IRPC Public Co., Ltd. continues to navigate a complex economic landscape while remaining committed to sustainable growth and innovation in energy materials.

Under the leadership of President and CEO Terdkiat Prommool, the company is focused on optimizing operational efficiency, expanding capacity, and integrating digital technologies into its operations.

IRPC is leveraging its expertise across various sectors, including petroleum, petrochemicals, ports, and real estate, to adapt to evolving market demands while reinforcing its commitment to environmental and social responsibility.

One of the significant advancements in IRPC's strategy is the Ultra Clean Fuel (UCF) project, which began commercial operations in April 2024. This initiative is pivotal in enhancing revenue streams and produces Euro 5-standard diesel and Jet A-1 aviation fuel, adhering to international Joint Inspection Group (JIG) standards, thereby supporting the global aviation industry.

As part of its efforts to address stagnation in the petrochemical cycle, the company has increased its specialty petrochemical product development by 36%, targeting high-growth markets such as packaging, medical equipment, electric vehicles, and electronics, while broadening its presence both domestically and internationally.

Additionally, IRPC has amplified its floating solar capacity by 8.5 megawatts and is advancing plans for a solar power plant on its land to foster clean energy development.

In terms of financial performance, IRPC faced several challenges in 2024, including geopolitical tensions, inflation, and energy price volatility, which have resulted in heightened competition, supply chain disruptions, and fluctuations in consumer demand.

The company’s net sales revenue dropped by 6% year-on-year to THB 281.7 billion, driven by a 4% decline in sales volume and a 2% decrease in average selling prices, reflecting lower crude oil costs.

The Dubai crude oil benchmark showed weakness due to economic slowdowns in major markets including China, the United States, and Europe.

This scenario resulted in an oil stock loss of THB 2.5 billion for IRPC.

Despite some offsets from net realizable value adjustments and profits from oil hedging, IRPC recorded a net inventory loss of THB 664 million.

The Accounting Gross Integrated Margin (GIM) fell to THB 17.7 billion, amounting to USD 6.99 per barrel, a 3% decline from the previous year.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) decreased by 22% to THB 4.47 billion, influenced by a 5% rise in depreciation costs post-UCF launch and a 20% increase in financing costs due to heightened borrowing and interest rates.

However, investment profits rose to THB 989 million, primarily from land sales at WHA Industrial Estate Rayong, beginning in Q2/2024. Ultimately, IRPC reported a net loss of THB 5.19 billion for the year, representing a 78% increase compared to 2023.

In the fourth quarter of 2024, IRPC's net sales revenue was recorded at THB 63.04 billion, down 10% from the previous quarter.

However, EBITDA improved to THB 3.2 billion, recovering from an EBITDA loss of THB 4.84 billion in the prior quarter.

The company achieved a net loss of THB 1.12 billion, showing a 77% improvement from the third quarter.

Nonetheless, factors such as derivative losses from baht depreciation, unrealized oil risk management losses, and asset impairments from investments in subsidiaries weighed heavily on overall performance.

Looking toward the future, IRPC anticipates ongoing pressure in the petrochemical sector due to oversupply from new production capacity in China, with demand growth expected to remain modest between 1-3% in line with global economic recovery.

Strengthened demand is anticipated in the food packaging and technology sectors, while durable goods markets, such as housing and automotive, may face slower growth due to reduced consumer purchasing power.

Additional factors to monitor include U.S. trade barriers potentially affecting the Chinese economy, geopolitical tensions influencing energy prices and raw material costs, and the implementation of stricter EU regulations on high-carbon-emission petrochemical imports.

IRPC continues to garner international recognition for its commitment to sustainability and corporate governance.

It has been a member of the Dow Jones Sustainability Index for 11 consecutive years in the Oil & Gas Refining and Marketing category.

IRPC is also the first and only private Thai company to receive the “GOLD” award for human rights excellence from the Ministry of Justice and has achieved Excellent Corporate Governance Scoring certification for 16 consecutive years from the Thai Institute of Directors Association.

The company’s Board of Directors has proposed a dividend payout of THB 0.01 per share, amounting to THB 204 million, pending shareholder approval at the annual meeting scheduled for April 2, 2025. Despite ongoing market challenges, IRPC remains focused on fostering innovation, sustainability, and operational resilience, ensuring long-term value for its investors and stakeholders.