S-OIL returned to profitability within the third quarter of this yr. Income improved as refining margins recovered, and income additionally elevated as change charges rose.
S-OIL introduced on Nov. 3 that its working revenue for the third quarter of this yr was 229.2 billion gained, turning to black in comparison with the identical interval final yr (-414.9 billion gained). The quarterly losses that had continued till the earlier quarter additionally got here to an finish this quarter.
Income was 8.415 trillion gained, down 4.8% from the identical interval final yr (8.840 trillion gained) however up 4.6% from the second quarter of this yr (8.048 trillion gained). Internet earnings additionally turned to black at 63.2 billion gained in comparison with the earlier quarter and the identical interval final yr.
The refining and lubricants enterprise sectors led the efficiency enchancment. The refining sector recorded income of 6.694 trillion gained and working revenue of 115.5 billion gained, whereas the lubricants enterprise achieved income of 704.7 billion gained and working revenue of 133.6 billion gained. Though worldwide crude oil costs remained flat, provide decreased because of operational disruptions at Russian refining amenities, resulting in elevated refining margins for kerosene merchandise and improved efficiency.
S-OIL expects the refining margin enchancment development to proceed within the fourth quarter of this yr. An organization official defined, “Provide is proscribed because of international refining facility operational disruptions and closure of growing older amenities,” including “As seasonal demand is predicted to develop with the entry into the heating oil peak season, sturdy refining margins are anticipated to proceed.”
In the meantime, S-OIL introduced that the Shaheen Challenge underneath development on the Onsan Industrial Complicated in Ulsan recorded a progress charge of 85.6% as of Oct. 22. Set up of main steam cracker amenities, TC2C furnaces, and main polymer amenities has been accomplished, and automatic warehouse development and course of management system testing are underway. An organization official mentioned, “Pipeline development to buyer firms is in progress, and we’ve got accomplished the primary pipeline development between Onsan and Ulsan,” including “We’re securing prospects by pre-marketing and are in negotiations for long-term contracts.”
