South Korea refiner GS Caltex saw profit from its base oils and lube unit extend its rise in the second quarter even as sales fell.The unit’s operating profit of 150.6 billion South Korean won ($112.1mn) in the three months to end-June rose by 47pc from year-earlier levels to the highest in almost two years.Profit rose even as sales fell by 9pc in the second quarter to W508.5bn.Sales fell because of lower Asia-Pacific Group II base oils prices in the second quarter compared with year-earlier levels.Sales got support from higher refinery-run rates, boosting supply.The base oil and lube unit’s revenue accounted for less than 5pc of GS Caltex’s total sales.The unit’s growing profit contrasted with a total operating loss for the refiner.The unit’s profit margin of 29.6pc in the second quarter rose from 21.7pc during the first three months of the year to the highest since the third quarter of 2021.Its Group II N150 premium over Dubai crude rose to $40.70/bl in the second quarter, up from $32.80/bl in the first three months of the year.Its N500 premium of $48/bl rose from $40.80/bl in the first quarter.Its firm base oils premiums contrasted with a diesel premium to crude that fell to its lowest since end-2021..South Korea HSB’s Q2 profit rises .Base Oil News stories and analysis also available on ICIS platform
