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S-OIL Corporation Q2 2026 Results August 2026
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1 Highlights 965 billion Won Operating Income in Q2 2026 Tight Supply and Low Inventories to Sustain Firm Market Conditions Shaheen Project Progressing Toward Commercial Operation in Early 2027 Despite lower crude prices toward the end of Q2, operating income reached 965 billion Won, supported by strong international refining margins and lube spreads With global crude and product inventories significantly reduced by H1 supply disruptions, tight supply-demand conditions are expected to persist, supporting firm market conditions in H2 Pre-commissioning and commissioning are in progress, with start-up to follow, and preparations for early 2027 commercial operation ongoing
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Financial results for Q2 2026 are provisional and subject to change according to the outside independent auditors’ review. This presentation contains forward-looking statements that are based on our current expectation, assumptions, estimates and projections about S-OIL and the refining industry. We caution you not to place undue reliance on any forward-looking statement, which may involve various risks and uncertainties. Please also note that although we believe that the assumptions on which our forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and, as a result, the forward-looking statements based on those assumptions could be incorrect. Except as required by law, we do not undertake to release the results of any revisions of these forward-looking statements to reflect future events or circumstances. DISCLAIMER
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Q2 2026 Performance & Outlook Q2 2026 Financial Result Financial Status Refining Petrochemical Lube Key Business Update Tight Supply and Low Inventories to Sustain Firm Market Conditions Supplementary Information 5 6 7 8 9 11 Shaheen Project Progressing Toward Commercial Operation in Early 2027 12
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S-OIL Corporation Q2 2026 Results Q2 2026 Performance & Outlook Q2 2026 Financial Result Financial Status Refining Petrochemical Lube
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5 Q2 2026 Financial Result * Including gain/loss from derivatives for FX hedging • 965.0 bil . Won in Q2 26 – In Refining segment, strong refining margins were partially offset by opportunity losses from scheduled maintenance – Lube segment posted a record - high quarterly operating profit, driven by tight supply and demand conditions. ※ Inventory - related impact: Q2 +113.7 bil . Won (Q1 +643.4 bil . Won) Operating Income • 705.5 bil . Won in Q2 26 – FX rate changes ‧ Q2 26 : + ₩ 28.1/$ ‧ Q1 26 : + ₩ 78.5/$ Income before Tax (Unit: bil. Won) Q2 26 Q1 26 QoQ Q2 25 H1 26 H1 25 Revenue 11,343.5 8,942.7 26.8% ↑ 8,048.5 20,286.2 17,039.0 Operating Income 965.0 1,231.1 21.6% ↓ - 344.0 2,196.1 - 365.5 (Margin) (8.5%) (13.8%) (5.3%p ↓ ) ( - 4.3%) (10.8%) ( - 2.1%) - Refining 532.4 1,039.0 48.8% ↓ - 441.1 1,571.4 - 497.9 - Petrochemical - 44.8 25.5 Turn to Loss ↓ - 34.6 - 19.3 - 109.2 - Lube 477.4 166.6 186.7% ↑ 131.8 644.0 241.5 Finance & Other Income - 259.5 - 239.7 - 237.7 - 499.2 191.9 - Net Interest gain - 66.6 - 56.2 - - 57.6 - 122.8 - 119.2 - Net FX gain* - 155.6 - 201.2 - 307.1 - 356.8 318.8 - Others - 37.3 17.6 - - 11.8 - 19.6 - 7.7 Income before tax 705.5 991.4 28.8% ↓ - 106.3 1,696.9 - 173.6 Net Income 514.6 721.0 28.6% ↓ - 66.8 1,235.6 - 111.3
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6 Financial Status Assets * Net debt: Short-term borrowing + Long-term borrowing + Lease obligation – Cash * EBITDA: Income before tax + Net interest expense+ Depreciation & Amortization (excluding catalyst amortization) Liabilities & Equities Financial Highlights (Unit: bil. Won)(Unit: bil. Won) * Including current portion of long-term debt 1,789 390 927 2,111 2023 2024 2025 H1 2026 EBITDA (bil. Won) 3,862 6,046 6,066 7,880 42.7% 69.5% 68.3% 78.1% 2023 2024 2025 H1 2026 Net debt (bil. Won) Net debt to equity 10.8% - 2.2% 2.0% 26.0% 2023 2024 2025 H1 2026 Return on equity 1,957 1,843 1,580 1,556 13,582 16,990 17,267 17,758 6,664 6,170 8,125 9,417 2,249 1,555 1,891 1,511 24,451 26,557 28,863 30,242 2024 2025 Q 1 2026 H1 2026 Others A/R & inventory Tangible asset Cash 8,696 8,887 9,568 10,086 3,355 2,173 2,678 3,037 4,451 5,362 5,697 6,045 7,950 10,134 10,920 11,075 24,451 26,557 28,863 30,242 2024 2025 Q1 2026 H1 2026 Other liabilities LT borrowing ST borrowing Equity *
