SOCAR Posts Q1 FY26 Profit; Launches AV Venture APX Mobility

Seoul, South Korea - SOCAR reported a first-quarter consolidated operating profit of KRW 1.39 billion (US$0.92 million), extending its streak of consecutive profitable quarters to seven. 

The company recorded consolidated revenue of KRW 97.12 billion (US$64.60 million) for the quarter, a 26.1% decline year-on-year.

On a standalone basis, SOCAR posted an operating profit of KRW 5.09 billion (US$3.39 million), a 21.6% increase from the prior-year period, and net income of KRW 434 million (US$0.29 million). 

The company said consolidated net income was affected by a one-time charge at its e-bike subsidiary, Nine2One.

The company attributed its sustained operational profitability to its "SOCAR 2.0" strategy, which extends the lifecycle of its vehicle fleet by rotating assets between short-term car-sharing and its long-term subscription service, SOCAR PLAN. 

The company said the approach produced a 48% increase in the lifetime value of disposed vehicles and a 34% improvement in gross profit per vehicle compared with pre-SOCAR 2.0 operations.

SOCAR cited enterprise-wide integration of artificial intelligence as a primary driver of structural cost reduction. 

Selling, general, and administrative expenses fell 19.4% year-on-year to KRW 16.68 billion (US$11.10 million). 

Specific reductions included a 26% drop in accident costs, attributed to AI-based safe-driving scores; a 16% decrease in cleaning costs per usage hour; and a 15% decrease in personnel costs.

Alongside its earnings release, SOCAR outlined a strategy it calls "SOCAR The NEXT," which includes expanding into full-stack mobility across the entire vehicle lifecycle and commercializing autonomous driving. 

The company announced the formation of APX Mobility, an autonomous vehicle joint venture with Krafton, backed by paid-in capital of KRW 150.00 billion (US$99.78 million). 

The company described it as the largest private-sector autonomous vehicle partnership in South Korea. 

APX Mobility plans a phased commercialization approach, moving from Level 2 autonomous car-sharing to Level 4 robo-ride services.