Good morning. This is S-Oil Treasurer, Katie Kang. Let me first thank all the investors and analysts in and out of Korea for joining conference call for S-Oil's Q1 2024 earnings release. I am joined by CFO JW Bang, IR Team Leader JW Ahn, and the team members. I will first share Q1 performance highlights. In Q1 2024, the company recorded KRW 454.1 billion in operating income, which is a turnaround from the previous quarter and a major jump driven by higher refining margin and oil price. Q1 refining margin was higher than the previous quarter, thanks to healthy demand for fuel products and tight supply from global refining companies. One-off inventory related impact tied to oil price was around -KRW 140 billion in Q4 2023, but it recorded roughly KRW 20 billion last quarter, which means its impact on Q1 income and gain is almost neutral. As accounting standard requires inventory valuation to be based on the lower of manufacturing cost and market value, we believe positive inventory impact from oil price increase in Q1 will be divided in Q1 and Q2, and subsequently be reflected in the performance of both quarters. Next is outlook. This year we are forecasting solid demand growth for oil around the world. Average oil demand growth forecast for this year by major institutions is between 1.5 million-1.7 million BD, which is above the three-year average of 1.3 million BD just before the pandemic. Global transportation fuel inventory, on the other hand, fell to the lower side of the historic range. This suggests that refining margin will further pick up when summer drive and air travel season come close and positively impact demand for transportation fuel. We also forecast seasonal upturn for PX, which is our key petrochemical, and lube base oil in Q2 or Q3. I will now share the updates on the company's renewable fuel and circular chemical business. S-Oil established green initiatives to respond to the future energy transition trend, and accordingly set greenhouse gas reduction, chemical expansion, and eco-friendly energy business as our major strategic directions. It is to this end that we started co-processing of bio feedstock, such as used cooking oil and waste plastic oil in our existing refining facilities to produce renewable fuel and circular chemicals, whose demand is forecasted to grow in the longer term. We also acquired three ISCC certificates, which is an international certification for sustainability and low carbon products. Among the three, ISCC CORSIA certificate, which is the international certification for sustainable aviation fuel, is the first of its kind in the Korean refining industry. We plan to gradually expand co-processing business in the short to mid-term. In the longer term, we are reviewing an option to build a dedicated plant for SAF. Finally, allow me to briefly go over progress of Shaheen Project. The company is executing Shaheen Project with a goal to prepare for energy transition and raise our corporate value in the longer term. The project is cruising according to the plan with 75.4% progress rate of site preparation work and 22.4% of EPC work as of the end of March. We will push ourselves to successfully deliver the project to boost the company shareholder value in the longer term. I will now turn over the mic to Team Leader JW Ahn for Q1 performance and the rest. Good morning. This is S-Oil IR team leader J.W. Ahn. Before earnings release, please be advised that financial results for Q1 2024 are provisional and subject to change according to outside independent auditor's audit. Allow me to first touch on Q1 2024 performance and outlook. First, Q1 2024 financial results are in page five. Q1 sales revenue dropped by 5.3% from the previous quarter to approximately KRW 9.3 trillion. International oil price went up in Q1, but quarterly average was slightly lower than that of Q4, and average sales price was a little lower as a result. Q1 operating income recorded KRW 454.1 billion. This is a big jump from