BCP reports record breaking Q3 results on the back of ESSO acquisition and hike in oil and gas prices

Listen to this story

Bangchak Corporation Plc (BCP), one of Thailand’s leading refining and gasoline retailers, reported a nearly 4-decade high record-breaking profit for the 3rd quarter as the firm incorporated its rival retailer Esso (Thailand) Plc.

BCP said that its performance for the 1st nine months of 2023 showed that its revenues stood at a staggering 242.93 billion Baht and its earnings before interest, tax, depreciation, and amortization (EBITDA) reached a high of 31.43 billion Baht.

As for the 3rd quarter BCP’s revenues stood at 94.53 billion Baht an increase of 39% quarter-on-quarter and 26% rise year-on-year. The sharp increase was on the back of rising prices of oil related business and its natural resources business experience an increase off take and rise in prices.

To top all this was the consolidation of Esso (Thailand) Plc from September 1, 2023 (thus Esso’s business was consolidated for only 1 out of the 3 months in the quarter).

Chaiwat Kovavisarach, Group Chief Executive Officer and President, of BCP, revealed that in the first nine months of 2023, BCP recorded a total revenue of 242.93 billion Baht and EBITDA of 31.43 billion Baht, despite pressures from decreased operating gross refining margins (GRM) during the first half of the year from falling oil prices.

He added that the investments and expansions in various potential businesses, such as natural resources business, power business, and the incorporation of Esso (Thailand) Public Company Limited as a Bangchak subsidiary, and the consolidation of performance helped push the revenues and profits of the 9-months ending September 2023 to record a net profit attributable to owners of the parent of 14.21 billion Baht, representing earnings per share of 10.09 Baht.

The third quarter of 2023 recorded the highest performance in the company’s 39-year history since its establishment at with 11.01 billion Baht, translating to a profit per share of 7.91 Baht. The revenue for this quarter amounted to 94.53 billion Baht, with an EBITDA
of 13.81 billion Baht, reflecting an increase of over 100% from the previous quarter and a 20% increase from the same period in the previous year.

“Several factors contributed to this outstanding performance include: 1) The oil-related business benefited from rising crude oil and product prices, resulting in a 3.6 billion Baht Inventory Gain. 2) Increased sales volumes in the natural resources business. 3)  The power business recognized increased power generation from hydroelectric power plants in Laos PDR throughout
the quarter and acknowledged the rise in electricity production from natural gas power plants in the United States, with the addition of two projects. 4) The financials also incorporated the performance of Esso (Thailand) at a 76.34% ownership stake in the consolidated financial statement since September 1, 2023, along with the recognition of extraordinary gains from the renegotiation of purchase prices based on fair value assessments of Power Purchase Agreements (PPA) totaling 7.4 billion Baht,” Chaiwat said.

“The results of the third quarter clearly reflect our ability to conduct business, which stems from the strong foundation we have built in developing Bangchak’s capabilities. This marks the beginning of a new chapter in the company’s business history, with a stronger foothold that will enable Bangchak to seek and seize new business opportunities for even greater success. We remain steadfast in our commitment to responsible business practices and focus on the steady and sustainable growth of our business, while maintaining a balance in the Energy Trilemma,” Chaiwat said.

Apart from this in September, Bangchak approved interim dividend payments for 2023
to shareholders at a rate of 0.50 Baht per share. This reflects Bangchak’s commitment
to continuously increasing shareholder value.

Stock Price Info

Stock Fundamental

Peer Comparison

Stock Price Chart


Ivermectin not effective in treating Covid-19, joint Mahidol-Oxford study shows

Ivermectin is not shown to be effective against Covid-19 in clinical trials according to the findings of a joint...

Latest article