SK Innovation said its base oil and lubricants segments operating profit declined more than 29 percent to 93.6 billion South Korean won (U.S. $80 million) in the third quarter, down from 132 billion won in 2018s third quarter. Sales slipped 1.4 percent to 811.4 billion won, down from 822.7 billion won.

“The market outlook for base oil in [the fourth quarter] is expected to be similar to today because of global economic slowdown and [API] Group II capacity additions this year, SK Innovation Chief Financial Officer Myoung young Lee said in an earnings conference call. Still, stronger environmental regulations and strengthened engine oil specifications are expected to induce a modest growth in demand for high end base oil.

S-Oil

S-Oil reported that operating income for its base oil business jumped 19.4 percent to 51.6 billion won, up from 43.2 billion won. Its quarterly revenue slipped 1.5 percent to 403.1 billion won, the Seoul-based refiner said in its third quarter earnings news release.

During the third quarter, S-Oil said in its news release, overall lubricating base oil spreads fell slightly due to weak Asian market prices, while high-quality product spreads in the United States and European markets remained solid.

The company believes that in the fourth quarter the spread would widen due to the fall in high-sulfur fuel oil prices ahead of implementation of the International Maritime Organizations 2020 regulation next year and solid demands growth for high-quality products. Vessel owners look set to switch to low-sulfur fuel oil, which has a sulfur content between 0.1 and 0.5 percent, after the 2020 introduction of the controversial cap. IMO 2020 will reduce marine fuel sulfur limits from 3.5 percent to 0.5 percent.

Hyundai Shell Base Oil

Hyundai Shell Base Oil posted a third quarter operating loss of 4.8 billion won, tumbling down from a 6.8 billion won operating profit in 2018s third quarter.

The 60:40 joint venture between Hyundai Oilbank and Shell said sales on the other hand increased, jumping 27.8 percent to 195.7 billion won, up from 153.1 billion won.

Chevron Lubricants Lanka

Chevron Lubricants Lanka reported a 20 percent increase in net profit year over year to 622.3 million Sri Lankan rupees in its quarter ended Sept. 30, from Rs 516.5 million of the same period in 2018. However, profits in the nine months ended Sept. 30 declined by 3 percent to Rs 1.67 billion, from 1.72 billion during the first nine months of 2018.

In interim financial statements released to the Colombo Stock Exchange, Chevron Lubricants Lanka reported that third quarter operating profit stood at Rs 874.8 million, up 22 percent from Rs 715.9 million in the same period of 2018. For the first nine months of the year, operating profit declined by 2 percent to Rs 2.32 billion, down from 2.38 billion for the year-earlier period.

According to data released by the Public Utilities Commission of Sri Lanka, Lubricant Market Report second quarter 2019, during Q2 of 2019, Chevron Lubricants market share rose to 40.9 percent by the end of the quarter, amounting to about 5,460 metric tons. Thats up from 38.5 percent or about 5,600 tons.

Lanka IOC

Lanka IOC Plc. reported a 150 percent jump in net profit to Rs 517.4 million for the quarter ending Sept. 30, up from Rs 207.3 million. However, net profit for the six months from April to September declined 38.6 percent to 278.2 million.

In interim financial statements released to the Colombo Stock Exchange, Lanka IOC reported that operating profit for the quarter ending Sept. 30, 2019, increased 9.4 percent to Rs 700.2 million, up from Rs 639.8 million. For the six months from April through September, operating profit declined 57.2 percent to Rs 420.1 million.

According to the Public Utilities Commission of Sri Lankas most recent lubricant market report on the earlier quarter ending June 30, Lanka IOCs market share declined to 12.4 percent for the second quarter of the calendar year, amounting to about 1,650 metric tons. Thats down from a 14.9 percent mark share in the year-earlier period, or about 2,170 tons.

Lubricant supplier Lanka IOC is a subsidiary of India public sector utility Indian Oil Corp.