On Monday at 11:07 AM (Bangkok time), the share price of Star Petroleum Refining Public Company Limited (SET: SPRC) jumped by 8.26% or THB 0.50 to THB 6.55, with a trading value of THB 96.30 million.
DAOL Securities (Thailand) noted that SPRC could report a potential profit turnaround in 4Q24. This transformation is anticipated to stem from an uptick in the market GRM in comparison to 3Q24, driven by increased oil demand throughout the winter period in the Middle East and the full-quarter functionality of SPM. Additionally, an anticipation of reduced stock loss, including NRV, is also on the horizon, contrasting with the figures from the third quarter.
The analyst maintains the full-year profit projections for SPRC in 2024 and 2025 at THB 2.9 billion and THB 2.7 billion, respectively. This stands in contrast to a net loss of THB 1.2 billion recorded in 2023. Forecasts indicate a market GRM ranging between $4.5 to $5.4 per barrel, an improvement from the $4.4 per barrel seen in 2023. The positive outlook is attributed to the resumption of SPM operations in the second half of 2024, a decrease in crude premium, and a refining volume set at 158-159 kbd compared to 153 kbd in 2023.
As a result, the analyst upholds SPRC’s target price at THB 9 per share.
