PTT OR shares rise after posting fourth-quarter earnings

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Share of PTT Oil & Retail Business Plc (OR), the retail arm of Thailand’s oil and gas giant PTT Group, climbed nearly 6 per cent on Thursday after reporting its 2021 fourth-quarter earnings of 2.35 billion baht. 

During the morning session, OR’s price peaked at 27 baht, up 5.88 per cent from its prior closing. 

The fourth-quarter earnings came in line with market estimates, improving 24 per cent from the previous quarter but showing a drop of 20 per cent year-on-year. OR’s full-year earnings in 2021 stood at 11.5 billion baht, up 30 per cent year-on-year. 

Thanks to easing Covid-19 restrictions and high season in the year-end, OR recorded higher sales volume in refueling and non-oil businesses from the third quarter. 

The earning, however, declined year-on-year due to the government’s measure to cap diesel prices, which hurt the company’s oil marketing margin. 

As of the fourth quarter, OR operates over 2,080 gas stations across Thailand, with  more than 350 stations located in the Philippines, Cambodia, and Laos. 

“We believe the better earnings performance QoQ in 4Q21 will support the share price,” KGI analyst Kaweewit Thawilwithayanon said in a research note. 

He added that the latest policy to reduce excise tax on diesel by 3 baht per litre from 5.99 baht for three months is expected to boost OR’s oil marketing margin to rise slightly. 

Krungsri analyst Naphat Chantaraserekul said that OR’s investment plans remain cautious. Those plans include acquiring a stake in Flash Express, as well as investing in several restaurant chains. 

The company “has already spent 4.5 billion baht on new investments since mid-2020, but none has contributed significant earnings.” said Naphat.

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