S-Oil (010950) Q4 2025 earnings summary

Executive summary

• Q4 2025 operating income surged to KRW 424.5 billion, up 85% quarter-on-quarter, driven by strong refining and lube business spreads and reduced petrochemical losses.

• Q4 sales revenue reached KRW 8.7926 trillion, a 4.5% increase from the previous quarter.

• Net income for Q4 was KRW 265 billion, a 319.3% increase quarter-on-quarter, with income before tax at KRW 317.9 billion.

• Annual operating income for 2025 slightly declined year-over-year to KRW 288.2 billion.

• The Shaheen Project is 93.1% complete, targeting mechanical completion in H1 2026 and commercial operations in early 2027.

Financial highlights

• Q4 operating income: KRW 424.5 billion; Q4 net income: KRW 265 billion.

• Cumulative 2025 EBITDA: KRW 979 billion.

• Cash balance at year-end: KRW 1.843 trillion; net debt-to-equity ratio: 67.9%.

• Inventory-related impact on Q4 operating income: KRW -87.4 billion.

• EBITDA and net debt to equity ratios improved year-over-year.

Outlook and guidance

• 2026 market expected to be favorable, with global demand growth outpacing net refining and PX capacity expansion.

• Refining margin projected to remain stable due to lower oil prices and OSP.

• Bullish sentiment anticipated for oil and PX markets, with demand growth exceeding supply additions.

• OSP for Saudi crude in Q1 2026 below five-year average, supporting refining margins.

• Dividend payout ratio for 2025 and 2026 set at 20% or above of annual net income.