South Korean lubricants blender Michang Petroleum reported a 13% increase in net profit despite a 4% decline in sales revenue for the quarter ended March 31.
Net profit rose to ₩16.8 billion (U.S. $12.1 million) in the first quarter, improving from ₩14.9 billion in the same quarter last year. It benefitted from lower cost of sales, which decreased 5% to ₩86.8 billion.
Operating profit in the quarter reached ₩13 billion, a 1% increase.
First-quarter sales revenue declined to ₩103.2 billion, compared to ₩107.7 billion.
Domestic consumption of Michang’s lubricants rose 11% to 17,408 kiloliters (16,000 metric tons) in the first quarter. First-quarter domestic sales of its lubricants increased 7% to ₩38 billion.
The company exported 26,299 kL of lubricants in the first quarter, a 6% decrease from 27,972 kL. Sales revenue for exported lubricants from Michang fell 16% to ₩38.7 billion.
At its plant in Ulsan, Michang manufactures automotive lubricants, transformer oils, white oils, rubber process oils and fuel additives. Its plant in Busan produces the same products – except for fuel additives – along with marine lubricants.