South Korea's oil refiners, led by SK Innovation Co., are likely to see their operating income exceed the 5 trillion-won ($4.4 billion) mark this year on the back of improved cracking margins and an increased portion of high-end products, industry sources said Thursday.
  

The four refiners -- SK Innovation, GS Caltex Co., S-Oil Corp. and Hyundai Oilbank Co. -- have already logged an operating income of 4.05 trillion won in total in the first nine months of the year, according to the sources.
  

This year's estimate is lower than their record-high operating income of 7.2 trillion won in 2011.
  

Although global oil prices have hovered below the US$40 mark for the first time in seven years, their refining margins have stayed relatively high and their moves to cut costs have paid off, industry watchers said.  
  

Their refining margin has stood between $7 and $8 per barrel this year, far higher than the average $6 posted in the first three quarters of last year, which led to massive losses for local refiners.
  

Usually, a refiner can generate a profit with a refining margin of $4 or more per barrel.
  

Their moves to diversify supply chains and beef up facilities that produce high-end products also helped improve their earnings, industry watchers said.
  

Industry leader SK Innovation and No. 2 player GS Caltex have logged operating incomes of 1.67 trillion won and 1.1 trillion won, respectively, in the first three quarters of the year. S-Oil has reported an operating income of 860 billion won, with Hyundai Oilbank also enjoying 421 billion won.
  

Their fourth-quarter outlook also remains rosy. SK Innovation and GS Caltex each are expected to report an operating income of more than 300 billion won for the fourth quarter. S-Oil is likely to see its fourth-quarter operating income reach some 250 billion won, according to the data compiled by market researcher FnGuide. (Yonhap)