On Friday at 11:02 AM (Bangkok time), the share price of Star Petroleum Refining Public Company Limited (SET: SPRC) slumped by 3.80% or THB 0.30 to THB 7.60, with a trading value of THB 267.69 million.
Thai Oil Public Company Limited (SET: TOP) dropped by 1.47% or THB 0.75 to THB 50.25, with a trading value of THB 597.40 million.
Bangchak Corporation Public Company Limited (SET: BCP) slid by 0.76% or THB 0.25 to THB 32.50, with a trading value of THB 220.52 million.
Bangchak Sriracha Public Company Limited (SET: BSRC) decreased by 2.45% or THB 0.20 to THB 7.95, with a trading value of THB 13.43 million.
Asia Plus Securities anticipates a lackluster performance for refinery stocks in the second quarter of 2024. This projection is based on the reduced pressure on refining rates, attributed to the normalization of oil supply following a decrease in oil demand, aligning with typical seasonal trends.
Additionally, the current volatility and gloomy prospects of the global economy have alleviated the earlier tightening in supply, thereby diminishing the impact on the spread. Consequently, the profits of Thai refineries have been negatively affected.
This scenario raises the possibility of certain refinery stocks, like SPRC, facing potential losses. Despite refining rates and spreads, these stocks lack additional profit sources to bolster their earnings, while profits from oil stockpiles were also anticipated to decline.
