Bangkok: IRPC Public Company Limited has reported a net loss of 2,132 million baht for the second quarter of 2025, highlighting the challenges faced due to global economic instability. The company is striving to enhance production efficiency and manage costs and assets to bolster its competitive edge in the market.
According to Thai News Agency, Mr. Therdkiat Prommoon, President and CEO of IRPC, emphasized the impact of geopolitical tensions, such as the unrest along the Thai-Cambodian border and the US’s trade protectionist measures, on the company’s performance. To navigate these challenges, IRPC is expanding its export markets to neighboring countries and adjusting its export portfolio to mitigate the effects of tariffs and trade restrictions. The company is adopting a “Domestic First” strategy, focusing on increasing domestic sales and implementing efficient cost management practices to build business resilience.
IRPC is also enhancing operational efficiency and adding value to its petroleum and petrochemical business groups. This involves utilizing company assets like ports and land to generate stable revenue and ensure long-term competitiveness. The development of UHMWPE products, which cater to the automotive industry’s growing demands, is part of this strategy. The company is also maximizing its existing resources, including deep-sea ports and land, to support long-term business growth amid international conflicts, trade wars, and fluctuating energy prices.
In Q2 2025, IRPC reported net sales revenue of 56,802 million baht, marking a 9% decrease from the previous quarter. This decline was attributed to a drop in average selling prices due to lower crude oil prices, despite a 1% increase in sales volume. The petroleum business experienced an increase in market gross refining margin due to higher product price spreads influenced by the Israel-Iran conflict and seasonal demand.
The company’s gross profit from production based on market prices increased by 34% from Q1 2025, reaching 5,219 million baht or 8.41 USD per barrel. However, the volatility in crude oil prices led to an inventory loss of 2,503 million baht. Despite a reversal of inventory devaluation and a gain from oil hedging, the net inventory loss amounted to 2,019 million baht. This resulted in an accounting gross profit of 3.2 billion baht, a 29% decrease compared to the previous quarter, and an EBITDA of 223 million baht, down by 86%. The company also faced a 5% increase in net finance costs and an unrealized loss from oil risk management, contributing to the overall net loss.
Looking ahead to the third quarter of 2015, oil demand is expected to be driven by seasonal factors such as summer travel and electricity generation. However, the crude oil and petrochemical markets may face pressure from US tariffs and new production capacities, particularly from China, potentially leading to a decrease in petrochemical product prices.