Good morning. This is Kyungsook Jung, Treasurer of S-Oil. I'd like to extend my gratitude to our investors and analysts in and out of Korea for joining S-Oil's conference call for Q1 2026 earnings results. For today's conference call, we have Jiwon Bong, our CFO, and IR Team Leader, Yeri Jung, and team members. First, I will take you through the highlights of Jiwon Bong. In Q1, crude oil prices and refining margins remained strong, driven by the Middle East war. Strong refining margins were offset by opportunity losses resulting from scheduled maintenance in March and implementation of domestic fuel price caps. However, rising crude prices increased inventory-related gains, lifting the company's Q1 operating income to KRW 1 trillion 231 billion, up significantly both year-on-year and quarter-on-quarter. Next is the market outlook and the company's response. Despite heightened uncertainty in global crude oil and refined product supply due to the Middle East war, the company maintains stable crude supply and operations through long-term feedstock sourcing and logistics arrangements with the company's parent company. Next is the progress of Shaheen Project. As of the end of April, Shaheen Project's EPC progress rate is 96.9% and on track. The company is availing company-wide capabilities to achieve the project's mechanical completion by the end of June 2026. Engineering reached 97.3%, procurement 99.9%, and construction 93.6%, with the project entering its final stage. The company is targeting commercial startup earlier next year after commissioning in the second half of this year. In preparation for Shaheen startup, the company is pursuing annual supply contracts to expand its olefin monomer customer base and proceeding as planned with branch pipeline construction for two customers in Ulsan. For polyethylene, the company has secured long-term extra contracts and is pursuing customer expansion through pre-marketing. Now, IR Team Leader Yeri Jung will get into more details for Q1 performance and market outlook. Good morning. This is S-Oil IR Team Leader, Yeri Jung. Before we begin, please note that Q1 2026 financial results are provisional and therefore subject to change according to outside independent external auditors' review results. First, please refer to page five for Q1 2026 financial results. In Q1, the company posted sales revenue of KRW 8 trillion 942 billion, up 1.7% quarter-on-quarter, and operating income of KRW 1 trillion 231 billion, up 231% from the previous quarter. On a monthly basis, the company recorded operating income of KRW 420 billion in January and February combined, supported by healthy refining margins, while operating income reached KRW 812 billion in March, driven by inventory-related gains from rising crude prices and the lag effect of fuel pricing following the Middle East war. If you look at each business segment, operating income from the refining segment rose 455% quarter-on-quarter to KRW 1 trillion 396 billion, mainly driven by inventory-related gains of approximately KRW 525 billion from rising crude prices and a KRW 430 billion lagging effect, whereby crude oil price in the listing month is reflected in cost with a one-month timeline. In particular, in March, when the impact of the Middle East war began to materialize in full scale, the company effectively posted a loss when excluding oil price-related gains despite strong international refining margins due to scheduled maintenance and the domestic fuel price cap. Petrochemical segment turned to a profit quarter-on-quarter, recording operating income of KRW 25.5 billion, supported by inventory-related gains. Operating income from the lube segment declined 18% quarter-on-quarter to KRW 166.6 billion, as product spreads narrowed due to a sharp spike in feedstock costs and a lagging impact of product prices. For reference, the company recorded KRW 643.4 billion in inventory-related gains in Q1. In financial and other gains and losses, the company recorded net interest loss of KRW 56.2 billion and net foreign exchange loss of KRW 201.2 billion due to foreign exchange increase. Q1 income before tax and net income came in at KRW 991.4 billion and KRW 721 billion, respectively. Moving on to financial status. As of the end of Q1 2026, the company held KRW 1,580 billion in cash, while net debt to equity ratio was 75%. Despite external volatility, the company continues to maintain sufficient liquidity and stable financial structure through competitive and timely financing at low interest rates to support smooth execution of Shaheen Project and proactive working capital management. Q1 