S-Oil (A010950) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw an operating loss of KRW 21.5 billion, reversing from prior profits, with refining and petrochemical segments in deficit and lube business maintaining stable operating income.

• Sales revenue for Q1 was KRW 8.9905 trillion, down 3.4% year-over-year but up slightly from the previous quarter.

• Net loss for Q1 was KRW 44.6 billion, compared to a profit in Q1 2024.

• The Shaheen Project reached over 65% completion and is progressing ahead of schedule, targeting completion by 1H 2026.

• Lube segment remained profitable, partially offsetting losses in other segments.

Financial highlights

• Q1 operating income: -KRW 21.5 billion, a reversal from previous profits.

• Q1 sales revenue: KRW 8.9905 trillion, down 3.4% YoY, up 0.8% sequentially.

• Net loss: KRW 44.6 billion (Q1 2024: profit KRW 166.2 billion).

• Q1 EBITDA: KRW 121 billion.

• Inventory-related impact on Q1 operating income: +KRW 12.2 billion.

Outlook and guidance

• Refining margin expected to improve from Q2 as demand recovers and oil prices decline.

• Dividend payout ratio of at least 20% targeted for FY 2025 and 2026.

• Major investments underway in petrochemical expansion (Shaheen Project) and energy efficiency (GTG Project), targeting completion in 2026–2027.

• Lube base oil spread expected to remain stable in 2025 due to limited new capacity additions.

• Focus remains on portfolio diversification and energy transition.