Bangchak Petroleum expects slight drop in 2010 revenue

Bangchak Petroleum PCL, a Thai refiner, said it expects a slight decline in 2010 revenue, with its gross refining margin likely to fall more than half to US$4 a barrel. President Anusorn Sangnimnuan told reporters that higher sales volume will help slightly offset the fall in gross refining margin, which this year stands at US$9 a barrel. Gross refining margin is likely to fall next year due to the absence of the large forward contracts that the company had this year, as well as the oversupply in refined oil products, Anusorn said. The oil refiner has increased its oil inventory to 5 million barrels from its usual 4 million barrels, betting that crude oil prices will stay above US$70 a barrel, he said. (December 28, 2009)