EBITDA came in at KRW 1,191 billion. I would like to go through market environment and outlook by each business segment. First is refining business segment on page seven. As mentioned earlier, operating income from refining segment improved quarter-on-quarter to KRW 1,039 billion, driven by inventory-related gains from rising crude prices and the lag effect of crude price gains. Let me now discuss Dubai Crude prices in Q1. Crude prices stayed around $60 per barrel earlier in the year as it reflected concerns of oversupply triggered by OPEC+ production increase. Prices surged as the late February Middle East war and the closure of the Strait of Hormuz escalated concerns around global oil supply disruption. Accordingly, Dubai Crude oil price rose from an average of $52 per barrel in December last year to $128.50 per barrel in March this year. Asian refining margins remaining firm in January and February, with kerosene and diesel spreads holding near $20 per barrel following Q4, supported by seasonal demand, continued Ukraine drone attacks on Russian refineries, and sanctions on Russian crude and petroleum products. In particular, following the outbreak of the Middle East war in late February, kerosene and diesel spreads widened to over $100 per barrel in March as crude oil supply disruptions caused Asian refineries to cut their operations and major countries, including China, to restrict exports. As a result, kerosene and diesel spreads averaged around $36 per barrel for the quarter, supporting refining margins. Meanwhile, gasoline spreads declined quarter-on-quarter to $5.5 per barrel as product prices failed to keep pace with rising crude prices during the seasonal off-peak period. Tight market environment is expected to persist into Q2 amid ongoing crude and product supply disruptions. Although concerns remain over slower oil demand growth due to high product prices, supply disruptions are likely to outweigh demand softness driven by high product prices. Meanwhile, a potential decline in oil prices, depending on the developments in the Middle East War, may lead to inventory-related losses, increasing earnings volatility and downside risks. A more detailed outlook for Q2 will be provided in the key business update section with supporting data. Next is petrochemical business segment. Petrochemical segment returned to profit quarter-on-quarter with operating income of KRW 25.5 billion, supported by inventory related gains. Let me discuss the market environment in Q1. The aromatics market improved overall in January and February. PX spreads over naphtha exceeded $300 per ton in January on stronger demand from new PTA capacity ramp-ups in China, while benzene spreads over naphtha also improved modestly to above $160 per ton on average in the first two months of the year, driven by higher demand from downstream facilities in China, which showed improved economics. Following the Middle East War, naphtha supply disruptions sadly raised feedstock costs, while limited pass-through to product prices narrowed spreads in March. As a result, Q1 average PX and benzene spreads partially gave back earlier gains in January and February, reaching $253 per ton and $119 per ton, respectively. For olefin downstream products, polypropylene, PP, weakened after the Middle East War, as higher feedstock costs were not fully passed through to product prices, pushing PP spreads over polyethylene down to -$25 per ton. PO spreads over polyethylene also edged down quarter-on-quarter to $156 per ton, but remained relatively firm, supported by improved downstream polyol demand following tax policy changes in China. Let me discuss the outlook for the petrochemical segment in Q2. Elevated uncertainty over feedstock supply for naphtha, polyolefin, and price volatility is expected to persist given the prolonged Middle East War. However, aromatics market environment is expected to be supported by lower supply due to concentrated regional maintenance and the start of the driving season. PP and PO are also seeing reduced operating rates across the region due to feedstock cost pressures, while PO remains relatively resilient in April, supported by improved downstream polyolefin demand. Next is lube business segment. Operating income from the lube segment declined quarter-on-quarter to KRW 156.6 billion in Q1. LBO market, which has been stable in January and February, became much tighter in Q1 as oil supply disruptions following the Middle East War caused refiners to cut their run rates, reduce supply of the lube base oil in order to maximize diesel output. It also restricted lube base oil