S-OIL Q3 Operating Profit Surges 514% to 1.4067 Trillion Won

Earnings improve on higher international oil prices and strong refining margins
Shaheen Project begins commissioning, with operations targeted to start early next year

S-OIL's operating profit surged 514% year over year in the third quarter of this year, buoyed by rising international oil prices and strong refining margins.

S-OIL CI. S-OIL

S-OIL said on Nov. 2 that it recorded consolidated revenue of 11.9687 trillion won and operating profit of 1.4067 trillion won in the third quarter of this year. The figures were up 42.2% and 513.7%, respectively, from the same period last year. Net profit rose 2,171.3% to 1.4356 trillion won.

Operating profit by business segment was 690.4 billion won for refining and 742.7 billion won for lubricants. The petrochemical segment, meanwhile, posted an operating loss of 26.4 billion won.

The refining segment improved its performance as geopolitical tensions in the Middle East drove up international oil prices and tight supplies of refined products sustained strong refining margins. The lubricants segment also performed well, with spreads for base oils widening due to production disruptions and logistics constraints in the Middle East.

S-OIL forecast that strength in the refining segment would continue in the fourth quarter, supported by low global inventories of refined products and rising demand for heating oil. Whether supplies of Middle Eastern products return to normal was cited as a key variable for the lubricants segment.

S-OIL has completed mechanical work on the major facilities of its Shaheen Project, a large-scale petrochemical investment, and is proceeding with commissioning in stages. The company is targeting a start of operations early next year.

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