S-Oil (A010950) Q2 2025 earnings summary

Executive summary

• Q2 2025 operating income was KRW -344 billion, with net income at KRW -66.8 billion, mainly due to inventory losses, lower crude prices, and FX impacts, despite improved refining margins.

• Revenues for Q2 2025 were KRW 8.0485 trillion, down 10.5% quarter-over-quarter and 15.9% year-over-year.

• The Shaheen Project, a major petrochemical expansion, is 77.7% complete and progressing ahead of schedule.

• The company maintained a strong balance sheet with total assets of KRW 24,575 billion and equity of KRW 8,581 billion as of June 30, 2025.

• Net loss for H1 2025 was KRW 111 billion, compared to a net loss of KRW 193 billion in H1 2024.

Financial highlights

• Q2 2025 operating income: KRW -344 billion; net income: KRW -66.8 billion; Q2 revenues: KRW 8.0485 trillion.

• EBITDA for H1 2025: KRW 1,789 billion; gross profit for H1 2025: KRW 22 billion.

• Cash and cash equivalents at period end: KRW 1,551 billion; net borrowings: KRW 7,810 billion.

• Net debt to equity ratio: 77.2% in H1 2025; debt-to-equity ratio: 186.4%.

• Dividend payout for H1 2025 was limited to preferred shares (KRW 25/share); no ordinary share dividend.

Outlook and guidance

• Market fundamentals expected to improve as demand picks up from low crude prices and limited supply expansions.

• Refining margins projected to remain robust, supported by seasonal demand and supply constraints.

• Shaheen Project targets mechanical completion by H1 2026, aiming to double petrochemical capacity.

• Gas turbine generator project to enhance energy efficiency, completion expected by end-2026.

• Management expects continued market volatility but aims to maintain financial stability and invest in growth.