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.

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