Energy/Bangchak

Editorial staff

Bangchak Group kicked off 2025 with a robust performance in the first quarter, recording EBITDA of 12.66 billion baht, a 77% increase from the previous quarter, and more than doubling its net profit attributable to the parent company.

This marks a strong rebound amid a fragile global economy. A key highlight this quarter was the recognition of 1.81 billion baht in EBITDA from synergy following the integration of Bangchak Sriracha Plc (BSRC), underscoring the Group’s efficiency in resource integration and its strategic focus on sustainable growth.

The strong business results were complemented by significant milestones: the issuance of digital bonds, continuous expansion of its retail fuel and Inthanin coffee networks, with the opening of the first Inthanin branch at a Bangchak service station operated by BSRC, and a major leap into future energy with the launch of Thailand’s first stand-alone Sustainable Aviation Fuel (SAF) production unit.

Chaiwat Kovavisarach, group chief executive officer and president, Bangchak Corporation Plc, said despite the continued weakness in crude oil prices due to the global economic slowdown, Bangchak has maintained healthy margins, particularly in the refinery and oil trading business and the marketing business.

“This was made possible by the effective management of synergies with BSRC. In Q1 alone, we recognized EBITDA of 1.81 billion baht from this synergy, reflecting the value of seamless integration and shared resources in challenging times. We are also seeing early signs of improvement in international trade conditions, with oil prices stabilizing and margin recovery across both key business units.”

In addition to its strong performance, Bangchak is accelerating its commitment to future energy.

On 25 April 2025, the company officially launched Thailand’s first 100% Neat SAF production unit, a dedicated stand-alone facility located at its Phra Khanong refinery, with an initial capacity of 1 million liters per day.

Bangchak also continued to strengthen its logistics infrastructure, including the import of Very Large Crude Carriers (VLCCs) and the expansion of its Suezmax-compatible marine terminal at the Bangchak Sriracha Refinery. These projects are expected to become operational in Q2 and begin delivering cost benefits in the second half of the year.

On the marketing front, Bangchak accelerated the rollout of over 100 new service stations nationwide, raised product standards with its Premium 97 and Premium Diesel fuels, and enhanced the retail experience under its “Greenovative Destination for Intergeneration” concept. The company aims to reach 1,400 Inthanin coffee branches by year-end, while also expanding to more than 419 EV charging points and over 2,000 outlets for its FURiO lubricants.

For the first quarter of 2025, the company recorded total revenue from sales and services of 34.64 billion baht and EBITDA of 12.66 billion baht, representing a significant increase compared to the previous quarter.

The company also recognized a foreign exchange gain of 466 million baht, resulting in net profit attributable to the parent company of 2.11 billion baht — more than double the previous quarter — equivalent to earnings per share of 1.54 baht.

Phatpuree Chinkulkitnivat, chief financial officer and senior executive vice president, accounting and finance, said the key performance highlights of each business group for the first quarter of 2025.

The refinery and oil trading business group reported EBITDA of 3.13 billion baht, an increase of over 100% from the previous quarter.

The marketing business group achieved EBITDA of 1.84 billion baht, representing a quarter-on-quarter increase of over 100%, driven by a recovery in net marketing margins and a reduction in selling, general, and administrative expenses.

Total sales volume declined slightly to 3,498 million liters due to a slowdown in the industrial segment

The clean power business group posted EBITDA of THB 903 million. The decline in electricity sales compared to the previous year was primarily due to the end of revenue recognition from projects in Japan.

The bio-based business group delivered EBITDA of THB 296 million, down 7% from the previous quarter but up 4% year-on-year. The reduction was mainly due to the full-quarter impact of the government’s biodiesel blending mandate adjustment from B7 to B5, which lowered biodiesel sales volumes. However, average selling prices rose in line with the upward trend in crude palm oil prices.

The natural resources business group reported EBITDA of THB 6,625 million, a 32% increase quarter-on-quarter, though 11% lower year-on-year, largely due to the sale of the Ymefield which led to a drop in sales volume.

As of 31 March 2025, Bangchak Group reported cash and cash equivalents of THB 27,613 million, reflecting a decline of 1.01 billion baht, mainly due to net cash outflows from investing and financing activities exceeding cash inflows from operating activities. The company maintained a solid net interest-bearing debt-to-equity ratio of1.12 times.

TRIS Rating affirmed the company’s credit rating and its senior unsecured debentures at “A+” with a “Stable” outlook.