South Korean lubricants blender Michang Oil Ind. Co. Ltd. reported a 45% drop in net profit and a 4% increase in sales for the quarter ending Sept. 30. For the first nine months of 2022, the company’s lubricant sales volume was up 10% on 2% higher sales.
The company reported ₩3.6 billion (U.S. $2.8 million) in net income for the quarter ending Sept. 30, falling from ₩6.6 billion in the same period in 2021.
Operating profit in the quarter decreased 7% to ₩9.1 billion, down from ₩9.8 billion.
Sales in the third quarter increased to ₩100.2 billion, compared to ₩96.3 billion.
Michang produces automotive, marine and industrial lubricants, along with transformer oils and process oils, among other products. Its earnings report breaks out performance for products by kiloliters sold and sales revenue during the first three quarters of last year. Michang produced 142,654 kiloliters (128,000 metric tons) of lubricants in the first nine months of 2022, rising from 158,443 kL in the same period last year. Sales of lubricants for the first three quarters increased to ₩225 billion, compared to ₩220 billion.
This included 88,830 kL of lubricants exported in the first three quarters last year, a 14% decrease from 102,866 kL. Export lubricant sales were down 3% at ₩125.4 billion in sales for the period, down from ₩129.8 billion.
Domestic consumption of Michang’s lubricants decreased 3% to 53,824 kL in the first nine months of 2022, compared to 55,577 kL. Domestic sales of lubricants rose to ₩99.6 billion in sales over that period, compared to ₩89.8 billion in sales.
Michang produces automotive lubricants, transformer oils, white oils, rubber process oils and fuel additives at its plant in Ulsan. Its plant in Busan produces the same products – except for fuel additives – along with marine lubricants.