S-Oil (010950)

**Business Overview** S-Oil, established in 1976, is a leading South Korean refiner engaged in refining, petrochemicals, and base oil businesses. Its main products include refined products such as gasoline, diesel, and jet fuel; aromatic products like paraxylene and benzene; olefinic petrochemical products such as polypropylene and propylene oxide; and base oils and lubricants. As of 2025, the revenue breakdown is 78.7% from the refining segment, 12.5% from the petrochemical segment, and 8.8% from the lubricant segment. Aramco Overseas Company B.V., a subsidiary of Saudi Aramco, is the largest shareholder (63.4% stake), ensuring a stable supply of crude oil. As of 2025, exports account for 55% of total revenue, with Southeast Asia (17%), the Americas (8%), and Japan (8%) being key export markets. In the domestic gas station market, S-Oil holds a 21.3% share as of March 2026, ranking joint second. Aramco Trading Singapore Pte. Ltd. is one of its major customers. **Core Competencies** S-Oil ensures business stability through a diversified business portfolio encompassing refining, petrochemicals, and base oils. Through close cooperation with its largest shareholder, Saudi Aramco, S-Oil secures a stable supply of crude oil. It has also successfully completed the RUC/ODC project, the largest-ever integrated petrochemical facility in the domestic refining and petrochemical sector, thereby strengthening its capacity to produce high-value-added products. Furthermore, based on its brand philosophy of 'Good Oil,' S-Oil conducts systematic marketing activities, resulting in high brand value and customer loyalty. This is evidenced by its recognition as the "Most Respected Company in Korea" in the refining industry for 10 consecutive years and the "Most Recommended Company by Customers" in the gas station sector for 10 consecutive years. S-Oil was the first Asian refiner to be included in the Dow Jones Sustainability Index (DJSI) World for 15 consecutive years, acknowledging its global-level competitiveness in sustainable management. **Performance Analysis** S-Oil's annual revenue decreased by 15.83% from KRW 42.446 trillion in 2022 to KRW 35.7267 trillion in 2023. It then increased by 2.55% to KRW 36.637 trillion in 2024 but showed volatility by decreasing again by 6.64% to KRW 34.247 trillion in 2025. Operating income showed a continuous downward trend, decreasing from KRW 3.4052 trillion in 2022 to KRW 1.3546 trillion in 2023 (a 60.22% decrease), then to KRW 422.2 billion in 2024 (a 68.84% decrease), and further to KRW 235.6 billion in 2025 (a 44.19% decrease). Consequently, the operating profit margin also significantly declined from 8.02% in 2022 to 0.69% in 2025. Net income turned to a loss of KRW -193 billion in 2024 but returned to a profit of KRW 177 billion in 2025. Looking at recent quarterly performance, after recording revenue of KRW -942 billion and operating income of KRW -322.4 billion in Q2 2025, the company showed signs of recovery in Q1 2026, achieving revenue of KRW 8.9427 trillion and operating income of KRW 1.2311 trillion. **Financial Health** S-Oil's financial health has shown a somewhat deteriorating trend in recent years. ROE, which was 24.81% in 2022, declined to -2.22% in 2024, turning negative, and then slightly recovered to 1.99% in 2025. The debt-to-equity ratio steadily increased from 131.19% in 2022 to 198.82% in 2025, indicating increased financial leverage. The current ratio decreased from 112.09% in 2022 to 70.56% in 2025, suggesting a slight weakening of short-term financial liquidity. **Outlook** S-Oil is pursuing strategies for long-term growth in response to the rapidly changing energy market environment. Specifically, through the 'Shaheen Project,' the largest investment project in the domestic petrochemical industry, S-Oil plans to expand its petrochemical business share from the current 12% to 25%, thereby diversifying its business portfolio and reducing crude oil price volatility risk. Furthermore, S-Oil is continuing investments in new energy sectors such as Sustainable Aviation Fuel (SAF), hydrogen, and Carbon Capture, Utilization, and Storage (CCUS) to expand its eco-friendly businesses, while also enhancing operational efficiency through accelerated digital transformation. Through these strategies, S-Oil aims to secure future growth engines and establish itself as the most competitive energy and chemical company.