Hyundai Oilbank Posts Operating Profit of 35.2 Billion KRW in 3Q... Overcomes COVID-19 Challenges with Consecutive Profits for Two Quarters (Comprehensive)

Non-Refining Business Drives Profit
Minimizing Refining Losses Through Increased Heavy and Medium Oil Input

[Asia Economy Reporter Hwang Yoon-joo] Among the four major oil refining companies, Hyundai Oilbank, which was the only one to return to profitability in the second quarter, continued its profit streak in the third quarter as well.

Hyundai Oilbank announced on the 30th that its consolidated operating profit for the third quarter was 35.2 billion KRW, a 77.6% decrease compared to the same period last year. During the same period, sales amounted to 3.3277 trillion KRW, down 37.2%. Compared to the previous quarter, operating profit increased by 166.6%, and sales rose by 30.4%.

Strong performance in non-refining businesses played a significant role in achieving consecutive profits.

Hyundai Chemical, which mainly produces mixed xylene, recorded an operating profit of 36.1 billion KRW by strengthening cost competitiveness through raw material diversification. Hyundai OCI, which produces carbon black, and Hyundai Oil Terminal, a commercial oil terminal, also achieved operating profits of 6.2 billion KRW and 3.7 billion KRW respectively.

Despite the resurgence of COVID-19 and flood damage in China and India causing Singapore refining margins to remain at $0.1 per barrel in the third quarter, Hyundai Oilbank minimized losses in the refining business by increasing the ratio of economically efficient heavy and ultra-heavy crude oil input and optimizing product production.

The trend of improved performance is expected to continue through the fourth quarter of this year.

The large-scale expansion of a high-purity terephthalic acid (PTA) plant in China is improving the market conditions for paraxylene, a raw material, and product price increases along with reduced plant operations are maintaining favorable margins for carbon black and lubricating base oil products.

Recently, crude oil prices have been rising moderately, and with the recovery of industrial demand and heating demand during the winter season, refining margins are improving, indicating a turnaround in the refining business.

A Hyundai Oilbank official stated, "As the business environment is expected to recover, we plan to increase facility operation rates and raise the proportion of heavy and ultra-heavy crude oil input to strengthen business profitability," adding, "We will actively expand the petrochemical business starting with the completion of the HPC project, an olefin petrochemical plant, next year to prepare for the post-COVID era."

This content was produced with the assistance of AI translation services.