Lower oil prices and refining margins impact S-Oil’s financial performance
- S-Oil’s net profit for Q4 2023 fell 8.3% from the same quarter a year earlier
- Revenue during the quarter fell 7.2% year-over-year to KRW9.830 trillion
- Full-year revenue for 2023 fell 16% to KRW35.727 trillion
- Operating profit for 2023 slumped 58% to KRW1.419 trillion
- Net profit for 2023 dropped 53% to KRW998.17 billion
- S-Oil expects steady oil demand in 2024 despite uncertainties in the global oil market
S-Oil, the South Korean oil refiner controlled by Saudi Aramco, experienced a decline in net profit and revenue in the final quarter of 2023. Net profit for Q4 2023 was 209.84 billion won ($157.8 million), down 8.3% compared to the same quarter a year earlier. Revenue during the quarter also fell by 7.2% year-over-year to KRW9.830 trillion. The company attributed these weak quarterly results to lower oil prices and narrower refining margins, which were influenced by seasonally weak demand and mild winter temperatures. For the full year of 2023, S-Oil’s revenue fell by 16% to KRW35.727 trillion, while operating profit slumped by 58% to KRW1.419 trillion and net profit dropped by 53% to KRW998.17 billion. Despite uncertainties in the global oil market, S-Oil expects steady oil demand in 2024.
Public Companies: S-Oil (010950.SE), Saudi Aramco (undefined)
Private Companies:
Key People:
Factuality Level: 8
Justification: The article provides specific financial figures and attributes the decline in net profit to narrower refining margins and lower oil prices. It also mentions the company’s expectations for steady oil demand in 2024. However, it does not provide any sources or additional context to verify the information.
Noise Level: 7
Justification: The article provides information on S-Oil’s net profit decline in the final quarter of 2023, attributing it to narrower refining margins and lower oil prices. It also mentions the company’s full-year financial performance. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It does not explore the consequences of the company’s performance on stakeholders or discuss antifragility or long-term trends. The article stays on topic but does not provide evidence or data to support its claims. Overall, the article contains relevant information but lacks depth and analysis, resulting in a higher noise level.
Financial Relevance: Yes
Financial Markets Impacted: The article pertains to the financial performance of S-Oil, a South Korean oil refiner controlled by Saudi Aramco.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the financial performance of S-Oil, indicating a decline in net profit due to narrower refining margins and lower oil prices. There is no mention of any extreme events or their impact.
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