TOP Reports 40% Decline in 2023 Earnings from Lower GIM and Non-Extra Book

Thai oil Public Company Limited (SET: TOP) has announced its 2023 consolidated financial statement through the Stock Exchange of Thailand as follows;


TOP reported a net profit of THB 19,443 million in 2023, down 40% compared to the same period of last year. This decline was attributed to lower product prices, which were in line with lower crude oil prices. Additionally, there was a decrease in the spread of almost every refining product over Dubai due to the slowing global economy trend and increased supply. In addition, lube base oil spread over fuel oil dropped from higher supply as well as the gross margin of surfactant manufacturing business decreased because of lower domestic demand. However, PX spread over ULG95 expanded from higher PX demand than 2022 and bitumen spreads over fuel oil slightly expanded.

Overall, GIM excluding stock gain / (loss) decreased by 3.4 US$/bbl, amounting to 10.0 US$/bbl. Additionally, in 2023, there was a stock loss of Baht 808 million, compared with a stock gain of Baht 3,613 million in 2022. On the other hand, there was a write-down on crude and petroleum product inventory of Baht 125 million, bigger loss than 2022 of Baht 115 million than last year. Including realized net loss from financial instrument of Baht 2,493 million, smaller loss by Baht 13,348 million than the previous year including only derivative instruments for commodity hedging, we reported EBITDA of Baht 35,453 million, dropped by Baht 1,734 million. Moreover, TOP had a loss on financial instruments of Baht 356 million, but the company reported a net gain from foreign exchange of Baht 213 million due to Thai Baht appreciation (Baht 485 million of which was from foreign exchange gain on foreign currency assets and liabilities). Moreover, in 2022, there was gain from investment reclassification and disposal of TOP’s investment in GPSC of Baht 17,334 million (before tax), or Baht 12,880 million (after tax). Offsetting with depreciation, finance cost, and tax expenses, TOP booked a net profit of Baht 19,443 million in 2023, a decline of Baht 13,225 million from the previous year.