S-Oil held a “Vision 2025” declaration ceremony on Aug. 30 and pledged to become an energy chemical company that is the most competent and admired in the Asia-Pacific region.
S-Oil CEO Othman Al Ghamdi, who has led the company since September last year, said, “We need to secure a firm competitive advantage in order to brace for uncertainties in the long-term business environment of 10 years and 20 years in the future.”
He added, “S-Oil’s core competence is passionate and creative talent. We will achieve a new vision with the best management efficiency and differentiated investment strategy. With a goal of generating 3 trillion won ($2.67 billion) in operating profit and a market capitalization of 25 trillion won ($22.25 billion) by 2025, let’s dramatically improve the value of business and shareholder.”
The figures are two times higher than where they stand now. S-Oil posted 1.62 trillion won ($1.44 billion) in operating profit last year and had 14.35 trillion won ($12.77 billion) of market capitalization as of Aug. 30.
Al Ghamdi added, “Armed with five core values of Excellence, Passion, Integrity, Collaboration, Sharing, let us and complete S-Oil’s vision and organizational culture innovation.”
In order to realize Vision 2025, S-Oil presented the three strategies, including the reinforcement of oil refining business, expansion of chemical business and expansion of new growth engines.
The company also plans to strengthen the competitiveness of its core business and next-generation growth engines by successfully completing the 4.8 trillion won ($4.27 billion) residue upgrading complex and olefin downstream complex (RUC & ODC) project scheduled for completion by the first half of next year. In addition, S-Oil will comprehensively seek out growth opportunities by developing and promoting long-term new key businesses.
The CEO said S-Oil should be positioned well above the level of competition to make sure that it’s unshakable in any situation it faces 10 to 20 years from now. He asked all of the officers and staff to keep in their minds the Vision so that it can be fulfilled on time.
When RUC is completed next year, bunker-C residual oil, which has been used to fuel industrial facilities, will be further refined to produce high value-added light oil including gasoline, diesel and propylene to help boost the profit of the oil refinery.
S-Oil recently concluded an agreement with Petronas of Malaysia to buy 700,000 tons of LNG over the next 15 years to stabilize the supply of raw materials to its production facilities.
S-Oil officials said the new vision is the result of studying various scenarios related to the oil business environment that may arise in the future. It involved evaluating the oil refinery’s organizational culture and capacity. The growth targets have also been the results of a survey and the collection of the ideas from all of the officers and staff of the oil refinery
S-OIL was established in 1976 and cultivated management characteristics to match the international generation, and a management strategy for its profit-based growth.
The company has facilities that produce lube base oil, petro-chemical products, and crude oil refining facilities equivalent to 669,000 barrels a day in the Onsan Industrial Complex of Ulsan. Based on the Xylene Center, which is the world’s largest PX production facility, and the Bunker-C Cracking Center of worldwide standard, the company is establishing itself as a company that leads in environment protection and consumer protection by producing and supplying high quality petroleum products.
Saudi Aramco, the world’s largest petroleum company, became the largest shareholder of S-OIL in 2015. Through this, S-OIL gave high reliability to all shareholders. Also, high accessibility was obtained, as the global resource of Saudi Aramco will become a new opportunity for the growth of S-OIL.
