Operating Results for the Second Quarter and the First Six Months of 2025
IRPC Public Company Limited
Management Discussion and Analysis
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 14
Financial Positions as of 30 June 2025 19
Other Factors Influencing Financial Performance and Operation 23
Management Discussion and Analysis (MD&A) IRPC Public Company Limited and its subsidiaries Operating Results for the Second Quarter and the First Six Months of 2025Executive Summary
Unit | Quarter | % Change | 1H | YoY | |||||
2Q25 | 1Q25 | 2Q24 | QoQ | YoY | 2025 | 2024 | |||
Crude Intake | Million bbl | 18.65 | 17.97 | 18.32 | 4% | 2% | 36.62 | 34.91 | 5% |
Sales[1] | Million Baht | 68,617 | 72,858 | 81,630 | (6%) | (16%) | 141,475 | 160,978 | (12%) |
Net Sales [2] | Million Baht | 56,802 | 62,224 | 74,066 | (9%) | (23%) | 119,026 | 148,710 | (20%) |
Market GIM [3] | Million Baht | 5,219 | 3,886 | 3,465 | 34% | 51% | 9,105 | 9,083 | 0.2% |
USD/bbl | 8.41 | 6.34 | 5.12 | 33% | 64% | 7.39 | 7.16 | 3% | |
Accounting GIM | Million Baht | 3,200 | 4,518 | 4,869 | (29%) | (34%) | 7,718 | 12,771 | (40%) |
USD/bbl | 5.16 | 7.37 | 7.19 | (30%) | (28%) | 6.27 | 10.06 | (38%) | |
EBITDA | Million Baht | 223 | 1,596 | 1,439 | (86%) | (85%) | 1,819 | 6,118 | (70%) |
Net Profit | Million Baht | (2,132) | (1,206) | (732) | (77%) | (>100%) | (3,338) | 812 | (>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 second quarter of 2025 (2Q25) compared to those in the first quarter of 2025 (1Q25): In 2Q25, the Company registered net sales of Baht 56,802 millionNet Sales
Unit: MB
2Q259%
1Q2577%
56,802
21%
77%
62,224 21%
2%
2%
Petroleum
Petrochemical
Power & Utilities
decreasing by Baht 5,422 million or by
9% from that in 1Q25. This attributed to a 10% decrease in average selling prices following lower crude oil price versus a 1% increase in sales volume. For petroleum business unit, the Market Gross Refining Margin (Market GRM) improved being supported by an increase in most petroleum product spreads as a result of the conflict between Israel and
Iran and the seasonal demand for products. Moreover, Market Product to Feed (Market PTF) margin for petrochemical business unit increased as a result of higher product spreads in Olefins group because of lower feedstock price following a decline in crude oil price. 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 5,219 million or USD 8.41 per barrel increasing
by 34% from that in 1Q25. However, the crude oil situation in 2Q25 was volatile due to several factors. The main factors pressuring prices were the U.S.' tariff measures against trading partners, along with the voluntary production volume increase by OPEC and allies (OPEC+), although there are certain factors supporting crude oil prices including the conflict situation in the Middle East. These factors caused a decrease in Dubai crude oil prices from that in the previous quarter leading to a stock loss of Baht 2,503 million or USD 4.03 per barrel. Meanwhile, the Company recorded a reversal on Net Realizable Value (reversal on NRV) of Baht 343 million or USD 0.55 per barrel as well as a gain from realized oil hedging of Baht 141 million or USD 0.23 per barrel. All previously mentioned resulted in a net inventory loss of Baht 2,019 million or USD 3.25 per barrel. Therefore, the Accounting Gross Integrated Margin (Accounting GIM) was Baht 3,200 million or USD 5.16 per barrel decreasing by 29% compared to that in the prior quarter. Moreover, there was the earnings before interest, tax, depreciation and amortization (EBITDA) of Baht 223 million slumping by 86% from that in 1Q25. In 2Q25, the Company recorded the net finance cost of Baht 619 million increased by 5% compared to that in 1Q25 due to higher interest paid and bank charges . Moreover, there was an unrealized loss on oil hedging of Baht 250 million compared to the gain of Baht 170 million in 1Q25, owing to a decrease in the product spreads. Furthermore, the Company recorded the loss on impairment and disposal of assets of Baht 157 million when compared to a gain of Baht 449 million in 1Q25, mainly because of the impairment of assets of Innopolymed Company Limited, the Company's subsidiary in 2Q25. Therefore, the Company recorded a net loss of Baht 2,132 million in 2Q25 being more than 1Q25 net loss by 77%.
