By Kwanwoo Jun
S-Oil returned to profit in the third quarter thanks to wider refining margins and higher oil prices.
Net profit for the quarter ended September was 545.44 billion Korean won ($402.2 million) compared with net losses of KRW22.43 billion in the prior quarter and KRW9.59 billion in the same quarter a year earlier, the South Korea-based oil refiner, controlled by Saudi Aramco, said Monday.
That beat a FactSet-compiled consensus forecast for a net profit of KRW484.37 billion.
Operating profit jumped 68% on the year to KRW858.88 billion, though revenue fell 19% on the year to KRW9.000 trillion.
S-Oil attributed the strong quarterly earnings to its robust demand-driven refining margin and higher crude prices after oil producers extended their output cuts.
Oil demand was also supported by the summer driving and air travel peak season amid tight supply, the company said.
The company said its oil refining segment posted a profit in the third quarter after a loss in the second.
S-Oil expects regional oil refining margins to remain solid in the fourth quarter on likely strong seasonal demand and low global inventory levels.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
10-29-23 2100ET
