TOP’s Shares Gain 3% after Solid Earnings Report

TOP’s shares gained 3% on Monday following a positive 2022 earnings report.

The share price of Thai Oil Pcl. (SET: TOP) rose THB1.50/share, or 2.67%, to THB57.75/share as of 11.14 A.M. (Thai time), with a trading value of THB341 million.

In 2022, TOP reported a 160% surge in net profit of THB32 billion with THB1.70 dividend payout. Sales were at THB505,703 million, or THB169,876 million higher than the same period last year due to higher product selling prices tracking crude oil price. Furthermore, gasoline, jet/kero and gasoil spread over Dubai improved due to city opening and the lifting of international travel restrictions. Profit from surfactant business was at a good level although aromatic spreads and base oil spreads declined. 

The refinery had higher throughput by 7%, compared with that of 2021, as it adopted its production plan to capture resumption in economic activities and the fact that COVID-19 pandemic was declared an endemic. At the same time, sales volume expanded by 11% and with higher product selling prices, sales revenue went up by THB196,071 million, totaling to THB544,792 million. GRM excluding stock gain/loss of 12.0 US$/bbl, or a 9.8 US$/bbl increase was reported during the period. 

Maybank Securities (Thailand) (MST) expected that TOP’s 1Q23 earnings outlook will recover further, driven by a widening spread of refined petroleum products according to the demands from China’s reopening. Plus, Russian countermeasures will be a more positive factor. In addition, the stock loss is expected to decrease while the share offers an attractive dividend yield. Recommending “BUY” with a target price of THB62.00.