South Korean refiner S-Oil’s base oils and lubricating oil unit saw its operating profit fall in the first quarter of the year as feedstock costs rose faster than prices.The unit’s operating profit of 195.3 billion South Korean won ($155mn) rose by 3pc from the same period a year ago. But it fell by 14pc from W226.8bn in the fourth quarter of last year to its lowest in a year..Profit fell even as sales rose.First-quarter revenue of W741.7bn rose by 41pc from year-earlier levels to a record high.Sales rose even as S-Oil’s base oils production run rates edged down to 99.1pc of its 44,700 b/d capacity, from 101pc in the fourth quarter. The slowdown was the equivalent of just over 10,000t of base oils.Surging diesel prices have incentivized refiners to lower their base oil production levels and boost output of diesel instead.Revenue got a boost as global base oil prices rose in the first quarter. Group II prices in Asia-Pacific rose by 3pc in the first quarter from year-earlier levels. Group III prices in Europe rose by 60pc from year-earlier levels.Profit fell as feedstock costs rose even faster, with crude oil prices up around 60pc in the first quarter from year-earlier levels..S-Oil boosts base oil run rates in Q4 2021
South Korean refiner S-Oil’s base oils and lubricating oil unit saw its operating profit fall in the first quarter of the year as feedstock costs rose faster than prices.The unit’s operating profit of 195.3 billion South Korean won ($155mn) rose by 3pc from the same period a year ago. But it fell by 14pc from W226.8bn in the fourth quarter of last year to its lowest in a year..Profit fell even as sales rose.First-quarter revenue of W741.7bn rose by 41pc from year-earlier levels to a record high.Sales rose even as S-Oil’s base oils production run rates edged down to 99.1pc of its 44,700 b/d capacity, from 101pc in the fourth quarter. The slowdown was the equivalent of just over 10,000t of base oils.Surging diesel prices have incentivized refiners to lower their base oil production levels and boost output of diesel instead.Revenue got a boost as global base oil prices rose in the first quarter. Group II prices in Asia-Pacific rose by 3pc in the first quarter from year-earlier levels. Group III prices in Europe rose by 60pc from year-earlier levels.Profit fell as feedstock costs rose even faster, with crude oil prices up around 60pc in the first quarter from year-earlier levels..S-Oil boosts base oil run rates in Q4 2021
