Thai Oil Q2 Stock Loss Looms; Urges Export Unlock

MGR Online•Economy•24d ago

Reader Briefing

Thai Oil anticipates significant Q2 losses due to falling oil prices impacting stock valuations, prompting calls for government to allow refined oil exports and avoid production cuts.

•Thai Oil forecasts a Q2 loss driven by falling oil prices eroding the value of oil stocks, contrasting with a Q1 profit boosted by stock gains.
•The company is urging the Thai government to permit refined oil exports to alleviate potential storage overflow and avoid production cuts.
•Revenue in Q1/69 was impacted by a 2 billion baht reduction in diesel refinery prices implemented by the government.

Overview

•Q1/69 saw profit surges for Thai Oil, largely attributed to stock gains, with revenue dropping 2 billion baht due to diesel refinery price adjustments.
•Q2/69 performance for Thai Oil is expected to be weakened by stock oil losses due to declining oil prices.
•Thai Oil faces potential Q2 losses because crude oil costs were high from purchases made in March-April.
•Falling oil prices are causing inventory losses for Thai Oil in Q2/69.
•Thai Oil is urging the government to unlock refined oil exports to prevent storage overflow.
•The government implemented price adjustments for diesel refinery prices, resulting in a 2 billion baht revenue drop for Thai Oil.
•If oil exports remain banned and storage overflows, Thai Oil will be forced to reduce production capacity.
•The Russia-Ukraine war previously caused similar stock losses for refineries when prices fell after the conflict eased.

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Key Quotes

Pongpun Amonvivat

"In Q1/69, profits surged, largely due to stock gains, while revenue dropped 2 billion baht from previous diesel refinery price reductions."

ขณะที่ไตรมาส1/69กำไรพุ่งส่วนใหญ่เป็นกำไรจากสต๊อกน้ำมัน และรายได้วูบ 2พันล้านบาทจากการปรับลดราคาหน้าโรงกลั่นน้ำมันดีเซลช่วงที่ผ่านมา

Pongpun Amonvivat

"There's a chance Q2 performance will show stock oil losses due to high crude oil costs from purchases in March-April."

จึงมีโอกาสที่ผลประกอบการไตรมาส2 จะขาดทุนจากสต๊อกน้ำมัน เนื่องจากบริษัทมีต้นทุนราคาน้ำมันดิบที่สูงจากการสั่งซื้อในช่วงมี.ค.-เม.ย.ที่ผ่านมา

Pongpun Amonvivat

"If the government continues to ban exports and refined oil overflows storage, Thai Oil will have to cut production, which we don't want."

หากรัฐยังห้ามส่งออกน้ำมันและแนวโน้มน้ำมันสำเร็จรูปล้นถังเก็บฯ โรงกลั่นไทยออยล์จะต้องลดกำลังการผลิตลง ซึ่งไม่อยากให้ไปถึงจุดนั้น

Key Entities

Organization

Thai Oil(ไทยออยล์)ℹ️

A major Thai oil refinery company that is forecasting Q2 losses due to stock oil price fluctuations and is urging government action on exports.

Energy Policy Administration Committee (EPAC)(คณะกรรมการบริหารนโยบายพลังงาน)

The government body responsible for energy policy and pricing decisions affecting refineries, such as the reduction of diesel refinery prices.

Ministry of Energy(กระทรวงพลังงาน)ℹ️

The government ministry responsible for overseeing the energy sector, to which Thai Oil has addressed its request for unlocking refined oil exports.

Person

Pongpun Amonvivat(นายพงษ์พันธุ์ อมรวิวัฒน์)

Chief Executive Officer and President of Thai Oil, providing insights into the company's performance and outlook.

Place

Middle East(ตะวันออกกลาง)ℹ️

A region whose geopolitical situation influences global oil prices and refinery operations, with recent conflicts impacting Q1/69 profits.