Thai Oil Reports Net Profit of 19.481 Billion Baht as Q2 Expected to See Oil Stock Losses
Thai Oil reported first-quarter net profit of 19.5 billion baht, though 85% came from temporary oil inventory gains that the company warns could reverse into losses in Q2 as crude prices decline.
Pongsapun Amorwiwattana, Chief Executive Officer and Managing Director of Thai Oil Public Company Limited (TOP), announced that the company posted net profit of 19.481 billion baht for the first quarter of 2025. Of this, 85% or 16.746 billion baht came from net gains on oil inventory valuations, with an additional 2.436 billion baht in gains from debt repurchases. "Despite strong operating profits, the company recognized 6.628 billion baht in other expenses and losses," Amorwiwattana stated. "When these are excluded, the group's underlying net operating profit stands at 6.927 billion baht, with refining business net profit of 4.136 baht per liter."
The executive cautioned that these oil stock gains are temporary and could reverse into losses if oil prices decline as geopolitical tensions ease. The company had secured crude oil supplies one to two months in advance during the period of heightened conflict, meaning Q1 accounting costs do not fully reflect the impact of price volatility.
Refining margins including oil stock gains reached 7.6 baht per liter in Q1, but are expected to gradually decline to 2.6 baht per liter in Q2, turn negative at minus 2.3 baht per liter in Q3, and flatten to near zero in Q4. The company forecasts full-year 2025 refining margins of around 2.0 baht per liter.
For Q2 outlook, the company expects continued market volatility and anticipates recognizing oil inventory losses starting from Q2 onwards, as the crude purchased during March-April's crisis period becomes reflected in production costs. However, should geopolitical tensions resolve, crude prices would fall and create downstream losses from high-cost inventory.
Regarding government fuel price reductions of 2-5 baht per liter between April 9 and May 19, the company views this as a short-term measure. Any further price reductions would require careful consideration, and negotiations over recovering previously reduced refining margins remain ongoing.
