Bangchak Group reported its performance for 2022 with revenue from sales and services totaling 312,202 million baht, EBITDA of 44,724 million baht, increasing by 73% from 2021, and net profit attributable to owners of the parent company of 12,575 million baht, equivalent to earnings per share of 8.89 baht.
This is an all-time high performance in almost 4 decades of its operations, while the fourth quarter of 2022 recorded revenue from sales and services of 84,583 million baht, EBITDA of 6,951 million baht, and net profit attributable to owners of the parent company of 473 million baht, reflecting the success of diverse and balanced business, agile organizational structure, and growth, emphasizing energy security and sustainability.
Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited said that Bangchak Group set a new record in 2022 with its highest performance to date. Bangchak and its subsidiaries recorded revenue from sales and services totaling 312,202 million baht, increasing 57% from 2021, representing EBITDA of 44,724 million baht, increasing 73% from the previous year, resulting in net profit attributable to owners of the parent company of 12,575 million baht, increasing 65% from 2021, equivalent to earnings per share of 8.89 baht.
The fourth quarter of 2022 recorded revenue from sales and services of 84,583 million baht, EBITDA of 6,951 million baht, and net profit attributable to owners of the parent company of 473 million baht.
This is mainly from the refinery business and upstream investments in Norway which represents the success of the expansion and transition into a more diverse and balanced business, agile organizational structure, and effective strategy deployment. The company’s board of directors approved to propose dividend payments for the second half of 2022 at the rate of 1.00 baht per share.
Noteworthy Performance by Business Group are as follows:
Refinery and Oil Trading Business Group recorded EBITDA of 17,864 million baht, an increase of 91% from 2021, attributable to the ability to adapt, add value to its products, and establish a new customer base. Bangchak Refinery’s improved efficiency enabled it to operate at an all-time high since its establishment, averaging 123,000 barrels per day throughout 2022, increasing 24% from 2021, supported by demand recovery. Supply constraints from the ongoing Russia-Ukraine war increased Operating Gross Refinery Margin by US$ 9.81 per barrel, from US$ 4.52 per barrel in 2021 to US$ 14.33 per barrel in 2022, in tandem with increased crack spreads for finished products.
The company recognized loss from crude oil and product forward contracts and lower inventory gain due to the lower crude oil price volatility during the second half of 2022. BCPT’s oil trading business continued to grow, settling 15% more crude oil and refined products transactions than the previous year and increased gross profits from the higher proportion of transactions with counterparties outside of Bangchak Group.
Marketing Business Group recorded EBITDA of 2,909 million baht in 2022, increasing 11% from 2021, mainly from higher sales volume following demand recovery and marketing efforts. Moreover, the opening up of countries around the world after Covid-19 drove jet fuel sales to increase by 148% from the previous year. The cumulative retail sales volume market share in 2022 was 16.4% compared to 16.2% in 2021 (data from the Department of Energy Business). At the end of 2022, the number of service stations grew to 1,343 stations, and Non-Oil business, Inthanin Coffee grew to 1,002 branches.
Power Plant Business Group, operated by BCPG Public Company Limited, recorded EBITDA totaling 6,400 million baht in 2022, increasing 53% from 2021, from recognized gain from the sale of all investments in Star Energy Group Holdings Pte. Ltd. totaling 2,031 million baht in the first quarter of 2022. Performance from normal operations increased from the COD of 3 solar power projects in Japan, which generated 373% more electricity compared to the previous year.
Bio-Based Product Business Group, operated by BBGI Public Company Limited, recorded EBITDA totaling 617 million baht, a decrease of 67% from 2021, mainly due to the recognition of gain on fair value adjustment in the third quarter of 2021. Performance from normal operations declined mainly from lower ethanol and biodiesel sales volumes in line with the lower blending mandate from B10 to B5 announced by the Committee of Energy Policy Administration (CEPA) during the first 9 months of the year.
Natural Resource Business Group and New Business Development recorded EBITDA totaling 17,625 million baht in 2022, increasing 114% from 2021, in part due to the changing recognition of OKEA’s performance to the consolidated method since quarter 3 of 2021. As a result, in 2022, the Natural Resources Business Group recognized OKEA’s full-year EBITDA.
OKEA performance in 2022 recorded an EBITDA increase of 82% from higher average selling price of oil and natural gas liquids, and natural gas which increased in line with higher demand from the global market. Sales volumes of 2022 increased by 3% from 2021, mainly from Yme field.
In the fourth quarter of 2022, the company and its subsidiaries recorded revenue from sales and services totaling 84,583 million baht, increasing 13% from the previous quarter, and EBITDA of 6,951 million baht, decreasing 39% from the previous quarter.
The revenue was impacted by lower global energy prices, resulting in inventory loss of 4,003 million baht. Moreover, OKEA was affected by the late arrival of winter and high gas storage levels in Europe. The fourth quarter of 2022 recorded net profit attributable to owners of the parent totaling 473 million baht, equivalent to earnings per share of 0.26 baht.
Chaiwat concluded that 2023 will be another challenging year as major economies face the risks of geopolitical conflicts, and trade barriers. Nevertheless, 2022 performance has laid a strong foundation for Bangchak Group moving forward. At the beginning of the year, the company announced the acquisition and tender offer of Esso (Thailand) Public Company Limited’s shares.
This will help elevate its business operations and leadership in energy transition, with a strong foundation in energy security, and expanding investments in future energy while continuing to develop its current businesses, and businesses with growth potentials with focus on balancing the Energy Trilemma, namely energy security, energy affordability, and environmental sustainability.
This reinforces its vision of “Crafting a Sustainable World with Evolving Greenovation” and commitment to develop sustainable business innovation in harmony with the environment and society, that has been a cornerstone for Bangchak’s operations for nearly 4 decades of existence.
Relatedly, on 20 February 2023, the company’s board of directors approved to propose dividend payments for the second half of 2022 at the rate of 1.00 baht per share. Combined with the interim in the first half of 2022, at the rate of 1.25 baht per share, a total dividend payment will be 2.25 baht per share, with the Record Date scheduled for 7 March 2023, and Payment Date scheduled for 24 April 2023.
