Seoul: S-Oil Corp., South Korea’s third-largest refiner by sales, announced on Monday that it experienced a net loss in the third quarter, attributed to low refining margins and a depreciating won.

According to Yonhap News Agency, S-Oil reported a net loss of 206.2 billion won (US$150.5 million) for the three months ending in September, a significant shift from the net profit of 545.4 billion won recorded during the same period last year. The company’s spokesperson highlighted that decreased refining margins and the weak won against the dollar negatively impacted the quarterly financial results.

Data from the Bank of Korea revealed that the dollar averaged 1,359.38 won in the September quarter, compared to 1,310.95 won a year ago. The weakened won has increased the purchasing costs for importers, exacerbating the financial strain on the company.

Additionally, S-Oil reported an operating loss of 414.9 billion won in the third quarter, a stark contrast to the operating profit of 858.8 billion won recorded
in the previous year. Sales also saw a decline of 1.8 percent, dropping to 8.84 trillion won from 8.99 trillion won over the same period.

For the nine months from January to September, S-Oil reported a net loss of 61.3 billion won, compared to a net profit of 788.3 billion won in the corresponding period of the previous year. The company is majority-owned by Saudi Arabia’s state-controlled Aramco, which holds a 63.4 percent stake.