the previous quarter, which is attributable to the rise in refining margin and oil price. For your information, inventory impact reflected in operating income is KRW 20.6 billion. By business segment, refining business, which turned around, was the key performance driver. Petrochemical business also marked modest income growth. By contrast, lube base oil business segment's income fell from the previous quarter due to impact from the time lag between oil price and lube base oil price. Q1 income before tax posted KRW 227.2 billion. In finance and other income, we recorded KRW 175.5 billion in net FX loss, owing to 1 FX hike. To make sure that FX impact is neutralized in annual income before tax with a certain timeline, we have been running our unique FX risk management policy with consistency. The financial status. Cash as of end of Q1 2024 is KRW 1.63 trillion. It slightly dropped from the end of last year as oil price increase at the end of Q1 required more working capital. Our net debt to equity at the end of the quarter was 48.8%, which is a little higher than that of 2023. Although we have been facing high volatility in the external environment, we have full liquidity and stable financial structure needed to ensure uninterrupted execution of Shaheen Project. As for profitability indicators, annualized Q1 return on equity was 7.4%. ROCE 7.6% respectively. Q1 EBITDA was KRW 410 billion. Next, I will go over to Q1 2024 market environment and Q2 outlook by business segment. The refining business segment. In Q1, refining business marked KRW 250.4 billion in operating income, which jumped by KRW 561.7 billion from the previous quarter and turned around. Asian refining margin in Q1 recovered to a slight extent from the previous quarter. Bullish demand, coupled with supply disrupted by global refiners' T&I, facility troubles, and geopolitical unrest were the key factors. T&I in the Middle East in the first two months of the year was bigger in scale than the previous years. From March, spring T&I started in refineries in China and Asia. On top of this, cold snap in the U.S., drone attack against Russian refining facilities, and refining facility troubles in Japan, Malaysia, Thailand, and Vietnam kept supply tight. Q1 Singapore margin was $5 per barrel, which is $1 higher than the previous quarter. Also OSP of Saudi crude oil, which was treated in Q1, was lower than the previous quarter, giving a wider margin to the company as a result. Dubai crude oil price jumped from $77.3 per barrel in December average to $84.2 per barrel in March average, substantially made up for the loss in the previous quarter. OPEC+'s continuing output cut and escalating geopolitical tension in the Middle East pushed up oil price. Turning to Q2 outlook. While we go through the slow demand season in early to mid-Q2, Asia refining margin is projected to stay calm and stable, supported by regional T&Is and subsequent adjustment in supply. As we approach summer high season, we forecast demand to grow and refining margin to turn upward again. This is spring T&I season in Asia, many state-run Chinese refiners and big-size independent ones will have their T&Is in April and May, both of which are forecasted to support refining margin. We expect gasoline market to benefit from seasonal strength during the summer driving season, while global inventory level is low. Jet fuel market is also forecasted to improve. This is based on the projection that air traffic will recover to the pre-pandemic level until 2025, stockpiling demand for jet fuel will grow ahead of the summer high season. More details on the outlook will be explained in key business updates with more concrete data. Next is the petrochemical business segment. Q1 operating income in the petrochemical business segment went up from the previous quarter and posted KRW 48 billion. Spread of all chemicals like benzene, polypropylene, propylene oxide other than PX went up from the previous quarter. Inventory-related