S-OIL said Monday that it recorded revenue of 11.9687 trillion won and an operating profit of 1.4067 trillion won in the third quarter. Revenue increased by 42.2% and operating profit rose by 513.7% compared to the same period last year.
Revenue showed an upward trend based on rising oil prices, despite a sharp drop in exchange rates. Operating profit was driven by the continued strength of the lubricant base oil spread (the price difference between raw materials and products). Rising international oil prices and the sustained forced export refining margin also acted as positive factors.
In the petrochemical sector, product supply decreased due to regular maintenance of major aromatic facilities. The polypropylene (PP) spread declined due to increased domestic supply and sluggish demand. The propylene oxide (PO) spread narrowed due to weak demand associated with the seasonal off-peak period.
The Shahran Project is currently undergoing commissioning. Sequential commissioning of major equipment is being carried out, aiming for the start of operations in early next year. S-OIL plans to hold an event commemorating its 50th anniversary and the completion of the Shahran Project during the fourth quarter of this year.
Strong performance is expected in the fourth quarter due to low global inventories of major products and the entry into the peak season for heating oil demand. The company stated, "We are maintaining stable operations even amid geopolitical risks," adding, "As tight product supply and demand conditions persist, we are operating our facilities based on the flexibility of crude oil procurement and transportation."
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