April 28, 2025 [Reuters]- South Korea’s S-Oil, majority owned by Saudi Aramco, posted losses in the first quarter from its refining and petrochemical units and expects second-quarter margins to be impacted by U.S. tariff negotiations and market volatility.

S-Oil reported an operating loss of 21.5 billion won ($14.93 million) in the first three months of 2025, compared with a profit of 454.1 billion won a year earlier, it said in a statement on Monday.

The company’s revenue for the first quarter fell 3.4% on-year to 8.99 trillion won.

Its refining division posted an operating loss of 56.8 billion won in the reported quarter, flipping from a profit of 250.4 billion won a year ago, due to sluggish demand amid economic uncertainty as well as delays in scheduled maintenance, S-Oil said.

Losses in its petrochemical division more than doubled to 74.5 billion won from the previous quarter, the company added.

S-Oil operated its 669,000 barrels-per-day (bpd) oil refinery in the southeastern city of Ulsan at 94% of capacity, compared with 93% during full-year 2024.

Looking ahead, S-Oil expects second-quarter refining margins to be impacted by developments in U.S. tariff negotiations amid heightened global market volatility.

“Ongoing U.S. tariff tensions may weigh on oil demand forecasts,” S-Oil said in a presentation.

“However global uncertainties are expected to ease gradually with the progress in trade negotiations.”

Meanwhile, S-Oil’s residue fluid catalytic cracking (RFCC) unit is scheduled to undergo maintenance in the fourth quarter.

Separately, the company is targeting mechanical completion for the Shaheen Project in the first half of 2026.

The $7 billion project aims to produce up to 3.2 million metric tons of petrochemicals annually from crude oil.