S-Oil (A010950) Q4 2024 earnings summary

Executive summary

• Q4 2024 operating income reached KRW 260.8 billion, reversing previous losses due to improved refining margins and FX gains, despite petrochemical losses and lower lube income from seasonality and maintenance.

• Q4 2024 sales revenue was KRW 8.9171 trillion, up 0.9% quarter-over-quarter but down year-over-year.

• Net income for Q4 2024 was -KRW 102.1 billion, reflecting ongoing financial headwinds despite operational improvements.

• Annual operating income reached KRW 460.6 billion, with stable cash balance and strong liquidity maintained.

• The GTG (Gas Turbine Cogeneration) project is underway to enhance energy efficiency and reduce costs, with completion targeted for 2026.

Financial highlights

• Q4 operating income was KRW 260.8 billion, reversing the previous quarter's loss of -KRW 414.9 billion.

• Q4 sales revenue was KRW 8.9171 trillion, up 0.9% sequentially but down from KRW 9.8299 trillion year-over-year.

• Inventory impact in Q4 operating income was KRW 68 billion.

• Net FX loss of KRW 415.7 billion led to a pre-tax loss of KRW 208 billion in Q4.

• Finance and other income was -KRW 468.7 billion, mainly due to net FX losses.

Outlook and guidance

• Asian refining margins expected to remain steady to strong in Q1 2025, supported by reduced Chinese exports and seasonal demand.

• Lube demand anticipated to recover in Q1 with spring oil change season and Chinese stimulus.

• Global oil demand forecasted to grow steadily in 2025, with limited net capacity expansion through 2030.

• Limited new capacity additions are expected to support long-term margin improvement.