What were the main drivers behind S-Oil's Q2 net profit of W514.6 billion, and how did refining, petrochemicals, and lubricants perform individually?

S-Oil's Q2 net profit of W514.6 billion was driven primarily by a strong rebound in refining (operating profit of W532.4 billion, reversing from a W441.1 billion loss year-on-year) and a record lubricant segment performance (operating profit surged to W477.4 billion from W131.8 billion), both supported by historically high base oil spreads and tightened refined product supply; these gains more than offset a larger petrochemical operating loss of W44.8 billion (up from W34.6 billion a year earlier).

Why did S-Oil's petrochemical segment post a wider Q2 operating loss despite improved paraxylene and propylene oxide spreads?

Although paraxylene (PX) spreads over naphtha improved to $251/tonne and propylene oxide (PO) spreads to propylene surged to $351/tonne — driven by regional supply disruptions and lower operating rates — the petrochemical segment still recorded a larger Q2 operating loss of W44.8 billion (versus W34.6 billion a year earlier) because PX margins remained soft due to sharply rising feedstock costs, and overall segment performance was weighed down by weak polypropylene (PP) margins amid new regional capacity additions.

South Korea’s S-Oil swings to Q2 profit despite petrochemical losses

Aug 3, 2026

South Korean refiner S-Oil reported a Q2 net profit of $360 million, driven by strong refining margins and record lubricant earnings offsetting petrochemical losses. The company also advanced its Shaheen petrochemical project, targeting commercial operations by January 2027.

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