SPRC reported Q2 of 2023

Editorial Staff

SPRC reported Q2 of 2023 performance results

Star Petroleum Refining Public Company Limited ("SPRC") reported total revenue of US$1,557 million with a net loss of US$61 million for second quarter 2023, compared to total revenue of US$1,736 million with a net profit of US$37 million in the prior quarter.

The decrease in revenue was derived from significant pressure on oil prices in the second quarter, while the weak market refining margin and a stock loss from the declining oil price resulted in a net loss for the quarter.

In the second quarter 2023, the market refining margin was US$1.34/bbl, down from the prior quarter of US$6.36/bbl due to declining product spreads which were pressured by weak refined product demand. The utilization rate for crude intake was 159 KBD, equivalent to 91% of its refining capacity which was slightly lower than the prior quarter at 162 KBD or 93%.

Mr. Robert Dobrik, CEO and director of SPRC said “Oil prices in the second quarter 2023 faced significant pressure, influenced by several factors, such as worries about a global recession, and anticipated increased export levels from China and Russia. Despite receiving some support from OPEC+ production cuts, notably Saudi Arabia's decision to cut output by 1 MBD in July, as well as the ongoing turnaround season, and increased demand for aviation during the summer travel period, these factors resulted in oil prices remaining volatile.”

“While SPRC maintained crude and product optimizations to maximize domestic demand, we successfully maintained good margin capture through our Bottom-Line Improvement Program (BLIP) refinery optimizations across all areas. Moreover, SPRC continues to study new opportunities to grow our lower carbon businesses and evaluate other business opportunities across the value chain to create shareholder value through the 2025 T&I and move toward energy transition and enhanced sustainability,” Mr. Robert concluded.

SPRC’s Board of Directors approved to omit interim dividend payment to the shareholders for the first half of 2023 performance from 1 January 2023 to 30 June 2023 due to the reason that the company had net loss amounting US$ 24.7 million for the 6-month period as of 30 June 2023.