S-OIL Returns to Profit on Strong Refining Margins and Record Lubricants Performance
S-OIL, a South Korean oil refiner, has reported its second-quarter operating profit at approximately $675.7 million, swinging back to profitability due to strong refining margins and record-level performance in its lubricants business.
The company's revenue rose by 40.9% year-over-year to approximately $7.9 billion, with the lubricants segment leading the improvement. The segment posted a record quarterly profit of approximately $334.3 million, driven by tight supply-demand conditions for key products and all-time high spreads.
The refining business saw revenue of approximately $6.3 billion and operating profit of approximately $372.8 million, with refining margins rising sharply due to the tightening of refined product supplies. However, refining operating profit fell 48.8% from the previous quarter, reflecting opportunity costs from scheduled maintenance and reduced inventory-related gains.
The company expects overall tight supply-demand conditions to persist into the third quarter, sustaining a healthy market environment. S-OIL's official noted that global crude oil inventories are below the lower end of the five-year range, with gasoline and diesel inventories also near historic lows.