GS Caltex's Q1 net more than triples on higher margins

By Nam Kwang-sik
SEOUL, May 17 (Yonhap) -- GS Caltex Co., South Korea's second-largest refiner, said Tuesday that its net profit more than tripled in the first quarter from a year earlier thanks to improved refining margins.
Net income came to 618.3 billion won (US$568.3 million) in the January-March period, compared with 203.1 billion won a year ago, GS Caltex said in a statement.
Sales rose 39 percent on-year to 11.5 trillion won in the period and operating profit shot up 257 percent to 827 billion won.
"A rise in oil prices and an improved refining margin contributed to the strong first-quarter performance," the refiner said.
The first-quarter bottom line was also boosted by the operation of its third plant to convert heavy oil into transportation fuels such as gasoline from the end of last year, it said.
Last week, GS Caltex held a belated ceremony to mark the completion of its No. 3 heavy oil cracker in Yeosu, 455 kilometers south of Seoul. The plant can process 60,000 barrels of heavy oil a day.
GS Caltex, an unlisted firm, is an equal joint venture between GS Holdings Corp. of South Korea and Chevron Corp., the second-largest U.S. oil company.
ksnam@yna.co.kr