(LEAD) S-Oil Q3 net surges on higher refining, lubricants margins

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SEOUL, Nov. 2 (Yonhap) -- S-Oil Corp., South Korea's third-largest refiner by sales, said Monday its third-quarter net profit surged from a year earlier, driven by improved refining and lubricants margins.

Net profit for the three months that ended in September soared to 1.43 trillion won (US$1.1 billion) from 63.2 billion won in the same period last year, the company said in a regulatory filing.

"A combination of high oil prices, improved export refining margins and improved profitability in the lubricants business pushed up the quarterly results," the company said.

S-Oil maintained stable operations at its facilities despite geopolitical tensions in the Middle East and the Korean won's appreciation against the U.S. dollar.

Operating profit jumped over sixfold to 1.4 trillion won in the third quarter from 229.22 billion won a year earlier. Sales rose 42.2 percent to 11.96 trillion won from 8.42 trillion won.

S-Oil expects refining margins to remain high in the fourth quarter, supported by low global inventories and strong seasonal demand for heating oil.

Lubricants supply is also expected to remain tight due to prolonged production disruptions and logistical constraints.

From January to September, the company swung to a net profit of 2.67 trillion won from a net loss of 48.13 billion won in the year-ago period.

It also shifted to an operating profit of 3.6 trillion won from an operating loss of 136.29 billion won during the same period. Sales climbed 26.7 percent to 32.25 trillion won from 25.45 trillion won.

Meanwhile, S-Oil is building a 9.26 trillion-won petrochemical complex under its Shaheen project, with trial operations now under way.

The new facility, located adjacent to its existing refinery in Ulsan, 360 kilometers southeast of Seoul, is expected to begin producing key petrochemical products, including ethylene, propylene and butadiene, in early 2027.

Saudi Arabia's state-owned Aramco holds a 63.4 percent stake in S-Oil.

kyongae.choi@yna.co.kr
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