By Kwanwoo Jun
S-Oil reported a sequential earnings improvement in the first quarter but missed street views, as it said its refining margins could improve later this year.
The South Korean oil refiner's net profit for the quarter ended March was 166.20 billion Korean won ($121.1 million), down 37% on the year but up 3.5% from the prior quarter, the company said Friday.
That missed a FactSet-compiled consensus forecast of a KRW341.65 billion net profit.
Revenue rose 2.5% on year to KRW9.308 trillion, while operating profit fell 12% to KRW454.11 billion.
The Seoul-based oil company, controlled by Saudi Aramco, said refining margins rebounded in the first quarter on solid demand and supply disruptions amid heightened geopolitical tensions in the Middle East.
The company expects refining margins to trend higher in the second quarter on seasonal demand for travel and lower global oil inventory levels.
It forecasts global oil demand could continue solid growth through 2024.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
04-25-24 2142ET
