(LEAD) S-Oil narrows loss in Q4 on increased sales

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By Nam Kwang-sik
SEOUL, Jan. 29 (Yonhap) -- S-Oil Corp., South Korea's third-largest refiner, said
Friday that it cut back its net loss in the fourth quarter from a year ago on the
back of increased sales.

The company's net loss came to 57.9 billion won (US$50 million) in the
October-December period, compared with a net loss of 187.1 billion won a year
ago, S-Oil said in a regulatory filing.
Sales rose 6 percent on-year to 4.86 trillion won in the period thanks to a rise
in product prices, while its operating loss narrowed to 45.6 billion won from a
loss of 128.3 billion won, the company said.
Shares of S-Oil fell 1.96 percent to 50,100 won as of 10:58 a.m. on the Korean
Exchange.
"A rise in sales of transportation fuel helped cut back our net loss in the
fourth quarter, despite a lowered refining margin and the South Korean won's
ascent against the U.S. dollar," S-Oil said in a statement.
For the whole of 2009, net profit fell 43.4 percent to 252.7 billion won from a
year ago. Sales dropped 24.2 percent to 17.4 trillion won, and operating profit
sank 77 percent to 322.7 billion won.
"A continued fall in the international refining margin, coupled with regular
plant repairs, pounded last year's operating profit, while sales dipped due to a
tumble in oil prices last year compared to a year ago," S-Oil said.
The company predicted that its profit will improve this year as overseas demand
for oil products is expected to pick up, especially in emerging markets, boosted
by the recent global economic recovery.
S-Oil will spend about 800 billion won on its 1.4 trillion-won plant expansion
project this year to build two petrochemical plants in Ulsan, an industrial city
about 400 kilometers southeast of Seoul, S-Oil said. The two plants are slated to
be completed by June 2011.
ksnam@yna.co.kr
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