S-Oil (010950) Q3 2026 earnings summary

Executive summary

• Q3 operating income rose 45.8% QoQ to KRW 1.4067tn, supported by stronger refining margins and record lube earnings.

• Q1–Q3 operating income reached KRW 3.6027tn versus a KRW 136.3bn loss a year earlier; net income was KRW 2.6712tn versus a KRW 48.1bn loss.

Financial highlights

• Q3 revenue rose 5.5% QoQ to KRW 11.9687tn; operating income was KRW 1.4067tn and net income KRW 1.4356tn.

• Income before tax was KRW 1.9717tn; net FX gain was KRW 609.7bn.

• Inventory-related impact was a KRW 29.4bn loss; a favorable oil-price lag effect contributed KRW 268bn.

Outlook and guidance

• Q4 refining margins are expected to remain strong on low inventories, supply disruptions and seasonal heating demand; geopolitical developments remain a key variable.

• Diesel and kerosene margins may remain elevated into 2027, depending on disrupted-facility recovery and winter demand.

• Q4 CDU throughput is expected at 90%, versus 81% in Q3, supported by Arab Medium imports through ship-to-ship transfers.

• Shaheen startup is targeted for early 2027 after phased commissioning; PE startup comes first, followed by the steam cracker and TC2C, with commercial operation 2–3 months after startup.

• Lube base oil supply is expected to remain tight, especially for Group III; aromatics may stay firm, while regional PP and PO capacity limits recovery.