Investment/stock

Editorial team

SPRC reported net loss five billion baht in Q3

SPRC announces the performance results of Q3 with net loss of US$137 million due to falling oil prices since July.

Mr. Robert Dobrik, CEO and director of Star Petroleum Refining Public Company Limited ("SPRC") announced a Q3/2022 operating and financial performance net loss of US$137 million (5,027 million baht) compared to a net income of US$206 million ( 7,156 million baht) in the prior quarter mainly due to stock loss from declining oil prices in the quarter and a lower Market Gross Refining Margin.

Crude oil prices have been falling since July, underpinned by concerns around the global economy, lockdown measure in China, and demand pressure from consumers in non-USD currencies from a stronger US dollar.

The Market Gross Refining Margin in Q3/2022 weakened to US$6.00 per barrel from US$18.92 per barrel in Q2/2022 due to declining product spreads which were pressured by weak refined product demand, high light distillated product inventories mostly in the United States and Singapore, global recession fears, and increased exports from China, together with an increase in crude premium.

SPRC continues crude and product optimizations amid volatile market conditions to maximize domestic demand and margins. Furthermore, SPRC maintains low operation expenses (OPEX) of less than US$2.00 per barrel of adjusted OPEX as well as sustaining its competitive debt position and financial ratio.

SPRC continues to evaluate future opportunities to create shareholder value through 2025 Turnaround & Inspection (T&I) while maintaining high returns and positioning towards for a lower carbon future.