gain tied to oil price was a key contributor. Starting with aromatics, PX spread in Q1 was sound at USD 341 per ton. The downstream polyester run rate stayed at a high level except during the Lunar New Year holidays. T&I of PX plants in Korea and Japan and production troubles in major PX facilities in India adjusted supply and supported market conditions. Growth momentum of the spread, however, was limited by gasoline blending demand for aromatics, which was in a slightly low season. Benzene spread in Q1 recorded USD 313 per ton and jumped significantly from USD 230 in the previous quarter. Shutdown of many benzene production facilities in the U.S. due to cold snap at the beginning of the year, higher demand for benzene import as refining and petrochemical facilities in the U.S. went into T&I were the key contributors. In Q2, we are forecasting widened spread for PX and benzene for a number of reasons. Startup of new PTA plants will create new demand, aromatics for gasoline blending in summer is projected to be higher in demand. Supply side will also tighten up when PX plants in Northeast Asia enter into their planned T&I in April and May. As for olefin downstream, PP and PO market rebounded in Q1. While downstream demand was slow, several factors limited supply. PP plants in the Middle East had T&I, PO plants in the Middle East and U.S. faced production troubles. Downward pressure could persist by excess facilities in China in Q2, market conditions could start to slowly rebound, buoyed by China's economic stimulus policies. The company's PP and PO use propylene in RFCC plant as feedstock, which is an upgrading unit that treats low-value HSFO to produce gasoline and propylene. This gives us outstanding cost competitiveness, which allows us to enjoy economics regardless of the generally slow petrochemical market, and thus keep our run rate relatively high. Next is lube. Q1 operating income of lube base oil business marked KRW 155.7 billion, which was smaller than the previous quarter. Q1 spread slightly dipped from the previous quarter, largely because of a spike in oil price, which pushed up feedstock cost and time lag until it is translated into product price. We forecast bullish lube base oil fundamentals in Q2, driven by high seasonal demand growth and T&Is of key global suppliers in Europe and Korea. Furthermore, India, which is the company's biggest lube base oil sales outlet volume-wise, is enjoying strong manufacturing activities, and we anticipate this will serve demand well. Next is the key business updates. I will now briefly touch on transportation fuel demand, which remains strong. This year, global oil demand growth outlook moves in the range of 0.9 million BD-2.2 million BD. An average outlook is around 1.5 million BD-1.7 million BD. In particular, non-OECD countries like China, India, and those in Southeast Asia are forecasted to drive demand growth this year around transportation fuels like gasoline and jet fuel. Gasoline is estimated to have seen 280,000 BD demand growth in Q1 compared to the previous quarter, thanks to firm demand in Asia and Europe. Even on an annual basis, we are expecting roughly 300,000 BD growth in demand. Gasoline inventory in the biggest consuming country, U.S., is down to the lowest end of the historical range. In 2023, gasoline market turned up when it entered into a high-demand season amid low inventory level. As driving season demand approaches from the mid-Q2 this year, we are anticipating high chances of bullish gasoline market. As for kerosene and jet fuel, demand for heating fuel fell short of what we had expected due to warm weather in February. Demand for jet fuel steered the growth momentum, driven by surge in travel demand during the Lunar New Year holidays in China. We forecast jet fuel market to steadily drive recovery to pre-pandemic level until next year and provide additional engine to boost refining margin during the summer travel season. Next is renewable fuel