By Kwanwoo Jun
S-Oil Corp. is due to release its second quarter results on Tuesday. Here’s what you need to know:
NET PROFIT FORECAST: South Korea-based oil refiner is expected to post net profit of 327.98 billion won ($ 284.7 million) for the quarter ended in June, from a net loss of 67.00 billion won of KRW for the same period last year, according to an estimate provided by FactSet.
REVENUE FORECAST: FactSet estimates put S-Oil’s revenues at KRW 6,179 trillion for the quarter, up from KRW 3,452 billion a year earlier.
WHAT TO LOOK FOR:
–CONSENSUS: Investors will be looking to see if the company’s profits are exceeding market expectations as in the previous quarter due to higher prices for lubricants and other petroleum products.
–MARGES: They’ll likely also be watching S-Oil’s refining margins, as coronavirus vaccine deployments raise hopes for a pickup in demand for fuel and petrochemicals, but a resurgence in Covid-19 cases and Longer blockages dampen optimism.
–DEMAND: The company’s outlook for the future supply and demand of crude, refined petroleum and petrochemicals is also the focus of attention.
Write to Kwanwoo Jun at [email protected]