The operating results in the second quarter of 2025 (2Q25) compared to those in the second quarter of 2024 (2Q24): The Company's net sales decreased by Baht 17,264 million or by 23% from that in 2Q24, mainly due to a 21% decrease in average selling prices following the lower crude oil price as well as a 2% decrease in sales volume. For petroleum business unit, the Market GRM increased owing to a rise in the spread between Lube Base Oil products and Fuel Oil price and the increase in most refinery product spreads. In addition, the Market PTF increased because of an increase in sales volume in Styrenics group. Power plant and utility business units obtained a stable margin. Hence, the Company recorded the increased Market GIM by Baht 1,754 million compared to that in the same period last year. However, the Company recorded the net inventory loss of Baht 2,019 million in 2Q25 compared to the net inventory gain of Baht 1,404 million in 2Q24. Therefore, the Accounting GIM in 2Q25 was Baht 3,200 million decreasing by Baht 1,669 million compared to that in the same period last year. Moreover, there was an EBITDA of Baht 223 million in 2Q25 diminishing by 85% compared to that in 2Q24. However, the Company recorded an unrealized loss on oil hedging of Baht 250 million owing to a decrease in the product spreads as well as the loss on impairment and disposal of assets of Baht 157 million, as previously mentioned. Consequently, the Company recorded a net loss of Baht 2,132 million in 2Q25 being more than 2Q24 net loss by Baht 1,400 million. The operating results in the first six months of 2025 (1H25) compared to those in the first six months of 2024 (1H24): The Company registered net sales of Baht 119,026 million in 1H25 decreasing by 20% from that in the same period last year. This attributed to a 17% decrease in average selling prices following lower crude oil price and a 3% decrease in sales volume. For petroleum business unit, the Market GRM increased mainly from the rise in spreads between Lube Base Oil products and Fuel Oil price being supported by a drop in Fuel Oil price following the crude oil price trend. However, the petrochemical business unit's Market PTF decreased from the lower spreads between HDPE product prices and raw material price in Olefins group due to the concern about economic uncertainty from the U.S.' Reciprocal Tariffs policy. Meanwhile, Power plant and utility business units obtained stable margin. Hence, the Company recorded the Market GIM amounting to Baht 9,105 million or USD 7.39 per barrel being up by Baht 22 million. During the interval, the crude oil price dropped mainly by the U.S.' tariff measures against trading partners, along with the voluntary production volume increase by OPEC+. These resulted in a stock loss of Baht 1,877 million or USD 1.52 per barrel, a reversal on NRV of Baht 235 million or USD 0.19 per barrel and a realized gain from oil hedging of Baht 255 million or USD 0.21 per barrel. All previously mentioned led to a net inventory loss of Baht 1,387 million or USD 1.12 per barrel. Therefore, there was an Accounting GIM was Baht 7,718 million or USD 6.27 per barrel declining by 40% from that in the same period last year. After deducting OPEX, there were EBITDA of Baht 1,819 million that softened by 70% from that in the same period last year. Meanwhile, the Company recorded the depreciation expense of Baht 4,672 million rising by 7%, mainly from the additional assets from Ultra Clean Fuel (UCF) project, along with the net finance cost of Baht 1,210 million increasing by 9% compared to that in 1H24. In 1H25, the Company recorded a loss on investments of Baht 425 million, mainly due to loss on sharing from UBE Chemicals (Asia) Public Company Limited (UCHA), the Company's associate in 1Q25. As a result, the Company recorded the net loss of Baht 3,338 million in 1H25 compared to a net profit of Baht 812 million in 1H24. Key incidents in 2Q25- Dissolution of the Subsidiary Company
The IRPC's Board of Directors on May 21, 2025 endorsed a resolution of the dissolution of Innopolymed Company Limited ("IMD"), a subsidiary of IRPC in which IRPC holds 60% of the total shares and Innobic (Asia) Company Limited (a subsidiary of PTT Public Company Limited) holds 40% of the total shares in IMD. In this regard, on June 10, 2025, the IMD's Extraordinary General Meeting of Shareholders approved the resolution of the dissolution of the company. This dissolution aligns with IRPC's strategic direction to enhance the efficiency of the management and operations of its group companies. The registration of the dissolution is anticipated to be completed within Year 2025.