IRPC (IRPC) Q4 2024 earnings summary

Executive summary

• 2024 performance was pressured by stagnant market conditions, but 4Q24 saw improved results due to net inventory gains and better product spreads.

• Strategic initiatives included the Ultra Clean Fuel project, expansion into Jet A1 aviation fuel, and a focus on sustainability with a 20% GHG reduction target by 2030.

• Recognized for sustainability, winning awards and maintaining a stable A- credit rating for the 11th consecutive year.

Financial highlights

• 2024 net sales declined 6% year-over-year to 281,711 MB; 4Q24 net sales dropped 10% sequentially.

• EBITDA for 2024 was 4,476 MB, down 22% year-over-year; 4Q24 EBITDA rose over 100% sequentially to 3,200 MB.

• Net income for 2024 fell 78% year-over-year to -2,923 MB; 4Q24 net income improved 77% sequentially to -1,125 MB.

• 4Q24 accounting GIM was $9.95/bbl, up from $-2.11/bbl in 3Q24, driven by net inventory gain.

Outlook and guidance

• 2025 focus areas include maximizing port utilization, seeking strategic partners for industrial land, and optimizing petrochemical competitiveness.

• Oil demand growth in 2025 is expected mainly from China and India, with global GDP growth remaining stagnant.

• Oil supply growth in 2025 will be led by the US and OPEC+ production resumption; crude prices are expected to remain soft but volatile.

• Petrochemical spreads are forecast to remain under pressure due to new capacity additions, especially in China.