BCP Announces a Strong Quarterly Net Profit of THB5.28 Billion, Up 200% YoY

Bangchak Corporation Public Company Limited (SET: BCP) has announced its consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 2Q22 2Q21
Net Profit (Loss)
Million Baht
5,276 1,764
Earning Per Share
3.79 1.21
% Change 199
6 Months 2022 2021
Net Profit (Loss)
Million Baht
9,633 4,048
Earning Per Share (Baht) 6.91 2.80
% Change 138

As for performance in 2Q22, BCP recorded revenue from sales and rendering of services in the amount of THB 83,796 million (+21% QoQ, +91% YoY), EBITDA of THB 12,572 million (-8% QoQ, +195% YoY). EBITDA declined due to BCPG’s recognition of profit from the disposal of the whole investment in SEGHPL of THB 2,031 million in the previous quarter. Excluding the item, EBITDA increased THB 889 million (+8% QoQ), mainly from the Refinery and Trading Business Group which was positively impacted by the significant increase in Operating GRM that helped alleviate the performance of the Natural Resources Business Group. Of which, it was affected by a large decline in natural gas prices sold to the UK as well as the depreciation of the Norwegian Krone (NOK) against the US dollar. Leading to this quarter realized net profit at THB 5,276 million (+21% QoQ, +199% YoY), representing Earnings per share of THB 3.79.

Refinery and Trading Business Groupsaw its performance increase 30% QoQ and 229% YoY as this quarter Operating GRM increased significantly to 24.42 $/BBL. This was due to crack spreads of all products increased in line with global market conditions. Especially, a significant increase in Diesel and Dubai crack spread (GO-DB) which is the largest product yield of the Bangchak refinery. Moreover, crude oil price continued to increase resulting in Inventory Gain of THB 3,868 million in this quarter which is similar to 1Q22 but increased significantly when compared to 2Q21. Due to the continued increase in crack spreads from last quarter, Bangchak refinery maintained a high average crude run at 122.5 KBD or 102% utilization rate. However, as high crack spread situation, resulting in higher loss from crude and product oil price forward contracts compared to 1Q22 and 2Q21. As for the Oil Trading business, BCPT’s performance increased, due to higher profit per unit of Gasoline/Naphtha products group and the recognition of gains from entering crude and product oil price forward contracts.