South Korea-based petroleum and refinery company S-Oil Corp. on Wednesday posted record earnings last year on the back of high oil prices and improved refining margin.

S-Oil announced in a regulatory filing that it posted 42.4 trillion won ($34.4 billion) in consolidated revenue in 2022, up 54.6 percent from the previous year. Operating profit also gained 59.2 percent to 3.4 trillion won and net profit 52.8 percent to 2.1 trillion won during the same period.

S-Oil raised 2.3 trillion won in operating profit from its refining business in 2022 and 1.1 trillion won from lubricant business. The company’s petrochemical division, however, logged 48.9 billion won in losses.

S-Oil plans to spend its net profit to carry out the 9 trillion won petrochemical Shaheen Project, pay dividends to shareholders, and boost financial soundness.

In the fourth quarter alone, S-Oil posted 10.6 trillion won in revenue, up 27.8 percent from the same period a year ago. The company, however, swung to a loss of 157.5 billion won from a profit of 391.3 billion won a year ago.

The operating loss from its refining business reached 379.6 billion won.

S-Oil noted in a conference call that it swung to an operating loss in the fourth quarter due to a one-off event related to inventory after oil prices reached an annual low in December last year amid concerns about the slowing economy.

The company added that it managed to post a net profit of 231.3 billion won despite the operating loss through currency risk management.

S-Oil’s petrochemical division also logged 57.4 billion won in operating loss in the fourth quarter due to delayed recovery in demand in China. Its lubricants business, however, posted an operating profit of 279.5 billion won in the fourth quarter thanks to strong demand for high-quality products.

Looking ahead, refining margins in Asia are expected to remain stable as there will continue to be a shortage in global refining facilities. Its petrochemical business is expected to improve this year on hopes for a recovery following reopening of borders in China.

There will be no adjustments to its dividends, S-Oil said, given the positive outlook for refining margins.

Its dividend payout for last year is expected to be around 5,500 won per share. Final payments will be settled during board and shareholder meetings in March.



Korean cosmetics giant Amorepacific Corp., meanwhile, on Wednesday reported a consolidated operating profit of 214.2 billion won in 2022, down 37.6 percent from a year ago. Revenue also fell 15 percent to 4.1 trillion won and net profit 28.5 percent to 129.3 billion won. The company blamed the weak results on a decline in the sales of tax-free goods following a lockdown in China.

F&F Co., a Korean fashion and cosmetics retailer, also disclosed that its consolidated operating profit reached 522.4 billion won in 2022, up 61.9 percent from a year ago. Revenue surged 66.1 percent to 1.8 trillion won and net profit 66.6 percent to 386.5 billion won thanks to solid sales of its flagship brands like MLB and Discovery at home and abroad.

By Kim Je-gwan and Han Yubin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]