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[Alpha Biz=(Chicago) Reporter Paul Lee] The operating profit of the four oil refining companies (SK Innovation, GS Caltex, S-Oil, and HD Hyundai Oilbank) improved significantly in the third and fourth quarters of this year compared to the same period last year. Compared to the previous quarter, the operating profit alone reached 4 trillion won.
GS Caltex announced on the 8th that operating profit in the oil refining sector in the third and fourth quarters of this year was KRW 956.2 billion, up 71.1% from the same period last year. It is a clear improvement compared to the previous quarter. GS Caltex recorded an operating loss of 234.8 billion won in the refining sector in the second quarter of this year.
The same goes for SK Innovation, S-Oil and HD Hyundai Oilbank. In the third and fourth quarters of this year, the three companies posted operating profits of 1.1125 trillion won, 666.2 billion won and 262 billion won, respectively, in the oil refining sector. This is in contrast to the previous quarter's operating losses of 411.2 billion won, 292.1 billion won and 96.5 billion won. Compared to the same period last year, all companies' operating profits increased significantly, except HD Hyundai Oilbank, which conducted regular maintenance for the month of August. The industry predicts that HD Hyundai Oilbank's operating profit, which has decreased during the regular maintenance period, will be around 200 billion won to 300 billion won.
Altogether, the four oil refining companies' operating profit in the third and fourth quarters of this year is 2.9969 trillion won. Considering that the operating loss in the previous quarter was KRW 1.346 trillion, operating profit increased by KRW 4 trillion in three months. Compared to the same period last year, it increased by more than 1.6 trillion won.
The reason why their oil refining business performance has improved is because their refining margins have risen. Refining margins are the amount subtracted from petroleum products and are one of the key profitability indicators of oil refiners. The industry usually sees refining margins of $ 4 to $ 5 as break-even points.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
