S-Oil recorded an operating loss of 344 billion won in the second quarter of this year, marking its second consecutive quarter of operating loss. This is the result of losses in the institutional sector due to falling oil prices and exchange rates. Compared to the same period last year, it has also turned to a deficit.
S-Oil announced on the 25th that it recorded sales of 8.0485 trillion won and an operating loss of 344 billion won in the second quarter of this year. Sales decreased by 15.9% compared to the same period last year and fell by 10.5% compared to the previous quarter. Operating profit also shifted to a loss compared to the same period last year (16.06 billion won), and the loss widened compared to the previous quarter (operating loss of 21.5 billion won). Net income excluding interest expense and corporate tax also recorded a loss of 66.8 billion won.
The increase in operating loss in the second quarter is largely due to a decrease in sales compared to the previous quarter and the expanded operating loss in the institutional sector due to falling oil prices and exchange rates. By institutional sector, the refining sector recorded sales of 6.2599 trillion won and an operating loss of 441.1 billion won. The petrochemical sector also showed sales of 1.0337 trillion won with an operating loss of 34.6 billion won. Only the lubricants sector recorded sales of 754.9 billion won and an operating profit of 131.8 billion won. S-Oil stated, "Thanks to stable raw material prices and solid demand, the lubricants sector's performance rebounded to previous years' levels."
S-Oil announced that the construction of the petrochemical complex project, the "Shahin Project," in Ulsan, which involves an investment of 9 trillion won, is "proceeding smoothly." As of July, the construction progress rate is 63%.