Bangchak Group Reports First-Quarter 2024 Performance Driving Growth in Alignment with Consolidated Business Plan and Synergy Recognition, Setting New Records in Refining Capacity, Sales Volume, and Upstream Business

Bangchak Group reported its first-quarter 2024 performance, which recorded total revenue from sales and services of THB 135,567 million, EBITDA of THB 15,382 million, and profit attributable to owners of the parent of THB 2,437 million, equivalent to earnings per share of THB 1.68. The Refinery and Oil Trading Business Group achieved a record-high average crude run from two world-class refineries of 271,700 barrels per day. The Marketing Business Group recorded total sales volume across all channels, reaching 3,541 million liters, and increased the service station market share. The Natural Resources Business, through OKEA ASA, recorded a new historic high revenue from significant growth in production and sales volume from the performance recognition of the Statfjord and Hasselmus fields.

Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited, disclosed that the first quarter performance of 2024 benefitted from the synergy within Bangchak Group and successfully drove growth according to business plans and goals. The company recorded revenue from sales and services of THB 15,308 million, a 48% increase from the previous quarter and a 39% increase from the same period in 2023, and recorded profit attributable to owners of the parent of THB 2,437 million, more than a 100% increase from the previous quarter, equivalent to earnings per share of THB 1.68.

During the first quarter of 2024, Bangchak Group began to realize synergies amounting to approximately THB 1,500 million across its Refinery and Oil Trading Business, Marketing Business, Logistics, and Shared Services. The Group is committed to driving synergy to achieve the target EBITDA Synergy (before tax) of no less than THB 2,500 million in 2024 and no less than THB 3,000 million per year in the coming years. A Single Linear Program (LP) is expected to be implemented by the latter half of the year to improve the refining process further and complete the change of service station logos by the end of this year.

Moreover, in early 2024, the Group commemorated a groundbreaking ceremony for Thailand’s first SAF production unit, which is set to begin commercial operation in the second quarter of 2025. To secure a stable raw material supply for SAF production, the company initiated the ‘Fry to Fly’ campaign to purchase used cooking oil and partnered with Sumitomo Corporation to procure used cooking oil to strengthen the UCO-to-SAF supply chain. Bangchak Group signed a cooperative framework agreement with Cosmo Oil and Sumitomo Corporation to purchase SAF produced by Bangchak.

For the second quarter of 2024, Bangchak Group will be attentively monitoring several critical factors. These include the potential decrease in refining margins due to economic slowdown and global inflation, the planned turnaround maintenance of Phra Khanong Refinery, and the anticipated seasonal demand reduction. According to strategic plans, the company will closely monitor the situation, manage operations to enhance productivity and efficiency and pursue continuous development as it enters its fifth decade in 2024. It remains committed to maintaining a balanced approach in conducting business under the “Greenovate to Regenerate” concept and contributes to driving Thailand sustainably towards its Net Zero Emissions target.

Phatpuree Chinkulkitnivat, Chief Financial Officer and Senior Executive Vice President, Accounting and Finance, reported the significant performance in the first quarter of 2024 of each business group as follows:

The Refinery and Oil Trading Business Group (Phra Khanong Refinery and Sriracha Refinery) had EBITDA of THB 4,404 million, an increase of more than 100% from the previous quarter, and a 9% increase from the same period in 2023. It achieved a record-high average crude run from the two world-class refineries of over 271,700 barrels per day. This was attributed to the increased capacity of 150,300 barrels per day at the Sriracha Refinery (from 119,300 barrels per day), considered the highest crude run in the refinery's history. The Phra Khanong Refinery maintained a high capacity of 121,400 barrels per day. During the first quarter, there was a gradual increase in operating GRM (from USD 4.65 per barrel in the fourth quarter of 2023 to USD 6.08) and lower inventory loss. BCPT’s oil trading business grew 36% from the previous quarter due to procuring crude oil and refined products for two refineries. It has continued to broaden its sales networks and overseas trading business to accommodate business growth and diversification.

The Marketing Business Group had an EBITDA of THB 1,899 million, more than a 100% increase from the same period in 2023. Sales volume across all channels was as high as 3,541 million liters, growing by 5% from the previous quarter and over 100% from the same period in 2023. Key factors behind the growth included an extensive network of over 2,217 service stations nationwide, particularly in Bangkok and metropolitan areas, integrated marketing strategies, and increased sales from Bangchak Sriracha Public Company Limited (BSRC) service station after rebranding to Bangchak. During the first quarter of 2024, 332 service stations operated by BSR C changed their logos to Bangchak, enhancing the “Bangchak” brand strength and competitiveness. This is reflected in the sales volume and the service station market share, which increased to 29.2% (from 28.8% at the end of 2023).

The Clean Power Business Group by BCPG Public Company Limited recognized the share of profits from additional investments in associated companies of USA natural gas power plants, with the first quarter of 2024 recoding an EBITDA of THB 1,411 million, a 35% increase from the previous quarter, and a 66% increase from the same period in 2023.

The Bio-Based Product Business Group by BBGI Public Company Limited had an EBITDA of THB 284 million, a 12 % increase from the previous quarter and more than a 100% increase from the same period in 2023. This increase was mainly attributed to higher demand from BSRC.

The Natural Resources Business Group had an EBITDA of THB 7,404 million, a 30% increase from the previous quarter and a 37% increase from the same period in 2023. This was a new record high, thanks to significant growth in production and sales volume from OKEA ASA’s performance recognition of the Statfjord field, which it had acquired on 29 December 2023, and the Hasselmus field, which started commercial operations in October 2023. Nonetheless, the Statfjord field incurred impairment loss due to lower-than-anticipated production volume for 2024. This loss was partly offset by a reversal of loss from impairment of assets based on the shareholding ratio (after tax) of THB 366 million.