PETCHSRIVICHAI ENTERPRISE PUBLIC COMPANY LIMITED

Phetch Srivichai Enterprise or PCE, Thailand's leader in the integrated palm oil industry, reported net profit of 214.2 million baht for the second quarter of fiscal year 2026, up 59.5% from the same period last year, despite a 37.6% decline in sales revenue to 6,972.4 million baht. Gross profit surged 114.8% to 432.8 million baht, lifting the gross margin to 6.2% from 1.8% a year earlier. The main drivers were an increased proportion of value-added products such as B100 and RBDPO, supported by rising domestic biodiesel demand. Meanwhile, revenue from the domestic market rose to 74.9% of total revenue, up from 36.7% in the previous year. For the first six months, net profit stood at 220.9 million baht, up 36.76% from the same period last year, despite a 26.9% decline in total revenue, reflecting a value chain management strategy from upstream to downstream that helped offset the impact of lower palm fruit yields.

Petchsrivichai Enterprise Public Company Limited, or PCE, reported second-quarter net profit of 214.2 million baht, up 59.5% from the same period last year. Although total revenue fell 37.7% to 7.06 billion baht, it rose 35.6% from the previous quarter, while EBITDA margin improved to 4.5% from 1.9%, reflecting a shift in product mix toward higher value-added products such as B100 biodiesel and refined bleached deodorised palm oil, or RBDPO. The crude palm oil business was affected by lower domestic palm output. The company expects the second half to be supported by government policy making B7 the base diesel grade and B20 an alternative grade, which will boost demand for B100. It is also building a new palm oil refinery for edible oil, expected to be completed in the fourth quarter of 2026.

Petchsrivichai Enterprise Public Company Limited, or PCE, reported net profit for the second quarter of 2026 of 214,195,000 baht, up from 133,728,000 baht in the same quarter last year. For the first six months of 2026, net profit was 220,909,000 baht, compared with 161,525,000 baht in the same period of 2025. Earnings per share for the quarter were 0.078 baht, up from 0.049 baht, and for the six-month period were 0.08 baht, compared with 0.059 baht. These financial statements were reviewed by the auditor without qualification.

Petchsrivichai Enterprise Public Company Limited, or PCE, is poised to report standout second-quarter 2026 earnings, supported by higher energy prices driven by Middle East tensions and the Thai government's policy to promote biodiesel blending from B5 to B7. This benefits PCE as a major Thai biodiesel producer with its own manufacturing plants and high-margin B100 biodiesel products. Management has also kept costs well under control, leading to a significant improvement in margins.

Petcharat Sriwichai Enterprise Public Company Limited, or PCE, is actively managing its product mix to increase the share of high-margin goods, as global crude palm oil prices remain elevated at around 4,500 ringgit per tonne, equivalent to approximately 38 to 40 baht per kilogram. Domestic fresh palm fruit prices stand at about 7 baht per kilogram, while local crude palm oil prices average roughly 40 baht per kilogram. The company is leveraging its strength as a fully integrated operator spanning upstream to downstream to adjust the production mix across its energy segment, edible oil segment, and value-added products. It is also expanding its fresh palm fruit purchasing network to secure raw material supply for its mills and pushing into the edible oil market under the Rintip brand through both B2B and B2C channels. For the third quarter of 2026, the company expects performance to remain stable and similar to the second quarter, with B100 sales rising 70 to 80 percent from the previous quarter, while maintaining a gross margin in the low double-digit range.

India's edible vegetable oil imports in July 2026 rose to 1.49 million tonnes, the highest level in 10 months, according to trade estimates cited by Reuters. Domestic refiners accelerated stockpiling ahead of the key festival season from August to November, when vegetable oil demand peaks for the year. Palm oil imports jumped 50% month-on-month to 733,000 tonnes, a five-month high, while soybean oil imports rose 32% to 501,000 tonnes, a seven-month high, and sunflower oil imports increased 4% to 253,000 tonnes. Combined imports of the three major vegetable oils climbed 34% from the previous month. Sandeep Bajoria, CEO of Sunvin Group, said Indian vegetable oil refiners are rapidly building inventories after months of slow imports to prepare for festival demand. GGN Research estimates that India's soybean oil imports are likely to stay above 500,000 tonnes per month in August and September, driven by competitive global prices and lower domestic crushing volumes. Analysts view the recovery in import demand from India, the world's largest vegetable oil buyer, as a factor that will help draw down palm oil stocks in Indonesia and Malaysia, support soybean oil exports from Argentina, and potentially boost global futures prices. For Thailand, PCE, a major Thai palm oil exporter, held a 23% market share of the country's total crude palm oil exports in 2025, when Thailand exported a total of 1,227,545 tonnes of crude palm oil.

PCE has unveiled its second-half plan to drive a new round of growth after commencing full commercial operations in April 2026, marking a key turning point for the company. By unlocking space constraints and enabling nighttime production, it can better meet rising customer demand. Management is confident of a clear recovery starting from the third and fourth quarters of this year once the new plant runs at full capacity. The company has laid out a three-year revenue roadmap to reach 400 million baht, focusing on expanding existing products, penetrating the data center and medical businesses, and creating new S-curves while maintaining a strong financial position.