Star Petroleum Refining Public Company Limited (SET: SPRC) reported a net income of US$228.6 million (THB 7,367.4 million) in 1Q26. This represents a staggering 1,004.2% increase compared to the US$20.7 million recorded in Q1/2025. The surge in the bottom line comes despite a dip in the company’s top-line revenue, which fell 13.7% year-on-year to US$1,626.7 million.
The decline in revenue was largely a result of a planned major Turnaround and Inspection (T&I) successfully completed in February 2026. This scheduled maintenance reduced crude utilization to 63.2%, down significantly from 94.8% in the same period last year. Consequently, sales volumes were impacted across both the refinery and commercial segments.
However, the contraction in volume was more than offset by extraordinary inventory gains and widened margins. SPRC recorded an after-tax inventory gain of US$177.5 million. This windfall was driven by extreme volatility in Dubai crude prices, which surged following geopolitical escalations in the Middle East and the closure of the Strait of Hormuz. By processing crude procured earlier at lower “pre-war” prices, the company achieved a lower weighted average cost of sales.
Profitability was further bolstered by robust Enterprise Margins, which jumped to US$14.63/bbl from US$5.45/bbl in Q1/2025. Specifically, refinery margins nearly tripled to US$12.81/bbl, supported by tightening regional supply and high crack spreads for middle distillates. On the expense side, cost of sales plummeted 28% to US$1,324.6 million, primarily following the lower sales volumes. Administrative expenses also decreased by 5.1%, reflecting ongoing cost-efficiency initiatives.
Even when stripping away volatile inventory gains, SPRC’s underlying performance remained strong. Adjusted net income for the quarter stood at US$51.1 million, a 236% improvement over Q1/2025. While the company warns of potential normalization in oil prices and margins ahead, this quarterly result underscores its operational resilience during periods of intense market disruption.
