S-Oil (A010950) Q4 2025 earnings summary

Executive summary

• Q4 2025 operating income surged to KRW 424.5 billion, up 85% quarter-on-quarter, driven by strong refining and lube business spreads and reduced petrochemical losses.

• Q4 sales revenue reached KRW 8,792.6 billion, a 4.5% increase from the previous quarter.

• Net income for Q4 was KRW 265 billion, a 319.3% increase QoQ, with income before tax at KRW 317.9 billion.

• Annual operating income for 2025 slightly declined year-over-year to KRW 288.2 billion, but the company returned to profitability with KRW 216.9 billion net income.

• The Shaheen Project is 93.1% complete, targeting mechanical completion in H1 2026 and commercial operations in early 2027.

Financial highlights

• Q4 operating income: KRW 424.5 billion (+85% QoQ); Q4 net income: KRW 265 billion.

• Q4 sales revenue: KRW 8,792.6 billion (+4.5% QoQ).

• Cumulative 2025 EBITDA: KRW 979 billion; EBITDA and net debt to equity ratios improved YoY.

• Cash balance at 2025-end: KRW 1,843 billion; net debt to equity ratio: 67.9%.

• Inventory-related impact on Q4 operating income: KRW -87.4 billion.

Outlook and guidance

• 2026 market expected to be favorable, with global demand growth outpacing net refining and PX capacity expansion.

• Refining margin projected to remain stable due to lower oil prices and OSP.

• Bullish sentiment anticipated for oil and PX markets, with tight supply-demand balance expected to persist.

• OSP for Saudi crude is below five-year average, supporting refining margins.

• Shaheen Project on track for mechanical completion in H1 2026 and commercial operation in early 2027.