SPRC reported a first-quarter profit of 5,758 million baht from oil inventory, and is closely monitoring the Middle East situation.

SPRC reported a first-quarter profit of 5,758 million baht from oil inventory gains driven by higher crude oil prices. The company is closely monitoring the Middle East market while managing its inventory, cash flow, and liquidity to mitigate any potential inventory losses if oil prices reverse.

Date 15 May 2569 Star Petroleum Refining Public Company Limited (SPRC) Caltex, an oil refinery and gas station operator, reported first-quarter 2569 earnings with total revenue of US$1,627 million (approximately 52,877 million baht) and net profit of US$228.6 million (7,416 million baht), compared to the previous quarter. Net profit increased significantly, largely due to a $177.5 million (approximately 5,758 million baht) gain from oil inventories (net of tax) driven by higher crude oil prices amid geopolitical tensions in the Middle East.

Excluding gains from oil inventory, the company's adjusted net profit was US$51.1 million (approximately 1,658 million baht), reflecting a decline in performance compared to the previous quarter. This resulted from a lower crude oil refining rate due to planned major maintenance (Turnaround & Inspection – T&I), as well as related expenses during that quarter.

The crude oil refining rate in Q1 2569 was 63.2%, compared to 92.6% in the previous quarter. This was mainly due to planned major maintenance successfully completed as scheduled. This maintenance will enhance the refinery's operational efficiency and strengthen its long-term business stability and capability.

Geopolitical tensions in the Middle East have led to high volatility in global oil prices, significantly impacting performance in Q1 2569. The company recognized profits from oil inventories resulting from higher oil prices.

However, if oil prices move in the opposite direction, the company could be negatively impacted by inventory losses. Furthermore, the widening price differential between crude oil and shipping costs directly affects the global oil supply chain and the company's overall performance.

Mr. Herbert Matthew Penn II, Chief Executive Officer and Director of SPRC, stated that the company continues to closely monitor geopolitical and market conditions, along with managing inventory, cash flow, and liquidity to ensure operational resilience and support Thailand's energy security.

Furthermore, the company has allocated profits for crude oil procurement, enhancing operational efficiency, upgrading refineries and product quality to ensure long-term performance stability. It continues to strengthen its integrated business platform to improve profitability, safety, reliability, environmental compliance, infrastructure development and improvement, and digital transformation.

As a cyclical refinery business, SPRC remains committed to managing its business and finances to the best of its ability to navigate every stage of the business cycle in order to maximize shareholder returns, while simultaneously ensuring sufficient fuel supply to meet domestic demand and support Thailand's energy security.

Note: Calculated at an exchange rate of 32.44 baht/US dollar.

Read all interesting business news here.