Management's Discussion and Analysis (MD&A) Thai Oil Public Company Limited

For The Third Quarter and The First Nine Month of 2023

Table of Contents

Page

1.

Company and its Subsidiaries' Operating Results

2

2.

Summary of Financial Result by Business

5

2.1

Market Condition and Financial Result of Refinery Business

6

2.2

Market Condition and Financial Result of Aromatics Business

9

2.3

Market Condition and Financial Result of an Intermediate for the Production of Surfactants Business ..

11

2.4

Market Condition and Financial Result of Lube Base Oil Business

12

2.5

Financial Result of Power Generation Business

14

2.6

Financial Result of Solvent and Chemicals Business

15

2.7

Financial Result of Olefin Business

16

2.8 Financial Result of Ethanol Business

17

3.

Analysis of Consolidated Financial Statement

18

3.1

Statement of Financial Position

18

3.2

Statement of Cash Flows

20

3.3

Financial Ratios

21

4.

Industry Outlook for the Third Quarter of Year 2023, and the Fourth Quarter of Year 2023

22

5.1

Summary of Approved Investment Plan

24

5.2

Summary of Key Project Investment: Clean Fuel Project (CFP)

24

1

Management's Discussion and Analysis (MD&A) Thai Oil Public Company Limited and Subsidiaries For the Third Quarter and The First Nine Month of 2023

1. Company and its Subsidiaries' Operating Results

Table 1: Summary of Consolidated Financial

(Million Baht)

Q3/23

Q2/23

+/(-)

Integrated Intake (kbd)

305

315

(10)

Gross Integrated Margin (GIM)(1) (US$/bbl)

: excludingStock Gain/(Loss)

13.6

6.1

7.5

: includingStock Gain/(Loss)

23.3

4.2

19.1

(Million Baht)

Q3/23

Q2/23

+/(-)

Sales Revenue

119,656

108,467

11,189

Net Realized Gain/(Loss) on Financial

Instruments (2)

(2,490)

449

(2,939)

EBITDA

18,973

4,618

14,355

Net Gain/(Loss) of Financial Instruments

(2,028)

(187)

(1,841)

Net Foreign Exchange Gain/(Loss)(3)

(517)

(1,017)

500

Gain from disposal of investment in an

associate

-

-

-

Gain from reclassification of investment

-

-

-

Finance Costs

(1,032)

(1,081)

49

Reversal of Income Tax (Expense)

(2,680)

523

(3,203)

Net Profit/(Loss)

10,828

1,117

9,711

Basic Earnings/(Loss) per Share (Baht)

4.85

0.50

4.35

Stock Gain/(Loss)

9,638

(1,929)

11,567

Reversal/ (Write-Down) on Crude and

Petroleum Product Inventory(4)

(1,773)

15

(1,788)

Exchange Rate (Baht: 1 US$)

Q3/23

Q2/23

+/(-)

Average FX

35.34

34.66

0.68

Ending FX

35.75

0.97

36.72

Q3/22

+/(-)

9M/23

9M/22

+/(-)

288

17

311

301

10

8.8

4.8

10.5

14.2

(3.7)

(0.7)

24.0

12.0

18.7

(6.7)

Q3/22

+/(-)

9M/23

9M/22

+/(-)

124,174

(4,518)

344,066

382,571

(38,505)

(220)

(2,270)

(1,713)

(16,210)

14,497

(568)

19,541

31,772

34,789

(3,017)

5,090

(7,118)

(2,057)

1,082

(3,139)

(1,710)

1,193

(962)

(2,717)

1,755

-

-

-

10,038

(10,038)

-

-

-

7,297

(7,297)

(940)

(92)

(3,036)

(2,866)

(170)

156

(2,836)

(3,961)

(9,026)

5,065

12

10,816

16,499

32,521

(16,022)

0.01

4.84

7.39

15.92

(8.53)

(9,238)

18,876

4,370

12,791

(8,421)

236

(2,009)

(1,966)

(2,114)

148

Q3/22

+/(-)

9M/23

9M/22

+/(-)

36.58

(1.24)

34.69

34.81

(0.12)

38.07

(1.35)

38.07

(1.35)

36.72

Remark(1) Gross integrated margin is the integrated gross margin among Thaioil refinery, Thai Paraxylene Co., Ltd., LABIX Co., Ltd. and Thai Lube Base Plc.

