S-Oil Corp on Monday reported KRW 265 billion ($184.03 million) in web earnings and KRW 8.79 trillion in income for the fourth quarter of 2025, each up from the prior three-month interval “on sturdy gasoline and lube spreads”.
By annual comparability the underside line recovered from web losses of KRW 193 billion to web earnings of KRW 216.9 billion regardless of income falling from KRW 36.64 billion to KRW 34.25 billion, in line with outcomes revealed on-line by the South Korean downstream firm.
October-December 2025 working earnings elevated 85.2 p.c quarter-on-quarter to KRW 424.5 billion. Refining contributed KRW 225.3 billion, up 95.1 p.c sequentially. Lubricants accounted for KRW 207 billion, up 54.9 p.c in comparison with July-September 2025. The petrochemicals section has remained unprofitable for the sixth consecutive quarter however This fall 2025 noticed web losses slim to KRW 7.8 billion.
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“Regional refining margins elevated, supported by kero and diesel spreads, amid tight provide from international refinery disruptions and the Northern Hemisphere heating season”, S-Oil stated of the market atmosphere in This fall.
Nevertheless, regional refining margins “eased towards the top of the quarter on Russia-Ukraine ceasefire negotiations”, it famous.
Nonetheless for the primary quarter of 2026 S-Oil expects regional refining margins “to stay sturdy supported by regular demand, ongoing provide disruptions and the deliberate closure of an growing old U.S. refinery”.
“Refinery upkeep season starting on the finish of Q1 might additional help margins via stock buildup demand”, it added.
In petrochemicals, the paraxylene (PX) market in This fall “improved on new PTA startups in China with sturdy downstream polyester demand” whereas the benzene market “weakened on sluggish U.S. import demand and low downstream operation”, S-Oil stated.
For aromatics, the paraxylene market in This fall “improved on new PTA startups in China with sturdy downstream polyester demand” whereas the benzene (BZ) market “weakened on sluggish U.S. import demand and low downstream operation”, it stated.
In Q1 2026 S-Oil expects the paraxylene market to “stay agency, on tight annual supply-demand steadiness and diminished provide because of upkeep of PX crops”. It added, “For BZ, provide strain from new capacities in China is anticipated to be offset by upkeep of BZ manufacturing services”.
For olefins, the propylene market in This fall “softened as provide elevated after T&Is” whereas the polypropylene market “improved on seasonal demand and surprising shutdowns of main suppliers”.
In Q1 2026 S-Oil expects the propylene and polypropylene markets to expertise “a gradual demand restoration, supported by easing commerce uncertainties, regardless of ongoing capability additions in China”.
In lubricants, “LBO unfold elevated QoQ because of a lagging affect from decrease feedstock price regardless of weak seasonal demand”, it stated.
In Q1 2026, “LBO elementary is more likely to see provide strain partly offset by stock build-up forward of the spring oil change season”, S-Oil added.
For the entire yr S-Oil stated “a good [refining and paraxylene] market is anticipated as international demand development outpaces web capability additions “.
“Decrease oil costs and declining OSP are more likely to ease price pressures, supporting a positive enterprise atmosphere”, it stated.
To contact the creator, e mail jov.onsat@rigzone.com
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