S-Oil (010950) Q2 2026 earnings summary

Executive summary

• Q2 2026 operating income reached KRW 965 billion, driven by strong global refining margins and record-high lube base oil profits, despite lower crude prices late in the quarter.

• Tight global supply, low inventories, and export restrictions are sustaining firm market conditions.

• The Shaheen Project is progressing toward commercial operation in early 2027, with mechanical completion, pre-commissioning, and commissioning activities underway.

• The company operates globally with key subsidiaries in Singapore and Europe, and is majority-owned (63.4%) by Aramco Overseas Company B.V.

• The company maintains a strong market position in Korea and internationally, supported by long-term crude supply contracts and a robust sales network.

Financial highlights

• Q2 2026 sales revenue increased 26.8% quarter-over-quarter to KRW 11,343.5 billion, and consolidated H1 2026 revenue was KRW 20,286,177 million.

• Q2 operating income was KRW 965 billion, down from Q1 due to the absence of one-off crude price benefits, but a rebound from a loss in Q2 2025.

• Q2 net income was KRW 514.6 billion, down 28.6% from Q1 2026 but a significant turnaround from a loss in Q2 2025.

• EBITDA for H1 2026 was KRW 2,111 billion.

• Interim dividend of KRW 800 per share (common and preferred) was declared for August 2026.

Outlook and guidance

• Tight supply-demand conditions and low inventories are expected to persist through at least the end of 2026 and into 2027, keeping refining margins firm.

• Lube base oil market strength, especially for Group III, is expected to continue due to ongoing supply disruptions.

• The Shaheen Project and GTG Project are on track for commercial operation in early 2027 and end-2026, respectively.

• Management expects continued growth in non-refining segments and is pursuing biofuel and sustainable aviation fuel initiatives.

• Dividend payout ratio for 2026 will be at least 20%, with future guidelines to be developed.