exports from the Middle East through the Strait of Hormuz. However, lagging impact of LBO prices pushed spreads down Q on Q to $49.6 per barrel. LBO fundamental is expected to remain firm in Q2, supported by supply disruptions from prolonged Middle East War. LBO spread is showing signs of recovery as LBO prices gradually increase following the rise in feedstock cost with a time lag. Next is key business updates. Let me now discuss the impact of the Middle East War on global oil supply and demand, as well as the company's crude supply situation. As the Middle East War continues, uncertainty in global oil market is increasing due to disruptions in crude oil and refined product supply. First, OPEC crude production fell by approximately 9 million bpd from 30 million bpd in February 2026 to 21 million bpd in March due to crude export disruptions caused by the Middle East War. In addition to crude oil, disruption in refined product supply was also significant. The closure of the Strait of Hormuz caused shipping disruptions from vessels waiting in the region, while attacks on refining facilities in the Middle East, which represent roughly 10% of global refining capacity, led to reduced operations at some plants. In addition, refinery runs were reduced at some Asian refineries, which account for about 37% of global refinery capacity that treats Middle East crude oil as feedstock. Refined product supply was further tightened by export restrictions from China, which exported around 700,000 bpd in 2025. Meanwhile, concerns over slowing demand growth are rising amid higher Dubai Crude price outlook driven by supply disruptions. Five major institutions revised down their 2026 global oil demand growth outlook from around 1.09 million bpd as of February 2026 to 300,000 bpd. However, as the reduction in demand growth remains smaller than the decline in OPEC crude production, oil market is expected to stay tight for the time being. Despite heightened uncertainty in oil product supply and demand, S-Oil continues to maintain stable crude supply and operation through its long-term crude sourcing and logistics arrangements. On average, the company secures 10 crude cargoes a month for facility operations. In March and April, the company sourced an average of approximately 7.5 crude cargoes per month due to scheduled maintenance. For the remaining first half of the year in May and June, the company has already secured an average of 10 cargoes per month to support normal operations. This stable crude supply was made possible in large part by a 20-year crude supply contract with parent company, Saudi Aramco, and a 10-year BOCC transportation contract with its affiliate, Bahri. Going forward, the company plans to continue stable feedstock supply and operations based on its long-term contracts. Last is the progress of Shaheen Project. As of the end of April, the Shaheen Project's EPC progress reached 96.9% and is progressing as planned. Engineering, procurement, and construction reached 97.3%, 99.9%, and 93.6%, respectively, bringing the project into its final stage. Engineering has effectively been completed based on pre-mechanical completion, with only as-built drawing work remaining in Q2. To provide additional details on EPC progress, major equipment installation of steam cracker facilities, including cracking heater, tower and pipe rack module, has been completed along with the TC2C fired heater and storage tanks. Internal installation works for the polymer automated warehouse as well as plant-wide above ground piping and conduit installation and pre-commissioning activities are also underway. On the marketing side, annual supply contracts for all of the monomers have been secured in preparation for the Shaheen startup, with additional contracts underway to expand the customer base. Branch pipeline construction for key customers in Ulsan is also on track to support supplies via pipelines, and they will also be completed in the first half of the year. For PE, the company is pursuing quality evaluations and early customer acquisition for pre-marketing, while also securing long-term export contracts. The Shaheen Project schedule remains unchanged, targeting mechanical completion in the first half of 2026, followed by commissioning in the second half and readiness for commercial operation thereafter. We will keep you updated on the progress of Shaheen Project. This concludes our presentation. Thank you. 지금부터 질의응답을 시작하겠습니다. 질문이 있으신 분들은 전화기 버튼의 별표와 1번을 눌러주십시오. 신청하신 질문을 취소하시려면 별표와 2번을 눌러주시면 됩니다. Q&A session will begin. Please press asterisk and 1. That is asterisk 1, if you have any questions. For cancellation, please press asterisk 2. That is asterisk and 2 on your phone. 