Bangchak announces record first quarter net profit

Bangchak Petroleum PLC, the state-owned refiner in Bangkok, reported   record first quarter net profit of 1.42 billion baht (US$46.7 million), as gross refining margin (GRM) rose to US$13.77 a barrel, up from US$6.22 last year. Profit rose by 84% year on year.  President Anuson Sangnimnuan indicated that the increased profit was also due to the refining shift away from diesel and fuel oil, to more expensive products, such as jet fuel.  Bangchak has also invested in a solar farm, from which it expects to receive additional income by the end of 2011.  Other planned investments for the company include two billion baht (US$64,651,853.38) to expand ethanol production, three billion baht (US$97,007,649.90) for potash mining and two billion baht (US$64,651,853.38) for palm oil and cassava plantations and research into the development of biodiesel from algae.  Preeyanunt Tripetchuporn, an analyst with Philip Securities stated the company has a competitive edge over other refiners due to the fact that it used local crude oil and also because the company has made a shift toward providing higher value products, such as jet fuel. (May 4, 2011)