IRPC estimates revenues of 180 bln baht on strong petrochemical demand from China

25-Sep-09

Thailand’s IRPC Plc expects to outdo its previous target for the year with sales revenues of 180 billion baht on strong petrochemical demand from China. Thailand's leading petrochemical producer and oil refiner predicts revenue to fall by 26% this year from last years’ levels. Performance has picked up this quarter on robust demand and rising polymer prices. The petrochemical spread has improved slightly in the current quarter from the previous quarter, while the refining margin has weakened marginally. The company's gross integrated margin is in double digits. Performance is obviously good in the current quarter and better than the second quarter. Hence business outlook seems to be brighter than before. IRPC, which is 37% owned by PTT Plc, now projects revenue of 180 billion baht this year based on oil at about $70 per barrel. In the quarter to June, the company posted a net profit of 2.42 billion baht, down from 5.12 billion in the same period last year, in line with a decline in revenue of 45% to 40.3 billion baht. The petrochemical business will account for about 54 billion baht of this year's estimated revenue. The figure is expected to be maintained in 2010.