S-Oil returns to profit as refining recovers

The Tip Desk · August 14, 2026 · 2 min read

Consolidated operating profit reached 2,196,093 million won for the first half of 2026.

The oil refiner S-Oil returned to profitability in the first half of 2026, with consolidated operating profit reaching 2,196,093 million won. This follows a consolidated operating loss of 365,512 million won during the same period the previous year.

The refining segment drove this recovery, posting an operating profit of 1,571,420 million won. This represents a significant turnaround from an operating loss of 497,883 million won in the prior-year period. The company attributed the volatility in the overseas market to the effects of a war between the United States and Iran. While margins for light products like naphtha and gasoline shrank as price increases lagged behind surging crude oil costs, margins for middle distillates such as aviation fuel, kerosene, and diesel expanded significantly. The company said this expansion was due to severe crude supply disruptions caused by the war and export restrictions announced by China.

Lubricants also contributed to the bottom line with an operating profit of 644,007 million won, up from 241,527 million won in the same period last year. The company expects long-term growth for high-grade lubricant base oils in developed markets like Europe and the United States, as well as in emerging markets such as India, China, and Southeast Asia.

In contrast, the petrochemical segment continued to struggle, reporting an operating loss of 19,334 million won. Although this is an improvement over the 109,156 million won loss recorded in the first half of the previous year, the segment remains the only loss-making division.

Overall consolidated revenue rose to 20,286,177 million won from 17,039,037 million won a year earlier. The refining segment accounted for the largest share of this total at 79.5%, with diesel being the highest-earning product at 6,403,323 million won.

Cash flow from operations turned negative, with a consolidated outflow of 566,962 million won compared to an inflow of 1,194,043 million won in the previous year. To support its activities, the company increased its debt, with long-term borrowings rising by 762,364 million won and short-term borrowings increasing by 685,862 million won.

Despite a general decline in the number of gas stations nationwide, the company said it was the only domestic refiner to increase both its number of operating stations and its network share year-on-year. Its station count rose to 2,219, representing a 21.5% share of the market.