On Thursday, the share price of Tipco Asphalt Public Company Limited (SET: TASCO) at the time of 12:05 a.m. was at THB 15.90, a THB 1.20 or 8.16% increase with a total trading value of THB 491.05 million.
Krungsri Securities (KSS) projected a positive outlook for TASCO, reiterating its “Buy” rating with a target price of THB 18.9, following notable developments regarding the company’s raw material sourcing strategy.
According to the company’s management discussion and analysis, TASCO has resumed purchasing crude oil from Venezuela for the first time in six years, with the first shipment expected to arrive between late July and early August 2026. KSS believes this move marks a significant turnaround for TASCO, positioning the company to return to a growth cycle and enhance its medium-to-long-term profitability. The research note suggests this development could provide further upside to the consensus market outlook.
The securities firm further highlighted that TASCO’s asphalt refinery is optimally configured to process heavy crude oil from Venezuela. This feedstock offers a considerably higher production yield, boosting output to approximately 70%, compared to the current yield of 50% with alternative crudes.
The initial transaction has been structured as a spot purchase, involving one shipment of 600,000 barrels. The company is currently evaluating further procurement terms, with the potential to switch to a long-term supply agreement similar to previous arrangements. If successful, such a contract could secure continuous crude supply and strengthen TASCO’s operational stability—representing a positive catalyst for future earnings.
The resumption of Venezuelan crude imports underscores TASCO’s ability to adapt its supply chain and capitalize on favorable market conditions under the current U.S. administration.
