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S.Korean refiners to see dismal H2 on falling margins

Korea Economic Daily LogoKorea Economic Daily1 mo ago

S.Korean refiners to see dismal H2 on falling margins - Korea Economic Daily

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The key margin for the local refiners’ profits on July 25 dropped to $0.83, the lowest so far this year, far falling short of the $4 threshold for a breakeven, the sources said.“We suffered some losses from the refining business as the margin dropped to below $1,” said a source at a domestic refiner.“The second half earnings are expected to significantly miss forecasts.”EARNING SHOCKS AFTER RECORD PROFITSThe industry had enjoyed a boom until the second quarter.SK Innovation Co., the country’s top refiner, reported a record quarterly operating profit of 2.3 trillion won ($1.8 billion) based on the largest sales of 19.9 trillion won.S-Oil Corp., Saudi Aramco’s refining unit in South Korea, logged a record operating profit of 1.7 trillion won in the April-June period, and Hyundai Oilbank Co., another refiner backed by Aramco, followed the suit with a profit of 1.4 trillion won.

The benchmark Singapore gross refining margin against Dubai fell to a five-month low of $9.1 a barrel on average in July, near a third of $24.5 in June, according to refining industry sources, according to industry sources on Tuesday.

Refiners in South Korea are expected to report weak earnings in the third quarter after records profits in the previous three months as margins declined on sluggish demand.

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S.Korean refiners to see dismal H2 on falling margins - Korea Economic Daily (Picture 1)


Article Details

Author / Journalist: (Jongwoo Cheon)

Category: Economy

Topics: Margin Industry Expected Refiners July Trillion Refining Sources Korea Refiner According

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-08-09, 17:58:10

News Timezone: GMT +8:00

News Source URL:

Language: English

Reading Time: 3 minutes read

Article Length: 362 words

Coverage Area: Korea, Republic of

Availability: Desktop Web, Mobile Web

News ID: 123508

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About Korea Economic Daily

Korea Economic Daily Logo

Main Topics: Economy

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Update Frequency: 8 posts per day

Year Established: 1964

Headquarters: Korea, Republic of

News Last Updated: 3h ago

Coverage Areas: Korea, Republic of

Ownership: Independent Company

Publication Timezone: GMT +8:00

News Language: English

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Publisher ID: #91

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