The spread between Lube Base Oil products and Fuel Oil price • 500 SN Spread - Lower: 500SN - Fuel Oil spread in 2023 was USD 547 per ton reducing by 19% from USD 678 per ton in 2022 owing to stagnant economy constraining Lube Base Oil demand for industrial purposes. Meanwhile, Fuel Oil price was backed by limited supply. • Asphalt Spread - Unchanged: Asphalt - Fuel Oil spread in 2023 was USD 16 per ton, which unchanged from that in 2022. Meanwhile, Asphalt demand in 2023 obtained some threats, mainly from limited construction budget following sluggish economic conditions. 1.1.5 Gross Refining Margin Net Stock Gain/ (Loss) Accounting GRM Market GRM Net Stock Gain/ (Loss) Accounting GRM Market GRM (Unit: USD/bbl) 2023 2022 9,855 15,916 Refinery 4,181 2,156 Lube Base Oil 14,036 18,072 Market GRM 2023 2022 4.02 7.08 Refinery 1.71 0.96 Lube Base Oil 5.73 8.04 Market GRM The Gross Refining Margin (Market GRM) in 2023 was Baht 14,036 million or USD 5.73 per barrel dropping by Baht 4,036 million or USD 2.31 per barrel from that last year, mainly owing to softened Diesel and Gasoline spreads compared to Dubai crude oil price. The company obtained a net inventory gain of Baht 295 million or USD 0.12 per barrel comprising of a reversal on Net Realizable Value (NRV) of Baht 904 million and a gain on realized oil hedging of Baht 339 million versus a stock loss of Baht 948 million. Thus, the company obtained the Accounting Gross Refining Margin (Accounting GRM) equaling Baht 14,331 million or USD 5.85 per barrel improving by Baht 5,317 million or USD 1.84 per barrel from that last year. In 2023, Market GRM was Baht 14,036 million or USD 5.73 per barrel dropping by Baht 4,036 million or USD 2.31 per barrel from that last year, mainly owing to softened Diesel and Gasoline spreads. 9,014 (9,058) 14,331 18,072 14,036 295 4.01 5.85 8.04 (4.03) 5.73 0.12 (Unit: MB) 175 Management Discussion and Analysis (MD&A) 56-1 ONE REPORT 2023
RkJQdWJsaXNoZXIy ODg4NTI=