IRPC Public Company Limited (SET: IRPC) reported a dramatic year-over-year turnaround in its second-quarter 2026 results, posting a net profit of Baht 2,921 million. This represents a significant recovery from the Baht 2,132 million net loss recorded in the same period last year. Net sales revenue surged 42% year-over-year to Baht 80,797 million, driven primarily by a 48% spike in average selling prices following a rise in global crude oil benchmarks.
Key Financial Highlights
- Net Profit: Baht 2,921 million (up from a Baht 2,132 million loss in 2Q25).
- Revenue: Baht 80,797 million (up 42% YoY).
- Market GIM: USD 17.12 per barrel (up from USD 8.41 in 2Q25).
- Earnings Per Share (EPS): Baht 0.14.
The company’s petroleum business unit saw its Market Gross Refining Margin (Market GRM) climb to USD 13.47 per barrel, up from USD 11.77 in the previous quarter. This growth was fueled by widening spreads in gasoline and diesel as conflict in the Middle East disrupted supply chains through the Strait of Hormuz. Similarly, the petrochemical unit benefited from higher product spreads in the Olefins and Styrenics groups, with the Market Product-to-Feed (Market PTF) margin rising to USD 2.78 per barrel.
While operational margins were robust, the bottom line was pressured by a net inventory loss of Baht 3,687 million, a result of falling oil prices toward the end of the quarter as ceasefire negotiations between the U.S. and Iran progressed. This was partially offset by a non-recurring unrealized gain on oil hedging of Baht 2,051 million, providing a crucial buffer to the quarter’s earnings.
IRPC maintains a stable capital structure with a net interest-bearing debt-to-equity ratio of 0.52 times. During the quarter, the company successfully bolstered its liquidity by issuing Baht 8,500 million in unsubordinated and unsecured debentures with maturities ranging from three to seven years.
Looking toward the third quarter of 2026, management anticipates a softening of Dubai crude oil prices. This outlook is based on the expected recovery of oil transportation through the Strait of Hormuz and planned production increases from OPEC+. However, persistent regional uncertainties remain a key risk factor for market supply and price stability.
