Bangkok, Aug. 10 – IRPC reveals Q2/2023 results, impacted by slower-than-expected Chinese economic recovery. Crude oil prices dropped, expected in the third quarter, oil and petrochemical consumption will recover. The company hastened to adjust and increase the strength of the logistics network by opening an oil depot for pipeline transportation. Expand opportunities to penetrate the market for innovative paints and coatings and create financial stability
Mr. Krit Imsang, Chief Executive Officer and President of IRPC Public Company Limited or IRPC, revealed that the operating results of the 2nd quarter of 2023 compared to the 1st quarter of 2023, the company had net sales revenue of 70,755 million baht, a decrease of 5,005 million baht or 7%, mainly due to a 6% decrease in average selling price following a decline in crude oil prices and a 1% decrease in sales volume, with a gross profit from production according to market price (Market GIM). ) was at 4,168 million baht or 6.81 US dollars per barrel, down 41 percent due to a significant decrease in petroleum product spreads. especially diesel fuel There was also a net inventory loss of 961 million baht or 1.58 USD per barrel.
As a result, the company Gross profit from Accounting GIM was 3,207 million baht or 5.23 USD per barrel, a decrease of 2,135 million baht or 3.67 USD per barrel, resulting in the Company's earnings before interest. Taxes, depreciation and amortization (EBITDA) of 110 million baht, a decrease of 1,910 million baht or 95% and operating results in the 2nd quarter of 2023, a net loss of 2,246 million baht compared to the 1st quarter of 2023 with a net profit of 301 million baht
Mr. Krit mentioned the crude oil price situation in Q2/2023 that crude oil prices dropped from the previous quarter. with an average price of $ 80.32 per barrel to $ 77.78 per barrel after the Federal Reserve or the Fed (FED) raised interest rates. This has resulted in concerns about the economic recession (Recession), although OPEC Cut production by an additional 1.66 million barrels per day until the end of 2024 to support oil prices, coupled with demand for petrochemical products that are still in a stagnation. This is because demand in China is not recovering as expected.
For the first 6 months of 2023, compared to the same period of 2022, the Company had net sales revenue of 146,515 million baht, a decrease of 17% due to a 26% decrease in average selling prices following the decline in crude oil prices. While sales volume increased by 9 percent with Market GIM at 11,252 million baht or $ 9.28 per barrel, down 32 percent due to lower spreads of petroleum products and recorded a net inventory loss of 2,703 million baht or $ 2.22. per barrel compared to the previous year when the Company had a net inventory gain of 4,488 million baht or 3.73 USD per barrel, resulting in the Company's Accounting GIM at 8,549 million baht or 7.06 USD per barrel, a decrease. 12,606 million baht or 10.52 USD per barrel, resulting in the Company's EBITDA of 2,130 million baht, a decrease of 12, 491 million baht or 85 percent and the operating results for the first 6 months of 2023 net loss of 1,945 million baht compared to the same period last year. with a net profit of 5,334 million baht
Mr. Krit predicts that the crude oil market in the third quarter of 2023 will likely increase global oil consumption. from travel Summer in the Northern Hemisphere But there may be pressure factors such as the Fed raising interest rates and inflation. May be a factor that helps support oil prices. As for the trend of the petrochemical market in the third quarter of 2023, it is expected to remain stable. Because the main market from China has a gradual recovery. Although the risk of a deflation crisis in China made most buyers wait and see the situation. or buy as needed While the price difference may be pressured by crude oil prices that may increase. Including China and Vietnam that may gradually increase production capacity. But at the end of the quarter, we may start to see signs of a better recovery. from entering the production season Manufacturing Season of petrochemical business where the demand for downstream products will increase before entering the end of the year festival.
Mr. Krit also said that IRPC and Bangkok Fuel Pipeline Transportation and Logistics Co., Ltd. (BFPL) jointly opened a new oil depot in Bang Pa-in District, Phra Nakhon Si Ayutthaya Province. To expand the 99-kilometer oil pipeline network to support the energy demand in the transportation sector in the central and northern regions. By managing efficiently, controlling time, reducing costs and reducing carbon dioxide emissions in the transportation sector, the company also cooperates with Bayer Co., Ltd. to expand the market to penetrate the world-class innovative paint and coating business for the first time. of the country Therefore it is resistant to harsh weather conditions. Helps extend the service life of steel structures by three times.
The company was successful in selling debentures and digital debentures worth a total of 12,000 million baht, reflecting investor confidence. on the fundamentals of the company is strengthening Create an appropriate balance of capital management and financial costs. efficient Ready to support further growth
IRPC continues to move forward with sustainable business operations. environmentally conscious social responsibility Management according to the principles of corporate governance and consider all stakeholders It has won the Asian Excellence Award 2023, including Asia's Best CEO Award, Asia's Best CFO Award, and Best Investor Relations Company Award. Relations Company) and the Best Environmental Responsibility award, and the company was also awarded the Asia Responsible Enterprise Awards 20223 or AREA in the Circular Economy Leadership category under the From Wastes to Walk project, which is the management of waste plastic parts. Bring back to the recycling process to produce body accessories. .-Thai News Agency
Source: Thai News Agency