SPRC Announces the Company 2018 Net Income of US$ 74 million (Baht 2,263 million)
21 February 2019

Bangkok – February 21, 2019.  Mr. Timothy A. Potter, Director and CEO of Star Petroleum Refining Public Company Limited (SPRC), announced the company’s operational and financial results for Q4/2018 and full year 2018.  Net loss for Q4/2018 was US$ 118 million (Baht 3,881 million) compared with net income for Q3/2018 of US$ 38 million (Baht 1,248 million).  Total net income for 2018 was US$ 74 million (Baht 2,263 million) compared with 2017 of US$ 261 million (Baht 8,895 million).  

Net income for both Q4/2018 and full year 2018 were impacted mainly from lower market refining margin and significant stock loss and the write down of inventory to net realizable value.  In Q4/2018, SPRC operated at high utilization of crude intake reaching 100% of its refining capacity or 165.3 thousand barrels per day.  At the end of 2018, SPRC also achieved 18.1 million man-hours and 5.5 years since our last “day away from work” and 2.3 million man-hours since our last recordable injury.

21 February 2019, SPRC’s Board of Directors meeting No.1/2019 passed a resolution to propose no dividend payment for the period of 1 July 2018 to 31 December 2018.  The 2018 interim dividend paid on 13 September 2018 was higher than the net income for the year.  This resolution will be presented to the 2019 Annual General Shareholders’ Meeting for approval on 10 April 2019. 

Mr. Timothy would also like to inform that SPRC plans to have the scheduled shut down for maintenance of all its production units during November 2019 to December 2019.  The duration of the shut down will be in line with the last shut down.  SPRC will inform the final schedule in early Q2/2019.  The last scheduled shut down was in February 2014.  SPRC has the plans and actions in place to ensure no supply disruption to its customers and oil demand in Thailand. During the scheduled maintenance activities, SPRC will upgrade its facilities to improve efficiency, reliability and environmental, health and safety compliance.   This will enable SPRC to continue safe and reliable operation, process more crude types, extend the scheduled shut down period and maintain its 1st quartile in OA (Operation Availability) and UEDC (Utilization of Equivalence Distillation Capacity) among refineries in Asia Pacific and Indian Ocean region.

In addition to the planned maintenance, SPRC will implement its previously announced Capacity Increase Project.  The project will increase the capacity of its Crude Distillation Unit (CDU) and related downstream units from 165,000 barrels per day to 175,000 barrels per day.  SPRC expects to generate additional benefit immediately after this project is finished in December 2019.  The combined costs for the Capacity Increase Project, planned maintenance, and upgrades in 2019 are approx. US$ 256 million. SPRC does not expect any capital increase from the major spending as mentioned above.
 
SPRC is committed to doing business in Thailand and will continue to look for opportunity to expand its business platform.

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