and circular chemical business. As demand for renewable fuel and circular chemicals is growing, the company is actively exploring opportunities to enter into and expand markets to supply low-carbon fuel products. To accelerate market entry, we initiated co-processing to produce renewable fuel and circular chemicals like SAF and renewable diesel from bio feedstock and waste plastic oil in the existing refining facilities. To elaborate further on our progress, we signed partnership with Samsung C&T in 2021 and Dansuk in 2023 to establish feedstock supply chain like UCO and palm oil. Last year, we earned government approval on regulatory sandbox to treat these feedstocks in the existing facilities. In January this year, we treated the initial bio feedstock and waste plastic oil in our facilities and acquired three ISCC certificates, which are international certifications for eco-friendly products. This was in April. In particular, ISCC CORSIA certifies that we have satisfied SAF criteria as per IATA's carbon offsetting and reduction scheme, which is the first of its kind in the Korean refining industry. This means that ISCC EU certified the company that complied with EU's Renewable Energy Directive to sell renewable fuel in Europe. ISCC Plus is a voluntary certification that guarantees sustainability of products made with bio-based and waste-based feedstock. During the remaining months of the year, the company will expand logistics facilities to treat feedstock and raise co-processing volume as well. Our goal is 150,000 tons of bio feedstock until 2023. In the longer term, we are also studying an option to build a dedicated plant for SAF. We will keep updating progress of the company's new low carbon energy businesses and how they will perform. This is the end of the presentation. Thank you. The presentation in Korean is still ongoing, so I would like to ask all of you to please wait. Q&A session will begin. Please press asterisk one, asterisk and one, if you have any question. For cancellation, please press asterisk two, that is asterisk and two on your phone. The first question will be given by I Jin Myung from Shinhan Investment Securities. Please go ahead. Thank you for taking my question. I am I Jin Myung from Shinhan Investment Securities. I have two questions. Recently, the refining margin is being just corrected downward. Can you share the reason for the falling refining margin and the future outlook? My second question is about the increased export from China. Would you share your outlook for the future export volume related to its export quota and Chinese export volume? Let me answer your first question on recently adjusting, I mean, correcting downward refining margin and the future outlook. The main reason behind recent adjusted downward refining margin is a diesel spread, which adjusted downward from late March. 현재 디젤은 계절적 수요 비수기를 지나고 있으며, 지난 겨울 온화한 기후로 유럽의 경유 재고가 최근 소폭 상승하고 홍해의 지정학적 불안 이슈로 운임 등이 증가하면서 아시아 지역에서 유럽으로의 물량 이동이 제한되며, 아시아 지역 내에서 디젤 물량이 소화되는 과정에서 스프레드의 하방 압력이 발생하였습니다. As for diesel, the product is passing through a low season, due to warm winter weather, inventory level in the EU went up slightly. Because of logistical risk in the Red Sea, less volume has moved toward EU from Asia. This served as a downside factor for the falling diesel spread. 전망에 대해서 말씀드리면, 경유는 계절적으로 5, 6월 중국 및 인도 등 주요 수요국에서 농업 및 건설 활동이 활발해지는 기간으로 역내 경유 수요가 확대될 것으로 보이며, 공급 측면에서도 4, 5월 중국 등 아시아 정유사들의 대규모 정기 보수가 예정되어 있어 공급 조절이 예상됩니다. As for the future outlook, from May to June, the major demand outlet, which are China and India, will experience active agricultural and construction sector, which is expected to expand regional demand. On supply side, China is scheduled to have major turn-around in April, this will adjust the supply. 중간유분, 즉 Middle Distillate 전체적으로 봤을 때, 2분기 중반부터 여름철까지 이어지는 기간 점진적으로 가시화될 항공유 수요 상승이 매우 견조하게 일어날 것으로 전망되어 전체적인 중간유분 스프레드에 지지 요인으로 작용할 것으로 전망되고 있습니다. Overall, until the summer season, a strong demand for jet fuel is expected. In terms of overall Middle Distillate, it will serve as a supporting factor. 