SK Innovation said its base oil and lubricants segments operating profit decreased 8.4 percentto132 billion won (U.S.$117.8million) in the third quarter, down from144.1 billion won in 2017s third quarter.However, sales increased 9.7 percent to822.7 billion won, up from750.1 billion won.

Base oil market in general had a weak third quarter.Group IIwas most weakened. ButGroup IIIproducts take 70 percent of our sales,SK Lubricants official Shin Incheol said in an earnings conference call last week.

Capacity addition is not likely to happen so much in the Group IIImarket in the near future. But demand is growing fast in the Group III market, he noted. We’re focusing on supply to meet the increasing demand.

S-Oil

S-Oil reported that operating income from its base oil business decreased to 43.2 billion won, a 65.8 percent drop from 126.3 billion won.Its quarterly revenue inched up 1.1percent to 409.4 billion won, the Seoul-based refiner said in its third quarter earnings call.

In the third quarter, the lube base oil spread decreased due to a lagging effect, in which spread fails to catch up with oil price hikes, said S-Oil Official Goh Gwangcheol.

In the fourth quarter, the spread is likely to maintain at the third quarter level due to weak seasonal demand despite continued solid demand for high-quality products, he said.

Hyundai Shell Base Oil

Hyundai Shell Base Oil said its third quarter operating profit decreased 79.3 percent to 6.8 billion won, down from 32.8 billion won.

The 60:40 joint venture between Hyundai Oilbank and Shell said sales also declined, falling 11.6 percent to153.1 billion won, down from173.1 billion won.

The company said the deep cut in operating profit is due to the decreased utilization rate for maintenance as well as narrowedbase oil spread.

The decreased base oil spread is because of the increase in the raw material cost following the crude price rise along with weak seasonal demand, the Group IIsupplier explained.

Looking to the fourth quarter, raw material cost increase and weak demand will continue. But the spread will remain relatively unchanged as the supply decreases, due to the regular maintenance of suppliers, the company forecasted.

Chevron Lubricants Lanka

Chevron Lubricants Lanka reported a 13 percent decline in gross profit to Sri Lankan rupees 1.04 billion (U.S. $6 million) for the quarter ended Sept. 30. Third quarter revenue from lubricants sales inched up 1 percent year-on-year to Rs 2.9 billion, while the cost of sales jumped substantially to Rs 1.9 billion, a 12 percent decrease from last years third quarter numbers.

During the first nine months, Chevron Lubricants Lankas gross profit declined 8 percent to Rs 3.34.

According to data released by the Public Utilities Commission of Sri Lanka, Chevron Lubricant Lankas market share grew 5 percent, reaching 38.5 percent by the end of the quarter, up from 33.6 percent.

Savita Oil Technologies

Indias Savita Oil Technologies – a supplier of transformer oils, white oils and lubricants – reported a decline in net profit for its second quarter to Rs 18.2 crore (Rs 182 million or U.S. $2.5 million), down 33.4 percent from Rs 27.4 crore during the same quarter in 2017.

Total revenue for the quarter ending Sept. 30 stood at Rs 580.3 crore, up 30.6 percent from Rs 444.2 crore during the same period last year.

For the first half of the year, the company reported a 23.3 percent increase in total revenue year-on-year to Rs 1,122.53 crore, compared to Rs 910.56 crores. However, the company reported a 28.2 percent fall in first-half net profit to Rs 36.43.

Revenue from petroleum products increased both during the second quarter and the half year. Revenue from petroleum products rose to Rs 558.5 crore during the companys second quarter, up 31 percent. The company saw a 24 percent leap in revenue from petroleum products for the half year, increasing to Rs 1,090.5 crore.