IRPC Focuses on Maintaining Operational Stability, Securing Raw Material Supply and Financial Discipline
Thai oil refiner IRPC reported Q1 2025 net profit of 7.9 billion baht, rebounding from Q4 losses as crude prices surged amid Middle East tensions, while the company strengthens supply security and financial discipline through its "4R" strat
May 13, 2025 – Therdkiat Prommoola, President and Chief Executive Officer of IRPC Public Company Limited, revealed that the company is carefully managing operations amid global energy market uncertainty. The company prioritizes maintaining operational stability, strengthening supply security, active risk management, and financial discipline to address impacts from Middle East geopolitical tensions and energy supply chain volatility.
IRPC maintains efficient business continuity and product delivery despite Middle East tensions and Strait of Hormuz transportation constraints affecting crude oil and shipping costs. The company has established a Crisis Management Center (CMC) for integrated risk management covering situation monitoring, business continuity, raw material procurement, inventory management, and production and delivery stability.
The company is strengthening supply security through diversified raw material sourcing and efficient supply chain management to handle global market fluctuations and support the nation's energy security. Meanwhile, IRPC operates under a "4R" strategic framework comprising Recapitalize (financial strengthening), Revitalize (core business efficiency improvement), Reinvent (new business and revenue creation), and Reframe (organizational restructuring and ESG integration with digital transformation) to enhance competitive capability and support long-term growth.
In Q1 2025, the company generated net sales revenue of 67,779 million baht, a 22% increase compared to Q4 2024, primarily due to increased average selling prices following rising crude oil prices. Market GIM stood at 7,902 million baht or $13.21 per barrel, up 14% from Q4 2024.
Crude oil prices in Q1 2025 were supported by Middle East instability, particularly Strait of Hormuz closures, creating significant supply tightness in global oil markets and driving rapid crude price increases. This generated stock gains of 9,843 million baht or $16.46 per barrel, resulting in EBITDA of 14,750 million baht, up 13,394 million baht from Q4 2024. In Q1 2025, the company recorded an unrealized loss of 1,981 million baht from oil risk management, compared to a 258 million baht gain in Q4 2024, while investment gains reached 299 million baht, up 64% from the previous quarter, primarily from proceeds from joint venture investment sales. These factors resulted in Q1 2025 net profit of 7,889 million baht, compared to Q4 2024's net loss of 574 million baht.
Therdkiat stated that although Q1 2025 performance improved with main support from stock gains following upward crude oil price movements due to Middle East tensions, the rapid increase in Dubai crude prices from an average of approximately $68 per barrel demonstrates market volatility.
