S-Oil Third-Quarter Results Preview

S-Oil, the South Korea-based oil refiner controlled by Saudi Aramco, is set to release its third-quarter results on Monday. Here are the key details:

Net Profit Forecast

According to a consensus forecast provided by FactSet, S-Oil is expected to report a net profit of 484.37 billion won ($357.8 million) for the July-September quarter. This comes after reporting a loss in both the previous quarter and the same period last year.

Revenue Forecast

FactSet's forecast also predicts S-Oil's revenue and operating profit for the quarter to be KRW9.119 trillion and KRW649.34 billion, respectively.

What to Watch

Turnaround Potential

Investors will closely monitor whether S-Oil has returned to profitability, driven by wider oil refining margins. Analyst John Park from CGS-CIMB anticipates that the company's complex refining gross margin will rise to $13 a barrel in the third quarter, up from $7 a barrel in the previous quarter.

Potential Recovery

Analysts are optimistic about a potential recovery in oil demand and earnings for S-Oil in the third quarter. This is attributed to an expected increase in gasoline and jet fuel demand due to seasonally strong travel activities and demand for downstream products in emerging markets.

Future Outlook

Investors will be keen to hear S-Oil's perspective on the global oil market outlook. Of particular interest are any insights on how tensions in the oil-rich Middle East, stemming from the Israel-Hamas conflict, may impact future prospects.