[E-Daily Reporter Kwon Oh Seok ] S-OilCorporation(010950)(S-Oil) shares are rising in early trading. It appears that buying interest is surging on the back of positive outlooks from the securities industry.

According to MP Doctor on the 28th, as of 9:17 a.m., S-OilCorporation is trading at 144,900 won, up 6.00% from the previous trading day.
Earlier that day, Yuanta Securities Korea released a report forecasting that S-OilCorporation’s earnings would begin to improve in earnest in the second half of the year, driven by strong refining margins and the impact of a decline in the Official Selling Price (OSP) of Saudi Arabian crude oil. The firm maintained its “Buy” rating and raised its target price from 175,000 won to 205,000 won.
Hwang Kyu-won, an analyst at Yuanta Securities Korea, stated, “Investors should pay close attention to refining margins that have surpassed U.S. levels and the impact of further declines in the OSP,” adding, “The company is entering a virtuous cycle of rising shareholder value driven by market conditions that are much stronger than expected.”
He analyzed that production disruptions accounting for 12–14% of global refined product demand are continuing due to the conflicts in Iran and Ukraine. He estimated that production disruptions amount to 6 million BARRELS per day due to reduced crude oil supplies through the Strait of Hormuz, 2.8 million BARRELS per day due to damage to Middle Eastern refining facilities, and 3–4 million BARRELS per day due to attacks on Russian refining facilities.
The decline in Saudi Arabia’s OSP is another factor contributing to improved earnings. The OSP for Saudi crude oil destined for Asia is expected to begin falling in September from its second-quarter level of $11.70 per BARREL. Yuanta Securities Korea estimated that for every $1 decline in the OSP, S-OilCorporation’s annual operating profit would increase by approximately 300 billion won. The firm also raised the possibility of further OSP declines as export competition among oil-producing countries intensifies.
Next year, the launch of the Shaheen Project is also seen as a new growth driver. The Shaheen Project was completed in June of this year and is scheduled to begin full-scale production in early 2027, following a test run in the fourth quarter. It will secure a total production capacity of 4.8 million metric tons of petrochemical products, including 1.8 million metric tons of ethylene annually.
Yuanta Securities Korea estimated that the Shahin Project could generate annual operating profit of 303.4 billion won based on June 2026 prices. The firm analyzed that if the average spread over the past 10 years is applied, annual operating profit could expand to 470 billion won.
Improvements in the financial structure and expanded shareholder returns are also anticipated. Yuanta Securities Korea projected that S-OilCorporation’s excess cash will increase to 2.4 trillion won this year and 3 trillion won next year. By utilizing these funds, the company could reduce its net debt by approximately 3 trillion won in 2027, bringing it below 6 trillion won, and raise the dividend per share to around 10,000 won. Yuanta Securities Korea projected that S-OilCorporation’s operating profit this year will reach 5.2085 trillion won. This represents an increase of more than 20 times compared to last year’s operating profit of 235.6 billion won.