"Weight is 5%, Profit is 40%": GS Caltex's Strong Q2 Performance Driven by Lubricants

[Asia Economy Reporter Choi Dae-yeol] GS Caltex announced on the 9th that its consolidated operating profit for the second quarter of this year reached 379.2 billion KRW, turning to a profit compared to the same period last year.

Sales increased by 67% to 7.7474 trillion KRW during the same period, and net profit also turned positive at 223.7 billion KRW. Compared to the first quarter of this year, sales rose by about 21%, but operating profit and net profit decreased by 40% and 30%, respectively.

Looking at the performance by business division, the non-core lubricants division generated over 40% profit. Sales in the lubricants division reached 405.8 billion KRW, up about 13% from the previous quarter, while operating profit increased by 27% to 159.2 billion KRW. Operating profit tripled compared to the second quarter of last year.

The company explained, "The global refinery utilization rate declined, and supply tightened due to scheduled maintenance, maintaining a high spread (the difference between raw material prices and product selling prices)."

The core refining division recorded sales of 6.0403 trillion KRW and operating profit of 134.3 billion KRW. Compared to the first quarter, sales increased by 22%, but operating profit fell by 71%. Although inventory-related profits decreased due to stagnant oil prices, the company stated that refining margins showed signs of recovery as demand for refined products gradually increased.

The petrochemical division posted sales of 1.3013 trillion KRW and operating profit of 85.6 billion KRW, up 16% and 95% respectively from the previous quarter. The company explained that the demand for petrochemical products remained robust amid expectations of a global economic recovery, resulting in favorable profitability.

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