IRPC revealed the 2021 first-quarter operating results with a net profit of 5,581 million Baht, receiving a higher global market demand and some positive effects on the product spread. Furthermore, IRPC will lead the investment projects according to the business plan and push more business to respond to increasing market demand, while keeping the society safe from the spread of COVID-19.
Mr. Chawalit Tippawanich, President and CEO of IRPC Public Company Limited or IRPC announced the 2021 first-quarter operating results, “The company had the net revenue of 48,388 million Baht, increasing by 19% when compared to that in the previous quarter as the selling prices increased by 25% following the higher crude oil price. The company had a Market GIM of 6,965 million Baht (13.68 USD per barrel), increasing by 13% due to higher petrochemical and petrochemical product spread. The company had an Accounting GIM of 11,967 million Baht or 23.51 USD per barrel, increasing by 59% when compared to that in the previous quarter. The increase was mainly due to a big stock gain as the crude oil price rose from 44.62 USD per barrel in the fourth quarter of 2020 to 60.01 USD per barrel in this first quarter. In conclusion, the company had a net profit of 5,581 million Baht, increasing by 3,973 million Baht when compared to that in the previous quarter.”
The company's progression towards the business expansion project involves the important investment projects such as Melt Blown PP Production Project, a special grade for melt blown fabric which is led to downstream petrochemical business through a joint venture to manufacture melt blown fabric which is the main raw material for the filter of surgical masks, N95 masks and air purifier as well as the PPE suits. Other projects include the establishment of the first laboratory to test the quality of medical equipment in Thailand and Southeast Asia, the Ultra Clean Fuel (UFC) Project, which aims to bring the quality of oil up to Euro 5 emissions standards. IRPC also continues to seek partners to create opportunities for business expansion and new innovations, especially the smart materials that respond to the needs of customers in a wide range of industries such as electrical appliances, automotive and health and hygiene products, which will increase the potential for business growth.
The outlook of the crude oil market in the second quarter shows the growing demand in the global market. This is resulted from the accumulated distribution of vaccines and the ability to handle the situation of COVID-19 in the United States. In addition, the number of new infections continues to decline and it is expected that over 90% of American will have received two complete vaccinations within this quarter. However, the market concern is about the rapid spread of COVID-19 contagiousness in India. For the crude oil price, presumably it will be stable as OPEC and allies including Saudi Arabia have a consensus on maintaining the balance of the market by gradually increasing the production from May to July. Nevertheless, the agreement could be changed following the future market situation which may enter into a tight supply period in the third and fourth quarter. The demand may rise when COVID-19 vaccination improves and the economic activity recovers.
The outlook of petrochemical market in the second quarter is expected to remain high as the demand for petrochemical products continues especially when China, a very large market, elevates the productions and exports. In particular, several factories in China resume the production and the market trend in the ASEAN region seems to grow again.
However, some factors still concern the market, including new production capacity and a new wave of COVID-19 worldwide expansion especially in India although the spread of infection caused the new normal consumption behavior which is beneficial to the demand for olefin and styrenic products. Furthermore, the inoculations along with the governmental policy of injecting money to support the economy and the measures to stimulate and advocate production are significant factors which effect the demand for petrochemical production as well.
With regard to the social care, IRPC supplied medical equipment such as coverall suits, latex gloves, consumer goods and necessary items by collaborating with PTT Group, partners and customers to keep medical professionals and people in the area surrounding the IRPC Industrial Estate in Rayong Province and hospitals in other provinces safe from the spread of COVID-19.