SK Lubricants, S-Oil, Chemtura and Quaker Chemical reported higher profits for the quarter ending Sept. 30, compared to year-earlier numbers.
SK Lubricant posted an operating profit of 73.2 billion South Korean won (U.S. $69.8 million) for the third quarter, up 16.8 percent from 62.8 billion won a year earlier.
Third quarter sales declined to 700.9 billion won from 740.4 billion won, a 5.3 percent decrease.
SK operates a 40,000 barrel per day API Group II/III base oil facility at its refinery complex in Ulsan, South Korea. That includes a 26,000 b/d joint venture base oil plant built by SK Innovation and JX Nippon Oil & Energy, launched in May 2012.
SK Lubricants also has a joint venture plant with Pertamina in Dumai, Indonesia, with 10,000 b/d of Group III capacity.
The company partnered with Repsol in Cartagena, Spain, on an approximately 13,000 b/d Group II/III base oil plant that began production earlier this month.
S-Oil reported a third quarter operating profit of 67.5 billion won for its base oil business, up 68 percent from 40.2 billion won a year earlier. Sales increased 9.8 percent to 490.6 billion won from 446.7 billion.
The Seoul-based refiner said in its earnings presentation that base oil margins continued an upward trend due to increased automobile sales in major lube markets and weakened feedstock prices, though it noted that supply from new capacity additions limited the margin increase.
In its outlook for the fourth quarter, the company said, Demand growth for high quality products in Asia and South America and weakened feedstock prices will support the margin at a decent level despite downward pressure from new capacity additions.
S-Oils Onsan, South Korea, refinery has 20,000 b/d Group III, 20,500 b/d of Group II and 500 b/d Group I capacity.
Philadelphia-based Chemturas petroleum additives segment posted $169 million in net sales for the third quarter, up slightly from $168 million a year earlier.
Our Industrial Performance Products segment saw year-over-year volume growth led by our urethane and PAO products, Craig Rogerson, chairman, president and CEO of Chemtura, said in the companys earnings news release. Selling price increases for the segment almost offset the impact of higher raw material costs. Compared to the second quarter of 2014, sales volume was also $13 million lower. Sales of intermediates and certain industrial synthetic lubricants, as well as certain lubricant additives, accounted for the decline. Some of this impact reflected seasonal demand.
Chemturas Industrial Performance Products net sales reached $247 million, up 2 percent. The segments third quarter operating income rose 16.7 percent to $28 million.
Lubricant supplier Quaker Chemical Corp., of Conshohocken, Pa., posted net income of $16.1 million for the third quarter, up 21.2 percent from a year earlier. The companys net sales reached nearly $199 million, up 8 percent.
Our geographic diversification continues to help us as we experienced double-digit growth in each of our three largest regions (North America, Europe and Asia-Pacific) which more than offset a decline in our smallest region (South America) due to poor economic conditions, Quaker Chairman, CEO and President Michael Berry said in the companys earnings news release.