S-Oil’s Q1 net dips 11 pct on unfavorable currency rate

SEOUL-- S-Oil Corp., the No. 3 oil refiner in South Korea, said Tuesday that its first-quarter earnings fell 10.8 percent from a year earlier, as the strong local currency offset its sound refining margins and widening spreads for chemicals goods.

Net profit reached 386 billion won (US$338 million) in the January-March period, compared to a profit of 433 billion won a year earlier, the company said in a regulatory filing.

Operating income dropped 34 percent on-year to reach 324 billion won over the cited period, while sales surged 51.7 percent on-year to reach 5.2 trillion won.

S-Oil said its operating income dropped due to the strengthening of the local currency against the U.S. dollar, but it also reaped currency gains totaling 180 billion won.

The company reaped 100 billion won in operating income from its refining business, while its chemicals business racked up an operating income of 139 billion won.

Its lubricant unit also logged an operating income of 84.1 billion won.

Last year, S-Oil posted a net profit of 1.26 trillion won, compared to a profit of 631 billion won a year earlier.

Source: Yonhap News Agency

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