S-Oil Sees Profit Surge on Lubricant Strength Amid Global Supply Constraints

S-Oil has reported a significant turnaround in its second-quarter earnings, thanks to wider refining margins and lubricant spreads. The company's operating profit reached 965 billion won, a stark contrast to the 344 billion won loss recorded in the same period last year.

The lubricant division was the main driver of this improvement, achieving its highest quarterly profit ever with an operating income of 477.4 billion won on revenue of 1.3017 trillion won.

This surge can be attributed to the tight supply-demand conditions for major products, which S-Oil expects will continue into the third quarter due to ongoing production disruptions and logistics constraints in the Middle East.