In today’s briefing:
- ERW: Expect Continued Losses in 2022
- SPRC: Positive 2022 Outlook from GRM Uptrend
ERW: Expect Continued Losses in 2022
- Excluding extraordinary items, ERW’s 4Q21 normalized loss was at Bt371m, the eighth consecutive quarter loss, due to operations under EBIT breakeven.
- 4Q21 negative EBITDA declined to -Bt29m compared to -Bt30m in 4Q20 and -Bt243m in 3Q21 backed by recovering overall hotel operation.
- Lockdown easing and launching ‘Rao Tiew Duay Kan phase 3’ program during 4Q21 resulted in improving occupancy rate (ex. Hop INN segment) to 30% up from 25% in 4Q20
SPRC: Positive 2022 Outlook from GRM Uptrend
- Analyst meeting came out with a positive tone.We expect refinery margin to continue improving in 1Q22 led by solid gasoline,diesel and jet fuel spreads. SPRC is among our top picks
- We expect the market GRM improve to US$7.0/BBL level in 1Q22 (+17% QoQ) and maintain at high levels in 2022 backed by strong product spreads due to global economic recovery.
- The diesel spread grew to US$16.4/bbl QTD, compared to US$11.5/bbl in 4Q21. Gasoline and Jet fuel spreads also inched up QTD to US$15.8/bbl (+US$0.4/bbl QoQ) and US$13.0/bbl (+US$2.8/bbl QoQ) respectively.
Before it’s here, it’s on Smartkarma
