GS Caltex’s third quarter net profit up significantly

South Korean refiner GS Caltex posted a net profit of KRW284.2 billion (US$261.7 million) in the third quarter ended September, from KRW29.8 billion (US$27.7 million) up more than 900% from a year-ago period. However, operating income fell by 21.9% year-on-year to KRW323.8 billion (US$301.4 million) in the quarter, down from KRW415 billion (US$386.4 million). The sharp rise in net profit, despite the lower operating income, was attributed to foreign exchange gains brought about by the weakening of the won against the dollar.
Sales revenue for the quarter was KRW12.08 trillion (US$11.2 billion), up 6.8% from KRW11.32 trillion (US$10.5 billion) year-on-year. The petroleum segment accounted for 83.1% of the company’s total revenue.
GS Caltex, which controls 27% of South Korea’s oil market, is a 50-50 joint venture between South Korea’s GS Holdings Group and the U.S.-based Chevron Corp. The company’s investment in upgrading its heavy oil facilities has helped boost exports and improve earnings in the midst of a global economic slowdown. (November 15, 2012)