IRPC Posts Net Profit of 7.889 Billion Baht as Dubai Crude Oil Expected to Trade Between $98-105 Per Barrel
IRPC swung to a 7.889 billion baht profit in Q1 2025 after crude oil prices surged due to Middle East geopolitical tensions, though the refiner warns of downside risks if prices fall.
IRPC reported first-quarter 2025 net profit of 7.889 billion baht, a dramatic turnaround from a 574 million baht loss in the previous quarter. CEO Thotsaphon Prommuang attributed the performance to net revenue of 67.779 billion baht, up 22 percent from Q4 2024, driven by higher average selling prices following crude oil price increases. The company recorded a Market GIM of 7.902 billion baht (13.21 USD per barrel), up 14 percent from the previous quarter.
The first quarter benefited significantly from Middle East geopolitical tensions, particularly concerns about the Hormuz Strait closure, which created substantial global oil supply constraints and pushed crude prices up sharply. Dubai crude surged from an average of $68 per barrel in February 2025 to approximately $129 per barrel in March, resulting in substantial inventory gains of 9.843 billion baht. This contributed to EBITDA of 14.750 billion baht, up from 13.394 billion baht in the prior quarter.
However, the company recorded unrealized losses of 1.981 billion baht from oil hedging activities during the quarter, compared to gains of 258 million baht previously. Investment gains improved 64 percent to 299 million baht, primarily from proceeds on selling stakes in joint ventures.
Prommuang cautioned that while first-quarter results improved substantially, the rapid crude price movements have created significant impacts on costs, liquidity, and working capital. Should crude prices decline as Middle East tensions ease, IRPC faces downside risk from recognizing inventory losses on high-priced crude holdings purchased in advance. The company continues to face headwinds from supply-demand volatility and geopolitical factors.
For the second quarter of 2025, IRPC anticipates crude oil and petrochemical markets will remain volatile from geopolitical factors and supply constraints, with Dubai crude expected to trade in the $98-105 per barrel range. The company maintains its strategic focus on balancing returns with prudent risk management, cost discipline, financial discipline, liquidity management, and careful energy price risk management to sustain competitive advantage and long-term sustainable growth amid continued economic and energy market uncertainty.
