IRPC encounters cost of sales – hedging, causing a loss of 4 billion in the year 2022 budget

IRPC Public Company Limited or IRPC reports the operating results for the year 2022 ended December 31, 2022 as follows:

The performance of the year 2022 turned around a net loss of 4,363.62 million baht, compared to the same period last year with a net profit of 14,504.62 million baht, because in 2022 the company had a variable cost of sales. (raw materials at market prices) increased to 294,635 million baht, compared to the same period the previous year at 205,586 million baht Losses from derivatives (hedges) for oil hedges increased to 8,118.76 million baht compared with the same period last year. the same period of the previous year, a loss of only 1,942.16 million baht was recorded.

In addition, sales volume in 2022 decreased by 8%, with the refinery’s refining rate at 175,000 barrels per day, down 9% due to a major change planned in 4Q22 for about 1 month.

However, for the year 2022, the company still had a net sales revenue of 318,396 million baht, an increase of 35% compared to 2021, due to an increase in average sales prices of 43% following the increase in oil prices raw

Phatthanasin Nomura Securities Public Company Limited said that the IRPC trend will turn profitable in 2023 because there is no loss of the oil stock (stock loss), a large chunk of about 3,780 million baht, as in 2022 due to not stocking oil . volume for major renovations. And it has not made a hedge spread product for the year 2023 compared to the year 2022 which has been made since the 4th quarter of 2021 and is not affected by the refinery shutdown. Therefore, we still recommend “BUY” with a 2023 target price of 4.30 baht per share.

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