  1. Including only derivative instruments for commodity hedging.
  2. Including net foreign exchange gain / (loss) on foreign currency assets and liabilities in Q3/23, Q2/23, Q3/22, 9M/23, and 9M/22 of Baht (379) million, Baht (705) million, Baht (1,524) million, Baht (321) million, and Baht (2,655) million, respectively.
  3. Including reversal / (write-down) of allowance for decline in value of crude and petroleum product inventories adjusted to net realizable value and reversal / (write- down) of petroleum product at cost.

2

In Q3/23, Thaioil and Subsidiaries reported lower integrated intakes from Q2/23 due to an incident of crude oil leakage at single buoy mooring (SBM-2) in September 2023. However, sales revenue was reported at Baht 119,656 million, an increase of Baht 11,189 million following higher product selling prices thanks to the tight supply of many products. Moreover, we reported GIM excludingstock gain / (loss) of 13.6 US$/bbl or an increase of 7.5 US$/bbl, mainly due to better spread jet/kero and gasoil over Dubai. Moreover, profitability of surfactant manufacturing business slightly went up. Nevertheless, aromatic market softened from lower PX and BZ spreads over ULG95 primarily due to high raw material costs and slower-than-expected economic growth in China. Similarly, lube base oil spread over fuel oil declined owing to economic slowdown in China and lower base oil demand following the rainy season in the region. Additionally, bitumen spread over fuel oil in decreased due to lower demand during the rainy season and limited fiscal budget for road improvement. However, crude oil prices in Q3/23 rose from Q2/23 thanks to tightened crude oil supply, resulting from additional production cut by Saudi Arabia, along with lower export from Russia. As a result, we reported a stock gain of Baht 9,638 million in Q3/23, compared with a stock loss of Baht 1,929 million in Q2/23. Thus, GIM includingstock gain / (loss) of 23.3 US$/bbl was reported in Q3/23, improved by 19.1 US$/bbl from Q2/23. However, there was a write-down on crude and petroleum product inventory of Baht 1,773 million in Q3/23, compared with a reversal on crude and petroleum product inventory of Baht 15 million in Q2/23. Including realized net loss from financial instrument of Baht 2,490 million including only derivative instruments for commodity hedging, we reported EBITDA of Baht 18,973 million, rose by Baht 14,355 million from the previous quarter. In contrast, a loss on financial instruments of Baht 2,028 million in Q3/23 was booked, representing an increased loss of 1,841 million Baht compared to Q2/23. However, we reported a net loss from foreign exchange of Baht 517 million (Baht 379 million of which was from foreign exchange loss on foreign currency assets and liabilities), smaller loss by Baht 500 million than Q2/23. Offsetting with depreciation, finance cost, and tax expenses, we booked a net profit of Baht 10,828 million in Q3/23, or Baht 4.85 Baht per share, an incline of Baht 9,711 million from the last quarter.

In comparison to Q3/22, we reported higher integrated intakes because of scheduled maintenance of some upgrading units in Q3/22. Nevertheless, lower selling prices resulted in a decline of revenue from sales by Baht 4,518 million while we reported significantly better GIM excludingstock gain/loss by 4.8 US$/bbl. The main reason was the significant increase in product spreads, particularly that of gasoline spread over Dubai due to tight supply. In addition, PX spread over ULG95 increased thanks to higher PX demand. However, lube base oil spread over fuel oil went down following Chinese economy slowing down while bitumen spread over fuel oil due to reduced demand resulting from budget constraints in maintaining the road infrastructure. Moreover, gross margin from surfactant business declined due to lower domestic demand. Nevertheless, an increase in crude oil prices led to a stock gain of Baht 9,638 million, compared with a stock loss of Baht 9,238 million during the same period last year. We also booked a write-down on crude and petroleum product inventory of Baht 1,773 million in Q3/23, compared with a reversal on crude and petroleum product inventory of Baht 236 million in Q3/23. Including net realized gain from financial instrument including only commodity hedging, we reported EBITDA of Baht 18,973 million in Q3/23, compared with negative EBITDA of Baht 568 million in Q3/22. Nevertheless, we booked a loss on financial instruments of Baht 2,028 million in Q3/23, compared with a gain on financial instruments of Baht 5,090 million in Q3/22. At the same time, we booked a lower net loss on foreign exchange of Baht 1,193 million. Offsetting with depreciation, finance cost and tax expense, we reported a higher net profit of Baht 10,816 million from the same period last year.

