Thai Oil, the country's largest oil refiner, has reported a consolidated 2006 net profit of Bt16.65 billion, compared to Bt18.75 billion in 2005. It says it will pay a dividend of Bt2 a share on May 3 for its second-half operations, to shareholders whose names appear on the share register on March 21.

Thai Oil said outstanding performances by its Thai Paraxylene and Thai Lubebase subsidiaries contributed to a 25-per-cent increase in revenues.

"The cost of paraxylene and lube-base oil increased, while their raw-material costs fell - along with lower oil prices - helping to compensate Thai Oil for a decrease in its revenues. Besides, the company gained a profit of Bt3.49 billion from the added value of the baht," Thai Oil managing director Viroj Mavichak told the Stock Exchange of Thailand (SET) yesterday.

Thai Oil paid an interim dividend of Bt1.50 per share last October for its operations in the first half of 2006.

In the forth quarter alone, Thai Oil and its subsidiaries generated revenues of Bt61.72 billion, down Bt5.36 billion year on year. The net operating profit for the fourth quarter was Bt1.84 billion, down Bt681 million year on year as a result of oil-price fluctuations.

Petrol and natural-gas prices were down sharply, because of a mild winter in the US and no severe hurricane problems. Moreover, the high level of crude-oil and product stocks in the US gave the market a bearish sentiment.

"However, the business structure of Thai Oil and its subsidiaries, as an oil refinery integrated with paraxylene and lube-base oil plants, led to support from a surge in paraxylene and lube-base oil prices, and this fostered profits for Thai Oil while the oil market declined," said Viroj.

As of last December 31, Thai Oil and its subsidiaries had total assets of Bt124.68 billion, total liabilities of Bt51.87 billion and shareholders' equity of Bt72.81 billion. Its total liability-to-equity ratio of 0.9 in 2005 fell to 0.7 last year.

The company's statement to the SET said it planned to issue bonds worth US$500 million (Bt17.84 billion) to local and foreign investors.