Bangkok: RPC reported a net profit of 7,889 million baht in Q1/69, benefiting from increased oil inventory. IRPC Public Company Limited announced its Q1 2026 net sales revenue of 67,779 million baht, a 22% increase compared to Q4 2025. Net profit reached 7,889 million baht, primarily driven by higher average selling prices due to rising crude oil prices. Despite global energy volatility, IRPC reaffirms its commitment to maintaining operational stability, ensuring raw material security, and maintaining financial discipline.
According to Thai News Agency, Mr. Terdsak Prommoon, Chief Executive Officer and President of IRPC Public Company Limited, revealed the operating results for the first quarter of 2026, stating that the company had net sales revenue of 67,779 million baht, an increase of 22 percent compared to the fourth quarter of 2025. This was mainly due to an increase in the average selling price driven by the rise in crude oil prices. The Market GIM (Gross Profit Margin) was 7,902 million baht, or US$13.21 per barrel, an increase of 14 percent from the fourth quarter of 2025.
However, the crude oil situation in Q1 2026 was boosted by the unrest in the Middle East, particularly the closure of the Strait of Hormuz, resulting in a significant supply tightening in the global oil market. This pushed crude oil prices up rapidly compared to the previous quarter, generating a profit from oil inventory of 9,843 million baht, or US$16.46 per barrel, benefiting the company.
EBITDA totaled 14,750 million baht, an increase of 13,394 million baht compared to Q4/2025. In Q1/2026, the company recorded an unrealized loss of 1,981 million baht from oil risk management, compared to a profit of 258 million baht in Q4/2025. Meanwhile, the company recorded an investment gain of 299 million baht, a 64% increase from the previous quarter, mainly due to gains from the sale of investments in joint ventures. As a result of the above factors, the company recorded a net profit of 7,889 million baht in Q1/2026, compared to a net loss of 574 million baht in Q4/2025.
Mr. Teodkiat stated that although the company's performance in the first quarter of 2026 improved, primarily driven by stock gains from rising global crude oil prices due to tensions in the Middle East, the rapid increase in Dubai crude oil prices from an average of approximately US$68 per barrel in February 2026 to approximately US$129 per barrel in March 2026 significantly impacted the company's costs, liquidity, and working capital.
Furthermore, the improved performance in the first quarter of 2026 is a result of short-term oil price volatility, which may change depending on the future global energy market situation. If crude oil prices decline after the situation stabilizes, the company may be at risk of recognizing stock losses due to the high cost of crude oil purchased in advance, which could affect operating results. At the same time, the volatility of supply and demand in the global energy market, as well as geopolitical factors and logistical costs, remain factors that the company closely monitors.
For the business outlook in Q2 2026, the company expects the crude oil and petrochemical markets to continue facing volatility from geopolitical factors and supply constraints. Dubai crude oil prices are likely to fluctuate between approximately US$98-105 per barrel due to transportation disruptions through the Strait of Hormuz. However, if transportation returns to normal, supply will gradually recover, while increased production by OPEC+ will help alleviate some of the market tension.
The petrochemical market continues to face pressure from rising raw material costs and transportation uncertainties, leading many producers in the region to reduce production capacity to manage risk. Meanwhile, demand is showing signs of a gradual recovery, supported by the food and beverage packaging sector, which continues to experience strong demand despite the global economic slowdown.
The company is committed to prudent business management amidst the uncertainty of the global energy market, focusing on maintaining operational stability, enhancing supply security, proactive risk management, and maintaining financial discipline to mitigate the impact of geopolitical situations in the Middle East and volatility in the global energy supply chain.
IRPC has maintained operational continuity and efficient product delivery despite the tense situation in the Middle East and shipping restrictions through the Strait of Hormuz, which affected crude oil costs and shipping rates. The company established a Crisis Management Center (CMC) for integrated risk management, encompassing situation monitoring, business continuity management, raw material procurement, inventory management, and maintaining production stability and product delivery.
The company is committed to strengthening its supply security through diversification of raw material sources and efficient supply chain management to cope with global market volatility and support the country's energy security. At the same time, IRPC operates under the "4R" strategic framework: Recapitalize (strengthening financial position), Revitalize (enhancing core business efficiency), Reinvent (creating new businesses and revenue streams), and Reframe (adapting the organization and integrating ESG with Digital Transformation) to enhance business competitiveness and support long-term growth.
The company remains focused on conducting business based on a balance between generating returns and managing risks. Emphasis is placed on core business performance, cost management, financial discipline, liquidity management, and prudent management of energy price risks to maintain competitiveness, strengthen business stability, and support sustainable long-term growth amidst high economic and energy market uncertainty.
In terms of sustainable business operations, the company has been selected as a member of the Dow Jones Best-in-Class Indices (DJ BIC), both the World Index and the Emerging Markets Index, for the 12th consecutive year. This reflects its commitment to conducting business according to ESG principles and international standards, while continuing its journey towards a Net Zero goal by 2050 through increased energy efficiency, the use of renewable energy, and the continuous development of technologies to reduce greenhouse gas emissions.
In addition, IRPC is preparing to offer 3-year, 5-year, and 7-year debentures to the public. Both the company and the debentures have been rated 'A-' with a 'stable' outlook by TRIS Rating, reflecting its potential in the integrated refining and petrochemical business, its cash flow generation capabilities, and the long-term strength of its business as a strategic company within the PTT Group.