1. Socar Q2 Earnings: Below Market Expectations
Socar’s Q2 2025 revenue and operating profit came in at ₩98.6 billion and ₩1.8 billion, respectively, missing market consensus by 20% and 25%. While the net loss of ₩1.7 billion was better than anticipated, the company remains unprofitable.
2. Analyzing the Underperformance
The slowdown in the car-sharing sector and intensified competition are identified as primary factors. High interest rates and exchange rate volatility also likely put pressure on profitability.
3. Socar’s Long-Term Growth Potential: Improved Fundamentals and Platform Strategy
According to the 2025 semi-annual report, Socar achieved revenue growth and turned to operating profit. The platform expansion strategy and investment in future mobility technology can serve as long-term growth drivers. However, the high accumulated deficit and debt ratio remain challenges to overcome.
4. Action Plan for Investors: Prudent Approach and Continuous Monitoring
- Short-term investors: Considering the potential stock decline due to weak Q2 results, careful investment decisions are necessary. Closely monitoring earnings improvement from Q3 onwards is crucial.
- Long-term investors: Focus on Socar’s platform expansion strategy, profitability of new businesses, and the development of autonomous driving technology. Continuously observing the company’s efforts to strengthen its financial soundness and its ability to respond to external environmental changes are important.