S-Oil Posts Operating Profit of 229.2 Billion Won in Q3... Returns to Black on Refining Margin Recovery

Sales Reach 8.4154 Trillion Won, Up 4.6% from Previous Quarter
Strong Refining Margins and Base Oil Spreads
Shaheen Project 85.6% Complete

S-Oil returned to profitability in the third quarter, driven by improved refining margins and strong performance in its base oil segment.

On November 3, S-Oil announced that for the third quarter of 2025, it recorded sales of 8.4154 trillion won, operating profit of 229.2 billion won, and net profit of 63.2 billion won. Sales increased by 4.6% compared to the previous quarter, and both operating profit and net profit swung back into the black. Compared to the same period last year, when the company posted an operating loss of 414.9 billion won, the results have improved significantly.

In the refining segment, despite the OPEC Plus (OPEC+; Organization of the Petroleum Exporting Countries and allied major oil producers) maintaining an expansionary production policy, the price of Dubai crude remained steady due to geopolitical risks and the impact of sanctions on Russia. However, refining margins improved as product spreads, led by middle distillates, widened due to disruptions in Russian refining operations.

In the petrochemical segment, the paraxylene (PX) spread improved somewhat, supported by stable downstream demand. Benzene and olefin products continued to weaken due to increased supply. The base oil segment maintained performance at the previous quarter's level, thanks to solid global demand.

A company representative explained, "Overall profitability has recovered due to strong refining margins and base oil spreads," adding, "The rise in exchange rates also contributed in part to the increase in sales."

S-Oil expects this solid trend to continue in the fourth quarter. As the peak season for heating oil begins, seasonal demand for middle distillates is expected to increase, while global refining capacity is likely to remain limited due to operational disruptions and the closure of aging facilities, supporting continued strength in refining margins. In the petrochemical segment, market conditions for olefin products are expected to improve, driven by seasonal demand from events such as Black Friday and Christmas. Although the base oil segment is entering the off-season, steady demand, particularly from India, is expected to support stable market conditions.

The construction site of the S-Oil Shahin Project underway at Ulsan Onsan Industrial Complex. Behind the dome-shaped storage tank, the TC2C facility, which refines crude oil to produce petrochemical raw materials, is located, and to its right are one 118-meter-high propylene separation tower and four steam crackers. S-Oil.

Meanwhile, S-Oil's 'Shaheen Project' underway in Ulsan had reached a progress rate of 85.6% as of the end of October. The company has completed installation of major facilities such as steam crackers and polymer units. Currently, the construction of an automated warehouse and testing of the process control system are in progress. S-Oil is also working to expand its sales channels through pre-marketing while pursuing long-term contracts with major clients.

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