S.Korea's S-Oil sees 2023 refining margins elevated

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S.Korea's S-Oil sees 2023 refining margins elevated

SEOUL South Korea's S-Oil said regional refining margins in 2023 remain elevated over pre- 2022 levels, but the company posted a loss in the fourth quarter of 2022 due to a fall in oil prices during the period.

The company expects regional refining margins to maintain an elevated level over pre- 2022 levels despite ongoing refinery shortages, despite demand growth woes in an earnings statement.

The largest shareholder of Saudi Aramco said the European Union's import ban on Russian refined products, China's domestic demand recovery and global jet fuel demand will support refining margins throughout 2023.

The company posted an operating loss of 157 billion won $127.38 million in the fourth quarter, a loss from a year earlier, due to a one-off impact of 433.8 billion won on its inventories.

It added in an earnings statement that there were solid contributions from refining and lube margins during the period.

The refiner operated the crude distillation units at its 669,000 barrel-per-day bpd refinery in the southeastern city of Ulsan for the September-December period, at 93.8 per cent of capacity, up from 91.6 per cent in the previous quarter.

The refiner said it plans to carry out maintenance for its No. 3 crude distillation unit CDU and No. In 2023, 2 residue fluidized catalytic crackers RFCC.

Shares rose by 0.57 per cent as of 0048 GMT, compared to the wider market's 0.76 per cent rise.

In November, Saudi Aramco, S-Oil's largest shareholder, announced a $7 billion project to build a refining complex in the southeastern city of Ulsan, which can produce up to 3.2 million tons of petrochemicals annually.