Earnings Report /
Thailand

Thai Oil PCL: Slight 3Q22 earnings miss; stronger quarter in sight

  • Slightly lower than our estimate, but beats consensus’

  • TOP reported a 3Q22 net profit of Bt12m

  • We expect the effective GRM to fatten YoY and QoQ in 4Q22

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Follow
Bualuang Securities
10 November 2022

Expectations of strong YoY core earnings growth through 4Q22 should boost TOP’s share price going forward. And its valuation is still undemanding—a YE23 PBV of only 0.8x (1.2SD below its long-term mean of 1.4x). Our BUY rating stands.

Slightly lower than our estimate, but beats consensus’

TOP reported a 3Q22 net profit of Bt12m, down substantially YoY and QoQ. Stripping out extra items, the core profit would be Bt4,686m, up 302% YoY but down 71% QoQ. While the core profit was in line with our projection, the net profit was slightly below our estimate, but it was much better than the consensus’ forecast of a net loss.