4Q Earnings Round-up


Afton Chemical, S-Oils base oil segment and BPs lubricant business all reported fourth quarter profits that were higher than the same period in 2013.

Afton Chemical

Afton Chemical had an operating profit of $85.5 million for the quarter ending Dec. 31, up 6.9 percent from $80 million a year earlier. For all of 2014, Afton reported $385.1 million in operating profit, up 2.6 percent from $375.3 million for 2013.

Petroleum additives segment revenue reached almost $548 million for the fourth quarter, down 1 percent from $553.9 million a year earlier. For the full year 2014, the segments revenue topped $2.3 billion, up slightly from 2013.

Richmond, Va.-based parent company NewMarket posted operating profit of $80 million or $4.17 per diluted share for the quarter, up 6.2 percent from $75.3 million operating profit or $4.08.

For the full year 2014, NewMarket reported $362.7 million in operating profit, or $18.38 per diluted share, up 3.1 percent from $351.9 million in operating profit or $19.90 per diluted share for 2013.


S-Oils lube base oil segment posted fourth-quarter operating income of 65.2 billion won (U.S. $59.1 million), up 26.1 percent from 51.7 billion won in the year-earlier period. For all of 2014, the segments operating income reached 257 billion won, up 65.2 percent from 155.6 billion won for 2013.

Fourth quarter revenue reached 440.3 billion won, down 6.5 percent from 471.1 billion won. For all of 2014, sales totaled nearly 2 trillion won, up from almost 1.8 trillion won.

According to the 2015 outlook in its quarterly earnings presentation, intensified market competition is expected due to new base oil capacity additions from second half of 2014 and the first half of 2015, but the margin will be firmly supported by stable demand for high quality lubricant products from the United States and Europe, and demand growth in Asia and South America.

S-Oils Onsan, South Korea, refinery has capacity to make 16,200 barrels per day of API Group II, 21,800 b/d of Group II and 500 b/d of Group I.


BPs lubricants business reported an underlying replacement cost profit before interest and tax of $313 million in the fourth quarter, up 36.1 percent from $230 million in 2013s fourth quarter. It posted almost $1.3 billion in such profit for full year 2014, about the same as in 2013.

The fourth quarter result reflects continued margin improvement in growth markets and benefits, in comparison with the same period in 2013, from the absence of restructuring charges which were recorded in the same period in 2013. These factors were partially offset by adverse foreign exchange impacts, BP said in its stock exchange announcement that summarized fourth quarter and full year results. The company noted that the same factors affected its full-year results.

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