S-Oil: Sharp Earnings Rebound in H1 2026 and a Share Price Up 138.2% Over One Year

Thesis

The data supports a clear earnings recovery. Operating margin moved from 0.7% in 2025 to 7.5% on a trailing basis, and ROE rose from 2.0% to 16.2%. The share price has moved strongly too, with returns of 6.1% over one month, 14.1% over three months and 138.2% over one year. The price sits below its 52-week high of ₩177,100 and well above the low of ₩64,200.

What the data does not settle is how durable the recovery is. The 2021-2025 record shows large swings, including a net loss of ₩193.0B in 2024. Free cash flow is deeply negative, and borrowings of ₩5.5T are well above cash of ₩1.6T. Investor flows, foreign ownership, short balance and news headlines are not available in the data, so we cannot say who is driving the share price move.

Business overview

S-Oil is a KOSPI-listed company in the Energy sector, founded on 1976-01-06 and listed on 1987-05-27. It has 112,582,792 listed shares and a market capitalization of about ₩17.9T. The CEO named in the data is Anwar A. Al-Hejazi. Revenue is large and fairly stable, between ₩27.5T and ₩42.4T over 2021-2025, while profit has been far more volatile. Trailing revenue is ₩37.5T. Peers in the data include SK Innovation (market cap ₩23.1T), Hankook Shell Oil (₩692.9B), Michang Oil IND (₩211.9B) and Kukdong Oil & Chemicals (₩116.5B).

Financial analysis

All figures come from filed financial statements (DART). Annual revenue was ₩27.5T in 2021, ₩42.4T in 2022 (+54.6%), ₩35.7T in 2023 (-15.8%), ₩36.6T in 2024 (+2.5%) and ₩34.2T in 2025 (-6.5%).

Operating income was ₩2.1T in 2021, ₩3.4T in 2022, ₩1.4T in 2023, ₩422.2B in 2024 and ₩235.6B in 2025. Net income was ₩1.4T, ₩2.1T, ₩948.8B, -₩193.0B and ₩177.0B over the same years. Operating margin fell from 8.0% in 2022 to 0.7% in 2025. ROE went from 27.2% in 2022 to -2.2% in 2024 and 2.0% in 2025.

On a trailing basis as of H1 2026, revenue is ₩37.5T, operating income ₩2.8T (7.5% margin) and net income ₩1.5T (4.1% margin). ROE is 16.2%. Liabilities to equity is 199.9%. Cash is ₩1.6T against borrowings of ₩5.5T, and free cash flow is -₩2.4T.

Valuation

The current P/E is 11.8, P/B is 1.8 and P/S is 0.5. The dividend yield is 0.2%. Enterprise value is about ₩21.9T, and EV/EBITDA is not available. At the end of 2025 the P/E was 52.8 and the P/B was 1.1, on depressed earnings, so the P/B has risen while the P/E has fallen as profits recovered. Year-end multiples for earlier years are not available. Among peers, only SK Innovation has a P/B in the data, at 0.9, versus 1.8 for S-Oil. Peer P/E figures are not available, so comparison is limited.

Catalysts

• Filings on 2026-10-01 report a change of largest shareholder and a change in the largest shareholder's holdings, which could matter for governance and strategy.
• Two 5%+ holding reports were filed on 2026-10-02, which show shifts in major shareholdings.
• A major sales or supply contract was disclosed on 2026-09-10, though its terms are not in the data.
• Several insider shareholding reports in September and October show continued ownership activity by insiders.
• The next financial statements will show whether the H1 2026 earnings recovery continues.

Risks

• Earnings have swung widely, from ₩3.4T operating income in 2022 to ₩235.6B in 2025, so the recent rebound may not persist.
• Free cash flow of -₩2.4T and borrowings of ₩5.5T against ₩1.6T of cash put pressure on the balance sheet.
• Liabilities to equity of 199.9% shows meaningful leverage.
• After a 138.2% one-year gain, the share price already reflects much of the recovery, and the P/B has risen from 1.1 to 1.8.
• A change of largest shareholder creates uncertainty, and the data has no detail on its effects, nor on investor flows, short interest or news.

Closing view

The filed numbers show a strong recovery from the 2024-2025 trough, with margins and ROE sharply higher and the share price rising to match. Against that, cash flow is negative, leverage is notable, and the history shows how quickly profits can change. The October ownership filings add a further unknown. Missing data on flows, short interest and peer earnings multiples limits the conclusions, so the picture is one of improved earnings with open questions about their durability and funding.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationS-Oil: Sharp Earnings Rebound in H1 2026 and a Share Price Up 138.2% Over One Year