In 9M/23 compared with 9M/22, Thaioil and Subsidiaries generated revenue of Baht 344,066 million, a decrease of Baht 38,505 million. This decline was attributed to lower product prices, which were in line with lower crude oil prices. Additionally, there was a decrease in gasoline spread over Dubai due to higher Chinese export. Moreover, jet/kero and gasoil spread over Dubai went down from 9M/22 due to supply from Russia. Furthermore, lube base oil spread over fuel oil dropped from tight supply while gross margin of surfactant manufacturing business decreased. However, PX spread over ULG95 expanded from higher PX demand than 9M/22 and bitumen

3

spreads over fuel oil expanded. Overall, GIM excludingstock gain / (loss) decreased by 3.7 US$/bbl, amounting to 10.5 US$/bbl. Additionally, in 9M/23, there was a stock gain of Baht 4,370 million, reduced by Baht 8,421 million from 9M/22. On the other hand, there was a write-down on crude and petroleum product inventory of Baht 1,966 million, lower loss than 9M/22 by Baht 148 million. Including realized net gain from financial instrument of Baht 1,713 million, smaller loss by Baht 14,497 million than the same period of the previous year including only derivative instruments for commodity hedging, we reported EBITDA of Baht 31,772 million, dropped by Baht 3,017 million. Moreover, we had a loss on financial instruments of Baht 2,057 million, and we reported a net loss from foreign exchange of Baht 962 million due to Thai Baht depreciation (Baht 321 million of which was from foreign exchange loss on foreign currency assets and liabilities). Moreover, in 9M/22, there was gain from investment reclassification and disposal of our investment in GPSC of Baht 17,334 million (before tax), or Baht 12,880 million (after tax). Offsetting with depreciation, finance cost, and tax expenses, we booked a net profit of Baht 16,499 million in 9M/23, a decline of Baht 16,022 million from the same period of the previous year.

4

2. Summary of Financial Result by Business

Table 2: Financial Result by Business(Million Baht)

Sales Revenue

Q3/23

Q2/23

+/(-)

Q3/22

+/(-)

9M/23

9M/22

+/(-)

Consolidated

119,656

108,467

11,189

124,174

(4,518)

344,066

382,571

(38,505)

Refinery

128,365

115,127

13,238

134,614

(6,249)

367,260

414,127

(46,867)

Aromatics and LAB(1)

20,121

19,005

1,116

23,255

(3,134)

58,127

68,452

(10,325)

Lube Base Oil

6,413

6,572

(159)

7,774

(1,361)

19,254

22,983

(3,729)

Power Generation

3,658

(752)

8,388

1,035

2,906

3,269

(363)

9,423

Solvent and Chemicals(2)

5,626

3,688

1,938

6,452

(826)

14,072

16,737

(2,665)

Ethanol(3)

433

408

25

516

(83)

1,310

1,282

28

Others(4)

1,698

1,629

69

1,710

(12)

4,884

4,901

(17)

EBITDA

Q3/23

Q2/23

+/(-)

Q3/22

+/(-)

9M/23

9M/22

+/(-)

Consolidated

18,973

4,618

14,355

(568)

19,541

31,772

34,789

(3,017)

Refinery

17,013

2,272

14,741

(3,037)

20,050

24,839

29,294

(4,455)

Aromatics and LAB

582

684

(102)

31

551

2,046

320

1,726

Lube Base Oil

367

772

(405)

1,654

(1,287)

2,281

2,844

(563)

Power Generation

841

(72)

