Equity Analysis /
Thailand

OR: 1Q22 looking good, 2Q22 even prettier

  • Good performance expected for mobility business in 1Q22…

  • …as well as lifestyle and global businesses

  • Further earnings growth expected for 2Q22

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
5 May 2022

Expectations of the earnings growth in 2Q22 and throughout 2022, buoyed by broad demand improvement and expansion in both oil and non-oil businesses should catalyze the share price going forward. Furthermore, there is scope for upside to the firm’s long-term earnings profile from new investments.

Good performance expected for mobility business in 1Q22…

The economic reopening coupled with the easing of travel restrictions in Thailand and across the ASEAN region boosted demand for refined petroleum products further through 1Q22. Given that, OR’s oil sales volume looks set to expand both for retail and commercial segments. The firm’s oil sales volume is projected to rise by 14% YoY and 4% QoQ to approximately 6,700mn liters in 1Q22, led by the commercial segment. The commercial oil sales volume is forecast to increase by 22% YoY and 6% QoQ to around 3,400mn liters, while the retail oil sales volume is projected to rise 6% YoY and 2% QoQ to around 3,300mn liters in 1Q22 (diesel took the lead).