특히 2분기 중반 이후부터 휘발유가 정제 마진 반등을 견인할 것으로 전망되는데요. 한 기관 분석에 따르면, 2024년도 1, 4월 전 세계 휘발유의 수급 상황은 전년도 대비 더욱 타이트한 상황이었던 것으로 분석됩니다. In particular, after the mid second quarter, a rebound of gasoline is expected to be the rebound of a refining margin. According to institutions outlook, between January and April in 2024, market fundamental was tight compared to the last year. 휘발유 수요가 전 지역에서 고르게 호조를 보이고 있고, 또 미국의 현재 휘발유 재고도 낮은 상황이기 때문에 하절기로 갈수록 휘발유 시장의 강세 상황이 전년도와 유사하게 재현될 것으로 기대하고 있습니다. Demand for gasoline is witnessed all over the regions evenly, U.S. inventory of gasoline is low, we are expecting a strong summer high season-driven trends as we experienced in last years. 두 번째 질문 주신 중국 경질유 수출 쿼터 관련한 답변드리도록 하겠습니다. 2024년 중국의 1차 경질유 수출 쿼터는 1,900만 톤으로 2023년 1차 수출 쿼터인 1,899만 톤과 동일한 수준이었습니다. 1차 수출 쿼터가 소진되고 있어 그간 관행에 따라 2차 수출 쿼터의 발행이 4월 말에서 5월 중으로 예상되고 있으며, 2024년 연간 기준의 총 수출 쿼터 물량은 2023년도와 유사할 것으로 기관들은 전망하고 있습니다. To answer your question on the export quota of light oil in China. Chinese government announced the first export quota for 2024, which amounted to 19 million tons, that is similar with the first quota issued in 2023, which amounted to 18.99 million. As the first export quota is being exhausted, the second export quota is expected to be issued between late April and early May based on usual practice. According to major institutions outlook, the total export quota from China for entire year 2024 will be similar with that of 2023. 단기 중국의 수출 관련해서 전망을 말씀을 드리면, 중국의 내수 수요가 증가 추세에 있고 4월에서 5월 중 대규모 정기 보수가 예정되어 있어 휘발유, 항공유, 경유 등 주요 유종에 대한 실제 수출 여력은 제한적일 것으로 분석됩니다. For the export volume outlook for China, as domestic demand is growing in China and heavy T&I is scheduled between April and May, actual export availability for major products such as gasoline, jet fuel, and diesel will be limited. 이상으로 답변 마치겠습니다. That concludes my answer. 다음으로 질문해 주실 분은 미래에셋증권의 이진호 님입니다. 질문해 주십시오. The following question is by Jinho Lee from Mirae Asset Securities. Please go ahead. 안녕하십니까. 미래에셋증권 이진호입니다. 질문 기회 주셔서 감사드립니다. 총 세 가지 질문드리고 싶고요. 먼저 첫 번째는 액침 냉각 관련 질문입니다. 최근 AI나 데이터센터 관련해서 냉각 기술이 주목을 받고 있다 보니 국내 정유업계에서도 윤활유를 활용한 액침 냉각 기술 개발이 이슈가 되고 있습니다. 혹시 관련해서 저희도 진행되고 있는 프로젝트가 있는지 궁금합니다. 두 번째는 화학 부문 질문입니다. 최근 아로마틱 쪽은 스프레드가 좀 호조를 보이고 있는 상황인데요. 전반적인 화학 업황 회복 시점에 대한 전망이 좀 궁금합니다. 그리고 1분기 PP/PO 가동률이 전분기 72%에서 89%까지 올라온 것도 볼 수 있는데, 이와 관련한 향후 가동률 계획도 같이 부탁드립니다. 세 번째는 바이오 항공유 질문입니다. 최근 저희가 국내 최초의 SAF 인증을 받았다고 말씀을 해주셨는데, 이게 기존 항공유 대비했을 때 SAF의 경제성이 어떻게 되는지 궁금합니다. 감사합니다. Thank you for taking my question. I am Jinho Lee from Mirae Asset Securities. I have three questions. My first question is on the emergent cooling technology. Recently, cooling technology is gaining attention because of AI and data center. The development of group-based oil for emergent cooling is an issue. I want to know whether you have the related project ongoing. My second question is about aromatic spread, which is favorable these days. Do you expect any time that it will recover? Recently, PP and PO unit utilization rate was around 72% and 89%. Would you share your future outlook for utilization rates? My third question is about biojet fuel. During your presentation, you mentioned about the certified sustainable aviation fuel for the first time in Korea. Is that biojet fuel comes with more, I mean, better economics compared to traditional jet fuel? 네, 먼저 액침 냉각 시장 진출에 대한 회사 현황에 대해서 답변드리겠습니다. 윤활기유에 첨가제를 더해 생산되는 글로벌 액침 냉각유 시장은 데이터센터, ESS 등 전방 산업의 폭발적 성장이 예상되고 있고, 당사의 윤활기유 설비 및 규모 측면, 차별적 경쟁력을 고려하여 당사 또한 액침 냉각유 시장에서 적극적인 사업 기회를 모색 중입니다. About your first question of entering into the emergent cooling market. Recently, global emergent cooling market is gaining attention that utilizes LBO and additive for that technology. Because of the growth in the data center and ESS is projected, we are also considering emergent cooling markets based on our size of LBO facilities. We are actively exploring business opportunity on that area. 