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(LEAD) GS Caltex suffers record Q1 loss on inventory, refining margins

All News 17:17 May 11, 2020

(ATTN: RECAST headline; UPDATES with details throughout)

SEOUL, May 11 (Yonhap) -- GS Caltex Corp., South Korea's second-largest refiner by sales, said Monday that it posted a record loss in the first quarter due to inventory losses and falling refining margins.

For the January-March period, GS Caltex posted a net loss of 1.01 trillion won (US$828 million), shifting from a net profit of 87.3 billion won a year earlier, the company said in a statement.

GS Caltex said the net loss is due to inventory losses, caused by low crude oil prices, and shrinking refining margins.

This file photo shows workers talking near GS-Caltex plant in Yeosu, about 455 kilometers south of Seoul. (Yonhap)

Refining margins are linked to international oil prices. Higher crude prices mean greater margins, or the difference between the total value of petroleum products and the cost of crude and related services.

GS Caltex shifted to an operating loss of 1.03 trillion won from an operating profit of 329.5 billion won a year earlier.

Sales fell 11.1 percent on-year to 7.07 trillion in the first quarter over the cited period.

GS Caltex said its refining business posted an operating loss of 1.12 trillion won on sales of 5.5 trillion won in the first quarter.

Its petrochemical sector achieved an operating profit of 20.2 billion won in the first quarter, a sharp decline from 127.6 billion won in the same period of last year.

GS Caltex is a 50:50 joint venture between GS Energy and Chevron Corp, the second-largest U.S. oil producer.

entropy@yna.co.kr
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