IRPC Public Company Limited (SET: IRPC) has posted a net profit of Baht 7,889 million, a complete reversal from the Baht 1,206 million net loss recorded in the same period last year. This dramatic turnaround was primarily driven by a surge in global oil prices and improved refinery margins.
Total net sales climbed to Baht 67,779 million, representing a 9% year-on-year (YoY) increase. This growth was fueled by a 6% rise in average selling prices—tracking higher crude oil costs—and a 3% expansion in sales volume. The petroleum business unit was a primary driver, benefiting from wider Diesel and Gasoline spreads, which boosted the Market Gross Integrated Margin (Market GIM) to Baht 7,902 million, or USD 13.21 per barrel. In contrast, the petrochemical business unit saw its margin decline due to higher feedstock costs.
The standout feature of this quarter’s results was a substantial net inventory gain of Baht 9,915 million, compared to just Baht 632 million in 1Q25. This gain was a direct result of surging crude prices triggered by geopolitical tensions in the Middle East, specifically disruptions through the Strait of Hormuz. Consequently, Accounting GIM soared to Baht 17,817 million. However, these market conditions also led to an unrealized loss on oil hedging of Baht 1,981 million, as product spreads widened rapidly.
Operating expenses (OPEX) increased slightly YoY to Baht 2,991 million, primarily due to higher maintenance costs. On the investment front, IRPC recorded a gain of Baht 299 million, bolstered by the divestment of its 40% stake in WHA Industrial Estate Rayong Co., Ltd.. This stands in sharp contrast to the Baht 657 million investment loss recognized in 1Q25. While the results are robust, management noted that rising crude premiums and government-mandated diesel price cuts may pressure margins in the second quarter.
