S-Oil, a South Korean oil refiner controlled by Saudi Aramco, reported a decrease in net profit for the final quarter of 2023 due to narrower refining margins and lower oil prices.
Net Profit and Revenue
In the quarter ended December, net profit was 209.84 billion won ($157.8 million), down 8.3% compared to the same quarter the previous year.
This fell short of the FactSet-compiled consensus forecast of 237.70 billion won.
Revenue in the quarter dropped by 7.2% year-over-year to 9.830 trillion won.
Operating profit for the quarter was 7.57 billion won, a significant improvement compared to the operating loss reported a year ago.
Factors Contributing to Weak Quarterly Results
- S-Oil attributed the weak quarterly performance to lower oil prices and narrower refining margins.
- These challenges were compounded by seasonally weak demand and mild winter temperatures.
Full Year Performance in 2023
- In the full year of 2023, revenue decreased by 16% to 35.727 trillion won.
- Operating profit slumped by 58% to 1.419 trillion won.
- Net profit dropped by 53% to 998.17 billion won.
Outlook for 2024
- Despite uncertainties surrounding new refining facilities entering the global oil market, S-Oil anticipates steady oil demand in 2024.
For more information: Write to Kwanwoo Jun
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