TOP shares hit a new low in 5 years after increasing the CFP project budget by 6.3 billion, pushing investment to 2.8 billion baht.

TOP shares plunge 16%, a new low in 5 years, the board has a special resolution to increase the budget for the Clean Energy Project (CFP) by 6.3 billion, pushing investment to 2.8 billion after facing delays from the project contractor.

On December 20, 2567, the share price of PTT Oil Public Company Limited (TOP) closed in the morning at 29.25 baht, down 5.75 baht (-16.43%), with a trading value of 1,385.33 million baht.

Analysts stated that TOP shares fell to a five-year low after investors sold on concerns about increased investment in the Clean Energy Project (CFP), which will require an additional 5 billion baht after severe construction problems in the past.

Mr. Bandit Thammaprajamjit, Chief Executive Officer and Managing Director, Thai Oil Public Company Limited It was revealed that the special meeting of the company's board of directors No. 6/2567 on December 19, 2567 resolved to approve an increase in the budget for the Clean Fuel Project (CFP) of approximately 63,028 million baht, equivalent to approximately 1,776 million US dollars, and interest during construction of approximately 17,922 million baht, equivalent to approximately 505 million US dollars, totaling 80,950 million baht.

This results in the total investment budget of the CFP project being approximately 241,472 million baht or approximately 7,151 million US dollars and interest during construction being approximately 37,216 million baht or equivalent to approximately 1,078 million US dollars, totaling 278,688 million baht.

Krungsri Securities Negative view on the CFP project cost trend that will increase by about 33% or about 1,776 million US dollars. When combined with the interest expenses that will increase from the construction delay of about 3 years, the total investment value will increase by about 8.1 billion baht, which will affect the initial target price by about -36 baht. The increased investment value will be capitalized as the total project cost without impairment through the profit and loss statement.

Krungsri Securities is in the process of adjusting down TOP's estimates and recommendations, recommending to avoid investment due to the significant change in CFP project returns.

Thanachart Securities It is stated that TOP announced an additional investment of 8.095 billion baht in the CFP project, divided into 6.3 billion baht in capital expenditure (capex) and 1.8 billion baht in interest during construction to accelerate the project's completion after experiencing delays from the project contractor.

The additional investment will come from perpetual bonds and internal cash. This additional investment will increase the cost by 41% and the benefit from the investment in this project is expected to decrease to near 0 from the previous expectation of benefit of $1 per barrel. Maintain the recommendation to “Sell” TOP with a base price of 39 baht.

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