Earnings Report /
Thailand

Star Petroleum Refining PCL: Street-beating 1Q22 profit; better quarter ahead

  • Above all estimates

  • SPRC reported a 1Q22 net profit of Bt5,284m

  • SPRC’s 2Q22 core profit should expand YoY and QoQ

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
13 May 2022

Expectations of enhanced core earnings growth in 2Q22 and the substantial core operational improvement this year, underpinned by GRM expansion should catalyze the share price going forward. SPRC’s current valuation is still undemanding—a YE22 PBV of 1.3x (0.5SD below its long-term average). Our TRADING BUY rating stands.

Above all estimates

SPRC reported a 1Q22 net profit of Bt5,284m, up 163% YoY and 185% QoQ. Stripping out a Bt5,456m inventory gain, a Bt470m FX gain, a Bt228m loss on derivatives, and Bt1,395m tied to an oil leak incident, the core profit would be Bt2,167m, a YoY turnaround and up 150% QoQ. The result was 27% above our estimate (13% above the consensus), due to higher GRM than modeled and bigger extra gains than expected.