Earnings Report /
Thailand

Star Petroleum Refining PCL: 3Q21 earnings as expected; better quarter in sight

  • In line with estimate

  • SPRC reported a 3Q21 net profit of Bt113m

  • SPRC’s 4Q21 core operation looks set to improve YoY and QoQ

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
15 November 2021

Expectations of GRM expansion both YoY and QoQ should catalyze the share prices of refining stocks including SPRC going forward. Moreover, anticipation of an improving core operation in 4Q21 and 2022 should prompt the market to bid up the share price in the months ahead. Our TRADING BUY rating stands.

In line with estimate

SPRC reported a 3Q21 net profit of Bt113m, down 58% YoY and 85% QoQ. Stripping out a Bt800m inventory gain, a Bt164m FX loss, and a Bt50m loss on derivatives, the 3Q21 result was a core loss of Bt346m, a shallower core loss both YoY and QoQ. The result was in line with our estimate (56% below the consensus).