Q3 2026 earnings announcement

Sales reach 11.97 trillion won, up 5.5%

Refining, lube base oil spreads drive gains

Shaheen Project completion ceremony planned before year-end

An aerial view of the S-Oil plant. [S-Oil]
An aerial view of the S-Oil plant. [S-Oil]

S-Oil posted sales of 11.97 trillion won ($8.95 billion) and operating profit of 1.41 trillion won in the third quarter of this year, the company announced Monday. Sales rose 5.5 percent year-on-year and operating profit surged 513.7 percent, driven by rising international crude prices and particularly strong lube base oil margins.

By segment, the refining division recorded sales of 9.06 trillion won and operating profit of 690.4 billion won, while the lubricants division posted sales of 1.54 trillion won and operating profit of 742.7 billion won. Crude oil prices spiked amid continued geopolitical tensions in the Middle East, and lube base oil prices also climbed due to production disruptions.

Both segments are expected to maintain their strong performance in the fourth quarter. "Given low global inventories of key products and the entry into the heating oil peak season, the favorable trend is likely to continue," a company official said.

The petrochemical segment, by contrast, recorded sales of 1.36 trillion won and an operating loss of 26.4 billion won. Supply of aromatics products tightened due to scheduled maintenance at major regional facilities, while demand for polypropylene and propylene oxide remained sluggish.

Earnings improvement in the petrochemical segment is expected to center on the Shaheen Project, which is slated to begin operations by year-end. The Shaheen Project is a large-scale general-purpose petrochemical production complex S-Oil is building in Ulsan at a cost of more than 9 trillion won, producing ethylene, naphtha and other products.

"We plan to hold a ceremony marking the company's 50th anniversary and the completion of the Shaheen Project in the fourth quarter," a company official said. "Commissioning is currently under way sequentially following the mechanical completion of major facilities, with a target of commencing full operations in early 2027."


klee@heraldcorp.com