처음으로 질문해 주실 분은 삼성증권의 조현렬 님입니다. 질문해 주십시오. The first question will be given by Cho Hyun-yeol from Samsung Securities. Please go ahead. 안녕하세요. 삼성증권 조현열입니다. 질문이 두세 개 정도 됩니다. 크게 네 가지 질문을 드리려고 하고요. 첫 번째는 아까 간단하게 언급하셨지만, 중동 전쟁 이후에 원유 수급 규모의 변화가 좀 어떻게 발생하고 있는지에 대해서 질문드리겠습니다. 두 번째는 증산 규모에 대한 질문인데요. 전쟁 이후에 보면 증산 규모가 중간중간 정체를 띠고 있지만, 그리고 그 격차도 줄긴 했지만 여전히 평유보다는 증유 맞은 상태가 굉장히 큰 것 같습니다. 이것은 흠 없느냐고 볼 수 있는지, 그리고 그 증유 마진이 상대적으로 좀 약세인 기조는 무엇인지 궁금하고요. 세 번째로는 중동 전쟁이 사실 어떻게 될지 모르지만 끝날 경우에는 그 전쟁 이후에 정유 업황 변화에 어떤 변화가 있을지, 예를 들어서 공급과 수요 측면에서 어떤 변화가 있을지가 궁금합니다. 마지막으로 네 번째는 배당 관련한 질문인데요. 저희가 이제 사실 재고 효과가 크긴 하지만 전체적으로 실적이 좀 잘 나오면서 중간배당을 올해는 다시 좀 시행할 수 있을지, 그리고 시행하게 된다면 그 규모가 어떨지 여쭤보겠습니다. 감사합니다. Thank you overall. First thing is after the war broke out, can you elaborate us on how it has affected the changes in the crude oil supply and demand? My second question has to do with the strong margin of mature steam compared to diesel. Could you explain what is causing the strong margin of diesel and also the cause of the strong margin of kerosene and the relative weakness of the diesel margin at the same time? My third question has to do with the changes in the refining business environment and on the supply and the demand side after the end of the war. Fourth is about our dividend policy. While overall the Q1 performance seems to be very good, even though a big part of it is the inventory related gains, since it's a good performance, is there any chance that the company pays interim dividends? If so, how big would that be? 네, 먼저 첫 번째 질문인 회사의 원유 수급에 대해서 추가로 말씀드리겠습니다. 아시다시피 회사는 하루에 약 67만 배럴 규모의 원유를 정제하는 시설을 보유하고 있고요. 설비의 정상적인 가동을 위해 월 평균 약 10개 항차의 원유가 필요합니다. 2025년 3, 4월에는 앞서서 말씀드렸던 것과 같이 월 평균 10개 항차들이 감소한 7.5개 항차의 원유를 도입하였습니다. 이는 3년 주기로 시행하는 대규모 정기 조드가 올해 3, 4월에 계획대로 실시되었기 때문이고요. 중동 전쟁의 영향은 아닙니다. To answer your first question on the changes in the crude oil fundamentals after the end of the war. First of all, our CDU capacity is 670 KBPD. For normal operation of our facilities, we store some 10 crude cargoes on a monthly average basis. In March and April, we stored a monthly average of 7.5 crude cargoes, which is a reduction from the average of 10 last year. This is because we had a major T&I in March and April, which comes every three or four years, and this is not because of the war in the Middle East. 4월에 CDU를 시작으로 정기 보수가 종료된 설비들이 순차적으로 정상 가동되면서 5월부터는 기존과 동일하게 월 10항차의 원유가 도입될 예정입니다. 6월 또한 정상 가동에 필요한 원유를 이미 확보한 상황입니다. Starting from April this year, other facilities that have been under the T&I have been completed and they're all starting up one by one in May. We are going to store 10 crude cargoes, which is the same as last year. We also secured the crude oil required for normal operation in June. 원유 확보 방법에 대해서 부연 설명드리자면, 회사는 제주와의 긴밀한 커뮤니케이션을 바탕으로 한 사우디 Yanbu항을 통한 사우디산 원유 우회 도입, 울산에 저장된 사우디산 원유 도입, 아랍 UAE의 Fujairah항을 통한 원유 우회 도입, 그리고 정부 비축유 2차, 알제리산 Saharan Blend 구매 계약 체결, 이렇듯 다양한 방법을 통해서 원유를 안정적으로 도입하고 있습니다. As for the company's crude oil sourcing, we are reliably sourcing crude through various channels based on very close communication with our majority shareholder. We are sourcing Saudi crude through the Yanbu port in Saudi Arabia. We are utilizing the Fujairah port in U.A.E., the Saudi crude stored in Ulsan, and we're also leasing the government stockpile oil, and we're also making the most out of the Saharan Blend procurement contract that we have signed. 다음으로 첫 번째 질문에 대한 답변 마치겠습니다. This concludes my answer on your first question. 항공유 마진에 대해서 답변드리겠습니다. 전쟁 이후 경유 대비해서 등유 스프레드가 강세를 보이는 것은 항공유 수급이 상대적으로 타이트했기 때문입니다. To answer your second question on the relatively strong jet fuel margin. Well, compared to the diesel margin, the jet fuel spread has shown a relative strength since the war broke out because of the relative tightness of jet fuel supply. 지역 측면에서는 유럽의 수급이 특히 타이트한 상황입니다. 유럽은 중동에서 다량의 경유와 항공유를 수입하고 있으며 경유보다는 항공유의 중동 의존도가 상대적으로 높은 상황입니다. 호르무즈 해협 봉쇄에 따른 차질이 유럽의 항공유 수급에 더 크게 영향을 미친 것으로 보입니다. If you look at it from a regional perspective, the Europe jet fuel supply is known to be tighter than other regions. As you know, Europe imports a big volume of diesel and jet fuel from the Middle East, and their dependence on the Middle Eastern jet fuel is higher than that of diesel. After the Hormuz got closed, it caused supply disruptions of fuel products in the Middle East, and that seems to have had a bigger impact on jet fuel supply to Europe compared to diesel supply. 