In addition to significant improvements in operating profit and revenue for the whole year, S-base Oil’s oil and lubricants division recorded a 23% rise in operating profit for the quarter ended December 31 and ae 17% increase in sales revenue.
The business unit recorded an operating profit for the fourth quarter of 2022 of 279.5 billion (U.S. $184.5 million), up from 226.8 billion for the same period of 2021. Sales increased to 840.4 billion in the fourth quarter from 718.8 billion.
Operating profit increased by 12% from 989 billion won to 1.1 trillion won for the entire year. Sales for the entire year increased by 31% from 2.6 billion to 3.4 trillion.
In its financial presentation, S-Oil stated that while demand for high-quality goods remained steady, the fundamentals for base oil declined in the fourth quarter as a result of seasonally weaker demand.
According to the business, the price differential between composite base oil, which includes Group I base oils, and vacuum gas oil averaged $73.10 per barrel in the fourth quarter after reaching a top of $81.80/bbl in the third quarter of 2022. S-Oil forecast that due to falling feedstock prices, the base oil spread will continue to be solid throughout the fourth quarter of the market.
