S-Oil (A010950) Q3 2025 earnings summary

Executive summary

• Q3 2025 operating income reached KRW 229.2 billion, marking a significant turnaround driven by strong refining and lube spreads, with sales revenue at KRW 8,415.4 billion and net income of KRW 63.2 billion.

• The Shaheen Project is 85.6% complete as of October 2025, with commercial operation targeted for early 2027 and pre-marketing activities underway.

• Revenue for the first nine months of 2025 was KRW 25.45 trillion, with a consolidated net loss of KRW 48.1 billion and an operating loss of KRW 136.3 billion.

• The company’s main business segments are oil refining (79% of sales), lube oil (9%), and petrochemicals (12%).

• The largest shareholder is Aramco Overseas Company B.V., holding 63.4% of shares, ensuring stable crude supply via long-term contracts.

Financial highlights

• Q3 operating income: KRW 229.2 billion; net income: KRW 63.2 billion; income before tax: KRW 81.5 billion.

• Cumulative EBITDA for Q1–Q3 2025: KRW 466 billion.

• Cash and cash equivalents at Q3 end: KRW 1.317 trillion.

• Total assets as of September 30, 2025: KRW 24.99 trillion; liabilities: KRW 16.34 trillion; equity: KRW 8.65 trillion.

• Gross profit for the nine months: KRW 443.7 billion, with a gross margin of 1.7%.

Outlook and guidance

• Q4 refining margins expected to remain strong due to seasonal heating oil demand and supply constraints from facility closures and disruptions.

• Petrochemical market conditions may improve with seasonal demand, but oversupply could offset gains.

• Lube business forecasted to remain stable in Q4, supported by regular turnarounds and firm demand, especially from India.

• The Shaheen Project aims to double petrochemical capacity and increase the segment’s sales share from 12% to 25% by 2026.

• No additional large-scale capital investments are planned beyond current projects.