[Featured Stock] S-Oil Surges 5% on Strong Refining Margins and Earnings Expectations

[Asia Economy Reporter Minji Lee] S-Oil is soaring on expectations of posting record-breaking earnings in the first quarter.

As of 9:56 a.m. on the 28th, S-Oil is trading at 97,100 KRW, up 5.31% from the previous trading day. The continued high oil prices and the ultra-strong refining margins are believed to have positively influenced the stock price.

Hana Financial Investment forecasted that S-Oil will record an operating profit of 1.222 trillion KRW in the first quarter, surpassing the market consensus of 824.3 billion KRW. This would be the highest quarterly profit ever, and the second quarter is also expected to exceed market expectations by 33%, with an operating profit of 738.7 billion KRW.

Refining margins remain ultra-strong. Refining margin is the figure obtained by subtracting operating costs and raw material costs from the prices of petroleum products such as gasoline and diesel. Researcher Yoon explained, “Last year, refining margins were only 6 to 7 dollars, but currently, diesel refining margins exceed 30 dollars,” adding, “The fundamental cause is the diesel shortage situation, which is unlikely to end in the short term.”

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