S-Oil, a South Korea-based oil refiner controlled by Saudi Aramco, announced its second-quarter results on Friday. Here are the key details:
S-Oil reported a net loss of KRW22.43 billion ($17.5 million) for the April-June quarter, compared to a net profit of KRW1.01 trillion in the same period last year.
Revenue and Operating Profit
Second-quarter revenue fell by 32% year-on-year to KRW7.820 trillion, and operating profit slumped by 98% to KRW36.42 billion.
What We Watched
Back to Loss
After two consecutive quarters of profit, S-Oil swung back to a net loss. This missed the FactSet-compiled consensus forecast, which expected a net profit of KRW184.00 billion for the quarter.
Oil Refining Segment
The company attributed the disappointing quarterly results to large-scale regular maintenance work, an inventory-related loss, and a narrower refining margin.
S-Oil expressed optimism about the future, stating that it expects growing mobility demand to support its oil refining margin in the coming months. It believes that the summer driving season in the U.S. and Europe, as well as strong air travel demand, will contribute to the spread for gasoline, diesel, and jet fuel.