South Korea · Delayed Price · Currency is KRW S-Oil Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw robust operating income of KRW 965 billion, led by record lube base oil profits and strong refining margins amid global supply disruptions. The Shaheen Project remains on track for early 2027 commercial operation, while tight market conditions and high margins are expected to persist.
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Q1 2026 saw a sharp rise in operating income and revenue, driven by inventory gains from higher crude prices amid Middle East conflict, despite opportunity losses from maintenance and price caps. Stable crude supply and strong progress on the Shaheen Project support a positive outlook.
Fiscal Year 2025
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Q4 2025 saw a sharp rebound in operating income and net income, driven by strong refining and lube margins, while the Shaheen Project nears completion. Favorable market fundamentals are expected in 2026, with demand growth outpacing supply and a stable dividend policy maintained.
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Q3 2025 saw a strong rebound in operating income and profitability, driven by improved refining margins and steady lube demand. The Shaheen Project is progressing on schedule, with commercial operations expected in early 2027. Tight global supply and robust demand are expected to sustain favorable market conditions.
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Q2 saw widened operating losses due to inventory and FX impacts, despite improved refining margins and higher lube segment income. Market fundamentals are expected to strengthen in H2, with the Shaheen project progressing on schedule and industry supply tightening.
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Q1 2025 saw an operating loss due to weak refining and petrochemical margins, while lube business remained stable. The Shaheen Project is progressing ahead of schedule, and the company maintains strong liquidity and a commitment to shareholder returns despite market uncertainties.
Fiscal Year 2024
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Q4 2024 saw a return to operating profitability, driven by improved refining margins and FX gains, despite a net FX loss impacting pre-tax income. Major projects like Shaheen and GTG are progressing on schedule, with significant CapEx planned for 2025-2026.
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Q3 2024 saw a significant operating loss due to inventory and FX impacts, but lube business income rose and the Shaheen Project progressed to 42% EPC completion. Refining and petrochemical segments faced margin pressures, while demand recovery and supply tightening are expected to improve fundamentals in Q4.
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Q2 2024 saw operating income of KRW 160.6 billion, with petrochemical and LBO segments offsetting weak refining margins. Sales rose 2.8% sequentially, but FX losses led to a pre-tax loss. The Shaheen project is on track, and Asian fuel demand is expected to rebound in Q3.