S-Oil (010950) Q4 2024 earnings summary

Executive summary

• Q4 2024 operating income reached KRW 260.8 billion, reversing prior losses due to improved refining margins and FX gains, despite a net FX loss impacting income before tax.

• Q4 sales revenue was KRW 8.9171 trillion, up 0.9% sequentially but down year-over-year.

• Net income for Q4 2024 was -102.1 billion Won, reflecting ongoing financial headwinds.

• The GTG (Gas Turbine Cogeneration) project is underway to enhance energy efficiency and reduce costs, with completion targeted for 2026.

• The Shaheen Project reached 51.8% completion by end of 2024, on track for mechanical completion in 2026.

Financial highlights

• Q4 operating income: KRW 260.8 billion, reversing the previous quarter's loss.

• Q4 sales revenue: KRW 8.9171 trillion, up 0.9% sequentially.

• Q4 net FX loss: KRW -415.7 billion, leading to income before tax of KRW -208 billion.

• Net income for Q4 2024 was -102.1 billion Won, an improvement from -206.2 billion Won in Q3 2024.

• Inventory-related impact contributed +68.0 billion Won to results.

Outlook and guidance

• Asian refining margins expected to remain steady to strong in Q1 2025, supported by reduced Chinese exports and seasonal demand.

• Global oil demand forecasted to grow steadily, with robust growth in India and Southeast Asia and support from Chinese stimulus.

• Limited net capacity expansion through 2030 is expected to support healthy market fundamentals.

• Lube segment expects demand recovery in spring and further rebound from China’s economic stimulus.