Hyundai Oilbank to pursue initial public offering in 2022
Photo courtesy of Hyundai Oilbank

Hyundai Oilbank to pursue initial public offering in 2022

Hyundai Oilbank Co Ltd, which owns and operates a 650,000 barrel-per-day (bpd) oil refinery in Daesan-eup, Seosan, Chungnam, South Korea, is pursuing its initial public offering (IPO) in 2022.

Hyundai Heavy Industries Holdings Co. the largest shareholder of Hyundai Oilbank with a 74.13% stake, disclosed Monday that its board has approved the IPO plan of its oil refining unit. 

Hyundai Oilbankโ€™s market listing plan comes after its first attempt in 2019 fell through, after selling a 17% stake to Saudi Aramco for KRW1.37 trillion (USD1.22 billion) in a pre-IPO.

According to Pulse News, the shipbuilding conglomerate is pursuing the IPO next year to capitalize on favorable market conditions. Crude oil prices have recovered since the start of the global Covid-19 pandemic last year. In the first quarter, Hyundai Oilbank posted an operating profit of KRW412.8 billion (USD369.6 million), from a KRW563.2 billion (USD504.3 million) loss during the same period a year ago. Sales have increased by 2.71% year-on-year to KRW4.53 trillion (USD4 billion).

Hyundai Oilbank plans to reduce its oil refinery revenue to 40% by 2030, from the current 85%, by producing 100,000 tons of blue hydrogen. Hyundai Oilbank has broken ground for a liquid carbon dioxide production plant in Daejuk, South Chungcheong Province, to speed up its Hydrogen Dream 2030 Roadmap. Hyundai Oilbank has partnered with liquid carbon dioxide maker Shinbiochem Co. to build the plant. Once the plant is completed, Hyundai Oilbank will supply 200,000 tons of carbon dioxide annually from its Daesan petrochemical complex to Shinbiochem. Hyundai Oilbank will step up its blue hydrogen production by recycling the carbon emissions from the plant. Hyundai Oilbank also will build a high-purity refining facility in Daesan to convert blue hydrogen into fuel for vehicles next month.