또한 역내 세계 항공유 수출국인 중국이 전쟁 이후 즉각적으로 석유 제품 수출 금지를 실시함에 따라서 항공유의 수급 상황이 더욱 타이트해졌으며, 이러한 요인들이 반영되어 항공유 스프레드가 강세를 보였습니다. The jet fuel supply got even tighter because of China, which is the biggest jet fuel exporter in the region, immediately banned fuel product exports after the war broke out. All these factors added up to give a relative strength to jet fuel spread compared to diesel. 정유 제품의 타이트한 공급 상황이 당분간 지속될 것으로 예상되고, 특히 중간유류 스프레드 강세가 이어질 가능성이 높을 것으로 보고 있습니다. 다만 항공유의 상대적 강세에 대해서는 변동성이 클 것으로 예상되고 있습니다. All in all, we are expecting the fuel product supply to remain tight for the time being, also there is a big chance of the middle distillate spread to show strength for the time being. However, with regard to the relative strength of jet fuel, we are expecting some volatility in the market. 중국은 5월 50만 톤 규모의 제품 수출을 허용해주는 등 높은 제품 마진에 따라서 수출을 재개하는 움직임을 보이고 있습니다. 또한 수요 측면에서는 항공사들이 높은 제품 가격에 따라서 저수익 항공편 운항을 조정하는 등 수익성 중심으로 운항을 조절하며 대응하는 모습을 보이고 있습니다. Well, for example, China is showing moves to resume exports of products that have high margin. For example, they permitted the export of 500,000 tons of products in May. On the demand side, the airliners are responding to the high product prices by adjusting their air flights more towards the higher margin air schedules and reducing the lower margin short distance air flights. 이처럼 높은 항공유 가격으로 인해 수요 공급 대응에 변화가 나타나고 있어서 당분간 항공유 스프레드는 변동성이 다소 높을 것으로 예상됩니다. As I just said, we are seeing changes in how the market players are responding to the high jet fuel spread in terms of both the supply and the demand side. Therefore, we are expecting to see a relatively high level of volatility in the jet fuel market. 이상입니다. This is all I have for your second question. 다음으로 세 번째 질문, 전쟁 시 정유 업황이 어떻게 될지에 대해서 말씀드리겠습니다. 위원님이 말씀해 주신 것처럼 중동 전쟁이 지속되는 기간에 따라서 석유 수급에 미치는 영향이 상당히 달라질 텐데요. 일단 멀지 않은 시점에 전쟁이 끝난다고 가정을 해봤을 때는 석유 공급이 순서적으로 정상화될 것으로 예상하고 있습니다. 다만 전쟁 기간 중 공격 등으로 인해 원유 생산 및 정제 설비들에 직접적이거나 간접적으로 침해가 발생한 바 있어서 석유 공급이 전쟁 이전 수준으로 회복되는 것은 주요 기관들을 따르면 올해 연말은 되어야 가능할 것으로 예상하고 있습니다. To answer your question on how the end of the war will affect the changes in the refining market based on supply and demand. As you said, the impact on the oil supply and demand will change depending on how long the war lasts. A lot of the major institutions believe that oil supply will come back to the normal level step by step if the war comes to an end in the not-so-distant future. However, as you know, during the war, there were missile strikes on the oil production and the refining facilities, which caused indirect and direct damages to these facilities, and therefore it will be only towards the end of the year when oil supply recovers to the pre-war level. 석유 수요 측면에서도 보완 설명드리면, 공급 차질에 따른 제품 가격 상승 및 수요 성장이 성장을 더해서 2026년 수요 성장은 전수의 예상치에는 미치지 못하고 있습니다. 다만 IMF 같은 기관에서는 중동 전쟁 발발 이후에도 2026년 글로벌 경제 성장률을 3.1%로 아직 유지하고 있는 상황입니다. 종전이 되면 유가가 하락할 것이기 때문에 수요 정상화가 이루어질 것이고요. 전쟁 기간 중 낮아진 재고를 다시 비축하려는 수요로 인해서 성장 기간 양호한 정제 마진이 유지될 가능성이 있습니다. Speaking on the supply side, the product prices increase because of the disrupted supply will hamper the demand growth. Because of that, the demand growth this year is not forecasted to reach what was forecasted at the beginning of the year based on the outlook. However, IMF did not significantly adjust their forecast on the global economic rate for this year, keeping it at 3.1%. If the war comes to an end and oil price goes down, that will bring demand back to the normal level. The low stockpiling demand during the war period will also be returned to the normal level, and therefore there is a chance that the margin will stay favorable for quite a period of time. 이상으로 답변 마치겠습니다. Yes, concludes my answer on your third question. 예, CFO 강주환입니다. 네 번째, 중간배당 여부 및 규모에 대해서 질문이 주셨는데요. 회사는 이미 배당 가이드라인 공시를 통해서 알려드린 바와 같이 2026년 배당액을 순이익의 20% 이상 배당하는 것으로 계획하고 있습니다. 중간배당에 관해서는 상반기 중에 이익이 나기 때문에 중간배당 지급을 고려하고 있습니다만, 현재 회사를 둘러싼 금융환경의 변동성과 불확실성, 그리고 향후 유가 하락할 경우에 나타날 재고 손실 등을 종합적으로 고려해서 중간배당은 다소 보수적인 접근이 필요해 보입니다. 다만 연간 기준으로는 연간 당기순이익의 20% 이상을 배당으로 지급할 계획입니다. To answer your fourth question on the possibility of paying interim dividend, and if so, the amount. As was disclosed to the market in our dividend guidelines, our dividend for this year will be 20% or higher of the company's total net income, and we are also considering paying interim dividends because there will be interim date in the first half of the year. However, that said, we need to take a more conservative approach when it comes to paying the interim dividends because there are still volatilities and uncertainties surrounding the company's business environment. If the oil price goes down, there could be inventory related loss. All these factors have to be taken into account when making a decision on the interim dividends. Still so on an annual basis, we will be paying over 20% or higher of the company's net income. 