Bangchak Corporation company rating has been upgraded by TRIS Rating to "A" from "A-", reflecting its healthy rebound in business performance.
TRIS Rating announced upgrades the company rating on Bangchak Corporation PLC (BCP) and the ratings on BCP's senior unsecured debentures to "A" from "A-". TRIS Rating also upgrades the rating on BCP's subordinated capital debentures to "BBB+" from "BBB". The rating outlook remains "stable", effective from 27 October 2022.
The upgrade reflects BCP's healthy rebound in performance; from BCP's competitive edge in oil refinery, the integration between refinery and marketing businesses, its strong presence in the oil retail market, and the expected benefits from business diversification, propelled by the high utilization of refining capacity and flexibility of its refinery, a surge in oil prices, the reviving sales volume through its service stations, plus the investment in natural resource business in OKEA ASA (OKEA), an oil and gas producer in Norway, which significantly contributed to EBITDA and largely profited from the spike in oil prices and natural gas prices during the period, while it maintained low production expenses.
Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited, said that the company is pleased with TRIS Rating's upgrade of our corporate credit to "A" from "A-". This was based on the strong business fundamentals of Bangchak Group, which has continuously improved and recovered after the COVID-19 crisis in many aspects including the Refinery Business's focus on niche products to enhance gross refinery margin (GRM), strong recovery in sales volume through service stations, sizable earnings contribution from our natural resource investment in Norway through OKEA ASA, heavy investments in green power business, significant improvements to its financial profile, and sound liquidity position. This marks another important step reflecting the success of well-balance business operations and sustainable growth which have contributed to the upgraded rating."