South Korean refiner Hyundai Shell Base Oil’s (HSB) profit fell by more than half in the third quarter of the year as costs rose and sales fell.HSB’s operating profit of 19bn South Korean won ($14mn) in the three months to end-September fell by 62pc from year-earlier levels and by 69pc from the previous quarter.Profit fell as costs rose by 1pc from the second quarter, while sales fell by 12pc.Costs faced upward pressure from rising feedstock prices.Crude oil prices rose 11pc in the third quarter from the previous three months.HSB's sales fell in response to a seasonal slowdown in demand in markets like India especially.Lower base oils prices compounded the downward pressure.Asia Group II base oils prices fell by 5pc in the third quarter from the previous three months, ICIS data showed.HSB’s profit margin slid in response, dipping to 6.6pc in the third quarter.The margin fell from 19pc in the second quarter and from an average of around 17.5pc over the previous three years.HSB expected base oils demand to improve in the fourth quarter of the year..S-Oil’s Q3 base oils profit falls.Castrol’s Q3 profit rises.German blender Fuchs’ Q3 profit rises
