Keerati Chaiyakul, Director of Accounting and Finance at Petchsrivichai Enterprise Public Company Limited (SET: PCE), revealed that the operating results outlook for the second quarter of 2026 has significantly improved, mainly supported by the B100 biodiesel business.
The positive momentum comes from the government’s policy to increase the biodiesel blend ratio in diesel from B5 to B7, including the B20 option, resulting in higher order volumes and sales compared to the previous period.
The sales volume of B100 grew by approximately 70 – 80% from when it was still B5 and began to fully reflect these positive results in the second quarter, after only seeing a short-term impact from policy announcement timing and delivery schedules in the first quarter.
Keerati stated that currently, the B100 business is the highest-margin product in the company’s portfolio, with a margin of about 6 – 10%, depending on raw material prices and market conditions. In comparison, the trading of crude palm oil averages a margin of about 2 – 3%, while other downstream products yield around 4 – 5%.
The company targets B100 to account for about 20 – 25% of total revenues this year, reflecting opportunities arising from increased demand for biofuels.
Currently, the company’s B100 production capacity stands at around 1 – 1.2 million liters per day, while average sales are approximately 500,000 – 600,000 liters per day—about 50% utilization. This leaves sufficient room to accommodate additional orders without the need for further investment in expanding production capacity.
Regarding the first quarter results, which were impacted by the mark-to-market of forward contracts, Keerati explained this was due to accounting standards requiring contracts to be valued at market rates as of the end of the reporting period, even if goods had not yet been delivered and revenue had not been actually recognized.
The company had locked in exchange rates at about THB 30 per US dollar, but by the valuation date, the dollar had strengthened to about THB 32, resulting in an accounting loss from the difference of roughly THB 100 million.
However, upon delivery of goods in the second quarter, the aforementioned loss will gradually be reversed, as revenues from product sales are recognized, significantly reducing the mark-to-market impact. The company expects to recover around 70 – 80% of this loss.
Keerati stated that the second quarter will benefit both from normal business profits and the reversing entries from the previous quarter, giving the operating results strong growth potential.
Simultaneously, the company can flexibly manage its sales portfolio between export and domestic markets. If the B100 market offers better returns, the company can shift more sales to the domestic market without affecting customer management since palm oil demand remains robust.
PCE believes that managing its product portfolio between the energy and palm oil businesses will strengthen competitiveness and provide long-term revenue stability. The company is prepared to seize opportunities from the rising demand for alternative energy and higher-value palm oil products.