769

621

148

2,193

1,573

620

Solvent and Chemicals

305

157

148

171

134

694

902

(208)

Olefins

(2)

(2)

0

(2)

0

(7)

(7)

0

Ethanol

30

1

29

67

(37)

76

129

(53)

Others

68

47

21

58

10

165

161

4

Net Profit / (Loss)

Q3/23

Q2/23

+/(-)

Q3/22

+/(-)

9M/23

9M/22

+/(-)

Consolidated

10,828

1,117

9,711

12

10,816

16,499

32,521

(16,022)

Refinery

9,814

(179)

9,993

(1,261)

11,075

12,577

30,608

(18,031)

Aromatics and LAB

104

361

(257)

(313)

417

646

(739)

1,385

Lube Base Oil

254

576

(322)

1,302

(1,048)

1,716

2,180

(464)

Power Generation (5)

349

218

1,097

291

567

476

91

1,388

Solvent and Chemicals

177

121

56

105

72

433

584

(151)

Olefins (6)

(116)

(47)

(69)

(351)

235

(132)

(613)

481

Ethanol

(9)

(6)

(3)

11

(20)

(30)

3

(33)

Others (7)

115

100

15

86

29

308

305

3

Remark

  1. Thai Paraxylene Co., Ltd. invested 75% of total investment in LABIX Co., Ltd. which produces an intermediate for the production of surfactants (LAB).
  2. Including Thaioil Solvent Co., Ltd., having respective interests in TopNEXT international Co., Ltd. (Former name: TOP Solvent Co., Ltd.), Sak Chaisidhi Co., Ltd., TOP Solvent (Vietnam) LLC., PT Tirta Surya Raya, and JSKEM Private Limited
  3. Including Thaioil Ethanol Co., Ltd., having respective interests in Sapthip Co., Ltd. (Investment in subsidiary), and Ubon Bio Ethanol Plc (Financial asset measured at fair value through other comprehensive income).
  4. Including Thaioil Energy Services Co., Ltd. (TOP holds 99.99% shares) which provides human resources management service and Thaioil Treasury Center Co., Ltd. (TOP holds 99.99% shares) which conducts the business in the area of International Business Center (IBC) and Treasury Center (TC) for Thaioil and Subsidiaries.
  5. Since 7 June 2022, Thaioil and Subsidiaries reduced share proportions in the investments in Global Power Synergy Plc. (GPSC) to 10.0% and reclassified the remaining investment as Financial assets measured at fair value through other comprehensive income. Therefore, Thaioil booked share of profit from GPSC of Baht 58 million in the first half of 2022 and booked interim dividend income of Baht 56 million on 21 September 2022. Thaioil booked dividend income of Baht 85 million both in Q1/23 and Q3/23, led to be equal to Baht 170 million in 9M/23.
  6. PT TOP Investment Indonesia holds 15% shares in PT Chandra Asri Petrochemical Tbk, which is the major integrated petrochemical company in Indonesia.
  7. Including net profit / (loss) from Thaioil Energy Services Co., Ltd. and Thaioil Treasury Center Co., Ltd. and share of profits / (loss) from the investments in PTT Digital Solutions Co., Ltd., PTT Energy Solutions Co., Ltd. and Thai Petroleum Pipeline Co., Ltd.

5

2.1 Market Condition and Financial Result of Refinery Business

Table 3: Average Crude Oil Price, Petroleum Product Prices, Crude Premiums, and Crack Spreads

Average Prices (US$/bbl)

Q3/23

Q2/23

+/(-)

Q3/22

+/(-)

9M/23

9M/22

+/(-)

Dubai Crude Oil (1)

86.7

77.8

8.9

96.9

(10.2)

81.6

100.2

(18.6)

Unleaded Gasoline (ULG95)

105.6

94.4

11.2

110.1

(4.5)

99.7

122.2

(22.5)

Jet/Kero

112.8

91.7

21.1

129.3

(16.5)

103.8

129.4

(25.6)

Gasoil (GO)

113.6

92.3

21.3

132.1

(18.5)

103.8

132.8

(29.0)

Fuel Oil (HSFO)

