SK Lubricants’ third quarter sales dropped 5 percent year over year, but its operating profit increased 13 percent to 83 billion South Korean won (U.S. $73.4 million), as base oils margins improved thanks to weaker crude oil costs.
Revenue was 665.2 billion won, down 5 percent from last years 701.4 billion won.
The lubricants subsidiary of SK Innovation doesnt provide separated financial figures for its two product lines – base oils and finished lubricants.
In June, SK Innovation said it had stopped discussions with an unnamed party regarding the sale of a stake in SK Lubricants. The Korean conglomerate has also shelved plans to conduct an initial public offering for the segment.
SK Innovation said in its quarterly report that it anticipates growth in demand for premium base oils. SK produces more API Group III base oils than any other supplier worldwide. It has wholly owned and joint venture refineries producing Group II and III base stocks in Korea, Indonesia and Spain.