Equity Analysis /

OR: Promising prospects both in short and longer-term

  • Promising 4Q22 outlook, led by Mobility business...

  • ...followed by Lifestyle business

  • Strengthening its platform for long-term growth

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
18 November 2022

Expectations of operational improvement in 4Q22, buoyed by demand growth and margin expansion in Mobility, Lifestyle, Global businesses should catalyze the share price going forward.  Also, there is scope for upside to our earnings forecast from new investments.

Promising 4Q22 outlook, led by Mobility business...    

After OR’s earnings already bottomed out in 3Q22, the firm’s 4Q22 outlook now looks promising, driven by better operational performance across all businesses—Mobility (Oil), Lifestyle (Non-oil), and Global (International) segments. For Mobility business, the improved economic outlook in Thailand and ASEAN will continue to boost OR’s oil sales volume YoY in 4Q22. Moreover, the fourth-quarter is normally a high season for demand for refined petroleum products given the uptick in domestic travelling, boosting oil sales volume QoQ. Additionally, the increasing air travel activities will continue to boost demand for jet fuel during the quarter. From the margin perspective, the gross oil profit is expected to improve YoY and QoQ in 4Q22.