SEOUL, March 24 (Reuters) - Top management at South Korea’s Hyundai Oilbank will take a 20% paycut from April to help offset the impact of a slump in refining margins from the coronavirus outbreak, the refiner said on Tuesday.
Hyundai Oilbank, the country’s smallest refiner by capacity, said in a statement it also plans to cut its expense budget by up to 70% under an emergency management system.
The move comes as refiners around the world have been grappling with a plunge in crude oil prices and weakening refining margins as travel restrictions and quarantines have curbed oil consumption.
Asian refiners’ profits from producing gasoline GL92-SIN-CRK dropped to fresh lows on Monday of minus $4.10 a barrel, the lowest since the aftermath of the global financial crisis in December 2008. Refining margins for jet fuel also turned negative for the first time in more than a decade.
Hyundai Oilbank operates the 520,000 barrels-per-day (bpd) Daesan refinery, located in the southwestern part of the country, along with a 170,000-bpd condensate splitter. (Reporting By Jane Chung; editing by Richard Pullin)