BCP Reports an Improvement from 1Q as Cost of Sales and Services Drops 43%

Bangchak Corporation Public Company Limited (BCP) has reported its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

BCP reported a net loss in the second quarter of 2020 at 1.91 billion baht, plunged from a net profit of 528 million baht in 2Q19, but improved from a net loss of 4.6 billion baht in 1Q20 as the company was still impacted by the COVID-19 epidemic. The price of crude and finished products remain at low levels.

 

This quarter the company earned revenue from selling of goods and rendering of service of THB 26,594 million (-38% QoQ, -45% YoY), recorded EBITDA of THB 1,131 million (+144% QoQ, -48% YoY), however recorded Operating EBITDA of THB 2,645 million with Inventory Loss of THB 1,725 million (including reversal of losses on inventories devaluation (NRV) THB 1,635 million).

Due to the company recording impairment loss of major trade account receivable, that went into business rehabilitation under the supervision of the Central Bankruptcy Court, THB 894 million, and the asset impairments incurred from the retail business restructuring of Bangchak Retail Co., Ltd. THB 135 million. Resulting in this quarter recording the net loss attributable to owners of the parent was THB 1,911 million (+59% QoQ, -462% YoY) or loss per share of THB 1.50.

 

Gross profit was recorded at THB 558 million, an increase of 146% QoQ, mainly contributed by petroleum related businesses. The Refinery business group recorded higher Total Gross Refinery Margin (Total GRM) by 2.94 $/BBL from a loss of 6.16 $/BBL in Q1/2020 to a loss of 3.22 $/BBL, mainly due to the improving Operating GRM.

Also, an Inventory Loss of THB 1,866 million in this quarter (including reversal of losses on inventories devaluation (NRV)), declined from the previous quarter which recorded Inventory Loss of THB 2,774 million (including losses on inventories devaluation (NRV)).

Furthermore, the marketing business group recorded higher net marketing margin by 0.11 Baht /Liter, and an Inventory Gain of THB 72 million (including losses on inventories devaluation (NRV)), while there was an Inventory Loss of THB 591 million (including losses on inventories devaluation (NRV)) in the previous quarter.

When compared to 2Q19, Gross Profit declined 78% YoY, primarily decreasing from the refinery business group which recorded a lower Total GRM due to the lower finished oil product demand following the COVID-19 outbreak.

 

Selling and administrative expenses was recorded at THB 1,585 million, a decrease of 10% QoQ and 16% YoY due to strict measures to control expenses during the COVID-19 pandemic situation.