SPRC climbed about 7% at the opening bell on Tuesday, December 28, 2021, as refining margins are expected to increase further next year.
As of 12.30 hrs. local time in Thailand, the share price of Star Petroleum Refining Public Company Limited (SET: SPRC) rose THB0.40/share or 4.23% to THB9.85/share, with a trading value of THB211 million.
Maybank Securities (Thailand) (MST) said that gross refining margin (GRM) in 2022 is expected to rise to USD4.5-5/bbl from this year’s USD3.4, and utilization rate is forecast to rise to 85-90% from 74% in 2021 due to higher gasoline demand. Spread estimates at USD11-12 vs average USD9. It will return to pay a dividend around 5% in 2022. Recommend “BUY” with a target price of THB11.20.