S-Oil Swings to Net Profit in Q2 on Strong Refining Margins

S-Oil Corp., South Korea's third-largest refiner by sales, said Monday it swung to a net profit in the second quarter from a year earlier, driven by strong refining margins amid the prolonged conflict in the Middle East.

In the three months that ended in June, the company posted a net profit of 514.6 billion won (US$359 million), compared with a net loss of 66.8 billion won in the same period last year, according to a company press release.

"High refining margins and record earnings from the lubricant segment propped up the bottom line," the company said.

S-Oil expects steady demand in the second half to continue supporting earnings as global crude oil and refined product inventories have fallen sharply due to supply disruptions stemming from the U.S.-Iran war in the Middle East.

The company also posted an operating profit of 965 billion won in the second quarter, compared with an operating loss of 344 billion won a year earlier.

Sales rose 40.9 percent to 11.34 trillion won from 8.05 trillion won over the same period.

For the first six months of the year, S-Oil posted a net profit of 1.24 trillion won, compared with a net loss of 111.34 billion won in the year-earlier period.

Meanwhile, S-Oil is building a 9.26 trillion-won petrochemical complex under its Shaheen project, with trial operations scheduled to begin in late 2026.

The new facility, adjacent to its existing refinery in Ulsan, 360 kilometers southeast of Seoul, is expected to begin producing key petrochemical products, including ethylene, propylene and butadiene, in early 2027.

Saudi Arabia's state-owned Aramco holds a 63.4 percent stake in S-Oil.