ESSO Reports a Further Loss of ฿7.9Bn in 2020 following a Sharp Decline in Sales Volume

Esso (Thailand) Public Company Limited (ESSO) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;

ESSO reported a net loss of 7,911 million baht for the year 2020, reflecting a further loss from a year earlier, mainly due to a lower market selling prices and sales volume from COVID-19 pandemic compared to the same periods last year.

 

Revenue the Downstream segment made a loss from sales of 8,327 million baht, which was 5,733 million baht lower than last year, mainly due to unfavorable inventory effects and lower industry margins. Petrochemical segment made a loss from sales of 1,626 million baht, compared to a loss of 1,512 million baht in 2019, reflecting continued weak paraxylene margins. 

 

Compared to the same period last year, net finance costs were about the same for the fourth quarter of 2020 but increased by Baht 44 million for the year. Excluding the impact from recognition of interest expenses on lease liabilities according to the adoption of leases financial reporting standards (TFRS16) effective January 1, 2020, net finance costs slightly declined, benefiting from lower interest rates partly offset by higher debt balances.

 

Current assets as of December 31, 2020 decreased by 9,057 million baht from year-end 2019, mainly due to lower inventory balances and trade receivables from significant price drop, and the utilization of prepaid excise tax. Non-current assets increased by 4,192 million baht mainly from right-of-use assets according to the adoption of leases financial reporting standards (TFRS 16) and deferred income tax assets relating to tax loss carried forward. 

 

Total liabilities of 47,019 million baht, an increase of 2,894 million baht, were primarily driven by higher lease liabilities according to the new lease financial reporting standards (TFRS 16), and higher long-term loans partly offset by lower short-term borrowings.