Refinery upgrading projects to improve Bangchak’s net profit

Bangchak Petroleum (BCP) said it will post a first quarter 2009 net profit of 1.4 billion baht (US$40.42 million) versus a net loss of 3.2 billion baht (US$92.4 million) in the fourth quarter of 2008. BCP’s product quality improvement project that started last month will convert its refinery into a complex facility, resulting in a higher refining utilization rate of 80%, from 62% in 2008. Gross refining margin will also increase as the proportion of low-margin fuel oil produced at the refinery will decline from 39% of BCP’s total refined oil output to 9%, while the proportion of high-margin gasoline will increase from 15 to 25%, and the proportion of gas oil will rise from 36 to 52%. Thus, BCP is expected to earn a net profit of 4.41 billion baht (US$127.34 million) in 2009 from a net loss of 750 million baht (US$21.65 million) in 2008. (May 8, 2009)