S-Oil (A010950) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw robust performance across refining, lube, and petrochemical segments, with operating income surging to KRW 1.231 trillion, up 231% quarter-on-quarter and year-over-year, driven by strong refining margins, inventory gains, and stable crude supply despite Middle East disruptions.

• Sales revenue reached KRW 8.942 trillion, up 1.7% quarter-on-quarter, with a slight 0.5% decrease year-over-year.

• The Shaheen Project reached 96.9% mechanical completion by end-April, targeting full completion by June 2026 and commercial startup in early 2027.

• Stable crude supply was maintained through long-term contracts with Saudi Aramco and Bahri, ensuring resilience amid regional disruptions.

• Major investments continued in petrochemical expansion and energy transition projects, including the Shaheen and Gas Turbine Generator projects.

Financial highlights

• Q1 operating income: KRW 1.231 trillion, up 231% quarter-on-quarter and year-over-year.

• Q1 sales revenue: KRW 8.942 trillion, up 1.7% quarter-on-quarter.

• Q1 net income: KRW 721 billion; income before tax: KRW 991.4 billion.

• Q1 EBITDA: KRW 1.789 trillion.

• Gross margin improved to 16.2% from 1.9% year-over-year.

Outlook and guidance

• Tight crude and refined product supply expected to persist into Q2 2026 due to ongoing Middle East conflict, supporting firm refining margins.

• Refining margins expected to remain strong, with gasoline and diesel spreads at $25 and $10 per barrel, respectively, in April.

• Shaheen Project aims to double chemical production share to 25% upon completion in H1 2026.

• Gas Turbine Generator project to enhance energy efficiency, with completion expected by April 2027.

• Focus remains on energy transition, biofuels, and sustainable aviation fuel infrastructure.