Bangkok: Thai Oil Public Company Limited announced its operating results for the second quarter of 2025, revealing a net profit of 6,476 million baht. The profit was driven by higher refining margins and special profits from joint ventures, despite incurring a 4,171 million baht loss from oil inventory and implementing strategic adjustments to strengthen the company.
According to Thai News Agency, Mr. Bandit Thammaprajamjit, Chief Executive Officer and President of Thai Oil, stated that the Thai Oil Group’s gross profit, excluding inventory losses, increased to US$7.0 per barrel, up from US$5.4 per barrel in the previous quarter. This improvement was attributed to higher spreads between all refined oil products and Dubai crude oil, alongside increased gross profit in the cleaning product and lubricant base oil businesses due to tight supply from maintenance shutdowns. However, the aromatics business saw a slight decline in gross profit due to high benzene supplies.
Market supply concerns eased following a ceasefire agreement between Israel and Iran, leading to a decrease in the average Dubai crude oil price compared to the previous quarter. Additionally, OPEC+ gradually lifted production cuts since April, further increasing market supply. Consequently, Thai Oil Group recognized a 4,171 million baht loss from oil inventory.
Despite this, Thai Oil Group reported a special gain of 2,522 million baht from bond repurchase and a profit share from its investment in PT Chandra Asri Petrochemical Tbk, related to the acquisition of Aster Chemical and Energy Pte. Ltd. in Singapore, amounting to approximately 7,062 million baht. This resulted in a net profit of 6,476 million baht, or 2.90 baht per share, marking an increase of 2,972 million baht from the first quarter of 2025.
Mr. Bandit noted that the refinery business outlook for the latter half of 2025 is expected to decline due to supply constraints caused by refinery closures in the US and Europe, notwithstanding strong demand for jet fuel and diesel. The aromatics business is anticipated to improve with higher demand from new downstream plants, while the lubricant base oil business may benefit from supply constraints due to maintenance shutdowns. The cleaning product feedstock market is expected to face pressure from increased supply and potential regional demand decline due to a global economic slowdown.
Thai Oil plans to continue monitoring market developments and adjust its strategies and operational plans to fortify its business and achieve its goals.