TOP Books ฿2.4Bn of Profit in 2Q as FX Gains Buoy Earnings by 3 Folds!

Thai Oil Public Company Limited (TOP) has reported its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

TOP reported a profit for the quarter at 2,480 million baht increased 337% from a net profit of 566 million baht in 2Q19.

 

TOP reported lower sales revenue by Baht 42,590 million mainly from lower product selling prices and total product sales volume, together with lower GIM excluding stock gain/ (loss) by 1.3 US$/bbl. This mainly came from 1) a significant plunge in gross refining margin tracking declines in petroleum products over Dubai price 2) substantially lower by products spreads over fuel oil, referred to diesel price 3) a decrease in sales volume of TDAE as a specialty product.

However, aromatics margin improved due to better BZ and TL spreads over ULG95. With stock loss from declining crude oil price in Q2/20, lower GIM including stock gain/ (loss) by 2.9 US$/bbl was recorded. However, there was higher reversal on crude and petroleum product inventory of Baht 2,267 million and net realized loss on financial instruments of Baht 45 million.

Besides, in Q2/19, there was severance expense of Baht 384 million due to the recognition of provision for employee benefits in accordance with the new Labour Protection Act, and planned major turnaround expenses of Baht 352 million.

Therefore, Thaioil and Subsidiaries reported an increase in EBITDA of Baht 809 million. Altogether, with gain on fair value measurements of financial instruments of Baht 389 million and larger net foreign exchange gain of Baht 1,451 million, Thaioil and Subsidiaries recorded an increase of net profit by Baht 1,913 million.

 

Moreover, Thaioil and Subsidiaries booked net foreign exchange gain of Baht 2,045 million (which included net foreign exchange gain on foreign currency assets and liabilities of Baht 1,538 million) due to Thai baht appreciation from the end of the previous quarter.