07 November 2012 07:36 [Source: ICIS news]
SINGAPORE (ICIS)--PTT Global Chemical (PTTGC) is likely to see its earnings moderate in the fourth quarter, after its net profit more than doubled in July-September this year, on the back of slimmer refining margins, analysts said on Thursday.
The Thailand-based petrochemicals and refining firm’s third-quarter net profit surged to baht (Bt) 12.9bn ($419m) from Bt6.04bn in the same period a year earlier, led by improved petroleum product spreads and inventory gains, the company reported on 6 November.
The increase in petroleum product spreads were driven by rising jet fuel and diesel prices, said Naphat Chantaraserekul, a Bangkok-based analyst at DBS Group Research.
“We expect earnings to moderate in the fourth quarter. This is premised on the recent softening in oil prices,” he added.
The company’s sales rose by 6% year on year to Bt145.3bn in the third quarter of this year, while earnings before interest, tax, depreciation and amortisation (EBITDA) was up by 50% at Bt18.3bn.
The company’s core profit is expected to rise in the fourth quarter of this year, partly driven by higher sales volumes brought about by better operating rates at its olefin production units, said Bualuang Securities.
However, PTTGC’s earnings will probably decline on a quarter-on-quarter basis in October-December this year on the back of a weaker gross refining margin, weighed by new capacity additions in the region and the restart of other refineries with the end of the maintenance shutdown season, it added.
($1 = Bt30.78)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections