Seoul: S-Oil Corp., South Korea's third-largest refiner by sales, announced a return to profitability in the third quarter, attributing this turnaround to strong refining margins and favorable exchange rates. The company reported a net profit of 63.2 billion won (US$44.2 million) for the July-September period, a significant recovery from the net loss of 206.2 billion won recorded in the same quarter last year.

According to Yonhap News Agency, the company's financial performance was bolstered by the depreciation of the Korean won against the U.S. dollar, which enhanced the competitiveness of its petrochemical exports. Additionally, improved refining margins played a crucial role in achieving positive quarterly results. Looking forward, S-Oil anticipates that refining margins will remain robust in the fourth quarter. This outlook is based on the strong demand for heating fuels, such as kerosene and diesel, during the winter months, alongside a constrained global supply caused by operational suspensions at refineries in Russia and the U.S., as well as the closure of outdated facilities.

The company also reported an operating profit of 229.2 billion won for the third quarter, a reversal from the operating loss of 414.95 billion won from a year earlier. However, sales experienced a decline of 4.8 percent, falling to 8.41 trillion won from 8.84 trillion won in the same period. For the first nine months of the year, S-Oil managed to narrow its net losses to 48.13 billion won, compared to 61.32 billion won in the previous year.

S-Oil is also progressing with its "Shaheen" project, which involves constructing a 9.26 trillion-won petrochemical complex adjacent to its existing refinery in Ulsan, located 360 kilometers southeast of Seoul. The new facility is expected to commence operations in late 2026 and will produce essential petrochemical products, including ethylene, propylene, and butadiene. Saudi Arabia's state-run Aramco holds a 63.4 percent stake in S-Oil.