Seoul: S-Oil Corp., South Korea's third-largest refiner by sales, announced a significant turnaround to net profit in the second quarter, buoyed by high refining margins amidst ongoing tensions in the Middle East.

According to Yonhap News Agency, S-Oil reported a net profit of 514.6 billion won (US$359 million) for the three months ending in June, a remarkable recovery from a net loss of 66.8 billion won in the same period the previous year. The company's press release highlighted that robust refining margins and unprecedented earnings from the lubricant segment were key contributors to this financial upturn.

Looking ahead, S-Oil anticipates that sustained demand will continue to bolster earnings in the latter half of the year. This optimism is underpinned by a sharp decline in global crude oil and refined product inventories, attributed to supply disruptions resulting from the U.S.-Iran conflict in the Middle East.

The company's operating profit also saw a dramatic improvement, reaching 965 billion won in the second quarter, compared to an operating loss of 344 billion won a year earlier. Additionally, sales surged by 40.9 percent to 11.34 trillion won, up from 8.05 trillion won over the same timeframe.

For the first half of the year, S-Oil recorded a net profit of 1.24 trillion won, contrasting with a net loss of 111.34 billion won in the same period last year.

In parallel with its financial accomplishments, S-Oil is progressing with the construction of a 9.26 trillion-won petrochemical complex as part of its Shaheen project. Trial operations at this new facility, which is situated adjacent to its existing refinery in Ulsan, approximately 360 kilometers southeast of Seoul, are slated to commence in late 2026. The plant is expected to start the production of essential petrochemical products such as ethylene, propylene, and butadiene by early 2027.

Saudi Arabia's state-owned Aramco maintains a significant presence in S-Oil, holding a 63.4 percent stake.