S-Oil (010950) Q2 2025 earnings summary

Executive summary

• Q2 2025 operating income was KRW -344 billion and net income was KRW -66.8 billion, mainly due to inventory losses from lower crude oil prices and FX impacts, despite improved refining margins.

• Revenue for Q2 2025 was KRW 8.0485 trillion, down 10.5% quarter-over-quarter and 15.9% year-over-year.

• The Shaheen Project, a major petrochemical expansion, reached 77.7% completion and is progressing ahead of schedule.

• Despite improved refining and lube margins, overall profitability was pressured by external market factors and inventory impacts.

• The company maintained a strong balance sheet with total assets of KRW 24,575 billion and equity of KRW 8,581 billion as of June 30, 2025.

Financial highlights

• Q2 2025 operating income: KRW -344 billion; net income: KRW -66.8 billion; EBITDA for H1 2025: KRW 1,789 billion.

• Net debt to equity ratio increased to 77.2% in H1 2025; net borrowings stood at KRW 7,810 billion.

• Cash and cash equivalents at period end were KRW 1,551 billion.

• Dividend payout for H1 2025 was limited to preferred shares (KRW 25/share); no ordinary share dividend.

• One-off impacts (oil price drop, FX, OSP) contributed KRW -505 billion to Q2 operating loss.

Outlook and guidance

• Market fundamentals are expected to improve as demand picks up from low crude prices and limited supply expansions.

• Refining margin projected to maintain upward momentum into H2, supported by seasonal demand and tight diesel market.

• Lube & lubricants market conditions expected to remain stable, with potential volatility from geopolitical risks.

• The Shaheen Project targets mechanical completion by H1 2026, with commercial operation in early 2027.

• Management aims to maintain financial stability and invest in growth and sustainability amid continued market volatility.