S-Oil (010950) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw an operating loss of KRW -21.5 billion, reversing from profits in prior periods, with refining and petrochemical segments both in deficit, while lube business maintained stable operating income quarter-on-quarter.

• Sales revenue was KRW 8.9905 trillion, down 3.4% year-over-year but up slightly from the previous quarter.

• Net loss for Q1 2025 was KRW -44.6 billion, compared to a profit in Q1 2024.

• The Shaheen Project reached over 65% completion and is progressing ahead of schedule, remaining a key part of long-term strategy.

• The company maintains a strong market position with diversified operations and stable crude supply integration.

Financial highlights

• Q1 operating income: KRW -21.5 billion, a reversal from previous profits.

• Q1 sales revenue: KRW 8.9905 trillion, down 3.4% YoY, up 0.8% sequentially.

• Q1 net loss: KRW -44.6 billion.

• Q1 EBITDA: KRW 121 billion.

• Cash and cash equivalents at Q1 end: KRW 1.86 trillion.

Outlook and guidance

• Refining margins are expected to improve gradually as oil prices decline and OPEC+ increases output.

• Major investments in petrochemical expansion (Shaheen Project) and energy efficiency (GTG Project) are underway, targeting completion in 2026–2027.

• The company targets a dividend payout ratio of at least 20% for 2025–2026.

• Focus remains on portfolio diversification and energy transition.