구가 구체적인 중간배당은 하반기에 개최될 이사회에서 결정할 것이고, 결정되는 즉시 공시를 통해 알려드리겠습니다. More details of the interim dividends will be determined at the board of directors to be held in the second half of the year. Once the decision is out, we will communicate it with the market through public disclosure. 이상 답변을 마치겠습니다. Yes, concludes my answer on your fourth question. 다음으로 질문해 주실 분은 Hana Securities의 이영욱 님입니다. 질문해 주시죠. The following question is by Lee Young-wook from Hana Investment & Securities. Please go ahead. 네, 안녕하세요. 하나투자증권 이영욱입니다. 질문 기회 부탁드립니다. 저는 세 가지 질문이 있는데요. 우선 첫 번째로 지금 국내 석유 최고 가격제가 시행되고 있는데, 이에 따른 기회손실 규모가 어느 정도인지, 그리고 추후 이에 대한 보상에 대한 논의가 어떻게 진행 중인지 여쭤봐도 될지 감사하겠습니다. 그리고 두 번째 질문은 앞으로 본 것 좀 겹치긴 하는데, 회사에서 보는 중동의 정유시설 타격 규모가 어느 정도 수준인지, 그리고 전쟁 이후의 수급 상황은 어떻게 흘러갈지도 말씀 부탁드리겠습니다. 마지막으로는 원유 수급사도 일부 다변화되고 있는 것 같은데, 이에 따라 석유정제 제품 생산 비중이 어떻게 바뀌고 있는 건지 궁금합니다. 네, 감사합니다. This is Yeo from Hanwha Investment & Securities. I have three questions to ask. First is about a maximum price cap policy. What is the opportunity loss incurred as a result of this policy, and could you give us any updates on the compensation plans? Second question is rather overlapping with the previous questions. What is the size of refining capacity in the Middle East that's been disrupted by the war? What is your outlook on the market supply and demand after the end of the war? Third is, it looks like there is some diversification into pre-serving channels. Will this change any production of your refining products in terms of the total production share? 먼저 석유 최고 가격제라는 기회손실과 보상 논의에 대해서 질문을 하셨는데요. 지금 회사는 석유 최고 가격제 실시로 인해서 내수 판매가를 국제 석유 가격에 연동시키지 못함에 따라 정상 가격 대비해서 상당한 규모의 손실을 보고 있는 상황입니다. To answer your first question on the opportunity loss incurred by the maximum price cap policy and any discussions on the compensation. Well, since this policy of maximum price cap was enforced, we were not able to link the international prices to the domestic sales price. As a result of this, we have been facing sizable loss that otherwise would not have been incurred business as usual. 정부는 매 3개월 단위로 정유사가 공인 회계법인의 심사를 거쳐서 손실 보전을 요청하면 정부의 보상위원회의 심사를 거쳐서 정유사에게 손실을 보상할 계획이라고 합니다. This is how it'll run. The company will ask for the compensation of the loss on a quarterly basis through the certified accounting firm, and the government will establish their compensation plan through the compensation committee. 다만 아직 구체적인 손실 배상 기준 등이 마련되어 있지 않아서 현 시점에서 손실 금액 또는 보상 시기 등에 대해서 말씀드리기는 어려운 점을 양해해 주시기 바랍니다. 또한 손익 반영 시점은 회계 원칙에 따라서 정부의 손실 보상 금액이 확정 통지되는 시점에 회사의 손익에 반영할 계획입니다. However, there's nothing been determined about the basis that will be used to determine the amount of loss and the methodologies. Also, it will be only when the government makes an official announcement and the notice on the compensation amount that will be reflected in the company's profit and loss based on the accounting principles. 그다음으로 두 번째 질문에 대해서 답변드리겠습니다. 중동 경제 시설 타격 규모와 중단 이후 수급 전망에 대해서 질문 주셨는데요. 중동 전쟁으로 인해서 중동에 위치한 정제설비, 물류 인프라에 대한 타격이 발생을 하였고요. 다만 가동 차질 규모에 대한 정량적 인사하지 쉽지는 않은 상황입니다. 일부 설비는 타격 후에도 부분 가동을 유지했고, 또 다른 설비들은 가동 중단 후에 단기간 내에 정상 가동되는 등 이런 여러 가지 복잡성이 있기 때문에 타격의 실제 영향에 대한 실시간 정보 수집이 용이하지는 않습니다. 또한 정제설비 외에도 주간 및 운송 인프라 타격에 따른 유통 설비 가동 영향도 있게 됩니다. 그래도 참고용으로 말씀드리자면 석유 기간 전망 기관 FACTS Global Energy에 따르면 중동의 정제설비 차질 규모는 4월에 230만 bpd, 6월에 240만 bpd, 8월 160만 bpd로 예상되고 있습니다. 이것은 원료 조달 차질과 설비 차질 영향 등이 복합적으로 반영된 수치라서 계속 업데이트될 수 있는 숫자들이거든요. 이건 참고하시기 바랍니다. To answer third question on the size of refining capacity that's been disrupted and your outlook on the supply and demand after the end of the war. Well, it is true that some of the refining facilities and logistics infrastructure in the Middle East have come under attack during the war in the Middle East. However, we are limited in having a full grasp of the size of capacity that's been disrupted. This is because some of the facilities are still partially up and running after the strike, and others have started up quite quickly after a temporary shutdown. All these combined, it's not easy for us to gather information on the actual impact of the strikes on a real-time basis. Furthermore, there are also strikes of the storage and logistics infrastructure that could also affect the process operation. According to the FACTS, which is the price forecast intelligence, the refining capacity size in April is 2.7 million bpd, and their forecast for June and August is 2.4 million bpd and 1.6 million bpd. These numbers all reflect the challenges and disruptions we've seen sourcing the feedstock and also the impact of the strikes as a result of the war. Therefore, there is a very big chance of these numbers changing and getting revised depending on how the war plays out. 