In brief
On November 2, S‑Oil Corp. reported a 2,171% jump in net profit to 1.43 trillion won, driven by higher refining and lubricants margins. Operating profit surged 513.7% to 1.4 trillion won, while revenue rose 42.2% to 11.96 trillion won. The company forewarns continued robust refining margins in the fourth quarter and notes that its new Shaheen petrochemical complex is in trial operation.
S‑Oil Corp. announced on Monday that it had achieved a record third‑quarter net income of 1.43 trillion won, a 2,171.3% increase from the same period last year, according to a regulatory filing reported by Yonhap. The milestone was attained on a foundation of higher refining and lubricants margins amid sustained oil‑price strength.
The company’s operating profit for July‑September leapt 513.7% year‑over‑year to 1.4 trillion won, and total revenue climbed 42.2% to 11.96 trillion won. These figures beat analysts’ estimates, with operating profit 6.2% above the average forecast in a survey of market observers conducted by Yonhap Infomax.
A combination of high oil prices, improved export refining margins and improved profitability in the lubricants business pushed up the quarterly results.
—S‑Oil spokesperson, as reported by Yonhap.
In a related note, S‑Oil says the strong refining margins are expected to endure into the fourth quarter, backed by low global inventories and strong seasonal demand for heating oil. The company also warns that lubricants supply will remain tight due to ongoing production disruptions and logistical constraints.
From January to September, the refinery swung to a net profit of 2.67 trillion won from a year‑ago loss of 48.13 billion won, while sales grew 26.7% to 32.25 trillion won on the same period. Operating profit also shifted from a loss of 136.29 billion won to 3.6 trillion won.
S‑Oil is in the midst of trial operations at its new Shaheen petrochemical complex, a 9.26 trillion‑won project adjacent to its Ulsan refinery. The facility, slated to start production of ethylene, propylene and butadiene in early 2027, is expected to further strengthen the company’s earnings profile.
Saudi Arabia’s state‑owned Aramco holds a 63.4% stake in S‑Oil, positioning the firm to benefit from the broader Middle Eastern oil market dynamics.