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7 Refining Operating Income (Unit: bil. Won) Dubai Crude Oil Price* (Unit : $/bbl) Products Spread over Dubai (Unit : $/bbl) Q3 26 OutlookQ2 26 Market Environment • Regional refining margins strengthened significantly as tighter refined product supply relative to crude drove product spreads sharply higher • Dubai crude prices remained elevated amid the closure of the Strait of Hormuz but fell sharply in late June as the strait was temporarily reopened • Regional refining margins are expected to remain firm, supported by driving season demand, stronger power demand amid extreme heat, and export restrictions in some countries – Geopolitical developments are expected to influence spread strength in H2 9.9 8.4 13.4 5.5 25.6 14.2 16.1 24.6 36.8 62.5 15.8 18.7 24.4 35.9 62.7 Q2 25 Q3 25 Q 4 25 Q1 26 Q2 26 Gasoline Jet/Kero Diesel 1,039.0 532.4 0 300 600 900 1,200 1,500 Q1 26 Q2 26 69.3 70.0 62.0 128.5 79.5 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 * Quarter-end monthly average
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8 25.5 - 44.8 Q1 26 Q2 26 Petrochemical Aromatics Spread over Naphtha (Unit : $/ton) Operating Income (Unit: bil. Won) Olefin Downstream Spread over Propylene (Unit : $/ton) 101 104 176 156 351 98 71 30 - 25 29 Q2 25 Q3 25 Q 4 25 Q1 26 Q2 26 PO PP 211 230 245 263 251 151 138 103 119 139 Q2 25 Q3 25 Q4 25 Q 1 26 Q2 26 PX BZ Aromatics • PX and BZ supply is expected to decline amid lower operating rates at regional facilities, while market conditions are likely to remain volatile depending on downstream margin and demand recovery Aromatics • PX spread remained soft as feedstock price rose sharply • BZ spread edged up on Chinese stronger import demand amid lower operating rates and resumed exports to the U.S. Olefin downstream • PP demand remained weak due to elevated product prices • PO market turned bullish, driven by disruptions in raw material supply and lower operating rates at PO facilities in the region Q2 26 Market Environment Q3 26 Outlook Olefin downstream • PP market is expected to remain weak amid continued regional supply growth from new capacity additions • PO market is expected to moderate as supply recovers
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9 Q2 26 Market Environment Q3 26 Outlook Lube Operating Income (Unit: bil. Won) Products Spread (Unit : $/bbl) 166.6 477.4 Q1 26 Q2 26 50.5 50.6 55.2 49.6 139.7 Q2 25 Q3 25 Q4 25 Q 1 26 Q2 26 LBO Composite-VGO • LBO fundamentals are expected to remain tight, mainly for Group III, due to delayed recovery in Middle East production and logistics • LBO (Lube Base Oil) spread reached historically high levels as production disruptions in Middle East and logistics constraints from the closure of Strait of Hormuz further tightened supply - demand conditions
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S-OIL Corporation Q2 2026 Results Key Business Update Tight Supply and Low Inventories to Sustain Firm Market Conditions Shaheen Project Progressing Toward Commercial Operation in Early 2027
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11 Tight Supply and Low Inventories to Sustain Firm Market Conditions Record - high lube base oil spreads, particularly for Group III, amid tight Middle East supply - Supply tightness unlikely to ease in the near term, with the Middle East accounting for 30% of global Group III supply 1,900 2,100 2,300 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2025 2026 Global Crude Inventories (mn barrel) 400 440 480 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2025 2026 Global Gasoline Inventories (mn barrel) 500 550 600 650 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2025 2026 Global Diesel Inventories (mn barrel) Source: S&P, FACTS, WoodMac Tight Supply-Demand ConditionsGlobal Crude & Product Inventories Historically low U.S. gasoline inventories despite peak refinery utilization Higher power - generation demand amid European heat waves Expansion of Russia’s refined product export restrictions following damage to its refineries Continued disruptions to refinery operations and exports in Middle East due to blockade of the Strait of Hormuz Note: excluding SPR and China, gray shading: 5-year range excluding COVID-19 period Note: Gray shading: 5-year range Note: Gray shading: 5-year range
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12 Shaheen Project Progressing Toward Commercial Operation in Early 2027 FID Approval ‘22. Nov Starting EPC ‘23. Jan Pre-commissioning & Commissioning ‘26. Jul Start-up preparation & Start-up ‘26. 2H Target commercial start-up ‘27. Jan Mechanical completion verification in progress, including site inspections, equipment performance checks, and review of submitted documents Pre - commissioning & commissioning in progress and start - up preparations underway Annual supply agreements with olefin monomer customers and additional contracts underway to expand the customer base Completion of pipelines to customers, with commissioning planned in line with Shaheen Start - up PE quality evaluations and early securing of key domestic customers through Pre - marketing Pre-commissioning & Commissioning Marketing Current EPC Commissioning & Start - up Commercial Operation 1H ’26 2H ’26 1H ’27 Pre - commissioning Verification
