OR shares gained as much as 6% in the early morning session on Wednesday after excellent 1Q22 net profit.
As of 12.30 hrs. local time in Thailand, the share price of PTT Oil and Retail Business Plc. (SET: OR) rose THB1.50/share, or 5.94% to THB26.75/share, with a trading value of THB1,895 million.
OR reported a net profit of THB3,845 million in 1Q22, a slight decrease from the same period last year but an increase of 63% from the previous quarter, beating both the Bloomberg consensus estimate and the FSSIA prediction.
Core net profit was THB3.8 billion, up 104% quarter-over-quarter and 191% year-over-year due to the higher net profit from its oil unit on rising sales volumes of jet fuel and diesel to power plants and the non-oil unit on higher sales volumes and the fading impact of the government’s diesel price cap.
Meanwhile. EBITDA for the period was THB6.5 billion, with THB4.8 billion coming from the oil unit, boosted by a higher marketing margin (MM) at THB1.14/litre, up from THB0.98/litre in 4Q21 but down from THB1.31/litre in 1Q21.
Mr. Suwat Sinsadok, Managing Director of FSS International Investment Advisory (FSSIA), recommends a “BUY” rating on OR with a target price of THB36.0 per share.