PTTAR bullish on refining business

PTTAR posted net profit of Bt18 billion for 2007, from Bt13.2 billion a year earlier, due to higher refining margins and capacity utilisation of its aromatics business. The board approved a dividend payment of Bt2.50 per share, payable on April 30.

The company's share price closed at Bt41.50.

 President Chainoi Puankosoom expects the refining margin to stay at US$6-7 per barrel this year due to continued increase in oil demand in Europe and China.

 As chairman of Federation of Thai Industries' refining business club, Chainoi said global oil demand would rise 1.8 per cent from last year's level, which was 85 million barrels a day.

 He also anticipated the world oil price to average $70-$80 per barrel throughout the year. Due to fears of weakening US dollar, hedge funds would slow down their activities in the futures markets.

 In 2007, the average refining margin was $11 per barrel, due mainly to the spike in global oil prices in the fourth quarter which allowed refineries to cash in on inventories.

- The Nation