개별 데이터센터의 요구사항을 충족시킬 수 있도록 다양한 시제품 라인업을 구비하였으며, 금년 내 실증 평가를 통해 서버의 안정적인 구동 및 구동 효율, 에너지 절감 성능 등을 검증할 예정입니다. We already came up with test products that meet the requirements of each data center. We are planning to verify the stable operation of a server and effective efficiencies of a server and energy savings throughout demonstration. 복수의 업체와 현재 공동 기술 개발 진행 중으로 적절한 시점에 보다 자세한 사항을 공유해 드릴 수 있도록 하겠습니다. We are working on joint development with multiple partners for related technologies. When the adequate timing comes, we will share more details on this. 다음으로 석유화학 제품별 전망에 대해서 말씀드리겠습니다. 우선 아로마틱 제품 먼저 말씀드리겠습니다. PX 시장은 2분기에 중국 신규 PTA 설비 가동과 가솔린 성수기 진입에 따른 수요 회복, 그리고 역내 PX 설비 정기 보수에 따른 타이트한 공급으로 시장이 지지될 전망입니다. Let me answer your next question on the outlook of a petrochemical product. First, as for aromatic product. In the second quarter, PX market is expected to be supported by tight supply based on T&I schedule and demand recovery driven by high season for gasoline and the operation of new PTA facilities in China. 일반적으로 하절기에는 음료, 의류 등의 소비재 수요 상승으로 PX downstream인 PET 및 폴리에스터의 수요가 개선되는 양상을 보입니다. 또한 하향된 납사 가격과 하절기 휘발유 수요 강세는 MX 및 톨루엔 등 아로마틱 중간 유분의 가솔린 혼합 수요를 지지할 것으로 보입니다. Generally, in summer season, demand grows because of the consumption on the drinks and clothings, and this demand will be supported by the demand of PET and PU. The demand growth in downstream is expected. Naphtha price, which was corrected downward. The favorable demand for the Middle Distillate will serving as a supportive factors for the market. 벤젠에 대해서 추가 말씀드리면, 2분기에 동북아시아 중대형 NCC 설비들의 정기 보수가 집중되는 가운데, 하절기 가솔린 수요 성수기 임박에 따른 아로마틱 to 가솔린 스왑 증가로 미국 벤젠 수입 수요가 강하게 유지되어, 벤젠 시장 역시 2분기에 견조하게 지속될 것으로 전망됩니다. Let me add outlook for benzene market. In the second quarter, mid to larger size NCCs are scheduled to have a happy T&I in Northeast Asia region. As summer season comes, aromatics to gasoline demand will go up. The import demand of benzene in the U.S. will go up, and thereby we are expecting healthy market for benzene. 다음으로는 PP 및 PO 시황 전망에 대해서 말씀드리겠습니다. 2분기 PP, PO 시장은 downstream 신증설 지속에 따른 공급 압력 가운데, 중국 경제 부양책의 효과에 따른 시황 개선을 기대하고 있습니다. As for the PP and the PO market outlook for the second quarter, because of the supply pressure caused by new capacity addition of downstream facilities and economic boost package. Expectation for economic growth in China are forecast to improve the market sentiment. 조금 더 부연드리자면, 중국 정부는 내수 경제 활성화를 위해 지난 4월 12일 소비재 2구 환신 촉진 행동 방안을 발표하였습니다. 중앙정부가 지방당국과 협력해 중고차와 오래된 가전제품을 교체하는 소비자들을 지원하기 위한 자금을 배정한다는 내용입니다. Let me add some more explanation. Chinese government announced its trade-in program for the vehicles and consumer goods to boost domestic economy. In detail, the central government of China will cooperate with local government to help consumers replace their old vehicles and home appliances with the new one with incentives. 중국 내부에서는 동 정책으로 창출되는 자동차 및 가전제품 신규 수요를 약 40조에서 120조 원으로 추산하면서, 중국 국내 총생산 성장률이 상당히 끌어올릴 수 있을 것으로 내다보고 있습니다. As for the internal viewpoint from China, this type of policy will boost new demand, and that is amounted to almost KRW 40 trillion-KRW 100 trillion. As a result, this will significantly improve GDP according to their outlook. 차량 및 가전제품 부품의 상당수가 PP 또는 PO를 원재료로 하여 만들어진다는 점을 고려하면 PP와 PO 수요 개선 가능성이 클 것으로 기대됩니다. Given the fact that most of the vehicles and home appliances are made of a compartment based on PP and PO, the demand for PP and PO is expected to improve a lot. 추가로 PP/PO 가동률에 대해서 말씀드리겠습니다. 우선 당사 PO 공정은 경제성 고려에서 최대 가동률을 지속 유지해 오고 있습니다. Let me add explanation on the utilization of PP and the PO units. We are running a PO process at maximum capacity based on our economics. PP는 경제성을 고려해서 가동률을 탄력적으로 결정하고 있고, 다만 작년 11월, 12월에 정기 보수가 있었기 때문에 가동률이 다소 하향된 바 있었습니다. As for PP units, we set utilization rates in a flexible manner considering economics. However, because of T&I, the utilization of PP units was adjusted downwards slightly in November and December. 