S. Korean refiners set records in output and exports in H1, boon likely fizzle out H2

[Photo by Yonhap]

South Korean oil refineries set records in output and export in the first half of this year amid global fuel shortage and price strengthening.

According to industry information website Petronet under Korea National Oil Corporation on Tuesday, gasoline production from SK energy, GS Caltex, S-Oil, and Hyundai Oilbank totaled 84.21 million barrels in the first six months, a record-high for first half and rising about 9.1 percent from a year ago.

Petroleum exports reached an all-time high of $27.96 billion in the first half as demand and prices both benefited from Russian war-related supply disruptions, fueling record earnings for refiners in the first half.

[Source: each company]

SK innovation (parent of SK energy) earned an operating profit of 3.97 trillion won in the first half (up by 249 percent from a year ago), followed by S-Oil with 3.05 trillion won (up 154 percent), Hyundai Oilbank with 2.07 trillion won (up 206 percent). GS Caltex has yet to report its second-quarter profit, but it is also projected to have earned more than 2 trillion won.

The boon however is expected to wane in the second half amid softening in supply bottleneck and prices.

Meanwhile, domestic gasoline and diesel consumption was 40.27 million barrels and 79.07 million barrels in the first six months, down 1.4 percent and 3.5 percent, respectively, from the same period last year.

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