Overview
- SK Innovation reported a first-quarter net profit of 896.1 billion won and operating income of 2.16 trillion won, citing inventory gains and timing effects from higher crude prices.
- The company said a lagging effect widened margins because refiners bought crude earlier at lower prices while fuel prices at sale reflected the latest market jump.
- S-Oil posted 1.23 trillion won in operating profit with 643.4 billion won from inventory gains, GS Caltex recorded 1.64 trillion won helped by tight kerosene and diesel supply, and HD Hyundai Oilbank earned 933.5 billion won.
- Executives and industry officials warned the boost is temporary and could flip to losses if oil prices retreat, recalling collective losses in 2020 after a sharp price swing.
- South Korea’s fuel price cap, introduced in March with a 4.2 trillion won compensation pool for refiners, could face strain as volatile prices persist and public scrutiny of support grows.