81.4

69.1

12.3

74.6

6.8

71.5

88.9

(17.4)

Crude Premiums (US$/bbl)

Q3/23

Q2/23

+/(-)

Q3/22

+/(-)

9M/23

9M/22

+/(-)

Murban(2)

1.8

2.8

(1.0)

10.5

(8.7)

3.2

7.3

(4.1)

Arab Light(3)

3.2

2.6

0.6

8.5

(5.3)

2.7

5.8

(3.1)

Spreads over Dubai (US$/bbl)

Q3/23

Q2/23

+/(-)

Q3/22

+/(-)

9M/23

9M/22

+/(-)

Unleaded Gasoline (ULG95)

18.9

16.6

2.3

13.2

5.7

18.0

22.0

(4.0)

Jet/Kero

26.1

14.0

12.1

32.4

(6.3)

22.2

29.3

(7.1)

Gasoil (GO)

26.9

14.6

12.3

35.2

(8.3)

22.2

32.6

(10.4)

Fuel Oil (HSFO)

(5.4)

(8.7)

3.3

(22.3)

16.9

(10.1)

(11.3)

1.2

Very Low Sulfur Fuel Oil (VLSFO)

1.3

3.7

(2.4)

11.7

(10.4)

3.3

15.1

(11.8)

Remark

(1) Closing Dubai crude oil price at the end of Q3/23, Q2/23, and Q3/22 were calculated from average Dubai prices in the last month in the respective period. The

prices were 93.3 US$/bbl, 75.0 US$/bbl, and 90.0 US$/bbl, respectively.

  1. Murban crude premium (compared with market price) was calculated from the difference between average Murban price for loading month (month "M") and Dubai forward price for month "M" which was announced daily in two months before. The formula is based on ADNOC's new pricing structure.
  2. Arab Light crude premium is announced by the producer and is priced as a differential to the Oman/Dubai average

Graph 1: Prices of Crude Oil and Petroleum Product

Crude oil price in Q3/23 increased from Q2/23 thanks to tight supply since Saudi Arabia and Russia extended their oil production cut of 1.0 million barrels per day and export cut of 0.3 million barrels per day, respectively, through the end of 2023 in addition to oil production cuts of OPEC+ of 1.66 million barrels per day from May 2023 to the end of 2024. However, crude oil price in Q3/23 and 9M/23 declined from the same period last year due to concerns over sluggish oil demand following economic recession fears after central banks hiked up their interest rates to

cool inflation.

Murban over Dubai spread shrank in Q3/23 compared with Q2/23 and Q3/22 as well as that in 9M/23 which dipped from 9M/22 as they were suppressed by shutdowns for maintenance of North Asian refineries and higher US crude oil exports, which was more than 4.0 million barrels per day in Q3/23. The aforementioned reasons led Arab light spread over Dubai and Oman in Q3/23 and 9M/23 dropped from that of the same period of prior year. On the other hand, the Arab light spread in Q3/23 slightly increased from Q2/23 owing to Saudi Arabia voluntary oil cut in addition to OPEC+.

6

Gasoline over Dubai spread in Q3/23 rose from Q2/23 and Q3/22 because of tight supply from planned and emergency shutdowns for maintenance of the US and European refineries. However, the spread in 9M/23 dropped from that in 9M/22 due to higher Chinese exports. Jet/kero spread over Dubai and Gasoil spreads over Dubai in Q3/23 increased from Q2/23 because of tight supply from emergency shutdowns as well as lower Russian exports after Russia's government temporarily forbade its gasoil and gasoline exports since 21 September 2023. However, the spreads in Q3/23 and 9M/23 dipped from the same period of last year because concerns over tight supply eased after Russian oil could be exported to other countries instead of Europe. Low sulphur fuel oil spread over Dubai in Q3/23, on the other hand, fell from Q2/23 and Q3/22 as well as that in 9M/23 compared to 9M/22 due to additional supply from a new Kuwait refinery. High sulphur fuel oil spread over Dubai in Q3/23 improved from Q2/23 and Q3/22 as well as that in 9M/23 compared to 9M/22. This was supported by tight supply from OPEC+ production cuts leading to lower flow of medium and heavy crude oil in the market, and healthy demand for fuel oil for electricity production in the Middle East in summer.