1분기 PP 가동률은 작년 하반기 대비 경제성 등을 고려해서 평균 가동률이 다소 상승해 있는 상황이고, 향후 시황을 보면서 경제성에 따라 점진적으로 상향도 검토해 보고 있습니다. In the first quarter, PP utilization rate was slightly improved compared to the second half of last year on average. We may raise the throughput gradually considering the economics and the market situation later. 마지막으로 바이오 항공유 등 저희 코프로세싱 사업 경제성에 대해서 추가 부연 설명드리겠습니다. 재생 연료 및 자원 순환형 화학 제품 가격은 화석 연료 기반 제품보다 높게 가격이 형성되어 있습니다. Lastly, let me add explanation on biojet fuel and economics of a co-processing. The product price based on fossil fuel, I mean, the renewable fuel and the circular chemical products, a price for them are higher than fossil fuel based products. 다만, 시장 성장의 매우 초기 단계이기 때문에 제품별 수요와 판매 프리미엄 수준을 고려해서 경제성을 극대화하는 방향으로 판매를 추진하고자 계획하고 있습니다. However, since we are at the very early stage of the market, which will grow, we will consider demand and the sales premium and proceed this in a way to maximize our economics. SAF 공장 건설 투자는 초기 검토 진행 중인데요. 일정 투자 규모, 경제성 등에 대해서는 현 시점에서의 공유는 조금 어렵고, 국내외 법규 개정 및 판매 프리미엄 등을 고려해서 투자 경제성을 충분히 확보하여 시장 발전 속도에 맞추어 투자를 추진할 계획에 있습니다. As for the SAF plant construction, we are at the early stage of reviewing investment into that. Please understand that it's hard for us to share details such as schedule, economics, and size of investment at this stage. We will continuously consider the related law amendments and the sales premium, and we will proceed the related market. We will consider also market development and proceed with the business after securing economics. 이것으로 답변 마치겠습니다. This concludes my answer. 다음으로 질문해 주실 분은 JPMorgan의 Parsley Ong님입니다. 질문해 주십시오. The following question will be from Parsley Ong from JPMorgan. Please go ahead. Thank you for the chance to ask question. I have three questions. The first one is, could you share with us the impact from Middle East tensions on your refining lubricants and chemicals divisions respectively? Some positive, some negative. Could you just give us some color? Second question is, you mentioned earlier that your lubricant spread fell in first quarter and you are expecting it to improve in second quarter because the first quarter fall was due to lack oil price impact. Could you share with us the extent of the recovery? Do you see potential for a recovery to first half 2023 levels? When do you expect that to be realized? Third question is, if you look at your Non-Operating Expense, it was pretty high in first quarter. I guess this is a combination of your FX losses and interest expense. For interest expense, given global interest rates have been rising, could you share with us your effective interest rate now and your future outlook and expectation on the interest expense? And then for your FX losses in second quarter, do you expect it to narrow? Thank you. 질문 기회 주셔서 감사합니다. 먼저 현재 중동의 지정학적 위기에 대해 질문드리겠습니다. 이 위기로 인해서 각 사업 부문별 어떠한 영향이 있을지, 긍정적인 영향, 부정적인 영향, 그런 자세한 사항 공유 부탁드립니다. 두 번째로 프리젠테이션에서 윤활 사업 관련해서는 유가로 인한 레깅 효과 때문에 1분기 조금 하향 추세였다고 앞서 말씀을 주셨습니다. 2분기에는 그런 개선을 기대할 수 있는지 궁금하고, 언제쯤 이런 개선세가 현실화될 수 있는지 질문드리겠습니다. 그리고 세 번째를 보면, 1분기에 Non-Operating Expense 측면에서 올라가 있는 부분이 발견됩니다. 이게 환율 효과 때문도 있을 것이고, 이자 비용 측면에서 영향을 받은 탓도 있는 것으로 보이는데 현재 또한 전 세계적으로 금리도 상승 중에 있습니다. 현재 S-Oil의 유효 이자율에 대해서 질문드리고 싶고, 앞으로의 전망에 대해서 질문드리고 싶습니다. 그리고 환차손에 대해서 2분기에는 이게 좀 낮아질 것 같다고 전망을 하시는지 답변 부탁드리겠습니다. 먼저 중동의 지정학적 요인에 대한 답변 먼저 드리겠습니다. 중동발 지정학적 불확실성이 국제 석유 및 제품 시장에 일정 수준 영향을 주는 것은 사실이지만, 당사의 제품 수출의 경우 주로 역내에서 대부분 이루어지고 있기 때문에, 지정학적 분쟁에도 불구하고 당사 제품 판매에 미치는 영향은 제한적으로 평가하고 있습니다. On your first question about the impact of geopolitical tension in Middle East on the company. There are uncertainties around the political situation in the Middle East, and that affects international crude market. However, most of the company's export is taking place within the region. Despite this geopolitical conflict, impact of this on our sales is expected to be limited. 이스라엘-이란 분쟁은 최근 소강 상태를 좀 보이고 있고, 국제 원자재 및 금융 시장에서도 해당 분쟁의 추가 확대 가능성은 일단은 낮아진 것으로 평가하고 있는 것으로 내부에서도 이해하고 있습니다. If we refer to the current situation shortly, tension in the Middle East is not growing further given the current status of Iran and Israel. For the worsening of the war, the chances for that is evaluated to be low. 