IRPC Annual Report 2023

Management DiscussionandAnalysis (MD&A) Executive Summary Unit 2023 2022 %Change Crude Intake Million bbl 70.11 63.86 10% Sales (1) Million Baht 319,047 324,800 (2%) Net Sales (2) Million Baht 299,075 318,396 (6%) Market GIM Million Baht 19,344 23,761 (19%) USD/bbl (3) 7.90 10.57 (25%) Accounting GIM Million Baht 18,221 17,413 5% USD/bbl 7.44 7.75 (4%) EBITDA Million Baht 5,754 3,987 44% Net Profit (loss) Million Baht (2,923) (4,364) 33% Notes: [1] Sales include (1) Petroleum Sales (2) Petrochemical Sales (3) Power and Utilities Sales (4) Sales of tank farm and port service, etc [2] Net Sales include (1) Petroleum Sales (excluding excise tax) (2) Petrochemical Sales (3) Power and Utilities Sales [3] Market GIM per bbl : [(Market GIM/Crude Intake)/Exchange Rate The operating results in 2023 compared to those in 2022: In 2023, the company registered net sales of Baht 299,075 million decreasing by 6% from that in 2022. This attributed to a 22% decline in average selling prices following lower crude oil price versus a 16% increase in sales volume. For petroleum business unit, Market Gross Refining Margin (Market GRM) dropped from a decrease in the spread between petroleum product prices and Dubai crude oil price following the softened crude oil price. Diesel spread’s decrease was quite obvious due to the conflict between Russia and Ukraine that extremely impacted Diesel supply. Furthermore, petrochemical business unit faced declined Market Product to Feed (Market PTF) owing to the lower spreads between petrochemical product prices and naphtha price. This caused by the continuously sluggish demand for petrochemical products as decelerated global economic conditions. Power plant and utility business units contributed stable margin from sales of electricity and steam. Hence, the company recorded Market Gross Integrated Margin (Market GIM) of Baht 19,344 million (USD 7.90 per barrel) decreasing by 19%. However, the average crude oil price in 2023 dropped from that last year, substantially pressured by the unfavorable global economic conditions. The global economy slowdown was contributing from the inflation control measures, of which included the series of interest 170 Management Discussion and Analysis (MD&A) IRPC Public Company Limited

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