PTT Oil and Retail Business Public Company Limited or OR explains that the impact will be minimal, supporting the government sector in reducing people's living costs. Ready to reveal that other income has grown as planned. Each year profits grow 10%.
Mr. Disthat Panyarachun, Chief Executive Officer of PTT Oil and Retail Business Public Company Limited or OR, revealed that although there may be an impact from government policies that reduce oil prices and marketing costs, some But it had little impact. Because if you look at the profit portfolio Retail sales of petroleum through PTT gas stations are in small numbers. There is only a proportion not exceeding 30% of net profit. And if comparing the proportion of sales in the retail business through gas stations There will be a sales proportion of 55% of the mobility business, with the remaining 45% being other oil trades, including trade in engine oil, aircraft, shipping, industrial, government, LPG, and special products such as asphalt. OR's business has 4 areas: mobility, lifesyle. , global and innovation
“State policy on reducing the cost of living It is considered a good thing for the people. As for the impact of OR, it was not much. Because they are buyers and sellers. There is a small proportion of the retail portfolio, approximately 30% of the net profit, while marketing costs have always been within the government framework, not exceeding 2 baht/liter. In addition, other businesses are expanding well, such as lubricant Fully competitive jet fuel OR was able to compete for number 1 in sales,” Mr. Disthat said.
As for jet fuel sales, it is a fully competitive business. In 2023, OR will continue to grow. This year's sales expanded 60% compared to last year, expected to be approximately 3,200 million liters. In 2024, it is expected that sales will recover to the same level as before the COVID-19 crisis at approximately 4,000 million liters/year. Tourism, such as free visas for Chinese-Kazakhstan tourists From 25 September 2023 - 29 February 2024, it will help make tourism lively. Oil and other sales will increase
Direction of operating results in the second half of this year Oil sales continue to grow from the first half of the year. Including other businesses As a result, it is expected that the overall operating results for this year will be in line with the goals set. Maintain a normal profit growth rate of 10% per year, while in the 3rd quarter of 2023 the company can still generate profits in the specified direction.
As for the first half of 2023, there was a profit of 5,732 million baht, a decrease from the same period last year with a profit of 10,413 million baht. This is because in 2022 the average gross profit was higher than normal. From the fluctuating oil prices in the world market due to the Russian-Ukrainian crisis. which if compared with other companies in the same business It can be seen that This year profits decreased in the same direction. But OR is still strong and making good profits.
The part that criticizes the oil marketing cost figures referenced on the website of the Energy Policy and Planning Office (EPPO) is that they are high and different from the calculations of oil traders. Because there are different calculation references. The oil trader's calculation is based on the actual cost of purchasing from the refinery. With a sulfur value not exceeding 50 ppm (Euro 4), but the EPPO's value is calculated from the average of oil in the Singapore market that does not have a price of 50 ppm, referring to the average oil price of 500 ppm and 10 ppm (EURO5), making the EPPO's value higher. The private sector is around 1.20-1.30 baht/liter, for example the gasoline marketing price of the newspaper is as high as 3.10-3.30 baht/liter, but for oil traders it is only 1.90-2.00 baht, with the average marketing price of Oa. This year's price is 1.60-1.70 baht/liter and it is expected that this problem will go away. Because from January 1, 2024, Thailand uses EURO 5 standard oil, causing publishers and oil traders to use the same reference standard of sulfur not exceeding 10 ppm.
As for the policy of liberalizing the import of refined oil, At this time, we would have to look at the details. What additional guidelines will the government have? But in the past, the oil import business was already free. But must comply with Thai oil standard requirements. which has a high standard of detail This results in higher import costs as well. It can be seen that Even Shell, which has a refinery in Singapore, does not import it, mainly buying from Thailand. Currently, Thailand has insufficient production of gasoline to meet demand. OR has imported from time to time. It was found that the cost is higher than purchasing from domestic refineries by approximately 1 baht/liter. In the 4th quarter of 2023, it is expected that OR will need to import approximately 50 million liters of gasoline. – Thai News Agency
Source: Thai News Agency