S-Oil Expects Fourth Quarter Refining Margins To Enhance On Demand For Winter Season

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SEOUL: South Korea’s S-Oil Corp stated on Wednesday refining margins are anticipated to enhance within the fourth quarter, supported by elevated demand for kerosene and diesel forward of the winter season.

“Nonetheless, the rebound can be restricted because of re-spread of COVID-19,” stated the nation’s third-largest refiner, whose essential shareholder is Saudi Aramco, in an earnings assertion.

It had carried out an unplanned upkeep for its No. 2 residue fluid catalytic cracker, with 76,000 barrels per day (bpd) capability, impacted by a storm in September, the corporate stated in a convention name.

Sources had beforehand instructed Reuters the unit’s outage following storm Haishen had briefly lifted petrol margins.

Alternative value misplaced by the shutdown was about 20 billion received, an govt stated.

The corporate plans to take care of run charge of round 80% for petrochemicals within the present quarter, whereas staying on the near-maximum degree for the refining sector.

S-Oil expects its capital expenditure in 2021 to be at or under this 12 months’s degree as the corporate can’t predict its efficiency subsequent 12 months.

S-Oil reported an working lack of 9.3 billion received ($8.25 million) for the third quarter, in contrast with a 231 billion received revenue a 12 months earlier however bettering from a 164 billion received loss within the second quarter because of gradual demand restoration.

This was its third consecutive quarter of working loss.

Stock-related acquire was 133 billion received in July-September quarter, in contrast with a lack of 171 billion received within the earlier quarter, it stated.

The corporate stated it operated its 669,000 bpd CDUs within the southeastern metropolis of Ulsan at 90.7% capability on common within the July-September interval, down from 99.8% within the second quarter.

Shares of S-Oil had been buying and selling down 0.4% as of 0238 GMT, whereas the broader market was buying and selling 0.2% decrease.

($1 = 1,127.2200 received)

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