South Korean refiner Hyundai Shell Base Oil (HSB) saw profit rise to a two-year high in the second quarter of the year amid strong sales and lower feedstock costs.The unit’s profit margin surged in response.HSB’s operating profit of 61.8bn South Korean won ($48.2mn) in the three months to end-June more than doubled from year-earlier levels and from W30.8bn during the first quarter.Profit rose on the back of a 14pc rise in the unit’s sales to W326.1bn.Sales got a boost from a 6pc rise in Asia-Pacific Group II base oils prices in the second quarter from the first three months of the year.Scheduled maintenance work at several plants in northeast and southeast Asia and in China also cut supply during the second quarter. The shutdowns boosted demand for supplies from other refiners.HSB’s costs rose by 3pc in the second quarter, when crude oil prices were down from year-earlier levels and from the first three months of the year.Its profit margin of 19pc in the second quarter rose from 8.1pc during the first three months of the year and from average levels of 12pc over the previous five years. .Global base oils - week of July 24: Price outlook - margins