Table 4: Financial Result of Refinery Business

Q3/23

Q2/23

+/(-)

Q3/22

+/(-)

9M/23

9M/22

+/(-)

Throughput(1) (%)

110%

113%

(3%)

104%

6%

112%

108%

4%

Intake (kbd)

302

311

(9)

286

16

307

297

10

Gross Refining Margin (GRM) (US$/bbl)

: excludingStock Gain/(Loss)

12.4

4.5

7.9

6.7

5.7

9.0

12.9

(3.9)

: includingStock Gain/(Loss)

22.2

2.5

19.7

(2.9)

25.1

10.5

17.5

(7.0)

Remark

(1) Throughput (%) calculated based on 275,000 barrels per day

In Q3/23, Thaioil refinery reported significant increases in EBITDA and net profit from the prior quarter. This was because of higher GRM includingstock gain/loss tracking better petroleum product spreads higher crude oil price.

In Q3/23, Thai Oil Refinery reported utilization rate of 110% which decreased from Q2/23 due to oil spill incident around the Single Buoy Mooring (SBM-2) in September 2023. The refinery booked sales revenue of Baht 128,365 million, or an increase of Baht 13,238 million following higher product selling prices due to tight supply. Sales volume comprised of 85% domestic, 11% Indochina, and 4% export. The company reported GRM excludingstock gain/loss of 12.4 US$/bbl, a rise of 7.9 US$/bbl from the previous quarter mainly due to greater jet/kero and gasoil spreads over Dubai crude oil. Additionally, a hike in crude oil price resulted in stock gain of 9.8 US$/bbl or Baht 9,638 million, compared with stock loss of Baht 1,929 million in Q2/23. However, there was a write-down on crude and product inventory of Baht 1,773 million, compared to a reversal of this transaction of Baht 15 million in the previous quarter. Besides, the company recorded the oil spill expenses of Baht 155 million in this quarter. Altogether with net realized loss on financial instruments of Baht 2,588 million, the company booked EBITDA of Baht 17,013 million, an increase of Baht 14,741 million from the previous quarter. Furthermore, there was a loss from fair value measurement on financial instruments of Baht 1,915 million that was higher than Q2/23 by Baht 1,706 million, which was mainly attributable to commodity derivatives. Meanwhile, net foreign exchange loss of Baht 628 million was also booked during the period (mainly from foreign currency denominated assets and liabilities worth Baht 678 million), which was smaller than the previous quarter by Baht 550 millio. Offsetting with depreciation, finance cost, and tax expenses, net profit of Baht 9,814 million was posted compared to net loss of Baht 179 million in Q2/23 (net profit with dividend income in Q3/23 was Baht 12,806 million).

7

Compared 9M/23 to 9M/22,the refinery posted decreases in EBITDA and net profit since GRM includingstock gain/loss was dipped and there was gain on GPSC reclassification and disposalin 9M/22.

Compared to Q3/22, the company reported an increase in utilization rate by 6% because there were shutdowns for maintenance of some upgrading unit in Q3/22. The refinery booked a drop in sales revenue of Baht 6,249 million following lower product selling prices. However, GRM excludingstock gain/loss considerably went up by 5.7 US$/bbl from healthier gasoline spread and lower crude premiums. Moreover, an increase in crude oil price led to a stock gain of Baht 9,638 million compared to a stock loss of Baht 9,238 million during the same period last year. Altogether with higher net realized loss on financial instruments by Baht 2,350 million, EBITDA of Baht 17,013 million was recorded, compared with loss on EBITDA of Baht 3,037 million in Q3/22. Nevertheless, the refinery reported a loss from fair value measurement on financial instruments of Baht 1,915 million, compared with a gain of Baht 5,206 million in Q3/22, mainly owing to commodity derivatives. However, lower net foreign exchange loss of Baht 1,246 million was also booked during the period. Offsetting with depreciation, finance cost and tax expenses, net profit of Baht 9,814 million was reported compared to net loss of Baht 1,261 million in Q3/22.

