S-Oil (010950) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating income was -414.9 billion KRW, mainly due to one-off inventory losses from declining oil prices and FX rate, partially offset by FX gains.

• Sales revenue dropped 7.6% sequentially to 8.84 trillion KRW, reflecting lower international product prices and a weaker KRW.

• Net income turned negative at -206.2 billion KRW in Q3 2024, reversing from a profit in Q3 2023.

• The Shaheen Project reached 42% EPC progress by end of October 2024, with construction and funding on track.

• Revenue for the first nine months of 2024 was ₩27,719,950 million, down from ₩35,726,694 million year-over-year.

Financial highlights

• Q3 operating income: -414.9 billion KRW; income before tax: -272.5 billion KRW; net income: -206.2 billion KRW.

• Inventory-related impact: -286.1 billion KRW; FX impact: -50.5 billion KRW; net FX gain: 202.1 billion KRW.

• Cumulative operating income to Q3 2024: 199.8 billion KRW; EBITDA for Q1–Q3: 1,789 billion KRW.

• Cash balance at Q3 end: 1,615 billion KRW; net debt to equity ratio: 65.3%.

• Total borrowings increased to ₩7,149,902 million; equity at Q3 end: ₩8,788 billion.

Outlook and guidance

• Asian refining margin expected to recover in Q4, supported by seasonal demand and supply restrictions.

• Demand for heating oil, kerosene, and jet fuel projected to rise in winter, especially in Asia.

• The Shaheen Project is on track for mechanical completion in H1 2026 and commercial operation in H2 2026.

• No additional large-scale capex projects confirmed beyond current investments.

• Dividend payout to follow existing ratio guidance; specifics pending year-end results.