당사의 원유 수급 자체에 미칠 영향도 현재는 없을 것으로 계속 평가하고 있습니다. We believe that no impact from the Middle East tension will be on our crude supply and demand. 다음으로 윤활기유 전망에 대해서 말씀드리겠습니다. 윤활기유는 계절적인 성수기 도래, 그리고 당사 최대 판매처인 인도의 견조한 제조업 활동에 따른 꾸준한 산업용 수요로 2분기에 안정적 수요가 전망됩니다. As for LBO market outlook, in the second quarter, stable market sentiment is expected because of the arrival of a high season and demand growth, which will be driven by the industrial demand and manufacturing activities of India, which is our biggest sales outlet. 공급 측면에서 부연드리자면 Group I과 Group II는 전 지역에서 재고 빌드업 수요 지속되는 가운데 유럽 역내 장기 보수 등으로 공급 또한 타이트하게 유지될 것 같습니다. 그리하여 당분간 강보합세 현상 전개될 것으로 예상됩니다. On the supply side, stable to firm sentiment is our forecast for the certain period of time because inventory build-up demand is witnessed over all regions. Supply tightness will be ongoing because of a T&I in the EU region. Group III의 경우 Group II 대비 높은 Group III의 생산 마진을 향유하기 위해서, supplier들이 최대 생산 판매 기조로 충분한 공급을 지속하고 있습니다. As for Group III, suppliers are maximizing their throughput to catch the favorable production margin compared to Group II product. 2분기의 경우 역내 주요 supplier의 장기 보수로 공급 과잉 상황이 소폭 개선될 것으로 보이나 여전히 공급은 충분한 수준으로 유지될 것으로 예상합니다. In the second quarter, supply is expected to remain, although supply will improve slightly because of T&I of major regional suppliers. 세 번째 질문, 상해에 대해서 답변드리도록 하겠습니다. 발표 자료에서 나와 있듯이 1분기 중 당사는 영업외 손익에서 환차손 -1,755억, 그리고 이자 비용으로 -584억으로 계산되었습니다. As was mentioned in our presentation that in the first quarter, on non-operating side, we had a loss of KRW 175.5 billion from FX loss, and for the interest expense, it was minus KRW 58.4 billion. 이 중에서 우선 환차손에 대해서 설명드리도록 하겠습니다. 당사는 영업이익과 영업외 손익에서 발생하는 환율 영향이 일정한 시차를 두고 서로 상쇄되어 연간 세전이익이 환율 변동 효과로부터 중립적이 되도록 환율을 관리하고 있습니다. Let me explain about the FX loss first. We are running FX risk management policy under which the FX impact on non-operating side is offset with FX impact on operating side to ensure that the impact of FX movement on income before tax becomes neutral on a yearly basis. 따라서 방금 말씀드린 1분기 중 환차손 -1,755억 원에 대응하는 영업이익의 플러스 규모를 살펴봐야 하는데요. 1분기 중 영업이익의 플러스 효과는 약 873억 원이었습니다. 따라서 순효과는 -880억 원이 되겠습니다. We have to look into our gains on the operating side that offset the FX loss of -KRW 175.5 billion. Our gain on operating side amounted to KRW 87.3 billion. As a result, net FX impact was KRW 88 billion. 이 -880억 원도 방금 말씀드린 회사의 환 관리 정책에 의해서 연간 기준으로 보면 영업이익의 플러스와 대부분 상쇄될 것입니다. However, the aforementioned FX risk management policy will offset this -KRW 88 billion of FX loss on a yearly basis at the year-end. 이자 비용과 관련해서 유효 이자율은 4% 수준으로 업계 최저 수준입니다. As for the effective interest rate, it is 4.0% range, which is the lowest among our industry peers. 이자율 전망과 관련하여 국내 채권 시장의 시장 이자율은 미국채 수익률 상승에 미치진 못하지만 매우 견조한 상태에 있습니다. 시장의 예측은 점진적으로 금리 하향 전환되겠지만, 그 시점이 다소 지연될 것으로 시장은 전망하고 있습니다. As for the interest rate outlook, the growth in the domestic bond market is slower than that of U.S. Treasury market, and we are expecting the healthy outcome. As for the market outlook, interest rate is expected to gradually reduce. However, the timing that it is realized will be delayed. 네, 이상으로 답변을 마치도록 하겠습니다. This concludes my answer. 예, 어느덧 약속한 시간이 지난 것 같습니다. S-Oil에 대한 관심으로 오늘 실적 발표에 참여해 주신 투자자와 애널리스트 여러분들께 다시 한번 감사드립니다. 회사는 투명하고 공정한 소통을 위해 최선의 노력을 기울이겠습니다. 추가로 문의하실 점은 당사 IR팀으로 연락 주시기 바랍니다. 이것으로 실적 발표를 마치도록 하겠습니다. 감사합니다. Now, we've reached the time to conclude this earnings release. Once again, I'd like to thank investors and analysts who called in to our earnings release with your attention to S-Oil. We will continue to do our best to communicate with the market transparency. If you have any further questions, feel free to contact with IR team. Thank you. 바쁘신 중에도 참석해 주신 분들께 감사드리며, S-Oil의 2024년 1분기 실적 발표는 이것으로 마치겠습니다. 고맙습니다. This concludes the fiscal year 2024 first quarter earnings results by S-Oil. Thank you for your participation.