Thai Oil posts negative results in second quarter

Thai Oil Pcl, Thailand’s top oil refiner, reported a net loss of THB6.9 billion baht (US$222.5 million) for the second quarter against a profit of THB3.24 billion (US$104.5 million) a year earlier; and THB7.2 billion (US$232.2 million) profit in the previous quarter of this year.
The loss, according to the company, is due largely to an inventory loss at its refining operations after global oil prices dropped. Fourteen analysts surveyed by Reuters had an average forecast net loss of THB6.2 billion (US$199.9 million) for the quarter, with an estimated inventory loss of about THB7 billion (US$225.7 million).
Earnings are expected to recover in the third quarter when refining margins are expected to pick up due to rising demand; analysts added that there should be no oil inventory loss.
Thai Oil has a refining capacity of 275,000 barrels a day of crude oil and other feedstocks, which makes up 22% of Thailand’s total production. (August 7, 2012)