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The Korea Herald
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THE INVESTOR
March 29, 2024

Industrials

Analysts mixed on Q1 earnings for oil refiners

  • PUBLISHED :April 08, 2018 - 14:03
  • UPDATED :April 08, 2018 - 14:03
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[THE INVESTOR] Korean analysts on April 8 gave mixed outlooks over the first-quarter earnings of local oil refiners, which posted record-breaking profits in 2016 and 2017.

Analysts said the strong Korean won coupled with the falling global prices of crude remain hurdles for oil refiners, but the increased prices of some petrochemical products also lent support for the companies‘ performances over the January-March period.

According to the data compiled by FnGuide, the market consensus on the operating profit of SK Innovation Co. stands at 852 billion won (US$797 million), while that of S-Oil Corp. is estimated at 417 billion won.


 

Ulsan Petrochemical Industry Complex



SK Innovation posted an operating profit of 845 billion won in the fourth quarter of 2017, with S-Oil holding a comparable figure of 458 billion won.

KTB Investment & Securities Co., on the other hand, said SK Innovation is expected to post an operating profit of 792 billion won for the first quarter, claiming that the strong South Korean won will weigh down its exports.

SK Securities Co, also claimed that the foreign-exchange factor will limit SK Innovation from posting robust earnings in the January-March period, expecting an operating profit of 788.1 billion won.

Meritz Securities Co., in contrast, claimed that SK Innovation will post an operating profit hovering above the market’s consensus, citing improved returns from the chemical and base oil segments.

As for S-Oil, SK Securities suggested an operating profit of 359.6 billion won, claiming that the weaker estimate is attributable to the dull performance of the refinery division.

Kyobo Securities Co., on the other hand, suggested an operating profit of 431.3 billion won for the first quarter, saying S-Oil will enjoy improved returns from its lubricant business.

By Park Ga-young and newswires (gypark@heraldcorp.com)

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