Thailand’s IRPC swings to Q4 net profit on better refining margins

SINGAPORE (ICIS)–Thailand’s IRPC swung to a net profit of Thai baht (Bt) 447m ($12.6m) in the fourth quarter of 2015 from a net loss of Bt5.78bn in the same period a year earlier amid improved refining margins, the producer said late on Tuesday.

The company’s net sales fell by 25% year on year to Bt45.5bn in the fourth quarter, it said in a statement.

December-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Bt2.07bn, reversing the Bt5.04bn loss in the same period of 2014.

IRPC’s market gross integrated margin (GIM) stood at $14.67/bbl in the fourth quarter, up from $10.38/bbl in the same period a year earlier, aided by lower cost of crude oil and fuel used in the production process, the company said.

In the petrochemicals business, ethylene and mixed xylenes registered higher fourth-quarter spreads, although the spreads of most olefins, aromatics and styrenics products fell during the period.

IRPC’s mixed xylene to naphtha spread increased by 39% to $226/tonne, while the ethylene to naphtha spread rose by 4% to $588/tonne.

High density polyethylene (HDPE)-naphtha spread fell by 20% year on year to $268/tonne in the fourth quarter, while the propylene-naphtha gap slumped by 63% to $142/tonne, and the benzene-naphtha spread fell by 50% year on year to $159/tonne in the fourth quarter.

IRPC’s overall fourth-quarter net sales at its petrochemicals business fell by 9% year on year to Bt12.6bn in the fourth quarter as product prices fell 25% on crude slump, offsetting the 16% increase in sales volume to 356,000 tonnes.

For the full year of 2015, IRPC swung to a net profit of Bt9.40bn from a net loss of Bt5.24bn in the previous year. The company posted EBITDA of Bt17.0bn in 2015, compared with the loss of BT1.40bn in 2014.

($1 = Bt35.5)