IRPC expects Q1/65 profit in oil stocks, arranges a 5-year investment budget of 41 billion baht, pushing EBITDA

Mr. Chawalit Tippawanich, Chief Executive Officer and President IRPC Public Company Limited (IRPC) revealed that the company expects the 1Q12 will have a chance to gain from stock gains (Stock Gain) due to the continued rise in crude oil prices. Recently, it has stood above 100 USD/barrel. And with the cost of new oil prices, it will immediately affect the price of naphtha products. There is also a positive factor from the increased demand for the product. After the global investment has been slowed down quite a lot in the past.

As for the trend of product spreads (Spread) now depends on the impact of the Russian-Ukrainian war whether it will expand or not. If there is a shortage of feedstock, this will encourage spreads to rise. But at present, no such signal has been seen.

As for the outlook in 65, the company expects the GRM (GRM) to be close to the previous year at $5.91/barrel. Due to the spread of the Petroleum side was better compared to the previous year. On the other hand, petrochemical spreads may slow slightly due to incoming supply. As for the overall picture of the year, will there be profit from oil stocks? Still have to wait to see the situation continuously whether the average oil price for the year will be higher or lower than the previous year at the average oil price of 78 USD / barrel.

This year’s refining capacity It is expected to drop to 1.80-1.85 hundred thousand barrels/day. from the previous year at 1.92 hundred thousand barrels/day Because the company is scheduled to close for maintenance of the refinery during October-November 65 for a period of one month, which will reduce the production capacity in 4Q22 to 1.40 hundred thousand barrels per day.

Mr. Chawalit added that during the past 5 years (65-69), the company has set a total investment budget of 41,350 million baht, divided into acquisitions (M&A) about 14 billion baht, refinery efficiency improvement projects and diesel oil quality improvements. According to the Euro 5 standard (Ultra Clean Fuel Project: UCF), approximately 10 billion baht and the maintenance shutdown of the refinery this year, 2 billion baht, the rest will be used for refinery efficiency improvement of 2 billion baht per year.

The investment budget for the year 65 will be approximately 20 billion baht, divided into projects to improve refinery efficiency and improve diesel quality. According to the Euro 5 standard (Ultra Clean Fuel Project: UCF) about 6 billion baht and acquisitions (M&A) about 9,000 million baht, which are currently in the process of many negotiations. Depends on whether it’s a conclusion or not. Including refinery efficiency improvement and refinery shutdown this year, totaling approximately 4,000 million baht.

Mr. Chavalit said that from such investments, the company aims to have a profit before tax. depreciation and amortization (EBITDA) will grow to 25,000 million baht in ’68 and increase to 35 billion baht in 73 or there will be an increase in EBITDA of 1,500-1,800 million baht per year.

The progress of the UCF project continues to progress. in line with the government’s policy This project will increase competitiveness from the trend of higher demand of low sulfur diesel both within the country and in ASEAN countries (AEC) and is also environmentally friendly. Help reduce the problem of PM 2.5 dust pollution, in response to the company’s policy. which strives to be a modern green factory (Eco Factory). Currently, the project is in the construction process. It is expected to start commercial production in 1Q14.

As for the project to produce non-woven fabrics, which are the main raw materials for filter fabrics for masks, N95 masks, gowns and air filters, where the company holds a 60% stake in the joint venture establishment of Innopo Company. Limade Co., Ltd. will be able to produce commercially in 2Q22 to help reduce imports from abroad. and raise the level of public health and medical equipment of Thailand

IRPC has also set a target of 20% reduction in greenhouse gas (GHG) emissions by 2030 and is moving towards a Net Zero Emission organization that will increase efficiency from using clean energy, such as expanding floating solar projects and solar farm projects in Thailand. IRPC Industrial Zone, Rayong Province Research and develop solar cell coating materials to increase the efficiency of electricity generation. and components for backup energy storage devices for electric vehicles, etc.