중단 이후 수급 전망에 대한 답변은 아까 드린 바가 있어 가지고 그것으로 갈음하도록 하겠습니다. As for the outlook, you've also mentioned that earlier, that will be used as a substitute. 원유 조달처 다변화에 따라서 정유소 제품 생산 비중이 어떻게 변화되는지 말씀드리겠습니다. 회사는 정상적인 가동 상황에서 설비 자동 최적화를 위하여 Arab Light, Arab Medium, Arabian Super Light 등 다양한 성상의 원유를 혼합하여 정제 시설에 투입하고 있습니다. To answer your third question on how the diversified crude sourcing channels is changing the production portion of your refining products. Well, first of all, under normal operation situations, we blend various types of crude oil like Arab Light, Arab Medium, and Arabian Super Light, and treat them in our refining facilities to optimize facilities operation. 중동 전쟁 및 호르무즈 해협 봉쇄 이래 회사는 호르무즈 해협 대신에 사우디의 동서를 연결하는 East-West Pipeline을 활용하여 Yanbu 항에서 원유를 선적해서 홍해를 통해서 원유를 운송하고 있습니다. 이 경우에는 당사가 도입하는 원유 중에 Arab Light 비중이 다소 증가하기 때문에 평소 대비해서 원유 성상이 Light해지는 측면이 있습니다. Since the war broke out and the Strait of Hormuz are locked up, the company started lifting crude oil from Yanbu Port, utilizing the East-West Pipeline that connects the eastern and the western part of Saudi Arabia, we've been transporting crude oil via the Red Sea. In which case, the portion of Arab Light goes up, therefore the crude slide gets a little lighter compared to normal times. 이러한 원유 성상의 변화는 CDU 가동량에 일부 영향을 미칠 수 있고요. 고도화 설비의 피드가 되는 잔사유 생산량에 영향을 미쳐서 고도화 설비의 가동률 조정이 일부 필요할 수도 있습니다. 회사는 투입 원유 성상 및 시장의 제품 수요도를 고려해서 수익성을 최대한 방향으로 유연하게 설비를 가동하면서 대응하고 있습니다. These changes in the crude slide and the mix could have a partial impact on the CDU operation and also on the production amount of the residue oil that is used as a feedstock to the operating facilities. Therefore, this may require some adjustments in the operating facilities' operational rates. We will take into consideration these crude types that we're feeding in to our facilities and also the demand for each product in the market to flexibly run our facilities in a way that can maximize our profits, our income for the company. 이상으로 답변 마치겠습니다. That answers your third question. 다음으로 질문해 주실 분은 Shinyoung Securities의 심홍주 님입니다. 질문해 주십시오. The following question is by Shim Hong-joo from Shinyoung Securities. Please go ahead. 안녕하세요. 신영증권 심홍주입니다. 질문 기회 주셔서 감사하고 네 가지 질문이 있는데요. 첫 번째는 중동 전쟁 관련해서 불확실성 지속 중인데, 이번 전쟁이 저희 회사 사업에 미치는 영향이랑 그에 따른 회사의 대응 전략에 대해서 공유 부탁드리고요. 두 번째 질문은 저희 사업 부문별로 재고 효과를 breakdown 해주시면 감사하겠습니다. 그리고 세 번째는 저희 정유 관련해서 올해 2분기 그리고 하반기 정유 업황 전망이랑 향후 회사 가동률 계획 공유 부탁드리고요. 네 번째는 석유화학 부문의 경우에 전쟁으로 수황이 빠르게 개선 중인 것 같은데, Shaheen 프로젝트 사업 가동 일정이 혹시 빨라질 가능성이 있는지, 현재 수황에서 수익성 전망까지 공유해 주시면 감사하겠습니다. 이상입니다. This is Shim Hong-joo from Shinyoung Securities, and thank you for giving me the opportunity to pose questions. I have four questions. There are a lot of uncertainties triggered by the war in the Middle East. How is this affecting your company's business, and how are you responding to this? Second is, could you break down the inventory-related impact by business segment? Third is, what is your forecast and outlook of the refining business in Q2 and the second half of the year and the company's operations? My fourth question is, it looks like the petrochemical market is picking up these days. Do you think this will bring forward your Shaheen Project completion schedule? What is your outlook on the project's profitability based on the current market conditions? 중동 전쟁이 미치는 회사의 영향과 회사의 전략에 대해서 질문하셨는데요. 아시는 바와 같이 중동 전쟁과 호르무즈 해협의 봉쇄라는 지정학적 이슈로 인해서 원유 조달, 유가 및 제품 가격, 원달러 환율 등 많은 분야에서 전례 없는 수준으로 불확실성과 변동성이 커졌습니다. Well, we had asked a question on how the war in the Middle East is affecting the company's business, and what are the strategies that we are going to respond to them. Well, these geopolitical issues, like the war in the Middle East and the lockdown of the Strait of Hormuz, have created unprecedented level of volatility and uncertainty to our business. As you know, a lot of things have changed on the oil price or the product prices and oil supply and the FX. 회사에서는 전사 리스크 관리 시스템 등을 즉각적으로 가동해서 최고 경영진 및 모든 임직원들이 총력을 다해서 급변하는 시장 상황에 기민하게 대응하고 있습니다. 회사는 지난 3, 4월 극단적인 위기 상황에서도 모회사인 Saudi Aramco 및 한국 정부 및 거래처 등 다양한 이해 관계자들과의 원활한 커뮤니케이션을 통해 안정적으로 원유를 도입하고 정부 정책에 따라서 내수 시장에 안정적으로 석유 제품을 공급하는 등 국내외 거래처들의 니즈에 적절히 대응하고 있습니다. In response to this very volatile situation, the company instantly launched the enterprise risk management system. Everybody from the top management to officers and employees have availed all resources to respond to the rapidly changing market environment with agility. When prices were at its peak in March and April, we have appropriately responded to the situation through very close communication with various stakeholders, including our parent company, Saudi Aramco, the Korean government and the customers. By doing so, we reliably sourced crude oil and also reliably supplied the fuel products to the domestic market in alignment with the government's policy direction, and also appropriately responded to the needs of our customers at home and abroad. 