Thai Oil posts a net profit in Q3

According to media reports, Thailand’s largest oil refiner, Thai Oil posted a 2.94 billion baht ($84 million) net profit in the third quarter when compared to a loss of 2.29 billion baht in the same period of last year on the back of improved petrochemical business income and foreign exchange gains (519 million baht) and oil hedging earnings. Its net profit missed analysts’ average expectations calling for 3 billion baht profit in a survey conducted by Reuters.

However, the company’s net profit was down 62% from the second quarter due to weaker refining margins and lube base refinery shutdown.

In the third quarter, the company gained 1.3 billion baht from its refinery business when compared to a 3.34 billion baht loss in the same period of 2015 while its aromatic petrochemical unit posted a profit of 889 million baht, increasing five-fold.

Thai Oil’s earnings are expected to increase in the last quarter of 2016 owing to better refinery performance and lube base oil output businesses.