According to regulatory filings released Monday, the Aramco-controlled refiner posted a consolidated operating profit of 1.23 trillion won ($835.7 million) for the January to March period, swinging from an operating loss of 21.5 billion won a year earlier. Net profit came in at 721 billion won, also reversing a year-ago loss.
Revenue edged down 0.5 percent from a year earlier to 8.94 trillion won, as the hit from lower utilization during turnaround maintenance was largely cushioned by surging oil prices.
More than half of the quarterly operating profit stemmed from inventory-related gains tied to the crude rally, the company said, with the so-called lagging effect — the timing gap between crude purchases and product sales — widening refining margins despite the drag from maintenance and Seoul's petroleum price ceiling.
The refining division led the gains with an operating profit of 1.04 trillion won on revenue of 7.10 trillion won, as the blockade of the Strait of Hormuz disrupted global crude flows, trimmed regional refinery runs and lifted Asian crack spreads for gasoline and diesel.
Petrochemicals eked out a 25.5 billion-won operating profit on revenue of 1.10 trillion won, while the lubricants unit booked 166.6 billion won in operating profit on revenue of 737 billion won, down sequentially as feedstock costs outran product prices.
Despite the tighter regional supply backdrop, S-Oil said it has preserved stable crude procurement through long-term contracts with parent Saudi Aramco and shipping affiliate Bahri.
"Although supply-demand conditions remain tight due to the Middle East war, we are maintaining stable crude supply through long-term purchase agreements with our parent company Aramco," said a company spokesperson.
Looking ahead, S-Oil expects firm refining margins in the second quarter as supply disruptions outweigh demand concerns from high prices, while flagging widening uncertainty over petrochemical feedstocks and a recovery in lubricant spreads.
The Shaheen Project, the company's flagship petrochemical complex, stood at 96.9 percent EPC progress as of end-April and remains on track for mechanical completion by the end of June, with commercial operations to be readied after trial runs through the end of the year.
Shares of S-Oil traded at 111,600 won per stock at 11:43 a.m., 4.45 percent lower than the previous session.
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