South Korean refiner S-Oil announced steady second-quarter results, mainly due to the protracted conflict in the Middle East where energy prices remained high and refining profit margins expanded. The company anticipates that oil supply will continue to be tight for the rest of the year. The Saudi Aramco controlled refiner's outlook suggests it may continue to benefit from significant cracking spreads. The reason behind the announcement of the results is that following the temporary easing of the blockade on the Strait of Hormuz in June, which led to a drop in oil prices, tension in the Middle East heated up again last month, driving a rebound in crude oil prices. S-Oil predicted on Monday that regional refining margins will remain strong in the third quarter, supported by demand during the peak summer driving season in Asia, increased demand for refrigeration in hot weather, and export restrictions in some countries. The company said that due to supply disruptions in the first half of the year, which led to significant consumption of global crude oil and refined oil stocks, the tight supply situation is likely to continue, thereby supporting strong market conditions in the second half of the year. In the three months ending June, S-Oil's net profit was 514.58 billion won. This figure fell short of the average estimate of 609.02 billion won compiled by FactSet, but it showed a strong rebound compared to losses in the same period last year. Revenue surged 41% to 11.343 trillion won. Operating profit of 965.2 billion won also reversed the previous year's loss situation.

South Korean refiner S-Oil announced steady second-quarter results, mainly due to the protracted conflict in the Middle East where energy prices remained high and refining profit margins expanded. The company anticipates that oil supply will continue to be tight for the rest of the year. The Saudi Aramco controlled refiner's outlook suggests that it may continue to benefit from significant cracking spreads. The reason behind the announcement of the results is that following the temporary easing of the blockade on the Strait of Hormuz in June, which led to a drop in oil prices, tension in the Middle East heated up again last month, driving a rebound in crude oil prices. S-Oil predicted on Monday that regional refining margins will remain strong in the third quarter, supported by demand during the peak summer driving season in Asia, increased demand for refrigeration in hot weather, and export restrictions in some countries. The company said that due to supply disruptions in the first half of the year, which led to significant consumption of global crude oil and refined oil stocks, the tight supply situation is likely to continue, thereby supporting strong market conditions in the second half of the year. In the three months ending June, S-Oil's net profit was 514.58 billion won. This figure fell short of the average estimate of 609.02 billion won compiled by FactSet, but it showed a strong rebound compared to losses in the same period last year. Revenue surged 41% to 11.343 trillion won. Operating profit of 965.2 billion won also reversed the previous year's loss situation.