Thai Oil Plc, Thailand’s biggest refiner, earlier this week said it has returned to a net profit of 2.28 billion baht in the first quarter of this year after a huge net loss of nearly 8.4 billion baht during the last quarter of last year.
However, the first-quarter net profit, derived from the sale revenue of 56.5 billion baht, was about 41 percent lower than that of the same period last year when the sale revenue was recorded at 96.3 billion baht.
According to the company’s reports to the Stock Exchange of Thailand on Tuesday, Thai Oil’s managing director Viroj Mavichak stated that the drop in sale revenue in this year’s first quarter was mainly due to the decrease in average global oil prices, especially jet and diesel oil prices, and lower demand as the results from economic from economic recession.
In addition, the company said, the global economic slowdown also pressured product prices and consequently caused the company’s gross refinery margin to decrease to $3.8 a barrel, compared with $4.5 a barrel during the same period last year.
However, with significant increase in paraxylene price, the performance of Thai Oil’s aromatics business had improved due to tight supply from production cut, resulting in an increase in gross integrated margin for oil refining and petrochemical businesses to $6.4 a barrel, from $5.7 per barrel a year earlier.
At the end of March, Thai Oil, 49.1 percent owned by the country’s oil and gas giant PTT Plc, has the total assets of 140.9 billion baht, up by nearly 8.08 billion baht from the end of last year.