Bangchak Corporation Public Company Limited (SET: BCP) has published a quarterly key business update for the third quarter of 2024 that shows growth of its utilization rate and sales volume.
In 3Q24, the average price of crude oil declined due to concerns regarding economic slowdowns in China and the United States, dampening global demand expectations. The price of Dubai crude went down from $85.34 a barrel in the second quarter to $78.48 a barrel in the third. However, the company had a higher run-rate at 88%, compared to 78% in the previous quarter.
BCP ramped up its petroleum trading and export during that quarter that led to an increase in sales volume to 4,151 million liters, up from 4,071 million liters.
In 3Q24, the Marketing Business Group witnessed a modest decline in overall sales volume compared to the previous quarter. This decrease was primarily driven by the impact of the rainy season and significant flooding in certain regions, which adversely affected travel and tourism activities, leading to softer demand in the retail market. While the industrial market sales volume remained relatively stable.
In 3Q24, the Clean Power Business Group achieved a notable increase in electricity generation, primarily driven by a substantial rise in output from hydropower plants in the Lao PDR. This increase was largely due to favorable seasonal conditions and enhanced rainfall from the La Niña phenomenon, effectively compensating for reduced solar power generation in Thailand, where lower irradiance was observed due to seasonal factors. Furthermore, the sale of all solar power plants in Japan, completed in June 2024, also contributed to the reduction in overall solar output.
Additionally, the Company saw an increase in electricity generation from combined cycle power plant projects in the USA, as all plants returned to full operational capacity following partial maintenance in 2Q24.
Meanwhile, the Oil Depot and Port Business experienced a decrease in oil storage tank utilization compared to 2Q24. However, pipeline usage increased, reflecting higher demand for oil transport services from customers.
The Bio-Based Products Business Group in 3Q24 observed a positive trend in ethanol sales volume, attributed to the company’s strategic sales management. Conversely, the sales volume of biodiesel (B100) experienced a slight decline, largely due to seasonal factors affecting demand. The average reference prices of both biodiesel and ethanol softened this quarter, influenced by a continued influx of oil palm products into the market, coupled with the current the high levels of domestic ethanol stocks.
In 3Q24, the Natural Resources Business Group reported a slight decrease in total production volume, while sales volumes rose compared to the previous quarter. This growth was primarily due to higher sales volume than contracted production capacity (Overlift) mostly in Brage fields. The average selling price of natural gas increased in line with global market trends, driven by rising energy demand and intensified efforts by European countries to stockpile natural gas reserves in preparation for the upcoming winter season. While the average selling price of oil (Liquid Price) experienced a decline, reflecting the impact of a global economic slowdown.
Additionally in 3Q24, OKEA ASA (a subsidiary in which the Company holds 45.58% equity interest) has entered into an agreement to sell its 15% working interest in the Yme Petroleum Field to Lime Petroleum AS (“Lime”) for a consideration of USD 15.65 million, which exceeds its book value. Additionally, all related decommissioning costs of Yme Petroleum Field will be transferred to Lime. The agreement with Lime was entered into on September 23, 2024, and the transaction is expected to be completed by the end of 2024.
