Operating profit for SK Lubricants of Seoul reached 130.5 billion won (U.S. $123.6 million) in the second quarter, up more than 118 percent from 59.8 billion won in the year-earlier period. SK Lubricants sales totaled nearly 673 billion South Korean won for the three months ending June 30, up 41.3 percent from 476.3 billion in 2010s second quarter.

SK has a 21,000 barrels per day base oil refinery in Ulsan, South Korea, with API Group II and III production. The SK-Pertamina joint venture plant in Dumai, Indonesia, 65 percent owned by SK, has 7,000 b/d of Group III capacity.

Last year, SK Lubricants signed a contract to partner with Repsol YPF on building a 13,000 b/d Group II base oil plant in Spain. In its second quarter earnings presentation, SK said start-up of the plant is still expected at the end of 2013.

SK Lubricants has said it is currently building another 11,000 barrels per day Group III plant in Asia, but has not yet revealed its specific location.

Operating income for Seoul-based S-Oils lubricants segment reached 178.6 billion won ($169.2 million) in the second quarter, up 117.3 percent from 82.2 billion won in 2010s second quarter. Sales revenue for S-Oils lubricants business reached 596.6 billion won for the second quarter, up 73.8 percent from 343.2 billion won in the year-earlier quarter.

Referencing findings by consultant Chemical Market Associates in its second quarter earnings presentation, S-Oil said it expected to see a considerable increase in Group III supply from new capacities in Asia amid healthy demand in the United States and Europe. The company also expected to see sustainable Group II demand growth in Asia, offsetting some capacity additions.

S-Oils Onsan, South Korea, refinery has 10,000 b/d Group III capacity, in addition to 20,500 b/d of Group II and 500 b/d of Group I capacity.