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S-Oil Net Profit Jumps Nearly 23-Fold Amid Continuing Mideast Turmoil

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S-Oil reported a nearly 23-fold increase in third-quarter net profit, driven by higher energy prices and wider refining margins amid uncertainty surrounding the prolonged Middle East conflict. The Saudi Aramco-controlled South Korean oil refiner said Monday that refining margins stayed firm in the July-September period, supported by tight supply due to the protracted Iran war. Net profit was 1.436 trillion won, equivalent to $1.08 billion, for the quarter, up sharply from 63.20 billion won a year earlier. That beat a FactSet-compiled consensus estimate of 1.013 trillion won. Revenue climbed 42% to 11.969 trillion won. Operating profit rose more than sixfold to 1.407 trillion won. S-Oil's refining business continued to drive solid earnings growth, with the segment accounting for nearly half of the company's total operating profit. S-Oil shares have gained more than 50% this year despite a pullback over the past month.

Swiss stocks

Contrary to the downward trend in Europe, the Swiss stock market closed the week with a slight gain. Market sentiment was buoyed by the three defensive index heavyweights—Roche, Nestlé, and Novartis—which rose by as much as 2.3 percent. The SMI added 0.4 percent to 14,811 points. Julius Bär shares decreased by 1.0 percent. The company plans to launch its previously announced new share buyback program, with a total value of up to CHF 600 million, on November 2. Sandoz shares (-1.2%) gave back some of their significant gains from the previous day, continuing to show volatility. The generic drugmaker’s stock had come under pressure after it slightly lowered its revenue forecast. However, after taking a closer look at the figures, investors reportedly refocused on the increased margin target on Thursday.

International markets

Europe
The majority of European stock markets dipped on Friday. The Stoxx Europe 600 index fell 0.4% to 646.8 points, limiting its gains to 1.7% for the week and 1.9% for the month of October. The CAC 40 closed near the flat line, and the SBF 120 lost 0.1% in Paris. The DAX 40 gave up 0.85% in Frankfurt, while in London, the FTSE 100 finished virtually unchanged. AXA (-0.3%): The insurer reported premiums and other revenue of 93 billion euros for the first nine months of the year, a 5% increase year-over-year. CAPGEMINI (+3.7%): The digital services group raised its revenue growth forecast for 2026 on Friday for the second time this year, buoyed by strong business in the third quarter. CREDIT AGRICOLE SA (-2%): The banking group reported a sharp increase in third-quarter earnings on Friday, driven by savings and insurance. EUTELSAT (-10.5%): the satellite operator confirmed its revenue and margin targets for the current fiscal year on Thursday evening, after reporting a decline in revenue for its first quarter, which was shifted to a later date. IMERYS (+13.8%): The industrial minerals producer raised its 2026 targets on Thursday evening, buoyed by its performance over the first nine months of 2026. SANOFI (+4.7%): The pharmaceutical group increased its 2026 targets on Friday—for the second time this year—after reporting third-quarter results that significantly exceeded analysts’ expectations, driven in particular by sales of its blockbuster drug Dupixent.

United States
U.S. stocks fell as the artificial-intelligence selloff began to feed on itself following more disappointing earnings reports from Amazon and Intel, leaving investors to wonder if the tech correction could become a speculative bust. The Dow Jones Industrial Average slid 572.25 points, or 1.09%, to 51770.31. The broad S&P 500 dropped 140.32 points, or 1.82%, to 7580.07 and the tech-heavy Nasdaq Composite dove 747.73 points, or 2.86%, to 25437.00. Amazon shares dropped 1.4% to $240.35. The online store's quarterly advertising revenue growth slowed, echoing a similar warning from rival Google. Intel plunged 29% to $65.76--the largest decline since 1974--after the chip maker forecast fourth-quarter revenue growth short of Wall Street targets, citing a prolonged slowdown in personal-computer sales. Shares of CoreWeave, whose credit derivatives have sounded alarm bells about its data-center debt, fell 9.7% to $54.87, closing less than $4 from their 2026 nadir. Shares of online message board Reddit plunged 29% to $91.73, its largest drop on record, after it forecast fourth-quarter revenue shy of Wall Street targets. Shares of Coinbase Global declined by 11% to $143.54, their biggest drop in more than a year after a brazen act of cyber theft at a major rival. Executives at cryptocurrency exchange Binance said they were scrambling to cover billions of dollars in losses from the biggest crypto heist in history. Bitcoin fell 1.8% to $76,353, bringing year-to-date losses to around 19%. Shares of ExxonMobil, the largest U.S. oil-and-natural gas company by market capitalization, jumped 2.2% to $187.25. Chevron, the second largest American energy company, increased by 1.8% to $235.52. Both producers posted a sharp increase in third-quarter earnings as their oil refining units benefitted from a spike in fuel prices related to war-related disruptions in Middle East and Russian exports.

Asia
Asian stocks were mixed on Monday. Market participants are reportedly waiting for Apple’s earnings and outlook following the close of trading on Wall Street. Among other things, attention is focused on statements regarding early demand for the iPhone 18 series, for which preorders began in mid-October. Meanwhile, sharply falling oil prices are providing some relief. Brent crude has dropped by over 3 percent to below $110 per barrel, after peaking at over $117 on Friday. The Kospi in Seoul is reflecting the recovery in tech stocks, jumping 2.6 percent. Index heavyweights Samsung Electronics and SK Hynix gained 2.6 percent and 4.2 percent, respectively. By contrast, the broad-based Topix 500 in Tokyo shed 0.7 percent. The Shanghai Composite advanced 1.1 percent, while the HSI in Hong Kong added 0.6 percent.

Bonds
Long-dated U.S. government debt yields slipped on Friday as a flight to the safety of the bond market offset inflation concerns triggered by oil's resurgence above $100 a barrel in New York. The yield on the policy-sensitive two-year Treasury fell 0.075 percentage point to 4.579%. The yield on the 10-year Treasury note shed 0.060 percentage point to 4.928%. The yield on the 30-year bond gave up 0.018 percentage point to 5.309% for the largest four-week decline since 2024.

Analysis
UBS raises Air Liquide's price target to 204 (200) EUR - Buy
Vontobel downgrades Sandoz to Hold (Buy) - Price target unchanged at 80 CHF
UBS raises Total Energies' price target to 93 (89) EUR - Buy


Produced by MBI Martin Brückner Infosource GmbH & Co. KG on behalf of Swissquote. All news is acquired with journalistic accuracy. No liability is assumed for delays or errors.

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