Thai Oil Public Company Limited (SET: TOP) delivered a resilient performance in the second quarter of 2026, reporting a net profit of Baht 8,284 million, a 28% increase compared to the same period last year. Sales revenue surged 31% year-over-year to Baht 129,709 million, primarily fueled by a sharp rise in average selling prices across all product lines in tandem with higher global crude costs.
Key Financial Highlights
- Net Profit: Baht 8,284 million (+28% YoY)
- Sales Revenue: Baht 129,709 million (+31% YoY)
- GIM (Excluding Stock): US$23.9/bbl
- Basic EPS: Baht 3.71
The core refinery business benefited from an exceptionally high Gross Integrated Margin (GIM) of US$23.9 per barrel (excluding stock impacts), representing a significant jump from US$14.8 per barrel in Q1/26. Tight supply conditions for jet fuel and diesel—exacerbated by geopolitical tensions and shipping disruptions in the Strait of Hormuz—drove these margins to record levels.
Additionally, the Linear Alkyl Benzene (LAB) and Base Oil segments provided healthy contributions as regional supply tightened across Asia. Conversely, the aromatics business faced headwinds, with paraxylene spreads squeezed by the soaring cost of gasoline 95 feedstock.
Operational strength was heavily masked by a substantial stock loss of Baht 10,741 million. This was triggered by a sharp correction in crude prices during June following a temporary ceasefire in the Middle East, illustrating the inherent volatility refiners face when procuring feedstock 1–2 months in advance. Furthermore, the group recorded a Baht 1,000 million impairment loss related to the Clean Fuel Project (CFP). These were partially offset by a Baht 5,053 million gain on the fair value measurement of financial instruments.
Earnings Per Share (EPS) for the quarter stood at Baht 3.71, up from Baht 2.90 a year earlier. The group maintained its financial stability, successfully issuing US$600 million in subordinated perpetual debentures to fund the CFP, while simultaneously redeeming US$550 million in existing debt to reduce long-term risk.
Looking ahead, management warns of continued uncertainty in 2H/2026 due to fluctuating energy prices and liquidity risks stemming from government interventions in domestic diesel pricing. The strategic priority remains the completion of the Clean Fuel Project by Q3 2028, which is expected to expand refining capacity to 400,000 barrels per day.
