SK Innovation announced that the operating profit for its SK Lubricants subsidiary jumped 23 percent to 144 billion won (U.S. $129.1 million). Sales revenue rose 25 percent to 750 billion won.
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In the third quarter, the base oil spread dropped around $3 [per barrel] from the second quarter due to increased raw material prices, despite stable demand, SK Innovation Chief Financial Officer Cha JinSeok said in an earnings conference call.
Norwell, Massachusetts-based Clean Harbors said its Safety-Kleen segment – which includes oil rerefining – reported $315 million in third-party revenues for the third quarter, up 6 percent from $297.1 million.
The third-party revenues include the sales of base oil, blended products and reclaimed fuel oil, and a small amount of byproducts.
In our Safety-Kleen segment, higher base oil and lubricant pricing, as well as contributions from 2016 acquisitions, drove mid-single-digit growth, Clean Harbors Chairman, President and CEO Alan McKim said in the Norwell, Massachussetts-based companys quarterly earnings news release. Revenue mix in our parts washer services and oil collection businesses was adversely affected by the storms in Texas and Florida. Lower segment margins reflected the ongoing investments in our centralization efforts and OilPlus closed loop offering of selling lubricants directly to customers.
He continued, We anticipate a strong finish to the year, based on the current pricing environment for base oil and lubricants and our ability to carefully manage the spread in our rerefinery business. We also anticipate continued progress with our closed loop offering, as we expand into additional metropolitan markets and pursue large-volume opportunities.
Jeongmae Choi contributed to this report.