GS Caltex net profit drops 80% on weak margins

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GS Caltex net profit drops 80% on weak margins

GS Caltex, Korea’s second-largest refiner, said Thursday its second-quarter net profit plunged 79.7 percent from a year earlier due to inventory losses and weak margins.

Net profit stood at 47.6 billion won ($39 million) on a consolidated basis in the April to June period, compared with 235.1 billion won a year earlier, the company said in a filing.

Operating income tumbled 77.2 percent on-year to reach 133.4 billion won in the second quarter, with sales declining 15.3 percent on-year to 7.66 trillion won over the cited period.

GS Caltex said increased inventory losses due to a drop in oil prices and weak refining margins prompted the weak performance.

Operating income from its refining business dropped 95 percent on-year to 19.9 billion won, while sales slid 17 percent to 5.87 trillion won in the second quarter.

GS Caltex said its petrochemical business logged an operating income of 80.3 billion won in the second quarter, up 34 percent from a year ago, but its lubricant unit’s operating income dipped 47 percent on-year to 33.2 billion won.

In the first six months, GS Caltex logged sales of 15.6 trillion won.

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