[Asia Economy Reporter Lee Seon-ae] S-Oil is showing a strong gain of over 6% amid expectations that it will record the highest-ever operating profit this year, following last year.
As of 9:38 AM on the 7th, S-Oil is trading at 98,000 KRW, up 5.95% from the previous trading day. During the session, it rose to 98,800 KRW.
Hana Financial Investment forecasted that S-Oil's operating profit for the fourth quarter will increase by 9% from the previous quarter to 598.3 billion KRW. The operating profit for the first quarter of this year is expected to increase by 10% compared to the previous quarter.
Yoon Jae-sung, a researcher at Hana Financial Investment, analyzed, "Since S-Oil procures all its crude oil from Saudi Arabia, it is not affected at all by Mexico's reduction in crude oil exports. Rather, it can benefit from the rise in oil prices due to the tightening supply and demand in the crude oil market," adding, "In 2022, due to the shortage of petroleum products and the resulting inflation and interest rate hike pressures, it is a company that must be held as a hedge."
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