UPDATE 1-S.Korea SK Innovation sees diesel demand increase H2 refining margins | Energy and oil

* Sees overall refinery maintenance plan supporting margins

* Q2 operating profit doubles to 851.6 billion yuan

* Continues to diversify its condensate sources

* No major maintenance plan in H2 (Adds comments (Reuters) – SK Innovation, which owns South Korea's largest refiner, SK Energy, said Friday that global refining margins are expected to improve second half of year on firm diesel demand

Refinery maintenance plans around the world are also expected to support refining margins, the company said in a statement.

One day later S-Oil, South Korea's third largest refiner, said that refining margins are expected to improve in the third quarter, supported by strong demand and limited capacity expansion in Asia.

Profit d & # 39; feat SK Innovation more than doubled to 851.6 billion won ($ 759 million) in the second quarter from last year, thanks to the weak won against the US dollar and higher inventories. .

The company will continue to diversify its condensate sources to replace condensate from the Middle East in tight market conditions, said Kang Dong-hoon, chief production officer at SK Incheon Petrochemical, on a call with analysts.

"We brought condensate from Northern Europe and West Africa … and reduced our dependence on condensate from the Middle East," Kang said.

SK Energy and SK Incheon Petrochemical, owned by SK Innovation, are among South Korean buyers of Iranian oil, mainly condensates.

South Korean refiners have reduced their purchases of Iranian oil and have turned to alternative sources such as US and African crude in recent months because of high Middle East prices and the uncertainty surrounding trade with Iran.

SK Innovation, which has a total refining capacity of 1,115 million barrels per day (bpd) in Ulsan and Incheon, recorded an average growth of 88% in the second quarter, up from 81% last year .

The company has no major maintenance plan for the rest of the year, he added.

SK Innovation's shares were down about 1% at 0224 GMT, while the broader market was down 0.07%. (1 $ = 1,122,0000 won) (Reported by Jane Chung, edited by Gopakumar Warrier)