Refiners have record profits in 2011

Korean oil refiners reaped record profits in 2011 on the back of strong exports and improved business performances at their nonrefining units, data showed yesterday.

SK Innovation Co., Korea’s leading refiner, saw its net income jump nearly threefold to 3.18 trillion won ($2.83 billion) last year. Sales surged 27.3 percent on-year to 68.37 trillion won last year, with operating income shooting up 50.6 percent to 2.85 trillion won.

The annual increase was fueled by the good showings of its subsidiaries such as SK Global Chemical Co. and SK Lubricants Co., the refiner said earlier.

“We will beef up new businesses such as batteries for electric cars, while carrying out our current resources development projects as well,” said an official at SK Innovation.

The company said that it is aiming to raise sales to 75.5 trillion won in 2012.

GS Caltex Co., Korea’s second-largest refiner, also reported a 68.3 percent on-year surge in its operating income last year at 2.02 trillion won. Its sales jumped 35.8 percent on-year last year to 47.95 trillion won as well.

The refiner’s stellar performance was fueled by strong exports. GS Caltex exported $23.7 billion worth of oil and petrochemical goods last year.

No. 3 industry player S-Oil Corp. posted a net profit of 1.21 trillion won last year, up 71 percent from a year earlier with its operating income almost doubling to 1.67 trillion won. Sales also spiked 56 percent to 31.91 trillion won, it said.

Hyundai Oilbank Co., the country’s fourth-largest refiner, estimated last year’s sales at over 18 trillion won with its operating income reaching 500 billion won.

The refiners exported $47.9 billion worth of oil and petrochemical goods last year, up 64 percent from a year earlier.

“Last year’s good performances were attributable to a surge in exports,” said an official at S-Oil. “Nonrefining businesses helped jack up their profits.” Yonhap