Nynas naphthenic business unit reported an increase in earnings before interest, taxes, depreciation and amortization to 142 million Swedish krona ($17.8 million) for its second quarter, rebounding from a 131 million krona loss in 2016s second quarter.
The business unit, which primarily supplies naphthenic base oils, reported a 33.3 percent jump in net sales to 2 billion krona from 1.5 billion krona in the previous years second quarter.
Sales volumes in Europe, the Middle East, India and Africa fell below the companys expectations, finishing the quarter at similar levels to last year. Central Europe, however, set a new record for a single quarter.
The naphthenic business unit also experienced a record quarter in China, with continuing sales volume development. Sales in the Americas were down from a year earlier, mainly due to supply constraints, while the Asia-Pacific region remained unchanged.
Demand remained robust for naphthenic specialty oils in the second quarter, said Nynas President and Chief Executive Officer Gert Wendroth in the second quarter interim report. On a global basis, the base oil supply and demand during the second quarter was mostly balanced. The first quarters Group I tightness in Europe worsened during the second quarter, reflected in price increases over the period.
Nynas is co-owned by Neste Oil and Petroleos de Venezuela S.A. (PdVSA), which has a long-term marketing agreement to sell naphthenic base oils produced by the Refineria Isla refinery operated by PdVSA in Emmastad, Curacao. That plant has 3,700 b/d of naphthenic capacity and 5,000 b/d of paraffinic Group I capacity.