SPRC’s 1Q20 Posts a Net Loss of ฿8.2bn from a Sharp Fall-off in Oil and Covid-19 Impact

Star Petroleum Refining Public Company Limited (SPRC) has reported its 1Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

SPRC reported a net loss of 8,273 million baht in 1Q20, compared to a net profit of 1,690 million baht in 1Q19 mainly due to the global pandemic COVID-19 crisis, SPRC’s operating performance in the first quarter of 2020 was significantly impacted with lower production rates substantial loss in inventory valuation, and low market margin. 

 

As well a sharp fall-off in oil price in March caused significant loss in SPRC’s EBITDA, EBIT and net earnings for 1Q20.

 

The spread of Coronavirus has significantly impacted to the demand for petroleum products especially on Jet fuel and gasoline resulted in the reduction in SPRC refinery utilization rate in 1Q20 to meet the reduced demand. However, comparing 1Q20 and 4Q19, crude intake for 1Q20 was 153 thousand barrels per day, equivalent to 87% of the refining capacity, higher than 4Q19 which was 78 thousand barrels per day due to the major turnaround. Following the higher refinery throughput in this quarter, sale revenue in 1Q20 was US$1,256 million, an increase of US$344 million despite a sharp decline in oil prices.

 

From continuing excessive supply of refinery products and COVID-19 impact. SPRC positive drivers in 1Q20 were favorable exchange gain and lower operating expenses while there were high expenses relating to the major turnaround in prior quarter.