Bangchak Group Reports First-Half Performance, THB 293,438 Million Revenue, Record-High Revenue, Refining Capacity and Sales Volume Over THB 3 Billion in Synergy Recognized, Achieving 2024 EBITDA Synergy Target

Bangchak Group reported its first half 2024 performance, recording total revenue from sales and services of THB 293,438 million and EBITDA of THB 26,072 million. This resulted in a net profit attributable to owners of the parent of THB 4,261 million, equivalent to THB 2.91 earnings per share. The Refinery and Oil Trading Business Group benefitted significantly from the performance of BSRC. The Marketing Business Group achieved record-high total sales volume across all channels, reaching 6,919 million liters. The Clean Power Business Group reported increased revenue from electricity sales and a full half-year performance recognition of investments in the four natural gas power plant projects in the United States. The Natural Resources Business Group, through OKEA ASA, saw significant increases in production and sales volumes, notably from the Statfjord and Hasselmus fields.

Chaiwat Kovavisarach, Group Chief Executive Officer and President of Bangchak Corporation Public Company Limited, announced the first-half performance for 2024. Despite a decline in crack spread across all products due to global market conditions and turnaround maintenance at the Phra Khanong Refinery, Bangchak Group significantly improved its operational performance. The group generated revenue from sales and services of THB 293,438 million, a 98% increase from the same period in 2023. This is equivalent to EBITDA of THB 26,072 million, a 48% increase from the same period in 2023, and net profit attributable to the owner of the parent of THB 4,261 million, a 33% increase from the same period in 2023, equivalent to THB 2.91 earnings per share. Through investments in high-potential projects and creating synergy within Bangchak Group, the company recognized accumulated synergy from performance of over THB 3 billion during the first half of 2024, achieving the EBITDA synergy target of no less than THB 2.5 billion in 2024. The company aspires to continue improving to meet the annual EBITDA synergy target of THB 3 billion over the coming years.

In addition to robust growth in operational performance, Bangchak was ranked among the Fortune Southeast Asia 500 for the first time in 2024, recognized among Asia-Pacific Climate Leaders 2024 by the Financial Times, and selected for inclusion in the SET50 index from 1 July to 31 December 2024.

For the remainder of 2024, refining margins are expected to stabilize due to an anticipated increase in seasonal demand. The company will closely monitor and manage the situation to establish a stable and resilient foundation for sustainable growth.

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

The Refinery and Oil Trading Business Group (Phra Khanong Refinery and Sriracha Refinery) recorded an EBITDA of THB 6,452 million, a 19% increase from the same period in 2023, primarily driven by the operations of BSRC, which became part of Bangchak Group on 1 September 2024. The average production capacity significantly increased to 251,000 barrels per day, with the Sriracha Refinery increasing its average production capacity and consistently setting new record highs, helping to offset the decreased production of the Phra Khanong Refinery during its 27-day turnaround maintenance (7 May - 2 June 2024). Additionally, there was recognition of an inventory gain of THB 438 million (including NRV), which compensated for the pressure from the decreased operating GRM compared to the first half of 2023 due to lower crack spreads across all products amidst bleak global market conditions and concerns over the global economic slowdown.

The Marketing Business Group recorded an EBITDA of THB 4,095 million, an increase of over 100% from the same period in 2023. Record-high total sales volume across all channels was achieved, setting a new record at 6,919 million liters, an increase of over 100% compared to the same period in the previous year. This growth was driven by the expansion of the service station network and industrial customer base, following the recognition of the full-year operational performance of BSRC and the implementation of marketing strategies that cater to customer needs. These efforts helped boost sales through the nationwide network of 2,214 service stations.

The Clean Power Business Group, operated by BCPG Public Company Limited, recorded an EBITDA of THB 2,424 million, a 32% increase from the same period in 2023. This growth was mainly attributed to increased revenue from electricity sales, driven by the operational performance recognized over the half-year period from investments in four natural gas power plant projects in the United States with a total production capacity of 857 megawatts. Additionally, investments in an oil tank farm, a pier, and an oil pipeline in Phetchaburi Province helped mitigate the impact of the termination of solar power Adder subsidies in Thailand. Profits were also realized from the sale of stakes in nine solar power plant projects in Japan.

The Bio-Based Products Business Group, operated by BBGI Public Company Limited, recorded an EBITDA of THB 493 million, a 100% increase from the same period in 2023. This growth was driven by increased sales of ethanol and biodiesel, which aligned with the expansion of the Marketing Business Group.

The Natural Resources Business Group achieved an EBITDA of THB 13,074 million, a 43% increase from the same period in 2023. This growth is primarily attributed to increased production and distribution volumes, driven by the operational performance recognized over the half-year period from the Statfjord field, which obtained the transfer of rights on 29 December 2023. Additionally, the Brage field increased production capacity, and the Hasselmus field commenced commercial operations in October 2023.