IRPC Public Company Limited
Management Discussion and Analysis
Operating Results for the First Quarter of 2025
World Members in Oil & Gas Refining and Marketing Sector for 11th Consecutive Year
Table of Contents
Executive Summary 1
Operating Performance 4
Operating Performance by Business Units 4
Petroleum business unit 4
Petrochemical business unit 8
Power Plant and Utility business units 12
Total Operating Performance 13
Financial Positions as of 31 March 2025 18
Other Factors Influencing Financial Performance and Operation 22
Management Discussion and Analysis (MD&A) IRPC Public Company Limited and its subsidiaries Operating Results for the First Quarter of 2025Executive Summary
Unit | Quarter | Change | ||||
1Q25 | 4Q24 | 1Q24 | QoQ | YoY | ||
Crude Intake | Million bbl | 17.97 | 18.44 | 16.60 | (3%) | 8% |
Sales[1] | Million Baht | 72,858 | 74,123 | 79,348 | (2%) | (8%) |
Net Sales [2] | Million Baht | 62,224 | 63,037 | 74,644 | (1%) | (17%) |
Market GIM [3] | Million Baht | 3,886 | 5,622 | 5,618 | (31%) | (31%) |
USD/bbl | 6.34 | 8.92 | 9.45 | (29%) | (33%) | |
Accounting GIM | Million Baht | 4,518 | 6,270 | 7,902 | (28%) | (43%) |
USD/bbl | 7.37 | 9.95 | 13.30 | (26%) | (45%) | |
EBITDA | Million Baht | 1,596 | 3,200 | 4,680 | (50%) | (66%) |
Net Profit | Million Baht | (1,206) | (1,125) | 1,545 | (7%) | (>100%) |
Note: [1] Sales include (1) Petroleum Sales (2) Petrochemical Sales (3) Power and Utilities Sales
(4) Sales of tank farm and port service, etc
[2] Net Sales include (1) Petroleum Sales (excluding excise tax) (2) Petrochemical Sales (3) Power and Utilities Sales
[3] Market GIM per bbl : [(Market GIM / Crude Intake)/Exchange Rate]
The operating results in the first quarter of 2025 (1Q25) compared to those in the fourth quarter of 2024 (4Q24): In 1Q25, the Company registered net sales of Baht 62,224 millionNet Sales
Unit: MB
1Q251%
4Q2477%
62,224
21%
77%
63,037
21%
2%
2%
Petroleum
Petrochemical
Power & Utilities
decreasing by Baht 813 million or by 1%
from that in 4Q24. This attributed to a 4% decrease in sales volume versus a 3% increase in average selling prices following higher crude oil price. For petroleum business unit, the Market Gross Refining Margin (Market GRM) dropped being caused by a decrease in most spreads between petroleum product prices and Dubai crude oil price
as a result of the softened demand following the economic conditions and the effect on the U.S.' trading policy to partner countries. Moreover, Market Product to Feed (Market PTF) margin for petrochemical business unit decreased because of lower sales volume in Olefins group owing to unrecovered purchasing demand. Meanwhile, power plant and utility business units contributed a stable margin from sales of electricity
and steam. Hence, the Company recorded the Market Gross Integrated Margin (Market GIM) of Baht 3,886 million or USD 6.34 per barrel decreasing by 31% from that in 4Q24. However, the crude oil situation in 1Q25 was volatile due to several factors including concerns on the conflict in the Middle East, concerns on Chinese economy that has not recovered as much as it should, along with the abortion of OPEC and its allies (OPEC+)'s voluntary production cuts, and the U.S.' tariff measures against trading partners. These factors caused an increase in Dubai crude oil prices from that in the previous quarter leading to a stock gain of Baht 626 million or USD 1.02 per barrel. Meanwhile, the Company recorded a Net Realizable Value (NRV) of Baht 108 million or USD 0.18 per barrel versus a gain from realized oil hedging of Baht 114 million or USD 0.19 per barrel. All previously mentioned resulted in a net inventory gain of Baht 632 million or USD 1.03 per barrel. Therefore, the Accounting Gross Integrated Margin (Accounting GIM) was Baht 4,518 million or USD 7.37 per barrel decreasing by 28% compared to the prior quarter. Moreover, there was the earnings before interest, tax, depreciation and amortization (EBITDA) of Baht 1,596 million slumping by 50% from that in 4Q24. In 1Q25, the Company recorded the depreciation expense of Baht 2,328 million declining by 4% from that in the prior quarter, along with the net finance cost of Baht 591 million decreased by 6% compared to that in 4Q24 due to repayments of short-term and long-term borrowings in 1Q25. There was a loss on investment amounting Baht 657 million compared to the gain of Baht 223 million in 4Q24 that was affected from a loss sharing of associate company which recorded a loss on impairment from assets. Therefore, the Company recorded a net loss of Baht 1,206 million in 1Q25 being more than 4Q24 net loss by 7%.
