Thai Oil (TOP) investor relations material

Business overview and strategic positioning

• Operates as a leading integrated refinery and petrochemical group with a 22% share of Thailand's refining capacity and a Nelson Complexity Index of 9.8, highlighting advanced upgrading capabilities.

• Strategic partnership with PTT, which holds a 48% stake, provides long-term business synergies, operational integration, and access to key domestic and Indochina markets.

• Business structure includes refining, aromatics, lube base, power generation, solvents, ethanol, and international investments, supporting diversified revenue streams.

• Clean Fuel Project (CFP) aims to boost competitiveness, increase capacity by 40%, and enhance product mix toward higher-value, cleaner fuels.

• Sustainability is a core focus, with top-tier ESG ratings, net zero targets, and ongoing community and environmental initiatives.

Q1 2026 operational and financial highlights

• Achieved high refinery utilization (113%) and strong domestic sales, with optimized crude sourcing and product output to maximize margins.

• Q1 net profit surged to 19,481 MB, mainly from non-recurring stock gains due to oil price volatility and a gain from bond buyback; core refining earnings remained healthy.

• Diversified crude sourcing away from the Middle East to mitigate geopolitical risks, though this increased procurement costs.

• Successfully resumed SBM-2 operations, enhancing marine logistics resilience and supply chain flexibility.

• Deleveraging actions included perpetual bond issuance and a $550M bond buyback, improving net-debt-to-EBITDA ratio from 4.7x to 3.7x.

Market and segment performance

• Refining margins (GRM) were elevated in Q1 due to Middle East tensions, but are expected to soften as tensions ease and pre-secured crude premiums remain high.

• Aromatics and LAB segments saw higher contributions from improved margins, while base oil and power segments faced margin pressure from higher feedstock costs.

• Olefins and solvents benefited from short-term supply disruptions, but outlook for 2H 2026 is softer as supply normalizes and demand growth slows.

• Thailand's petroleum demand growth is subdued in 2026, with gasoline and gasoil demand pressured by high prices and weak economic expansion, while jet fuel demand is supported by tourism.