South Korean Oil Refiner’s Expected Net Profit Drop and Future Demand Insights

  • S-Oil expected to report Q2 results on Friday
  • Net profit forecast at KRW 6.26 billion
  • Revenue forecast up 22% YoY to KRW 9.529 trillion
  • Operating profit tripled YoY to KRW 108.49 billion
  • Shares down 4.9% this year
  • Net profit may have fallen sequentially from Q1’s KRW 166.20 billion
  • Narrower refining margins due to weak oil demand
  • Oil refining segment possibly in the red at $3.5 per barrel
  • Margin recovery forecasted by Daiwa Capital at $10 a barrel for 2024

S-Oil, a South Korean oil refiner controlled by Saudi Aramco, is set to release its Q2 results on Friday. Analysts predict a net profit of KRW 6.26 billion ($4.5 million) for the quarter ended June, with revenue rising 22% YoY to KRW 9.529 trillion and operating profit tripling YoY at KRW 108.49 billion. Shares have fallen 4.9% this year. Investors will watch for a potential sequential drop in net profit from Q1’s KRW 166.20 billion, following a net loss in the same period last year. Some analysts attribute this to weak oil demand and narrower refining margins. NH Investment & Securities suggests the oil refining segment may have been in the red at $3.5 per barrel, while Daiwa Capital forecasts a margin recovery at $10 a barrel for 2024.

Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about S-Oil’s expected financial results, including net profit and revenue forecasts, as well as factors that may have affected the company’s performance. It also mentions potential future outlook on oil demand and refining margins based on analysts’ opinions. The information is relevant to the topic and not sensationalized or biased.
Noise Level: 3
Noise Justification: The article provides relevant information about S-Oil’s expected financial results and factors affecting its performance, but it lacks in-depth analysis or actionable insights. It mainly focuses on forecasted numbers without offering any new knowledge or solutions.
Public Companies: S-Oil (not provided)
Private Companies: Saudi Aramco
Key People:

Financial Relevance: Yes
Financial Markets Impacted: S-Oil’s stock price
Financial Rating Justification: The article discusses S-Oil’s expected financial results, including net profit and revenue forecasts, as well as factors affecting their earnings such as oil demand and refining margins. This information is relevant to investors and can impact the company’s stock price in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event is mentioned in the article.

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