TASCO Aims to Book over ฿300M. of Compensation in 2Q19 along with Higher Asphalt Prices

A source from the financial group has revealed that Tipco Asphalt Public Company Limited (TASCO) will book a compensation from the damage of two of its crude oil storage tanks from the fire incident.  The compensation from the insurance is estimated at THB 300-400 million which will be booked in the second quarter financial statement, buoying its revenue even higher.

 

Maybank Kim Eng Securities saw a recovery of TASCO’s revenue in 2019 from constant crude oil supply and recovery of asphalt price from USD 320/ton to USD 370/ton. TASCO’s executives projected the company would be able to regain its production at 1.9 million tonnes in 2019 (grow 23% YoY) after S-Oil, Hyundai and SK Energy refineries were closed for an upgrade which caused 2 million tonnes lost in supply.

TASCO has eight crude oil storage tanks with a capacity of 350,000 tonnes in total. Two of the tanks were under maintenance which was expected to be ready within 2019. Meanwhile, the other two tanks were damaged from the fire and under the process of constructing replacements which were expected to be ready in the first quarter of 2020 along with higher capacity at 370,000 tonnes in total.

Moreover, TASCO has a floating storage unit with a capacity of 1.8 million barrel, making it more convenient and cheaper than having a ship waiting to transport oil.

Maybank estimated TASCO’s 2019 sales revenue at 1.75 million tonnes, increased 13%, while having THB 2,196 million of profit, increased 289%.