Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  KOREA EXCHANGE  >  S Oil Corp    010950   KR7010950004

S OIL CORP

(010950)
  Report  
SummaryNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

SK Innovation sees diesel demand for IMO 2020 improving refining margins

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/26/2019 | 05:25am EDT
FILE PHOTO: The logo of SK Innovation is seen in front of its headquarters in Seoul

SEOUL (Reuters) - South Korea's SK Innovation, owner of South Korea's biggest oil refiner SK Energy, said on Friday that refining margins are expected to improve, driven by solid diesel demand before new rules on marine fuels take effect from 2020.

The company posted a 42% drop in its operating profits for the second quarter to 498 billion won ($420.91 million), dragged down by weaker margins during the period, compared with 852 billion won over the same period a year earlier.

Shares of SK Innovation closed up 0.6% before the earnings announcement, while the KOSPI index <.KS11> ended 0.4% lower.

"Diesel demand is expected to grow as the International Maritime Organization (IMO)'s new shipping fuel regulations will be implemented from 2020," the company said in an earnings statement.

The IMO's marine fuel regulations will limit the sulphur content in shipping fuel to 0.5% from the current 3.5%. The stricter rules will require the shipping industry to switch to cleaner fuels based on gasoil or diesel fuel from high sulphur fuel oil (HSFO).

Kim Ji-yong, a senior official at SK Energy, said in a call with analysts that the profit margin for producing gasoil, known as crack spreads, are likely to rise in the fourth quarter due to pre-stocking process ahead of the IMO implementation.

On Wednesday, S-Oil, South Korea's third-largest refiner, also said it expected the inventory build-up for IMO compliant fuel to lift refining margins in coming months.

In preparation for change over to lower sulphur fuels, SK Innovation announced in 2017 that it would build a vacuum residue desulfurisation unit (VRDS) by 2020, with a capacity to produce 40,000 barrels per day of low sulphur fuel oil.

The company's VRDS is planned to start commercial operations in May 2020, Kim said.

(Reporting By Jane Chung, additional reporting by Sangmi Cha; editing by Christian Schmollinger)

By Jane Chung

Stocks mentioned in the article
ChangeLast1st jan.
KOSPI COMPOSITE INDEX -1.74% 2031.24 Real-time Quote.1.26%
S OIL CORP End-of-day quote.
SK INNOVATION CO LTD End-of-day quote.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on S OIL CORP
07/26SK Innovation sees diesel demand for IMO 2020 improving refining margins
RE
07/23S OIL : 2Q Net Loss Misses Market Expectations -- Earnings Review
DJ
07/23S OIL : Expects Oil Demand to Improve This Year -- Energy Comment
DJ
07/23S OIL : South Korea's S-Oil sees IMP 2020 stock build supporting refining margin..
RE
07/23S OIL : Swung to 2Q Net Loss on Falling Refining Margin, Weak Demand
DJ
07/16Asia refiners test the waters with exports of IMO 2020-compliant fuel
RE
07/08Hedge funds chart course through 'IMO 2020' storm
RE
06/27S OIL : Saudi Aramco advances global chemicals strategy with S-Oil expansion pro..
AQ
06/27S OIL : President of Korea and HRH Crown Prince inaugurate Korean S-Oil refinery
AQ
06/27S OIL : President of Korea and HRH Crown Prince inaugurate Korean S-Oil refinery..
AQ
More news
Financials (KRW)
Sales 2019 24 887 B
EBIT 2019 829 B
Net income 2019 490 B
Debt 2019 5 507 B
Yield 2019 2,07%
P/E ratio 2019 21,7x
P/E ratio 2020 9,22x
EV / Sales2019 430x
EV / Sales2020 416x
Capitalization 10 706 B
Chart S OIL CORP
Duration : Period :
S Oil Corp Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 29
Average target price 111 603,45  KRW
Last Close Price 93 000,00  KRW
Spread / Highest target 61,3%
Spread / Average Target 20,0%
Spread / Lowest Target -19,4%
EPS Revisions
Managers
NameTitle
Othman Al-Ghamdi Chief Executive Officer & Director
Bong-Soo Park President-Executive Board & Head-Operations
Young-Il Cho Chief Financial Officer & Vice President
Tae-Gi Kim Managing Director & Head-Project Technology
Chul-Soo Kim Outside Director
Sector and Competitors
1st jan.Capitalization (M$)
S OIL CORP9 045
EXXON MOBIL CORPORATION9.71%316 528
BP PLC5.45%131 024
RELIANCE INDUSTRIES8.25%104 400
RELIANCE INDUSTRIES LIMITED (GDR)10.83%104 400
CHINA PETROLEUM & CHEMICAL CORP4.55%90 146