SOL Global Investments Corp. Q2 FY2022 Earnings Call

Unidentified Company Representative: Good afternoon, everyone. This is , the Treasurer of SOL. I'd like to extend my gratitude to our investors and analysts for your attention to SOL's Conference Call for its Q2 Earnings Results. For this conference call, our CFO, , IR team leader and the team members joined. First I'll take you through the highlights of our second quarter results. SOL achieved CAD1.7 trillion of operating income in Q2 2022. Thanks to greatly improved profitability of all business segments, including refining, petrochemical and petroleum- based oil. Quarter-on-quarter income increased significantly by 29%. Due to the recent outlook for global recession and the high oil price, there are concerns over sluggish demand. However, demand for refining products is resilient enough to recover to pre-pandemic level. As demand recovery for jet fuel is maintained at satisfactory level, global demand growth for oil is expected to hover above pre-pandemic level this and the next year. Moreover, on despite the spike in second quarter , we built the shortage of a refining capacity that global refining industry faces. Larger scale shut down of our refineries during the pandemic removed the supply clot in the short period while highly upgraded refining facilities were in operation at full capacity. As investment in refining facility requires a large fund with long payback period, recent energy transition trend is likely to discourage new investment resulting in capacity shor