IRPC shares fall on Q3 loss

Its stock ended the day at Bt2.26, down from the previous close of Bt2.38.

IRPC joined other refineries in reporting poor performance in the third quarter, when oil prices swung wildly after reaching a historic peak of US$147 (Bt5,140) per barrel in July. The Dubai oil price stood at $96 a barrel at the end of the quarter, from $128 three months earlier.

IRPC posted a huge net loss in the period, due mainly to losses in inventory value.

In the quarter, the company showed a net loss of Bt4.43 bil¬lion, against a net profit of Bt3.74 billion in the same period last year.

The company reported a 24percent yearonyear increase in quarterly sales revenue to Bt68.7 billion. However, the cost of sales rose 39 per cent, due to the volatile crudeoil price changes during this quarter.

The company had to set aside provisioning for a decrease in net realisable value in inventories amounting to Bt4.62 billion.

The average cruderun level in the quarter was 159,787 barrels per day, down 14.75 per cent from 187,444 in the same period last year.

The global economic slowdown is now pressuring oil prices down, as demand is expected to fall.

PTT Aromatics and Refining CEO and president Chainoi Puankosoom recently said the company might reduce its refining capacity by 10 per cent next year, to reflect lower oil consumption in the industrial and transportation sectors.