Thai energy conglomerate Bangchak Group is watching energy prices in the second quarter this year amid worries of a global recession, after posting a revenue increase of 16% in the first quarter.
"Crude oil prices are expected to continue facing pressure because of concerns that the global economy is heading for a recession, particularly in Europe," said Chaiwat Kovavisarach, group chief executive and president of Bangchak Corporation Plc.
The World Bank said last year central banks' interest rate hikes in response to high inflation could lead to a global recession in 2023.
Despite the sluggish economic prospects, the crude oil price has been driven by growing supply tightness concerns after Opec and its allies decided to cut oil production, said Mr Chaiwat.
The company is monitoring changes in the global economic situation because they can affect oil consumption, he said.
Bangchak will continue to prioritise fostering growth, while balancing energy security for the country, said Mr Chaiwat.
In the first quarter, the company posted revenue of 80.3 billion baht, a 16% increase from the same period last year, which was partly attributed to positive sales performance at its Norway-based Okea ASA, an oil and gas drilling company.
Bangchak acquired a 45.7% share in Okea, which is listed on the Oslo Stock Exchange, in 2018.
Okea took over the Draugen oil field from Shell in 2018 and is continually developing new fields.
Mr Chaiwat said Okea sales volume expanded by more than 100% for the period quarter-on-quarter because of two lifting cargoes from the Draugen field and full-quarter revenue recognition from the Brage field, which was acquired from Wintershall Dea.
He said Bangchak's total revenue in the first quarter of this year declined by 5% from the fourth quarter of 2022.
For the company's power business, earnings before taxes, interest, depreciation and amortisation decreased by 15% from the fourth quarter of last year to 852 million baht.
Bangchak's hydroelectric power plants in Laos temporarily halted electricity production in the first quarter to prepare for sales of electricity to Vietnam Electricity.