IRPC Plc, the petrochemical arm of national oil and gas conglomerate PTT Plc, saw a surge of 31% in sales last year thanks to higher volume and oil prices.
But the company witnessed a relatively equal decline in profits at the same time.
IRPC reported net sales of 258.9 billion baht in 2018, a 31% increase from 2017. Net profit, however, declined to 7.735 billion baht, down 32% from 2017, as a result of oil stock loss.
President Noppadol Pinsupa said the increased sales volume was a result of efficiency improvements after a major turnaround in the first quarter of 2017.
IRPC's gross integrated margin was 33.6 billion baht or US$13.60 per barrel, a 4% increase year-on-year. This was attributed to increased sales volume after the higher utilisation rate.
Towards the end of the year, though, crude oil prices sharply declined as a result of surging supply, especially from the US, as well as lower-than-expected economic growth stemming from the US-China trade row.
Earnings before interest, tax, depreciation and amortisation totalled 18.3 billion baht, down 10% year-on-year.
IRPC reported depreciation of 8.24 billion baht, up 17%, in accordance with the commercial operations of polypropylene expansion and polypropylene compound and specialties units (PPE and PPC Projects), that began in late 2017.
Crude intake was 208,000 barrels a day, up 2% year-on-year.
IRPC's board of directors proposed a dividend of 0.09 baht per share for the second half of 2018. The total dividend amount would be 1.839 billion baht or about 24% of net profit.
The company paid a dividend of 0.10 baht for the first half of 2018 in the total amount of 2.043 billion baht.
Mr Noppadol said the board also approved a budget to acquire 20% of Singapore-based 2D Materials Pte at a cost of 46.62 million baht.
2D is the owner of technologies involving graphene, a diverse material that can be combined with other elements (including gases and metals) to produce different materials with various superior properties.
The move was in line with the company's plan to search for new technologies for materials to avoid using commodity-grade polymers in engineering plastics.
IRPC shares closed yesterday on the Stock Exchange of Thailand at 5.95 baht, up five satang, in trade worth 583.5 million baht.