1. S-Oil Q2 Earnings: A Significant Loss
S-Oil reported revenue of KRW 80.485 trillion, an operating loss of KRW 3.44 trillion, and a net loss of KRW 668 billion for Q2 2025. While revenue was in line with expectations, the operating loss was significantly worse than anticipated. The net loss, although better than expected, requires further analysis.
2. Reasons for the Decline: Weakening Refining Market Conditions
The decline in S-Oil’s performance is attributed to weakening refining market conditions, rising crude oil prices, and exchange rate fluctuations. These negative factors, persisting from Q1, led to a deterioration in profitability.
3. Future Outlook and Investment Strategy
While short-term uncertainties remain in the refining market, S-Oil’s long-term growth strategy, including the Shaheen and GTG projects, presents a positive outlook. Investors should closely monitor fluctuations in oil prices and refining product markets, as well as the company’s strategic execution.
- Key Investment Points:
- Refining market recovery
- Crude oil price fluctuations
- Progress of Shaheen and GTG projects