S-OIL Posts 965 Billion Won Q2 Operating Profit Despite Lower Oil Prices... Refined Margins and Lubricants Drive Earnings

Sales Reach 11.3435 Trillion Won, Net Profit at 514.6 Billion Won

Shaheen Project Aims for Commercial Operation Early Next Year

Despite the fall in oil prices, S-OIL achieved nearly 1 trillion won in operating profit in the second quarter of 2026. Strong refining margins and robust performance in the lubricants business drove its earnings, allowing the company to maintain solid profitability.

On August 3, S-OIL announced that it recorded 11.3435 trillion won in sales, 965 billion won in operating profit, and 514.6 billion won in net profit for the second quarter of this year.

Although operating profit declined by 21.6% compared to the previous quarter, it turned to black from a loss compared to the same period last year. Net profit also shifted to a surplus from a loss in the year-ago quarter.

Driven by strong refining margins, the refining business continued to perform well even though profits declined somewhat due to falling oil prices. Additionally, the lubricants segment recorded its best-ever quarterly results, offsetting the decrease in the refining sector and helping drive overall second-quarter performance.

By business segment, the refining division posted 532.4 billion won in operating profit, and the lubricants segment achieved 477.4 billion won in operating profit. In contrast, the petrochemical division recorded an operating loss of 44.8 billion won.

S-OIL expects market fundamentals to remain strong in the second half of the year. It forecasts a continued tight supply-demand environment, citing persistently low global crude oil and petroleum product inventories, export restrictions on Russian refined products, and production disruptions in the Middle East.

The company expects refining margins to stay strong in the refining business, due to increased demand for power generation during the driving season and heatwaves. For the lubricants segment, supply shortages are expected to continue as a result of ongoing production disruptions and logistical constraints in the Middle East.

S-OIL also stated that the Shaheen Project, currently underway in Ulsan, is progressing as planned. The company is in the process of verifying mechanical completion and aims to complete test operations in the second half of 2026, with the goal of commencing commercial operations in early 2027.

A company representative commented, "We are preparing for commercial operations without any setbacks, including the signing of annual supply contracts with olefin monomer clients," adding, "We plan to further strengthen our petrochemical competitiveness through the Shaheen Project."

This content was produced with the assistance of AI translation services.