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South Korea's S-Oil Reports YOY Rise in Q2 Refining Segment Revenue

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S-Oil, the South Korean integrated energy company majority owned by Saudi Aramco, on Monday reported refining segment revenues of 9.029 trillion South Korean won ($6.31 billion) in Q2, up from 6.26 trillion won in the corresponding quarter last year.

For the quarter ended June 30, the petrochemical segment reported revenues of 1.013 trillion won, down from 1.034 trillion won in the year-ago period.

In Q2, the lube segment generated revenues of 1.302 trillion won, which compares to 754.9 billion last year.

S-Oil said strong refining margins in the refining segment in Q2 were partially capped by opportunity losses from scheduled maintenance, while the lube segment reported record-high quarterly operating profit due to tight supply and demand conditions, the company said.

"With global crude and product inventories significantly reduced by H1 supply disruptions, tight supply-demand conditions are expected to persist, supporting firm market conditions in H2," the company said in its earnings presentation.

In Q3, the company expects robust regional refining margins bolstered by driving season demand, stronger power demand amid extreme heat, and export restrictions in some countries.

The fundamentals for lube base oil, which touched historically high peaks in Q2 due to Middle East output disruptions and logistics constraints, are expected to remain tight in Q3, weighed down by an delayed recovery in Middle East production and logistics, the company said.

The company said the Shaheen petrochemical project at its Ulsan refinery in South Korea is advancing toward commercial operation in early 2027.

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