Afton, S-Oil Report Mixed Results


Lubricant additives supplier Afton Chemical and the base oil business of South Korean refiner S-Oil each posted increased profits and decreased sales for the quarter ending March 31, compared to 2014s first quarter.

Afton Chemical

Afton Chemical reported a $105 million operating profit for 2015s first quarter, up by 9.2 percent from $96.2 million in 2014s first quarter.

Parent company NewMarket Corp. stated in its recent earnings report that lower raw material costs drove the increase in operating profit.

Lower raw material costs between the quarterly periods resulting from lower prices were the primary driver of the increase

The petroleum additives segments sales for the quarter decreased to $554.8 million, down by 3.4 percent from $574 million in the year-earlier period. NewMarket cited changes in foreign currency exchange rates as the cause for the decline in revenue.

Richmond, Va.-based NewMarket reported $63.9 million in the overall net income or $5.14 per diluted share, up 11.2 percent from $57.5 million, or $4.43 per diluted share, a year earlier.


S-Oil reported first quarter operating income of 73 billion won (U.S. $68.3 million) for its base oil business, up 38.6 percent from 52.6 billion won in 2014s first quarter.

First quarter revenue fell to 378.1 billion won, down 28.5 percent from 528.7 billion won in the year-earlier period.

The refiners earnings presentation expressed confidence that the base oil markets current margin will be sustained during the second quarter as demand growth for high-quality lube base oil in the U.S. and Europe offsets supply increases from new capacity additions of competitors, amid stabilizing product prices.

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

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Additives    Business    Earnings