앞으로도 안정적인 원유 수급을 기반으로 해서 원활하게 설비 안정적으로 가동하고, 판매 활동을 통해서 국내 석유 공급 안정을 기하는 한편, 수익을 최대화해서 주주를 포함한 다양한 이해관계자들의 변함없는 기대에 부응할 수 있도록 하겠습니다. Going forward, based on reliable resourcing, we will do our best to consistently deliver value to various stakeholders, including the shareholders, and also meet their expectations. At the same time, we will also do our best to ensure stable supply of oil to the domestic market and seek maximum income creation for the company based on smooth facilities operation and sales activity. 두 번째로 질문 주신 1분기 재고 관련 효과에 대해서 말씀드리겠습니다. 아까 발표에도 말씀드렸다시피 총 재고 효과는 플러스 6,434억 원입니다. 이를 부문별로 보면 정유 부문에서 플러스 5,248억 원, 석유화학 부문에서 플러스 871억 원, 윤활 부문에서 플러스 315억 원입니다. To answer your second question on the inventory related impact and by business segment, as was presented earlier in the slide, our total inventory related gains is KRW 643.4 billion, and by business segment is KRW 524.8 billion for the refining business, KRW 87.1 billion for petrochemical business, and KRW 31.5 billion for Lube Base Oil business. 네, 두 번째 질문에 대해서 말씀드리겠습니다. 2분기 정유 업황 간단히 말씀드리면 4월 반등 맞이는 매우 불투명한 상황이고요. 4월 평균으로 해서 싱가폴 휘발유 스프레드는 한 $25, 디젤 스프레드는 평균으로 한 $10 수준입니다. 아까 말씀드렸던 것과 같이 공급 차질이 상당히 심한 상황이기 때문에 반등 맞이 올해 2분기 그리고 하반기까지 좀 견조하게 유지가 될 거라고 보고 있습니다. To answer your second question on your outlook of the refining business in Q2 and the second half of the year. Well, we are expecting these disruptions in the supply to remain the refining margin at current also level in Q2 and towards the second half of the year. For example, in Q2, in April and May, based on the Singapore gasoline spread, it is $25 for gasoline, and for diesel, it's about $10. 회사의 가동률 간단하게 말씀드리면 5, 6월은 충분한 원유를 확보하였기 때문에 정상 가동이 가능할 것이고요. 향후에도 추가 이슈가 없다면 하반기에도 정상 가동 가능합니다. 그리고 저희는 추가적인 대규모 정기 보수는 올해 예정되어 있지 않습니다. We have already secured the crude required for normal CDU operation in May and June. Unless there are any issues popping up in the market, we think we'll be able to run at the normal level in the second half of the year. For your information, we don't have any major turnaround plans during the rest of the year. 네 번째로 질문 주신 사항에 대해서 말씀드리겠습니다. 아까 발표에서도 언급했다시피 중동 전쟁이 석유화학 시장에 미치는 영향이 크고, 지금도 불확실성이 매우 큰 상황입니다. 이와 관련하여 샤힌 프로젝트 측면에서 수익성에 대해 좀 더 부연 설명드리도록 하겠습니다. 아시는 바와 같이 샤힌 프로젝트는 TC2C 설비를 통해서 원유와 함께 정유 시설의 폐기유를 투입해 가지고 납사를 최대화 생산합니다. 그리고 TC2C 납사와 기존 공장의 납사까지 전량 스팀 크래커에 투입함으로써 석유화학 제품을 생산하게 되는데요. 이로써 샤힌 프로젝트는 납사를 포함한 원재료를 내부적으로 조달할 수 있다는 원재료 소싱과 운영 측면의 안정성이 매우 높습니다. 이렇게 말씀드릴 수 있겠습니다. To answer your question on the petrochemical market outlook and the Shaheen Project. Well, as you know, the war in the Middle East has a very huge impact on the global petrochemical business and also creating a very huge, high level of uncertainties. As for the Shaheen Project, well, the crude oil and the heavy oil that is produced from our refining facilities are fed into and treated into the QCC facilities to maximize the production of naphtha. The naphtha that we get from QCC and the existing refining facilities are all entirely fed into the steam cracker to get the petrochemical product. The fact that we are able to internally source all the feedstocks, including naphtha for Shaheen Project, gives a high level of reliability to our facilities in terms of feedstock sourcing and operation. As for the schedule, there is no change in the schedule so far. As we mentioned earlier, our target is mechanical completion at the end of June, commissioning in the second half of the year, and commercial operation in early 2027. As for the profitability in the early operations, well, at this moment, it's not easy for us to tell you how big the profitability will be because of the high level of uncertainty we're seeing because of the war in the Middle East. We do believe that the petrochemical spread will gradually widen in the mid to long term, and this will eventually have a very positive impact on the company's performance. Our scheduled time is up, and thank you for your attention to S-Oil's Q1 performance in 2026. As always, we will engage in transparent and fair communication with the market. If you have any further inquiries, please feel free to contact S-Oil's IR team. Thank you very much.