South Korean refiner GS Caltex saw profit from its base oils and lube unit rise in the first three months of the year to the third-highest level in at least a decade.

The unit’s operating profit of 125.6bn South Korean won ($94.9mn) in the first quarter rose from W116.2bn during the previous three months and by 77pc from year-earlier levels.

The 8pc rise in profit from the fourth quarter lagged the 24pc rise in sales to W577.5bn.

Profit rose even as the combined premium of Group II N150 and N500 over Dubai crude fell back to $73.60/bl in the first quarter, GS Holdings data showed.

The premium fell from $85.80/bl during the previous quarter.

GS Caltex’s profit margin fell back to 21.7pc in the first quarter, from 25pc in the fourth quarter, reflecting the narrower base oil premium.  

The rise in profit and lower margin pointed to a pick-up in sales volumes in the first three months of the year.

The refiner’s base oils unit operated at 104pc of capacity during the period.