S-Oil Corp. hit a 52-week low on Thursday as analysts slashed earnings estimates for the South Korean oil refiner.
The stock hit its lowest level since March 2022, falling as much as 2.20% to 66,200 won ($50.33) per share, with the lowest share price recorded at 11:50 a.m. on Thursday.
Shinhan Securities Co. cut its target price for S-Oil to 93,000 won from 105,000 won, saying it reflected a downward revision in earnings estimates.
The brokerage firm expects the company's second-quarter operating profit to fall 94% from the previous quarter to 324 billion won ($246 million). This is below the market consensus of 384.3 billion won.
Lee Jin-myung, an analyst at Shinhan Investment Securities, said refinery operating profit is expected to turn to a loss of 201 billion won in the second quarter.
"Earnings slowdown is inevitable due to inventory valuation losses and a sharp decline in refining margins caused by a fall in oil prices," he said.