Exports of Korea’s four major refiners have already reached an all-time high this year on the back of soaring global demand for their lighter, cleaner petrol products, industry figures showed Monday.
Combined exports of SK Innovation, GS Caltex, S-Oil and Hyundai Oilbank topped 76.1 trillion won ($64.5 billion) during the first ten months of the year, up more than 20 percent from 63.1 trillion won for the whole of 2010.
That also reflects a sharp increase compared with the previous high of 68.1 trillion won in 2008.
The four firms control more than 90 percent of the local market.
The refiners attributed the brisk results to the diversification in their client portfolios and their investment in heavy oil upgrading facilities, which convert heavy distillates such as bunker C and asphalt into lighter and more profitable products such as gasoline, kerosene and diesel.
Faced with thinning profit margins at home, they have installed top-notch upgrading units to get an edge and meet increasingly strict environmental regulations.
Fingered as the main culprits of runaway fuel prices, the four refiners temporarily cut retail gas prices early this year, bowing to public and political pressure.
“Korean petrol products are second to none in quality,” said an official at the Korea Petroleum Association.
“Petrochemicals will continue to be one of key export items even though the Korean and global economies remain in the doldrums.”
Along with ships, steel, cars and displays, petroleum products were the driving force behind Korea’s $1 trillion trade milestone set early this month.
Last month alone, shipment volume for petrochemicals shot up a whopping 46.2 percent from a year ago, according to the Ministry of Knowledge Economy.
By company, SK Innovation Co., the country’s largest refiner, posted more than 28.4 trillion won in exports between January and September. October data was not available.
GS Caltex Corp., the runner-up, exported nearly 24.8 trillion won worth of petrochemicals during the first 10 months of the year.
S-Oil Corp. followed with about 16.4 trillion won and Hyundai Oilbank Co. with around 6.5 trillion won.
By Shin Hyon-hee (
heeshin@heraldcorp.com)
