SK Innovation, S-Oil, GS Caltex and HD Hyundai Oilbank earned a combined operating profit of about 14.8 trillion won ($10.73 billion) from January to June.
Industry estimates show about half of first-quarter profit came from inventory gains and the lagging effect, the windfall from refining crude bought before prices spiked.
Refining profits roughly halved in the second quarter, when ceasefire hopes drove crude down more than 50 percent from its peak and saddled refiners with inventory valuation losses.
S-Oil said on Aug. 3 it expected tight product supply to keep margins firm in the third quarter.
Saudi Arabia closed its East-West pipeline, which carries crude to the Red Sea port of Yanbu, on Sept. 11 after drone attacks launched from Iraq. Refiners have secured cargoes through October, but November volumes hinge on how quickly the line is repaired.
Brent crude has averaged $100.40 a barrel so far in September and West Texas Intermediate $96.30, according to Petronet, the price service of state-run Korea National Oil Corp.
Brent settled at $105.83 on Sept. 16, up more than 16 percent for the month.
Refiners are weighing detours through the Suez Canal, though the route adds about 30 days and pushes up freight costs. HD Hyundai Oilbank has trialed Argentine crude, and SK Innovation recently bought a small volume as refiners widen sourcing to the Americas.
AJP Takeaways
- South Korea's four refiners posted about 14.8 trillion won in combined operating profit in the first half of 2026, with inventory gains driving much of the first quarter.
- Saudi Arabia shut its East-West crude pipeline on Sept. 11, 2026, after drone attacks, leaving Korean refiners' November supply uncertain.
- Brent crude averaged $100.40 a barrel in September through Sept. 17, according to Korea National Oil Corp., as refiners weigh costlier Suez routes and Argentine crude.
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