JPMorgan states that PTT Oil and Retail Business Public Company Limited (SET: OR) reported a standout first quarter for 2025, with headline net income reaching THB 4.3 billion, marking a 46% rise from the previous quarter and an 18% increase year-on-year. This figure surpassed both JPMorgan and market consensus forecasts and represents around 49% and 46% of full-year estimates, respectively.
Excluding exceptional items—including a THB 120 million inventory loss, THB 77 million foreign exchange loss, and a THB 460 million one-time gain from the reversal of expected credit loss provisions—core profit reached THB 4.1 billion, a remarkable increase of 70% quarter-on-quarter and 56% over the previous year.
The improvement in underlying earnings was primarily driven by significant margin expansion across the company’s various business lines, despite overall muted sales volumes in the Mobility segment. Notably, Mobility remained the key earnings driver, posting a 40% surge in quarterly EBITDA, supported by healthier margins, particularly in jet fuel, even as sales volumes slipped by 3.2% compared to the previous quarter.
OR’s Lifestyle segment also delivered a strong performance, with EBITDA climbing 10% quarter-on-quarter on the back of effective cost controls and robust results from its Cafe Amazon operations. Meanwhile, the Global segment recorded a 31% jump in EBITDA, mainly attributed to a sharp rebound in its business activities in the Philippines.
JPMorgan maintains a Neutral rating on OR with a target price of THB 12.50, highlighting the company’s ability to deliver earnings resilience through margin improvements across its portfolio.
