GS Caltex swings to net loss in Q3 on weaker won

By Nam Kwang-sik
SEOUL, Nov. 14 (Yonhap) -- GS Caltex Corp., South Korea's second-largest oil refiner, said Friday it swung to a net loss in the third quarter as financing costs surged on a weaker local currency.

Net loss came to 272.4 billion won (US$197.4 million) in the July-September
period, compared with a net income of 167.6 billion won a year ago, GS Caltex
said in a statement.
Sales rose 86 percent on-year to 10.35 trillion won in the third quarter, but
operating profit fell 75 percent to 68.8 billion due to decreased refining
margins, the company said.
GS Caltex said the won's tumble against the U.S. dollar sharply increased foreign
exchange losses and costs for capital spending. The won has fallen nearly 30
percent against the greenback this year.
GS Caltex said in May that it will spend 2.94 trillion won on the construction of
its third plant that processes heavy oil into transportation fuel by 2010.
Unlisted GS Caltex is a 50-50 joint venture between GS Holdings Corp. of South
Korea and Chevron Corp., the second-biggest U.S. oil company.
ksnam@yna.co.kr
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