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Refiners profit in Q3 as margins rebound, ending losing streak

Published: 03 Nov. 2025, 16:58 Updated: 04 Nov. 2025, 14:36

S-Oil's Shaheen Project, a petrochemical plant in Ulsan, undergoes construction. [S-OIL]

Korean refiners swung back to profit in the third quarter as refining margins rebounded, ending a streak of losses earlier in the year.

S-Oil reported preliminary results showing a revenue of 8.42 trillion won ($5.9 billion) and an operating profit of 229.2 billion won during the July-September period on Monday. Revenue fell 4.8 percent on year, but the company moved back into the black after losses in the first and second quarters.

S-Oil said its earnings improved as “refining margins rose.”

The company also noted progress on its Shaheen petrochemical project in the Onsan Industrial Complex in Ulsan, which was 85.6 percent complete as of Oct. 22.

HD Hyundai Oilbank, which also released its third-quarter results on Monday, reported 7.33 trillion won in revenue and 191.2 billion won in operating profit, marking a return to profit after one quarter of losses.

SK Innovation, which announced its third quarter earnings on Thursday, posted 12.44 trillion won in revenue and 304.2 billion won in operating profit for its petroleum business, the latter of which turned positive from the previous year.

Singapore's benchmark complex refining margin climbed from $5 a barrel early this year to about $13 in October. The refining margin measures the difference between petroleum product prices and crude oil costs and is a key indicator of refiners' profitability.

Supply disruptions in Russia, the United States and the Middle East have contributed to the recent increase in margins.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM KI-HWAN [[email protected]]