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S-OIL Corporation Q2 2026 Results Supplementary Information
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14 Segment (Unit: bil. Won) Q2 26 Q1 26 QoQ Q2 25 H1 26 H1 25 Refining Revenue 9,029.3 7,101.3 27.2% ↑ 6,259.9 16,130.6 13,331.9 Operating Income 532.4 1,039.0 48.8% ↓ - 441.1 1,571.4 - 497.9 (Margin) 5.9% 14.6% - 7.0% 9.7% - 3.7% Petrochemical Revenue 1,012.5 1,104.4 8.3% ↓ 1,033.7 2,116.9 2,161.7 Operating Income - 44.8 25.5 Turn to Loss ↓ - 34.6 - 19.3 - 109.2 (Margin) - 4.4% 2.3% - 3.4% - 0.9% - 5.0% Lube Revenue 1,301.7 737.0 76.6% ↑ 754.9 2,038.7 1,545.4 Operating Income 477.4 166.6 186.7% ↑ 131.8 644.0 241.5 (Margin) 36.7% 22.6% 17.5% 31.6% 15.6% Total Revenue 11,343.5 8,942.7 26.8% ↑ 8,048.5 20,286.2 17,039.0 Operating Income 965.0 1,231.1 21.6% ↓ - 344.0 2,196.1 - 365.5 (Margin) 8.5% 13.8% - 4.3 % 10.8% - 2.1% Performance by Business Segment - 95 - 574 145 - 57 - 441 115 187 1,039 532 110 5 - 36 - 75 - 35 - 20 - 19 25 - 45 146 154 113 110 132 134 203 167 477 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Refining Petrochemical Lube Operating Income Trend (Unit: bil. Won)
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15 CAPEX & Operation 2024 2025 Q1 26 Q2 26 CDU 93% 96% 85% 76% RFCC/HYC 98% 94% 88% 73% PX Plants 71% 82% 77% 47% PP/PO Plants 83% 78% 62% 37% Lube Plants 96% 98% 97% 94% Utilization Rate 419 2,039 2,951 3,875 2,115 2022 2023 2024 2025 2026 Plan CAPEX Maintenances (Unit: bil. Won) 2025 2026 Plan H1 26 Shaheen Project 3,356 1,562 655 Upgrade & Maintenance 456 468 296 Marketing related expenditure 33 61 6 Others 30 24 7 Total CAPEX 3,875 2,115 964 2024 2025 H1 2026 H2 2026 Refining #1 CDU - #2 CDU - - #1 RFCC #2 RFCC - Petrochemical - - #1 Aro/PX PP/PO - Lube #1 Lube - -
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16 Long-term Spread Trends Refining Gasoline/Diesel spread Lube Base Oil Product spread 11.1 11.2 10.6 11.5 15.2 12.0 12.3 8.2 6.0 2.8 8.9 14.7 12.0 8.8 6.0 9.9 8.4 13.4 5.5 25.6 18.3 17.1 17.8 16.0 13.6 10.8 12.5 15.5 14.7 7.2 8.3 39.0 24.3 16.7 14.3 15.8 18.7 24.4 35.9 62.766 42 32 39 41 40 43 35 26 37 72 65 66 53 44 51 51 55 50 140 0 20 40 60 80 100 120 140 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 $/ bbl Gasoline-Dubai Diesel-Dubai LBO Composite-VGO
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17 Long-term Spread Trends PX Spread Aromatics Olefin Downstream PP Spread 604 554 551 339 332 375 339 433 356 179 194 299 366 266 182 211 230 245 263 251 331 180 77 161 280 246 162 148 139 116 136 59 48 57 54 98 71 30 - 25 29.0 -200 0 200 400 600 800 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 $/ton PX - Naphtha PP - Propylene
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18 Steam Cracker (Ethylene 1,800KTA) TC2C (46 MBD) Existing Refinery Shaheen Project Competitiveness 83% of feedstock, including naphtha, heavy oil, and off-gas, is sourced internally, ensuring competitiveness Industry-leading energy efficiency providing a strong competitive edge Naphtha Approx. 2,500KTA Refinery Off-gas, etc. Approx. 1,000KTA Total Approx. 3,500KTA Crude 20 MBD Heavy Oil 26 MBD Polymer Monomer 83% of feedstock secured internally Shaheen Energy Efficiency: 10% higher than global top-tier levels ConfigurationRaw Materials Products #1/2 LLDPE HDPE 440KTA 880KTA Propylene Ethylene Butadiene Benzene 770KTA 580KTA 200KTA 280KTA Toluene 60KTA VLSFO 7.4MBD
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19 Shaheen Project Competitiveness Shaheen Project is a pivotal expansion into chemical business with industry-leading competitiveness, which will enable another leap forward in future profit generation capacity Core competitiveness Refining & chemical integration synergy in feedstock, facility and operation New TC2C technology to maximize chemical yield Industry-leading energy efficiency and carbon intensity 1st quartile cost competitiveness in NE Asia Chemical Yield 70% CAPEX / OPEX saving 30~40% Vs. Conventional Process TC2CTM Thermal Crude to Chemical Crude Steam cracker feedstock (LPG, Naphtha) VLSFO New TC2C Technology 1 2 3 4
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S-OIL is the first and the only company named to DJSI World for the 16th consecutive year among Asia Pacific refiners. S-OIL Investor Relations www.s-oil.com