rate increases imposed by several central banks, as well as from the continuing property sector crisis in China and bank collapses in the U.S., Europe, and China. Such factors affected oil demand globally, despite the crude oil price fluctuations from time to time caused by OPEC and allies’ production cuts aiming to balance the market and political conflicts in many areas including Israel-Hamas and Russia-Ukraine. The drop in the crude oil price led to the stock loss of Baht 2,488 million or USD 1.02 per barrel against a reversal on Net Realizable Value (NRV) of Baht 1,026 million or USD 0.42 per barrel. Nevertheless, the company recorded the realized gain from oil hedging of Baht 339 million or USD 0.14 per barrel. All previous mentioned resulted in net inventory loss of Baht 1,123 million or USD 0.46 per barrel. Therefore, the Accounting Gross Integrated Margin (Accounting GIM) was Baht 18,221 million or USD 7.44 per barrel rising by 5% from that last year. Moreover, the earnings before interest, tax, depreciation and amortization (EBITDA) of Baht 5,754 million escalated by Baht 1,767 million or by 44%. In 2023, there was a gain on impairment and disposal of assets amounting to Baht 822 million, mainly owing to the reversal impairment on spare part. As a result, the company recorded the net loss of Baht 2,923 million in 2023 being less than the 2022 net loss by 33%. Net Sales Operating Performance 1. Operating Performance by Business Units 1.1 Petroleum business unit 1.1.1 Petroleum Market Overview Crude oil situation in 2023: The global oil consumption was 102.3 million barrels per day rising by 1.8 million barrels per day from 2022 oil consumption of 100.5 million barrels per day. The Dubai price in 2023 moved between USD 70.29 per barrel and USD 96.77 per barrel, with an average of USD 82.10 per barrel decreasing by USD 14.24 per barrel from USD 96.34 per barrel in 2022. The crude oil price in early-2023 was supported by market expectation that China reopening would recover the overall economy as well as oil demand. Still, the market situation did not progress as expected due to China’s property crisis, along with bank collapses in the U.S, Europe and China that stirred concerns whether the collapses aggregate the impacts and evolve to an economic crisis. In addition, the high U.S. inflation rate led the Petrochemical 18% Petrochemical 22% Petroleum 81% Petroleum 77% Power & Utilities 1% Power & Utilities 1% (Unit: MB) 299,075 318,396 6% 2023 2022 171 Management Discussion and Analysis (MD&A) 56-1 ONE REPORT 2023
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