S-Oil (010950) Q3 2025 earnings summary

Executive summary

• Q3 2025 operating income reached KRW 229.2 billion, marking a significant turnaround driven by strong refining and lube spreads and improved product margins.

• Q3 sales revenue was KRW 8,415.4 billion, with net income of KRW 63.2 billion, returning to profitability after prior losses.

• The Shaheen Project is 85.6% complete, with mechanical completion targeted for June 2026 and commercial operation expected in early 2027; pre-marketing and technical support activities are underway.

• Refining margins remained robust due to tight supply from global refinery outages and seasonal heating oil demand.

• For the first nine months of 2025, revenue was KRW 25.45 trillion, with a consolidated net loss of KRW 48.1 billion.

Financial highlights

• Q3 operating income: KRW 229.2 billion; Q3 net income: KRW 63.2 billion; Q3 income before tax: KRW 81.5 billion.

• Cumulative EBITDA for Q1–Q3 2025: KRW 466 billion.

• Cash balance at Q3 end: KRW 1.317 trillion.

• Total assets as of September 30, 2025: KRW 24.99 trillion; liabilities: KRW 16.34 trillion; equity: KRW 8.65 trillion.

• Operating margin improved to 2.7% in Q3 2025 from -4.3% in Q2 2025.

Outlook and guidance

• Q4 refining margin expected to remain strong due to seasonal heating oil demand and supply constraints from facility shutdowns and operational disruptions.

• Global refining market projected to remain tight through early 2026, with demand growth outpacing capacity expansion.

• Shaheen Project expected to double petrochemical capacity and increase segment sales share from 12% to 25% upon completion in 2026, contributing to performance from Q1 2027.

• Lube spreads are anticipated to stay stable despite seasonal slowdowns, aided by regional turnarounds and firm demand from India.

• A gas turbine generator project is underway to enhance energy efficiency and support carbon neutrality, with completion expected by 2027.