South Korea's third-largest refiner, S-Oil, saw the second-quarter operating profit of its petrochemicals segment soar more than nine times to Won 77.2 billion ($73.2 million), from Won 8.1 billion a year ago, on higher sales prices of its products.
In the quarter ended June, the petrochemicals segment recorded sales of Won 915.6 billion, up sharply from Won 357.2 billion a year ago.
But compared with the January-March period, the petrochemical's segment's operating income was down 16.1% despite a 61.6% rise in sales.
The company sold 47,868 b/d of petrochemical products in the second quarter, up 58.9% from the previous quarter. It sold 32,706 b/d of paraxylene, up 77.8% from Q1, and 7,991 b/d of benzene, up 48.1% from Q1. Sales of polypropylene rose 13.2% quarter on quarter to 7,171 b/d in Q2. It did not provide year-on-year comparisons for sales volumes.
S-Oil expects its petrochemicals business to maintain its recovery momentum later this year on solid demand and higher product prices. "Demand is forecast to remain solid in the second half of the year," it said.
Backed by the strong performance of its petrochemicals business, S-Oil's Q2 net profit surged more than four times to Won 239.7 billion. Operating profit for the entire business, which also includes petroleum and lube, increased 13.2% year on year to Won 241.8 billion.
The company's mainstay petroleum business swung to an operating loss of Won 14.0 billion in the second quarter, compared with an operating profit of Won 123.2 billion a year ago. But the segment's sales jumped 54.7% year on year to Won 6.51 trillion.
