S-Oil’s Q1 base oils profit falls

South Korean refiner S-Oil’s profit from its base oils and lube unit fell in the first quarter to the lowest in a year as a drop in prices outpaced lower feedstock costs.

The base oil and lube unit’s operating profit of 195.8 billion South Korean won ($146mn) in the three months to end-March fell by 30pc from W279.5bn during the fourth quarter of last year.

Profit was up 0.3pc from year-earlier levels.

Sales of W762.5bn fell by 9pc from the fourth quarter but were still up 3pc from year-earlier levels.

The base oil unit’s sales accounted for 8pc of S-Oil’s total revenue in the first quarter of the year.

The unit’s operating profit accounted for 38pc of S-Oil’s total profit.