S-OIL, 3Q Operating Profit 549.4 Billion Won... Return to Profitability

Sales of 7.117 trillion KRW... 82.5% Increase Compared to Previous Year

[Asia Economy Reporter Hwang Yoon-joo] S-OIL succeeded in turning a profit in the third quarter of this year. However, the operating profit was smaller than that of the second quarter.

S-OIL announced on the 28th that its operating profit in the third quarter was 549.4 billion KRW, turning profitable compared to the same period last year. During the same period, sales increased by 82.5% to 7.117 trillion KRW, and net profit rose by 1004.8% to 334.5 billion KRW.

S-OIL explained, "Our continuous petrochemical expansion strategy through large-scale facility investments was effective, with the non-refining sector accounting for 26.6% of sales (16.6% petrochemicals, 10.0% lubricants) and generating 66.2% (363.9 billion KRW) of total operating profit."

By business division, refining operating profit was 185.5 billion KRW, petrochemicals 75.1 billion KRW, and lubricants 288.8 billion KRW. In particular, lubricants achieved a record high quarterly operating profit since the company's founding, surpassing the second quarter's record, driven by the further strengthening of Group 3 premium lubricants, accounting for 52.6% of total operating profit.

S-OIL added, "Despite inventory-related profits decreasing by 37% from the previous quarter (139 billion KRW → 88 billion KRW), we realized operating profits exceeding market expectations by maintaining maximum operating rates in the refining sector and maximizing the effect of improved global refining margins."