The operating results in the first quarter of 2025 (1Q25) compared to those in the first quarter of 2024 (1Q24): The Company's net sales decreased by Baht 12,420 million or by 17% from that in 1Q24, mainly due to a 13% decrease in average selling prices following the lower crude oil price as well as a 4% decrease in sales volume. For petroleum business unit, the Market GRM decreased owing to a drop in the spread between Gasoline and Diesel prices compared to Dubai crude oil price following economy conditions. In addition, the Market PTF decreased because of a drop in sales volume and product spreads in Olefins group following softened purchasing demand. Power plant and utility business units obtained a stable margin. Hence, the Company recorded the decreased Market GIM by Baht 1,732 million compared to that in the same period last year. However, the Company recorded the lessened net inventory gain by Baht 1,652 million compared to that in 1Q24. Therefore, the Accounting GIM in 1Q25 was Baht 4,518 million decreasing by Baht 3,384 million compared to that in the same period last year. Moreover, there was an EBITDA of Baht 1,596 million in 1Q25 diminishing by Baht 3,084 million compared to that in 1Q24. However, the Company recorded a 9% increase in the depreciation owing to the additional asset from Ultra Clean Fuel (UCF) project. Furthermore, there was a rise in the net finance cost by 18% from the same period last year due to the Company's borrowing activities from banks during Year 2024. Moreover, the Company recorded a loss on investment amounting Baht 657 million, as previously mentioned, compared to 1Q24 gain on investment of Baht 140 million. Consequently, the Company's 1Q25 net loss was Baht 1,206 million compared to the net profit in 1Q24 amounting Baht 1,545 million. Key incidents in 1Q25-
The issuance of debentures
On 25 March 2025, the Company has completed fund raising from the debentures issuance of unsubordinated, unsecured in the total amount of Baht 11,000 million. It comprises of Tranche 1 without debenture holders' representative and Tranche 2-6 with debenture holders' representative. The details are represented as follows;
Tranche 1: The debenture is offered to Institutional Investors in the amount of Baht 3,000 million with tenor of 2 years 10 months. The debenture has a fixed coupon rate of 3.34% per annum with zero coupon. Tranche 2 - 5: The debenture is offered to Public Offering in the amount of Baht 7,000 million with tenor of 4 - 9 years. The debenture has a fixed coupon rate of 3.80% - 4.35% per annum. Digital Debenture: The debenture is offered to Public Offering in the amount of Baht 1,000 million with tenor of 5 years. The debenture has a fixed coupon rate of 3.95% per annum. - Long-term borrowings from a financial institution
In March 2025, the Company entered into a loan agreement with a financial institution for an unsecured loan facility of Baht 1,500 million. The agreement is for a period of 5 years. The loan carries an interest rate based on market rate. Interest payments are made on a 6-month basis, and the drawdown is set to be made within 6 months.