Oil refiner Thai Oil’s base oils, lube and bitumen unit saw profit rebound in the third quarter of the year as feedstock costs slumped.Thai Lube’s profit before interest, taxes, depreciation, and amortization (EBITDA) rose to 1.65bn Thai baht ($44.9mn) in the three months to end-September.Profit rose for the first time this year and by 25pc from year-earlier levels to the second highest in more than five years.The highest profit during that time had been in the second quarter of 2021, when unusually tight supply in Asia-Pacific triggered a surge in base oils prices..Profit surged in the third quarter even in the face of lower regional base oils prices, weak Chinese demand and a seasonal slowdown in lube consumption in southeast Asia.The strong profit instead reflected the relative strength of base oils prices compared with crude and with other products like diesel.The trend highlighted the price interconnectivity between different refined products and the incentivize those prices generated for refiners even if supply-demand dynamics suggested otherwise..Thailand's August base oils exports fall.Thai Lube’s profit rose as sales climbed by 21pc in the third quarter to BT7.78bn.Revenue fell by 7pc from BT8.40bn during the previous three months as a drop in base oil run rates to 86pc from 90pc cut the sales volume to 58,000t. The volume was the lowest since first-quarter 2020.The refiner cut base oils run rates despite the rebounding profit and lower diesel margins. It instead redirected more feedstock to bitumen production to take advantage of even strong margins for that product.Revenue was less affected by base oils prices even as they slumped in the third quarter amid plentiful supply. Their average price during the period was still similar to their price level in the second quarter of the year.The steady prices contrasted with a sharp fall in average crude and fuel oil prices in the third quarter from the previous three months.The trend triggered a rebound in base oil values relative to feedstock prices.Thai Lube’s EBITDA margin of 21.3pc in the third quarter rebounded from less than 10pc in the first half of the year. The margin was the highest since first-half 2021 and second highest in more than five years.The unit’s strong profit margin contrasted with a third-quarter loss for Thai Oil’s refining unit..Thai Oil’s Q2 base oils profit stays low
Oil refiner Thai Oil’s base oils, lube and bitumen unit saw profit rebound in the third quarter of the year as feedstock costs slumped.Thai Lube’s profit before interest, taxes, depreciation, and amortization (EBITDA) rose to 1.65bn Thai baht ($44.9mn) in the three months to end-September.Profit rose for the first time this year and by 25pc from year-earlier levels to the second highest in more than five years.The highest profit during that time had been in the second quarter of 2021, when unusually tight supply in Asia-Pacific triggered a surge in base oils prices..Profit surged in the third quarter even in the face of lower regional base oils prices, weak Chinese demand and a seasonal slowdown in lube consumption in southeast Asia.The strong profit instead reflected the relative strength of base oils prices compared with crude and with other products like diesel.The trend highlighted the price interconnectivity between different refined products and the incentivize those prices generated for refiners even if supply-demand dynamics suggested otherwise..Thailand's August base oils exports fall.Thai Lube’s profit rose as sales climbed by 21pc in the third quarter to BT7.78bn.Revenue fell by 7pc from BT8.40bn during the previous three months as a drop in base oil run rates to 86pc from 90pc cut the sales volume to 58,000t. The volume was the lowest since first-quarter 2020.The refiner cut base oils run rates despite the rebounding profit and lower diesel margins. It instead redirected more feedstock to bitumen production to take advantage of even strong margins for that product.Revenue was less affected by base oils prices even as they slumped in the third quarter amid plentiful supply. Their average price during the period was still similar to their price level in the second quarter of the year.The steady prices contrasted with a sharp fall in average crude and fuel oil prices in the third quarter from the previous three months.The trend triggered a rebound in base oil values relative to feedstock prices.Thai Lube’s EBITDA margin of 21.3pc in the third quarter rebounded from less than 10pc in the first half of the year. The margin was the highest since first-half 2021 and second highest in more than five years.The unit’s strong profit margin contrasted with a third-quarter loss for Thai Oil’s refining unit..Thai Oil’s Q2 base oils profit stays low
