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.
Stated-owned Thai Oil Group’s base oil business posted a massive jump in net profit for the fourth quarter of 2019, and a slight decrease in net profit for the full year. Revenue for the base oil business was down for the fourth quarter and full year.
The economic wrecking ball that is the coronavirus went into full swing this week when it sent the price of crude oil back to 1991 and pounded stock markets.
Base oil refiners in Asia are slashing production and looking for alternative markets amid plummeting lubricant and grease demand in China, industry insiders say, as the coronavirus outbreak continues to rattle markets.
South Koreas major base oil refiners - SK Lubricants, S-Oil, GS Caltex, and Hyundai Shell Base Oil - each reported steep declines in operating profit for 2019. In India, Castrol India Ltd. reported increased profits for 2019, while profits for the year were down for Balmer Lawrie & Co.s greases and lubricants segment, Savita Oil and MJL Bangladesh Ltd.
Pakistans National Refinery Ltd. reported its half-year net profit for its lube segment - which includes API Group I base oils and waxes - plunged 52 percent year-on-year, hurt by weak domestic sales.