S-Oil Reports Operating Profit of 454.1 Billion KRW in 1Q... Returns to Profitability on Refining Margin Rebound

S-OIL announced on the 26th that it turned profitable in the first quarter by recording an operating profit of 454.1 billion KRW, driven by solid refining margins and rising oil prices. During the same period, sales decreased by 5.3% quarter-on-quarter to 9.3085 trillion KRW due to a decline in average selling prices.

The refining segment returned to profitability as Asian refining margins rebounded amid steady product demand, regular maintenance of global refiners, equipment issues, and supply disruptions caused by geopolitical instability.

[Image source=Yonhap News]

In the petrochemical sector, the paraxylene (PX) market maintained a healthy level due to strong polyester demand following the Chinese Lunar New Year holiday, while the benzene (BZ) market improved thanks to increased import demand from the United States. Additionally, the polypropylene (PP) and polyolefin (PO) markets rebounded due to supply constraints caused by production facility disruptions amid stagnant downstream demand.

The lubricants segment explained that although the lubricating base oil spread declined quarter-on-quarter due to a lagging effect from rising raw material prices, it maintained a solid performance.

S-OIL expects its major business segments to continue showing positive trends in the second quarter. Asian refining margins are anticipated to remain stable due to regional scheduled maintenance, then rise with increased demand entering the summer peak season. Increased fuel demand during the summer peak travel season is also expected.

An S-OIL representative stated, "To respond to the growing demand for renewable fuels and circular chemical products, we have started co-processing bio-based raw materials and pyrolysis oil from waste plastics in existing facilities and obtained ISCC certification. The initial target for the bio-based raw material co-processing business is 150 KTA by 2030, and from a long-term perspective, we are also considering the construction of dedicated sustainable aviation fuel production facilities."

Meanwhile, S-OIL explained that the Shahin Project, a mega petrochemical project it is promoting, is progressing smoothly with a goal of mechanical completion in the first half of 2026. Currently, the project progress rate is 75.4% for site grading work and 22.4% for EPC (engineering, procurement, and construction).

This content was produced with the assistance of AI translation services.