S-Oil, a South Korean unit of Saudi Aramco, on Wednesday reported a 31 percent on-quarter plunge in operating profit despite favorable market conditions citing inventory depreciation and reduced yield from maintenance work.

According to its disclosure, the refiner’s profit reached 255.5 billion won ($236.7 million) in the first three months, down 23.4 percent from a year ago. Sales fell 6.9 percent on quarter and 4.1 percent on year to 5.411 trillion won.

The non-refining business contributed 64.6 percent to the operating profit despite 19.8 percent share in the revenue.

S-Oil is positive looking forward as its production lines are now fully operational. Strong demand growth also supports refining margins in the second quarter of this year, according to the company.

On Wednesday, shares of S-Oil ended 4.35 percent down at 110,000 won.

By Lee Dong-in and Lee Ha-yeon

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