Bangchak Petroleum sees lower profits

Thai refiner Bangchak Petroleum Pcl may post stock losses this year due to the volatility in crude prices, but a recovery in refining margins to US$5.5-6 a barrel, from just under US$5.5 in 2010, should drive profits higher in 2011, President Anusorn Sangnimnuan told Reuters. “What’s worrying this year is where oil prices are going to end up. We won’t be benefiting so much from hedging if the oil price is still trending lower,” Anusorn said. Bangchak, which is majority-owned by PTT and the Finance Ministry, had a record year in 2009 when net profits surged due to oil hedging gains.  The company is expected to report a 64% fall in net profits this year to 2.68 billion baht (US$87.65 million), according to six analysts polled by Thomson Reuters StarMine. (September 24, 2010)