IRPC Plc, a petrochemical arm of national oil and gas conglomerate PTT Plc, saw its business rebound from a loss of 6.15 billion baht in 2020 to net profit of 14.5 billion baht last year, thanks to the global oil price surge.
The company plans capital spending worth 41.35 billion baht over the next five years for development projects. One is the Ultra Clean Fuel Project, which aims to produce more environmentally friendly diesel, including ultra-low sulphur diesel to help the government reduce PM2.5 ultra-fine dust.
Yesterday IRPC announced its total revenue in 2021 soared by 54% to 235 billion baht, driven by higher prices of refined oil and petrochemical products.
Both revenue and net profit increased, though its production capacity of refined oil was on a par with 2020 levels of 192,000 barrels per day.
Its gross integrated margin was US$13.12 per tonne, which caused gross profit to increase by 52% to 29.6 billion baht.
"The easing of lockdown measures in many countries was the main factor that led to higher demand for oil and petrochemical products," said Chawalit Tippawanich, chief executive and president of IRPC.
"Our oil stocks gained 11.1 billion baht from the rise in global oil prices."
The increase in product prices and the oil stock gains resulted in earnings before interest, taxes, depreciation and amortisation (Ebitda) of 11.1 billion baht, an increase of 475% from 2020.
In the fourth quarter of last year, revenue rose by 9% to 67.8 billion baht. The increase was attributed to a 9% increase in prices of oil and petrochemical products.
Net profit rose by 2% to 2.19 billion baht, thanks to the management of high fluctuations of oil prices through the company's hedging contracts on oil prices and gains from the foreign exchange rate.
IRPC is focusing more on cleaner energy through the 13.3-billion-baht Ultra Clean Fuel Project, also called UCF.
This project will produce oil that meets the Euro 5 emissions standard, with technical support from Chinese and South Korean companies.
IRPC expects to start commercial production of oil under UCF in 2024.