S-Oil posts record-high operating income in H1

[THE INVESTOR] South Korea’s third-largest oil refiner S-Oil Corp. said its second-quarter net profit rose 3.8 percent from a year earlier on improving refining business.

Saudi Arabian oil Company Aramco has 63.41% of S-Oil's stakes through A.O.C.B.V(Aramco Overseas Company B.V.). 

Operating income rose 6.1 percent to 643 billion won, up 6.1 percent. For the first half of the year, the figure stood at a record-high of 1.13 trillion won (US$993.15 million) on a consolidated basis, the company said in a regulatory filing on July 25. 

Net profit reached 445 billion won, up from a profit of 429 billion won in 2015. Sales, however, dropped 18.4 percent on-year to reach 4.19 trillion won.

S-Oil said higher cracking margins helped boost its bottom line, along with an improvement in other businesses such as its lubricants unit. It expects rising demand from Asia to continue help boost revenues this year. The company has decided on an interim dividend of 500 won per share.

S-Oil share prices closed at 77,300 won on July 25, down 1.28 percent from the previous session‘s close.

By Kim Ji-hyun (jemmie@heraldcorp.com)