South Korean base oil refiner SK Energy reported an increase in operating profit for its lubricants segment for the quarter ending June 30, while refiner S-Oil reported a decline compared to the second quarter of 2007. Each company recorded growth in lubricants revenue for the quarter compared to year-earlier figures.
Seoul-based SK Energys lubricants division reported an 86 percent increase in operating income for the three months ending June 30, to 81 billion won ($80.4 million), up from 43.5 billion Korean won ($43.2 million) during the year-earlier period. SK attributed the growth to increased sales volume and higher product prices. First quarter shipping delays and the May 1 start-up of the SK-Pertamina joint venture base oil refinery in Indonesia contributed to the rise in sales volume, according to SK, while increased international base oil prices were reflected in product prices.