Torsang Chaipravat, Senior Executive Vice President, Corporate Accounting & Financing at IRPC Public Company Limited (SET: IRPC), unveiled the company’s 2Q26 outlook, expecting an improvement in petrochemical spreads compared to the previous quarter.
The outlook stems from uncertainties surrounding the situation in the Strait of Hormuz, resulting in tightened petrochemical supply both regionally and globally, which in turn pushes spreads higher. However, a significant rise in oil prices would increase petrochemical production costs and subsequently raise product prices, potentially impacting customers and resulting in a slight slowdown in purchasing.
She added that the direction of crude oil prices depends on how the conflict in the Middle East evolves. A swift resolution could lead to a decrease in crude oil prices, which would mean the company faces the risk of stock loss even if petrochemical spreads remain solid—a positive factor warranting close attention.
Nevertheless, crude oil prices are expected to stay at approximately $80 per barrel, since the underlying structural impacts from the ongoing war imply it will take time for oil production to return to previous levels, keeping prices elevated.
IRPC operates according to the “4R” strategic framework, comprising Recapitalize (strengthening financial stability), Revitalize (enhancing core business efficiency), Reinvent (building new businesses and revenue sources), and Reframe (organizational transformation and integrating ESG with digital transformation). These strategies are aimed at increasing business competitiveness and supporting long-term growth. The company has set a 5-year CAPEX plan (2026-2030) at THB 10,380 million.
Moreover, IRPC’s strength lies in being a fully integrated refinery and petrochemical complex, allowing for flexibility in production planning. From 1Q26 to date, the company has maintained a relatively high production level. Additionally, IRPC primarily serves a domestic customer base and upholds strict financial discipline, including efficient cash management, as well as managing its debt ratio and financial costs at appropriate levels.
Regarding crude oil procurement, the company had sourced crude oil from the Middle East at an average of 70 – 72% in the past, but as of March, this dropped to 64%. IRPC has accelerated sourcing of crude oil from alternative suppliers such as Malaysia, the U.S., and South Africa, as well as adjusting its production plans accordingly, which stood at 95% in April-May.
For July 2026, IRPC has already secured 70% of its crude oil needs and continues to seek additional supply over the next 2-3 months to ensure price suitability and alignment with company requirements.
Torsang further stated that IRPC, together with PTT Tank Terminal Co., Ltd. (PTT Tank), is currently studying an appropriate joint business model to expand business opportunities in tank farm services to generate quick revenue and attract more external clients. The ongoing Middle East unrest has increased opportunities for the collaboration with PTT Tank in finding new customers.
Regarding other assets such as land, where IRPC has a substantial holding, the company is looking for partners for joint investment in the future.
