S Oil : Swung to 3Q Net Profit But Still Missed Market Views -- Earnings Review

By Kwanwoo Jun

S-Oil Corp. reported its third-quarter results Wednesday. Here's what you need to know:

NET PROFIT: The South Korea-based oil refiner posted a net profit of 30.28 billion Korean won ($26.8 million), snapping a two-quarter losing streak. But the result was still down 41% from net profit of KRW51.59 billion a year earlier.

REVENUE: Revenue fell 38% to KRW3.899 trillion, as the company posted an operating loss of KRW9.25 billion, versus an operating profit of KRW230.74 billion a year earlier.

WHAT WE WATCHED:

--TURN AROUND: S-Oil swung to a net profit after two consecutive quarters of losses, helped by a gradual recovery in oil demand and prices, but that result still missed a FactSet consensus forecast for a net profit of KRW98.81 billion.

--PRODUCT MARGINS: The company said oil-refining margins still remained suppressed amid the pandemic in the third quarter and may improve in the fourth quarter.

--COVID-19: S-Oil, however, cautioned that a resurgence of Covid-19 cases could limit the expected recovery.

Write to Kwanwoo Jun at [e-mail]

(END) Dow Jones Newswires

10-27-20 2203ET