Profit Surge for SK and GS Caltex, S-Oil Holds Steady

Read in min


In the first quarter, SK Enmove and GS Caltex saw significant growth in operating profits for their base oils and lubricants division, with a 22% and 77% increase respectively. Meanwhile, S-Oil’s base oils and lubricants business maintained a steady operating income. Factors such as China’s reopening, recovering transportation demand, and inventory stockpiling played a role in boosting base oil demand during this period.

GS Caltex

In the first quarter, GS Caltex’s base oils and lubricants division achieved an operating profit of ₩125.6 billion, marking an impressive 77% surge compared to ₩71.1 billion.

The quarter also saw a substantial increase in sales revenue, with a 27% rise to ₩577.5 billion.

GS Caltex highlighted the favorable base oil price spread during the first quarter, outperforming refining spreads. The increased demand for base oil was attributed to the reopening of China and a recovery in transportation demand.

SK Enmove

During the first quarter, SK Innovation’s SK Enmove base oils and lubricants business recorded an operating profit of ₩259.2 billion, marking a 22% growth.

Despite increased sales and lower oil prices reducing costs, sequential operating profit declined 3% due to sales price adjustments and a decrease in foreign exchange rates impacting price margins.

Sales for the quarter rose by 25% to ₩1.3 trillion.


S-Oil’s base oil and lubricants business recorded an operating income of ₩195.8 billion, showing a slight increase compared to ₩195.3 billion previously.

Sales revenue for the segment experienced a 3% growth, reaching ₩762.5 billion.

The company highlighted that the product spread between composite base oil and vacuum gas oil decreased slightly to $67 per barrel in the first quarter, compared to $73.50/bbl in the previous year’s fourth quarter. However, it remained higher than usual due to lowered feedstock cost. Year-on-year, the spread of $67/bbl significantly exceeded the $44.50 mark from the same quarter last year.

S-Oil emphasized that base oil fundamentals strengthened during the first quarter, with demand rebounding after the winter off-season. Factors such as the reopening of China and the Chinese New Year contributed to the recovery in base oil demand, along with inventory stockpiling ahead of the peak season.

Please share your opinion with us

Your email address will not be published. Required fields are marked *

Get in Touch

Contact us with your number