Refinery and petrochemical "strong refining margin improvement this year."

[Korea's financial standing hyomun newspaper reporter] refinery and petrochemical companies have continued to record high earnings last year were expected to exhibit stable performance this year.

Songminjun Korea Investors Service (the KIS) Institute is 14 days conducted, refineries, robust earnings sustainability and potential risks "in webcasting it announced record" Last year refinery four living combined operating profit of 8 trillion in solid refining margins, oil prices rebounded, etc. He predicts that the scale showed the highest ever, "said" this year, but the oversupply concerns in the petrochemical area, will be recorded a stable performance. "

By forecasts, refining margins in oil refining business is business would improve slightly compared to last year. The basis is the last in 2014 after refining operation scale exceeding the previous year, and oil prices also will not significantly deviate from the current level being recorded $ 56 a barrel (Brent oil).

Song researcher "in refining capacity expansion in size in 2017 will be refining operations have greatly expanded no more than 100 million barrels," said "Last November, oil-producing countries to agree on cuts and but the yihaengryul far exceeded the 90% barrel $ 56 appears to maintain the level of refining margins are expected to be improved, "he said.

Petrochemicals were predicting a new plant operation, a total of 3.55 million tons of excess supply in India and Saudi Arabia is that there is concern. But he said they would be recorded stable earnings this year revealed to be applied after the fourth quarter of this year.

Song researchers "PX (paraxylene), spreadsheet showing the (raw material and price differences between products) gradually recovering after falling last in 2014," he said, "This year is an oversupply concerns in the new plant operation Standing India, Saudi Arabia." I had mentioned.

He added, "This is considered to be applied since the fourth quarter," he added, "This year will be held PX spread is preferably benzene spreads well today chogangse also good news along."

It is expected to achieve a boom in luxury goods around the region as a lubricant inducing North America, Asia car sales that drive the performance of last year's record-high oil refiners. An analysis of post solid operating performance with solid growth of domestic refineries and the advanced base oil market is stable.

Song researchers, "LBO has seen sales performance has gradually recovered since 2013, and this year will be backed by the robust growth of the luxury market," he said "Overall, oil prices are limited to operating profit is slightly lower than last year, but refining margins will record an improvement, stable revenue performance in the non-oil refining sector, "he predicted it.





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