Lubricant supplier Lanka IOC reported a net loss while the lubricants business segment of Malaysian state-owned oil firm Petronas’ domestic marketing arm posted a decline in gross profit for the quarter ending March 31.
Pertamina disclosed last week that Saudi Aramco has withdrawn from discussions about a plan to jointly expand the Indonesian energy company’s refinery in Cilacap, Indonesia.
South Korean base oil exports fell 13 percent to 1.4 million tons in the first quarter this year, down from 1.6 million tons in 2019’s first quarter, according to data released by the Korea Customs Service. The value of base oil exported in this year’s first quarter was U.S. $945.7 million.
Stated-owned Thai Oil Group’s base oil business reported a major increase in net profit on lower sales revenue in the first quarter.
Base oil production in China has largely returned to normal levels, but demand in other parts of the world is still down significantly because of the Covid-19 pandemic and may not recover much until late in the year, according to industry insiders and an analyst speaking at a webinar Wednesday.
GS Caltex reported increased operating profit for its base oil and lubricant business, and KH Neochem Co. poster lower operating profit for its performance materials segment, which includes raw materials for refrigeration lubricants, for the first quarter. Meanwhile, 2019 financial year profit was up for lubricant company Yushiro Chemical Industry.
The Malaysian state of Sabah allowed palm oil plantations and mills to reopen last month after setting conditions aimed at preventing the spread of Covid-19.
Among South Korea’s large base oil refiners, S-Oil and Hyundai Shell Base Oil both posted large increases in operating profit for the first quarter, while profits were down in the quarter for SK Lubricants.
Southwest Dingsheng Energy plans to build a base oil rerefinery in Xi Feng County, Guizhou province. A local government environmental assessment was recently completed for the 60,000 metric tons per year API Group I plant, which will cost about ¥159.8 million (U.S. $22.6 million).
Two industry associations urged the Malaysian state of Sabah this week to allow oil palm plantations and mills to reopen, advising that the industry could suffer severe setbacks if they are forced to remain closed.