April 20, 2024

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[THE INVESTOR] S-Oil will widely beat second-quarter earnings expectations, said KB Investment and Securities on June 19, maintaining a “buy” recommendation and 147,000 won (US$132.96) target price.
 

Its revenue in the period will hike 32 percent on-year to 6.15 trillion won and operating profit will soar 320 percent to 492.7 billion won, well above market consensus. Rise in refinery margins following the strong profitability of diesel and increase of net profit from inventory in tandem with international oil price propelled the earnings improvement, said analyst Baek Yeong-chan. 

Its stock price has been dragged down by slow first-quarter earnings but will rebound in the latter half. Strong earnings will buoy investor sentiments while its profits will improve systematically from the third quarter as its new residue upgrading complex and olefin downstream complex begin commercial operations, he added suggesting a “top pick” rating. 

By Hwang You-mee (glamazon@heraldcorp.com)