Korea’s four major refiners saw more than 40 percent growth in earnings on average this year as petrochemicals exports spike despite a dim outlook for the global economy.

SK Innovation, GS Caltex, S-Oil and Hyundai Oilbank were among few local corporations that enjoyed brisk third-quarter results as persistent global economic uncertainties slacken exports. Large firms’ revenue fell almost 40 percent during the three month period.

The four refiners control more than 90 percent of total domestic petrol supplies.

“The upbeat performance is attributable to a boom in the global petrochemicals industry,” an industry official said, declining to be identified.

“Demand for exports has been quite robust throughout the year, though we are basically losing money in the domestic market largely because of paper-thin margins.”

Early this year, the four refiners were accused of making huge profits at the expense of consumers and heaping inflationary pressure by keeping retail petrol prices high.

In May, they were slapped with fines of 434.8 billion won ($385.5 million) by the country’s antitrust regulator for collusion in managing gas stations.

Company officials claim that their margins have already touched rock-bottom levels and tax takes up nearly half of the price tag.

Under public and political pressure, all of the four lowered prices at gas stations by 100 won per liter between April and June. But costs bounced back afterward and inflation hovered around 4 percent.

By company, SK Innovation, Korea’s top refiner, raked in more than 51.4 trillion won in sales in the first nine months of this year, up 28.5 percent from the same period a year ago, powered by the selloff of its Brazilian unit.

Operating profit and net income shot up more than 70 percent and 213 percent to nearly 2.6 trillion won and 3.2 trillion won, respectively.

GS Caltex saw a 38 percent rise in sales during the nine-month period on-year to almost 35.3 trillion won, while its operating profit and net profit jumped about 125 percent and 90 percent each. Its exports have already surpassed last year’s volume.

S-Oil’s revenue also surged 57 percent between January and September compared with a year earlier to more than 22.6 trillion won.

Sales of Hyundai Oilbank went up 44 percent to nearly 13.7 trillion won.

Oilbank, the country’s smallest refiner, is gearing up for one of the hottest initial public offerings of next year on Seoul’s main bourse, KOSPI. It is expected to raise nearly 1.7 trillion won in the IPO slated for May. 

By Shin Hyon-hee (heeshin@heraldcorp.com)