Lube base oil sales revenue increased 32% to 8.4 billion baht, up from 6.4 billion baht, which the company attributed to higher product selling price tracking crude oil price. The company said it expects third quarter base oil demand will be pressured by the region’s rainy season.
Sequentially, the average price per metric ton for 500 solvent neutral was up by $198 in the second quarter, to $1,274 per ton, compared to the first quarter. Meanwhile, the spread over fuel prices was up $85 from the first quarter to $608/t. Thai Oil attributed the sequential increases to higher regional demand from factors such as the summer driving season, pandemic lockdowns easing in various states and an increase in fuel oil price, leading to higher demand for inventory stocking following the Russia-Ukraine conflict.
The company’s base oil plant in Sriracha, Thailand reported a capacity utilization rate of 90% in the second quarter, down from 95% in the same period last year. Base oil production volume for the quarter was down 6% at 60,000 metric tons in the second quarter.
The plant can produce up to 267,000 metric tons per year of API Group I base stocks. They are mainly used in industrial and marine lubricants and in engine oils for older engines.
Chevron Lubricants Lanka
Colombo-based Chevron Lubricants Lanka reported that profit rose 82% to 840 million Sri Lankan rupees (U.S. $2.3 million) for the second quarter, compared with Rs 461.2 million in the same period last year.
The company’s operating profit skyrocketed 268% to Rs 2.1 billion in the second quarter, improving from Rs 578.8 million, the company said in its interim financial statement released to the Colombo Stock Exchange.
Sales revenue jumped 124% to Rs 6.2 billion, compared to Rs 2.8 billion.
Chevron Lubricants Lanka imports, blends, distributes and markets lubricants and greases, and operates a blending plant in Sapugaskanda.
Lanka IOC reported that its net profit for the quarter ending June 30 – the second quarter of its fiscal year – skyrocketed 3,500% to Rs 9.9 billion, compared to Rs 273.1 million.
Operating profit for the quarter was also way up at Rs 13.3 billion, 16,851% higher than Rs 78.2 million.
Sales of lubricants jumped 196% to Rs 49.9 billion, compared with Rs 16.9 billion.