Earnings Report /
Thailand

Thai Oil PCL: 3Q21 earnings missed; best of 2021 lies ahead

  • Below all estimates due to extra losses

  • TOP reported a 3Q21 net profit of Bt2,063m

  • We have revised down our 2021

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

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Bualuang Securities
10 November 2021

The improving market outlook should boost TOP’s operational performance through 4Q21. Expectations of strong core earnings growth in 2022 should boost TOP’s share price going forward. Moreover, its valuation is still undemanding—a YE22 PBV of only 0.9x (1.2SD below its long-term mean). Our BUY rating stands.

Below all estimates due to extra losses

TOP reported a 3Q21 net profit of Bt2,063m, up 188% YoY but down 4% QoQ. Stripping out extra items, the core profit would be Bt1,164m, a YoY turnaround and up 7% QoQ. NPAT was 20% below our forecast and the consensus’, due to bigger extra losses than expected.