S-Oil's operating profit for last year fell 31.7% from a year earlier. Despite improved performance in the refining institutional sector due to higher refining margins in the second half of last year and strong results in the lubricants institutional sector, weakness in the petrochemical part had an impact.
On the 26th, S-Oil said its provisional tally showed last year's operating profit at 288.2 billion won, down 31.7% from 422.2 billion won a year earlier. Annual revenue was 34.247 trillion won, down 6.5% from 36.637 trillion won a year earlier. Net profit, however, swung to a surplus at 216.9 billion won.
By business institutional sector, the refining institutional sector posted a loss of 157.1 billion won in 2025, and the petrochemical institutional sector also posted a loss of 136.8 billion won. Only the lubricants institutional sector recorded a surplus of 582.1 billion won.
In the fourth quarter of last year, revenue and net profit were 8.7926 trillion won and 265.0 billion won, respectively. Although oil prices fell, revenue in the fourth quarter rose 4.5% from the previous quarter thanks to a higher exchange rate and strong sales. Operating profit was 424.5 billion won, up 85.2% from the previous quarter. This was due to the rise in product spreads (the price gap between products and materials and supplies) across all businesses, including refining, petrochemicals, and lubricants.
S-Oil said, "Despite falling oil prices, revenue increased from the previous quarter thanks to the higher exchange rate and robust sales, and operating profit also grew significantly as product spreads rose across all businesses."
S-Oil predicted that overall market conditions will be good this year. S-Oil said, "Global demand growth is expected to outpace the increase in supply from new and expanded refineries and paraxylene (PX) plants," adding, "A favorable business environment is expected as the trend of low oil prices and low OSP (official selling price) continues."
Meanwhile, the progress rate of the "Shaheen Project" that S-Oil is pushing at its Ulsan plant was 93.1% as of the 14th of this month. S-Oil said, "We plan to complete mechanical construction in June this year and finish test runs and preparations for commercial operation by December," adding, "While pipeline construction to customers is proceeding as planned, we are discussing supply contracts with suppliers by product and long-term export contracts."