Strong exports give South Korea’s refiners record-high profits

Strong exports and improvement in the business performances of non-refining units have resulted in record-high profits in 2011 for South Korea’s oil refiners. Net income of the country’s leading refiner, SK Innovation Co., jumped threefold to KRW3.18 billion (US$2.97 million) and sales spiked to 27.3% year-on-year to KRW68.37 trillion (US$60 billion), while operating profits shot up 50.6% to KRW2.85 trillion (US$2.5 billion). The company is aiming for KRW75.5 trillion (US$66.3 billion) sales in 2012. “We will beef up new businesses such as batteries for electric car, while carrying out our current resources development projects as well,” an SK Innovation official said. The country’s second largest refiner, GS Caltex Co., posted a surge of 68.3% year-on-year in operating income in 2011 to KRW2.02 trillion (US$1.77 billion). Sales last year jumped 35.8% year-on-year to KRW47.95 trillion (US$42.12 billion). The strong performance was due to strong exports, with a total of US$23.7 billion worth of oil and petrochemical products exported last year. S-Oil Corporation saw net profits jumping 71% to KRW 1.21 trillion (US$1.06 billion) from a year earlier. Operating income almost doubled, reaching KRW1.67 trillion (US$1.46 billion). Sales surged 56% to KRW31.91 trillion (US$28 billion). Hyundai Oil had an estimated KRW18 trillion (US$15.81 billion) in sales last year and operating income reached KRW500 billion (US$438.8 million). (February 13, 2012)