Bangkok: Thai Oil Public Company Limited anticipates a decline in global oil prices in the first quarter of 2025 and is poised to address challenges related to the Clean Energy Project (CFP). The company recently reported its fourth-quarter 2024 performance, highlighting an improvement from the previous quarter. According to Thai News Agency, Mr. Bandit Thammaprajamjit, CEO and President of Thai Oil, announced that the company recorded a net profit of 2,767 million baht in the fourth quarter of 2024, an increase driven by favorable spreads in product and crude oil prices, particularly in jet fuel, diesel, and Dubai crude oil. This boost was attributed to heightened tourism and winter heating demand, despite geopolitical tensions in the Middle East affecting crude premiums. However, the aromatics business saw a decline in gross profit due to reduced demand for textiles, while the base oil business experienced a recovery post-monsoon. Looking ahead, Mr. Bandit projected a weakening oil market in the first hal f of 2025 due to increased supply from new refineries in China, Mexico, Nigeria, and Oman, despite reduced supply from U.S. refineries affected by cold weather. The aromatics business is expected to recover with rising paraxylene demand in China, while the base oil market faces pressure from new supply in India. Thai Oil is actively monitoring market fluctuations and seeking income opportunities to maintain strong performance, including advancing the CFP initiative to enhance long-term competitiveness. The company aims to complete the CFP project, which will increase its refining capacity and enable more efficient and environmentally friendly production. In 2024, Thai Oil reported sales revenue of 455,857 million baht and a net profit of 9,959 million baht, a decrease from the previous year due to lower refining gross profit from increased supply. The company also faced a loss from oil stock and a decrease in total assets and liabilities. Despite challenges with subcontractor payments delaying the CFP proj ect, Thai Oil plans to increase investment by 63,028 million baht. The extraordinary shareholders meeting scheduled for February 2025 will consider this proposal. Completion of the CFP project would enhance the company's refining capacity and competitiveness by utilizing advanced technology and processing varied crude oils.
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