S-OilS-Oil

S-Oil's profits have rebounded sharply from 2025 lows, but the stock is well off its 52-week high and the balance sheet carries heavy debt.

S-Oil, a Korean refiner with petrochemical and lubricant operations, reported trailing twelve-month revenue of ₩37.5T and operating income of ₩2.8T through H1 2026, up from ₩0.2T operating income for 2025. The shares closed at ₩126,400 on 2026-10-27, down 18.8% over one month but up 70.6% over one year. Borrowings of ₩9.1T and negative free cash flow of ₩2.4T on a trailing basis stand out.

What stands out

• Trailing operating margin is 7.5% and net margin is 4.1%, well above the 0.7% operating margin recorded for 2025.
• Free cash flow is negative at -₩2.4T on a trailing basis, while borrowings are ₩9.1T against cash of ₩1.6T.
• Liabilities are about 200% of equity, a high leverage level relative to equity.
• The price is roughly 29% below the 52-week high of ₩177,100 but well above the low of ₩70,700.
• Foreign ownership rose slightly to 80.4% and foreign investors bought about ₩107B over the last 20 days, while institutions and retail sold.
• Recent filings are mostly insider shareholding reports and shareholder holding reports, plus a major supply contract on 2026-10-20 worth ₩1.16T with Lee Soo Chemical.

What to watch

• Upcoming full-year results and whether the margin recovery holds, since the data only covers trailing figures to H1 2026.
• Progress on debt levels and free cash flow, given the negative trailing figure and high liabilities-to-equity ratio.
• Further filings on insider or major shareholder holdings, as the largest shareholder is Aramco Overseas Company B.V.