SOCAR Reports Q2 Profit Despite Revenue Drop

Seoul, South Korea - SOCAR Inc. (403550. KS) posted an operating profit of KRW 1.8 billion (US$1.3 million) in the second quarter, compared with an operating loss of KRW 6.7 billion in the same period last year.

Revenue fell 3.0 percent to KRW 98.7 billion (US$72.1 million) from KRW 101.8 billion in the second quarter of 2024.

The company reduced its average monthly fleet size by 16.6% year-over-year to 14,459 vehicles.

The utilization rate for short-term car sharing was 38.0%.

Revenue per vehicle was KRW 1.79 million, up 13.1 percent from the previous year.

Short-term car-sharing revenue declined 5.7 percent to KRW 77.8 billion.

Gross profit for this segment was KRW 18.7 billion, with a gross profit margin of 24.1 percent, compared to 19.3 percent in the prior year.

Used car revenue was KRW 3.7 billion, up from KRW 1.0 billion in the second quarter of 2024.

The company sold approximately 300 vehicles during the quarter.

The SOCAR Plan subscription service revenue was KRW 7.3 billion, with a gross profit margin of 7.6%.

Platform revenue was KRW 8.1 billion, a 13.4 percent decrease.

Operating expenses totaled KRW 19.8 billion, representing a 17.1 percent decrease.

Marketing expenses totaled KRW 2.1 billion, representing a 70.7 percent decrease.

Non-operating income was KRW 5.7 billion. The company reported a net loss of KRW 1.8 billion for the quarter.

SOCAR expects to post a full-year net profit in 2025. The company plans to announce a shareholder return program in the second half of 2025.

The company said it will redesign its car-sharing pricing structure and user interface, and expand partnerships with high-traffic platforms.

SOCAR operates car-sharing and mobility platform services in South Korea.