S-Oil returns to profitability in first quarter

SEOUL, May 11 (UPI) -- South Korea's S-Oil said Monday it returned to profitability in the first three months of this year, thanks to rising crude oil prices amid heightened tensions in the Middle East.

The Seoul-based oil refiner noted that its first-quarter sales dipped 0.5% year-on-year to $6.1 billion. But it posted an operating profit of $840 million, compared with an operating loss of $15 million a year earlier.

S-Oil said that its refining business contributed the most to the strong performance, generating revenue of $4.8 billion and operating income of $710 million.

The company said that inventory-related gains powered by rising oil prices accounted for the majority of the first-quarter profit.

S-Oil said that it has worked to ensure stable crude oil imports through long-term supply agreements with its parent company, Saudi Aramco.

Monthly crude cargo arrivals, which temporarily declined in March and April, are projected to recover to normal levels in May and June, according to the company.

"Regional refining margins are expected to remain healthy, as supply disruptions are likely to outweigh demand softness driven by high product prices," S-Oil said in a statement.

"Meanwhile, a potential decline in oil prices may lead to inventory-related losses, increasing earnings volatility and downside risks," it added.

S-Oil is set to complete its Shaheen Project of investing about $7 billion for a large-scale petrochemical facility in the country. The firm plans to begin trial operations later this year.

The share price of S-Oil fell 5.05% on the Seoul bourse Monday.

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This story was originally published May 11, 2026 at 2:31 PM.