HD Hyundai Oilbank reports Q2 profit surge amid industry liquidity pressures

HD Hyundai Oilbank reported a significant turnaround in the second quarter, recording an operating profit of 1.8241 trillion won. This represents a substantial increase from the 241.3 billion won loss recorded during the same period last year. A key driver of this performance was the diversification of revenue, with non-refining sectors such as petrochemicals and lubricating base oils contributing 540.8 billion won, accounting for approximately 30% of the total operating profit.

Despite these gains, the broader South Korean refining industry faces liquidity challenges. The combined working capital for the four major domestic refiners—SK Energy, HD Hyundai Oilbank, GS Caltex, and S-Oil—reached 19.726 trillion won in the first half of the year, a 2.4-fold increase from the end of last year. This surge is attributed to rising crude oil prices driven by Middle East tensions and the lag in reflecting these costs in consumer petroleum prices due to government price controls.

HD Hyundai Oilbank has utilized its increased earnings to improve its financial structure, successfully lowering its debt ratio to 192.4%. The company has prioritized securing financial resources for future business restructuring and petrochemical facility integration over resuming dividend payments.