On Friday at 10:45 AM (Bangkok time), the share price of Thai Oil Public Company Limited (SET: TOP) slumped by 4.35% or THB 2.00 to THB 44.00, with a trading value of THB 324.40 million.
Yuanta Securities (Thailand) suggested that the drop in TOP’s stock value may be attributed to apprehensions concerning the progress of the CFP project following financial challenges faced by the primary contractor, the Samsung E&A (Thailand) Co., Ltd., Petrofac South East Asia Pte. Ltd., and Saipem Singapore Pte. Ltd. (UJV-Samsung, Petrofac, and Saipem). The liquidity shortage resulted in payment delays for subcontractors, fueling investor doubts regarding the project.
Currently, TOP has not disclosed any postponement in the commencement of the CFP project, simultaneously confirming the fulfillment of payments to the involved ventures.
The analyst expects TOP to unveil a net loss of approximately THB 3,500 million in the third quarter of 2024, acknowledging a stock loss of around THB 7,500 million due to the swift decline in crude oil prices, coupled with an 8% quarter-on-quarter decrease in refining prices.
Yuanta Securities (Thailand) advised investors to exercise caution in their investments and wait until after TOP’s third-quarter 2024 earnings report, scheduled to be revealed on November 8.
