S-Oil logs net loss of $150.5M in Q3 on low margins, weak won

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S-Oil logs net loss of $150.5M in Q3 on low margins, weak won

Published: 04 Nov. 2024, 17:24

S-Oil's headquarters' in western Seoul [S-OIL]

S-Oil, Korea's third-largest refiner by sales, said Monday it shifted to a net loss in the third quarter from a year earlier due to low refining margins and a weak won.

S-Oil swung to a net loss of 206.2 billion won ($150.5 million) in the three months to September from a net profit of 545.4 billion won in the same period last year, the company said in a regulatory filing.

"Decreased refining margins and the won's weakness [against the dollar] ate away at the quarterly bottom line," a company spokesperson said over the phone.

The dollar rose to an average of 1,359.38 won in the September quarter from 1,310.95 won a year ago, according to data from the Bank of Korea. A weak won drives up importers' purchasing costs.

The company also swung to an operating loss of 414.9 billion won in the third quarter from an operating profit of 858.8 billion won a year ago. Sales fell 1.8 percent to 8.84 trillion won from 8.99 trillion won over the cited period.

From January to September, S-Oil shifted to a net loss of 61.3 billion won from a net profit of 788.3 billion won during the same period of last year.

Saudi Arabia's state-controlled Aramco holds a 63.4 percent stake in S-Oil.

Yonhap