Compared 9M/23 to 9M/22, the company reported a rise in utilization rate with a slight increase in selling volumes while average selling prices considerably declined. Thus, sales revenue went down by Baht 46,867 million, totaling to Baht 367,260 million. GRM excludingstock gain / loss of 9.0 US$/bbl was booked, this represented a decline of 3.9 US$/bbl. Furthermore, stock gain of Baht 4,370 million was reported during the period, a decrease of Baht 8,422 million from 9M/22. Meanwhile, there was a write-down on crude and inventory product of Baht 1,966 million, or a decrease of Baht 148 million compared to 9M/22. Altogether with net realized loss on financial instruments of Baht 1,828 million, a smaller loss by Bath 14,462 million, EBITDA went down by Baht 4,455 million, totaling to Baht 24,839 million. Futhermore, the company booked a loss from fair value measurement on financial instruments of Baht 1,829 million, compared to a gain of Baht 1,213 million in 9M/22. There was a net foreign exchange loss of Baht 1,270 million, which was lower by Baht 1,763 million from the same period last year. Nevertheless, a partial disposal of GPSC led to reclassification gain and gain from disposal totaling of Baht 18,026 million, before tax, or Baht 13,572 million, net of tax in 9M/22. Offsetting with depreciation, finance cost and tax expenses, net profit of Baht 12,577 million was realized, or Baht 18,031 million lower from the same period last year (net profit with dividend income in 9M/23 was Baht 19,403 million).

8

2.2 Market Condition and Financial Result of Aromatics Business

Table 5: Average Prices and Spreads of Aromatics Products

Average Prices (US$/Ton)

Q3/23

Q2/23

+/(-)

Q3/22

+/(-)

9M/23

9M/22

+/(-)

Paraxylene (PX)(1)

1,073

1,030

43

1,088

(15)

1,046

1,145

(99)

Benzene (BZ)(2)

899

873

26

978

(79)

901

1,097

(196)

Toluene (TL)(2)

951

867

84

969

(18)

897

990

(93)

Spreads over ULG95 (US$/Ton)

Q3/23

Q2/23

+/(-)

Q3/22

+/(-)

9M/23

9M/22

+/(-)

Paraxylene (PX)

175

228

(53)

152

23

199

107

92

Benzene (BZ)

1

71

(70)

42

(41)

54

58

(4)

Toluene (TL)

53

65

(12)

33

20

50

(48)

98

Remark(1) Based on CFR Taiwan price

(2) Based on FOB Korea price

Graph 2: Prices of Aromatics Products and ULG95

In Q3/23, PX price increased from Q2/23 following the increase in crude oil price due to tighter supply after output cuts from Saudi Arabia and fewer exports from Russia. However, PX spread over ULG95 dropped from Q2/23 as raw material costs remained high, while high level of inflation was still pressuring purchasing power of consumers. Additionally, lower spread was also a result of fragile state of Chinese economy and higher supply as PX plants resumed their operations after maintenance in Q2/23. Despite the reasons above, PX spreads over ULG95 in Q3/23 and 9M/23

improved from Q3/22 and 9M/22, respectively from much higher growth of PX demand in 2023.

BZ price in Q3/23 improved from Q2/22 due to an increase in oil prices from tighter supply. However, BZ spread over ULG95 in Q3/23 dropped from Q2/23 and BZ spreads over ULG95 in Q3/23 and 9M/23 also declined from Q3/22 and 9M/22, respectively because BZ demand was weakened owing to low profit of downstream businesses and the slower than expected Chinese economy.

TL price in Q3/23 was higher than Q2/23 following the increase in oil prices from tighter supply. However, TL spread over ULG95 dropped from Q2/23 as weakened aromatics market in rainy season resulted in lower TL demand for aromatics production. Regardless of the rainy season, demand for TL as an addictive for gasoline production remained high owing to strong gasoline market. Therefore, TL spread over ULG95 in Q3/23 and 9M/23 widened from Q3/22 and 9M/22, respectively.

9

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Thai Oil pcl published this content on 10 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2023 13:35:57 UTC.