S-Oil projects stable refining margins for Q2

South Korea's S-Oil, a major oil refiner in the country, has projected stable refining margins for the second quarter of the year. The company anticipates that these margins will be supported by routine maintenance activities in the region. As the summer season kicks off, S-Oil expects the demand for refined products to increase, leading to an upward trend in refining margins.

During the January-March period, S-Oil operated its crude distillation units at the Ulsan refinery at 91.9% of capacity. This was a slight decrease from the previous quarter, where the units were running at 94% capacity. The company, which is backed by Saudi Aramco, disclosed its plans to conduct maintenance on its No. 1 crude distillation unit sometime this year, although the exact timing was not specified.

The forecast for steady refining margins in the second quarter aligns with the company's operational strategy and market expectations. By optimizing maintenance schedules and closely monitoring demand patterns, S-Oil aims to ensure efficient operations and capitalize on the seasonal increase in demand for refined products.

In conclusion, S-Oil's outlook for refining margins reflects a strategic approach to managing its operations in response to market dynamics. The company's focus on maintenance and capacity utilization underscores its commitment to sustaining profitability and meeting the evolving needs of the market.