Korean refiners’ Q1 profit tops 5 trillion won, but oil-price inventory gains cloud picture

Korea’s four major refiners reportedly posted first-quarter operating profit in the 5 trillion won range, swinging from a 6.3 billion won loss to a large surplus. But analysts say the result was heavily influenced by inventory valuation gains as international oil prices fluctuated sharply amid a prolonged Middle East war. The improvement may therefore reflect an accounting boost from higher crude prices rather than a structural recovery in operating conditions. In the second half, higher crude import costs could begin to weigh more directly on profitability. The burden from the maximum price system, frozen for three consecutive rounds, is also being cited as a concern for refiners. Source: mk.co.kr.