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TOP deflects into petrochemical business, building a new S-Curve into a 100-year organization


TOP adjust business plan turn to petrochemical and high-value products, creating a new S-Curve, expecting continued good Q1/65 performance, benefiting from rising energy prices-demanding, and expecting this year’s refining margin to be better than the previous year. will record a profit from selling GPSC shares of more than 11 billion baht during the 2nd quarter of 2022 and increase the capital during the 3rd quarter of 2022, reducing the D / E to no more than 1 times from the former 1.4 times

Mr. Wirat Uanarumit, Chief Executive Officer and President of Thai Oil Public Company Limited (TOP), revealed at the event “”Opening the vision of TOP generals, leading the organization to overcome challenges Extending the strength of the refinery into the petrochemical business Support big business transformations” that the company has reviewed the strategic plan in accordance with the business environment and context. Ready to step into a sustainable 100-year organization under the concept “Building on Our Strong Foundation”

By building the business from the company’s strong refining foundation to petrochemicals and high-value products. Distribute products according to market demand with deep penetration in demanding regional markets.

as well as diversifying investment into low-volatility businesses and investing in new S-Curve businesses, in line with the goal of having 40% of profits from petroleum business, 40% petrochemical business, 10% power business and 10% new by year ’73

As for the earnings outlook for the first quarter of 2012, the Company expects the performance of the refinery business to increase significantly. As energy prices, both oil and natural gas skyrocket. After the supply capacity is insufficient to meet the demand (demand) that continues to recover. and the problem of war between Russia and Ukraine including more sanctions against Russia of Western countries

However, this year’s refining margin is expected to improve from the previous year. Due to the relatively recovering demand Global demand for both diesel and gasoline has returned to near pre-COVID-19 levels, with crude oil prices expected to fall between $95-100 a barrel. from increased supply

However, if the conflict situation between Russia and Ukraine does not improve It is expected that crude oil prices may rise to the level of 110-115 dollars per barrel.

In addition, the Company will recognize gains from sales of investments and gains from changes in accounting records of investments in Global Power Synergy Public Company Limited (GPSC) of approximately 11 billion baht into the budget during the second quarter/ 65 After the company prepares to seek approval from the shareholders’ meeting (AGM) next week to reduce its investment in GPSC totaling 304,098,630 shares, representing approximately 10.78% or a total value of approximately 22,351 million baht, which is expected to be sold. Shares will be completed in 2Q22.

In addition to the sale of GPSC shares, the Company expects that no more than 275.12 million shares will be allocated to the general public (PO) during the third quarter of 2022. It is a PO offering of not more than 239.23 million shares and to support the exercise of rights to purchase shares of the Over-Provider (Green Shoe) in the amount of not more than 35.88 million shares.

Both of these fundraising are in line with the company’s medium- to long-term financial restructuring plan to strengthen it. Because the company will use the money raised from this fundraising to pay off bridge loans worth about 30 billion baht to PTT Plc. (PTT) and Financial Institutions (Banks) from investing in olefin business in CAP, Indonesia

The benefits the company will receive will support its capital base to become larger and maintain its credit rating at investment grade, as well as reduce its net debt-to-equity ratio. (D/E) to not more than 1x from the end of 64 at the level of 1.4 times, which helps the company to be more flexible in doing business in the future.

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