TOP Achieves a Net Profit of ฿3.4Bn. in 1Q21 Due to Higher Stock Gains

Thai Oil Public Company Limited (TOP) has announced its 1Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

TOP reported a net profit of Baht 3,360 million in 1Q21, recovering from a net loss of Baht 13,754 million in 1Q20. 

 

Compared 1Q21 with 1Q20, TOP had a decrease in integrated take from economic optimization following the COVID-19 pandemic and had lower sales volume. Therefore, lower sales revenue by Baht 3,120 million was recorded.  

 

However, TOP reported greater GIM excluding stock gain (loss) by 2.0 US$/bbl thanks to softer crude premiums compared with the same period of the previous year, despite declines in jet/kero and gas oil spreads from the COVID-19 outbreak. Moreover, the aromatics margin improved due to a better BZ spread over ULG95. LAB market was also supported by healthy demand during the COVID-19 pandemic. 

 

Furthermore, the lube base spread over fuel oil significantly improved thanks to limited supply compared with the same period of the previous year. In addition, there was a stock gain of Baht 4,656 million and a reversal on crude and petroleum product inventory of Baht 109 million, compared with a stock loss of Baht 10,772 million and a write-down on crude and petroleum product inventory of Baht 3,480 million in 1Q20.  

 

Combining with a net derivative loss on hedging instruments, TOP reported an increase in EBITDA of Baht 20,520 million. Offsetting with decreased finance cost by Baht 289 million from the capitalization of borrowing cost as part of assets, depreciation, and income tax expense. TOP reported an increasing net profit of Baht 17,114 million from the same period of the previous year.

 

In addition, referring to the Extraordinary General Meeting of the Shareholders on 28 October 2020, the meeting approved the restructuring of shareholding in power business comprising Step 1-a disposal of all shares directly held by the company in Global Power Synergy Public Company Limited (GPSC) to PTT Public Company Limited (PTT) in the amount of 251,173,540 shares, representing approximately 8.91% of all issued shares of GPSC and  Step  2 -an acceptance of the entire business transfer from Thaioil  Power  Company  Limited (TP), the company’s subsidiary in which the company holds 74.0% of all shares and PTT holds the remaining 26.0%

 

TOP had implemented the Restructuring Plan where the company disposed all of GPSC shares held by the company to PTT under the Share Disposal Transaction on 3 December 2020 in the total amount of Baht 16,757 million, which was recorded as gain from the sale of investment in GPSC of Baht 5,801 million in 4Q20, and the company accepted the transfer of the entire business of TP under the EBT Transaction on 1 February 2021, which had total cash outflows of Baht 13,022 million in 1Q21. After the Restructuring Plan, TOP directly holds 586,071,567 shares, representing approximately 20.78% of all issued shares of GPSC.