Significant Growth in GRM Leads TOP to Record 113% Increase in 1Q22 Earnings

Thai Oil Public Company Limited (SET: TOP) has announced its 1Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;


TOP reported a net profit of Baht 7,182 million in 1Q22, increased 113% from a net profit of Baht 3,360 million in 1Q21. 

In this quarter, sales revenue increased by Baht 41,057 million or 55.89%, tracking a higher average selling price, which was in line with the higher crude oil price. In addition, TOP booked higher GIM excluding stock gain of 3.5 US$/bbl mainly due to a significant improvement in gasoline, jet/kero and gas oil spreads as border restrictions were eased, and cross border traveling activities increased. 


Furthermore, surfactant business, LAB, reported higher gross profit following higher demand. Meanwhile, lube base oil spread over fuel oil declined due to higher regional supply as refineries in the region began to increase their production levels. Additionally, PX spread and BZ spread over ULG95 also decreased since crude oil prices increased. With the increase in crude oil prices, TOP reported a higher stock gain of Baht 9,816 million than in 1Q21. However, a write down of crude and petroleum product inventory of Baht 2,609 million was booked during the period, while there was a reversal of crude and petroleum product inventory of Baht 109 million in 1Q21.


The refinery segment had the highest net profit growth in this quarter for more than 600%. The company recorded significantly higher GRM excluding stock gain by 5.7 US$/bbl than the same period last year thanks to significant improvement in gasoline, jet/kero, and gasoil spreads resulting from easing of lockdowns and travel restrictions. Additionally, higher crude oil prices gave rise to a higher stock gain of Baht 9,816 million than in 1Q21.