S-Oil beats estimates

S-Oil Corp., Korea’s third-biggest oil refiner, posted a fourth quarter profit that beat analysts’ estimates. Net income was 322.7 billion won (US$287.54 million), compared with a loss of 87.4 billion won (US$77.88 million) a year ago, the Seoul-based company said in a regulatory filing. 11 analysts surveyed by Bloomberg News estimated S-Oil’s median profit at 276.8 billion won (US$246.64 million). “Earnings momentum will remain strong in 2011 as the company will start commercial output of its new petrochemical plant soon when prices are good,” said Park Jae Chul, an analyst at Mirae Asset Securities Co. S-Oil is scheduled to complete a 1.4 trillion won (US$1.25 billion) expansion at its Onsan complex in June to increase the company’s petrochemicals capacity. The new plant will be capable of producing 900,000 metric tons of paraxylene and 280,000 tons of benzene annually. (January 28, 2011)