Socar turns profitable in Q4 2024, revenue up 27.3%

Seoul, South Korea—Socar (403550.KS) reported its second consecutive quarterly profit in the fourth quarter of 2024, recovering from a loss in the previous year.

The company recorded revenue of KRW122.4 billion (US$82.9 million) in the fourth quarter, a 27.3 percent increase from the same period last year. 

Operating profit reached KRW3 billion (US$2.03 million), compared to an operating loss of KRW2.7 billion (US$1.83 million) in the fourth quarter of 2023.

Annual revenue for 2024 rose 8.4 percent to KRW431.7 billion (US$292.3 million). 

The car-sharing segment generated KRW371.1 billion (US$251.3 million), representing 12.6 percent growth. 

Platform services revenue increased 30.6 percent to KRW40.5 billion (US$27.4 million).

Used vehicle sales revenue increased to KRW18.6 billion (US$12.6 million) in the fourth quarter from KRW400 million (US$271,000) a year earlier, following the resumption of vehicle sales under the company's "Socar 2.0" strategy.

The subscription service Socar Plan generated revenue exceeding KRW30 billion (US$20.3 million), a 70.8 percent increase year over year. 

The company extended its average vehicle retention period from under three to four years, improving lifecycle profit per vehicle by 35.2 percent compared to 2022.

Convenience services, including delivery and one-way trips, comprised 25 percent of total bookings in the fourth quarter of 2024, an increase of 10 percentage points from the first quarter of 2023. 

Customer usage frequency rose 33 percent after adopting these services.

The company reported an annual operating loss of KRW9.8 billion (US$6.6 million) for 2024, maintaining similar levels to the previous year.

Chief Executive Officer Park Jae-wook stated that the company aims to achieve annual profitability in 2025 through enhanced asset management efficiency and improved user convenience.

* US$1 = KRW1,476.69