Thailand: Bangchak Petrol Retail Expects Profit

                                                                                         The average margin on petrol sales next year is expected to rise to 1.50 baht per litre from 1.40 baht this year and 0.90 baht in 2007, thanks to the sharp drop of global oil prices since July.  The company's oil marketing business in the first first nine months of this year recorded a profit of 616 million baht.

Bangchak  also expects its gross refining margin  next year would range from $4-6 per barrel, similar to this year's figure. Oil consumption is forecast to drop next year by 3-4% because of the slowing economy, and some Asian refineries will struggle with overcapacity. However, Bangchak stands to gain from the start of operations at its upgraded facilities next month.

''Our new capacity is high-grade product which will generate higher margins for us, so it's worthwhile to start, even with a market glut,'' said Dr Anusorn.The product quality improvement (PQI) programme will increase Bangchak's refined oil output to 100,000 barrels a day from 70,000, with higher-margin products, such as diesel and jet fuel, up from 54% to 86% of total output.

Bangchak had earmarked a budget of 600 million baht next year for capital expenditure including retail, refinery and oil quality standard improvement. It is also moving ahead with plans for a new potash-mining venture.

PetrolWorld 161208  Source: Local Media