S-Oil’s earnings rise 25% on prices, margin

S-Oil, the nation’s third-largest oil refiner, said on Tuesday that its operating profit rose 24.8 percent to 518.4 billion won ($475.2 million) in the third quarter on-year thanks to rising international oil prices and improved refining margin.

The company’s revenue increased 8.9 percent to 8.5 trillion won and net profit surged 625.5 percent to 456.1 billion won for the three months up to Sept. 30 compared to the same period last year.

By business area, the company’s oil refining and petrochemical businesses saw operating profit rise in the third quarter compared with the previous quarter. Meanwhile, its lubricant oil business posted negative quarterly growth, affected by sagging demand and excess supply.

The company expects operating profit to rise again in the fourth quarter because of rising demand for oil products in winter, the company said.

By Seo Jee-yeon (jyseo@heraldcorp.com)