SPRC Falls 2.3% after Unplanned Shutdown of FCC Unit to Impact Bottom Line

The share price of Star Petroleum Refining Public Company Limited (SET: SPRC) dropped THB0.20 or 2.34% to close the morning session at THB8.35 per share, despite other refiners in the market gaining over 3%.

Tisco Securities published an analysis paper on Tuesday, showing concerns of the unplanned shutdown of SPRC’s Residual Fluidized Catalyst Cracker Unit (RFCCU) from the beginning of October and is expected to last 15-20 days.

Tisco Securities noted that this shutdown, dedicated to gasoline production, will lead to a loss of gasoline output, negatively impacting SPRC’s GRM in comparison to the Singapore benchmark.

The securities company anticipated limited overall impact at just 3% of 2023e earnings (Bt140mn), factoring in current gasoline margins. The actual effects could be even less severe, as SPRC has the capacity to procure external products during the shutdown and enhance utilization once the unit resumes operation. SPRC is currently targeting an October utilization rate of 150-160kbpd, relative to the 159kbpd recorded in 2Q23.

Tisco Securities maintained “Hold” recommendation on SPRC with a target price at THB10.00 per share.

Meanwhile, Thai Oil Public Company Limited (SET: TOP) rose THB1.50 or 3.14% to THB49.25 a share and Bangchak Corporation Public Company Limited (SET: BCP) gained THB1.25 or 3.25% to THB39.75 per share.