The Aromatics (Thailand) has posted a net profit of Bt2.52 billion for the first quarter, a year-on-year jump of 623 per cent, thanks to both improved sales volume and a higher spread between products and feedstock prices.

ATC president Permsak Shevawattananon said in the statement submitted yesterday to the Stock Exchange of Thailand that net profit - for which the equity method is applied - had increased by Bt2.2 billion in the period from Bt349 million a year ago.

 The company's separate financial statement shows a net profit of Bt2.54 billion. The difference of net profit in these two statements was due to changes in accounting for investments recorded in the separate financial statement. The net profit in which the equity method is applied has already included shares of losses in associated investment, while the net profit in the separate financial statement presented only the company's performance.

ATC said its product-to-feedstock margin per unit had increased from US$113 (Bt3,931) per tonne in the first quarter last year to $191 in the first quarter this year, resulting in an increased margin of Bt2.44 billion or 197 per cent.

This was caused by both pricing and volume effects.

Pricing resulted in an increased margin of Bt2.02 billion. The average price of products increased by 11 per cent, while the average price of feedstock fell one per cent.

Benzene prices increased significantly from $725 per tonne in the first quarter of 2006 to $944 in the first quarter this year. The pricing spread of benzene to condensate was increased from $213 per tonne in the first quarter last year to $447 in the first quarter this year.

 In the first quarter, despite a temporary plant shutdown, sales volume was still higher at 229,544 tonnes, due to a 30-day shutdown in the first quarter of 2006 for turnaround and tie-in of the Condensate Splitter expansion unit. The volume effect resulted in an increased margin of Bt415 million.

The company also said it would pay a dividend of Bt2.25 per share on May 4.

ATC said it would enhance its competitive advantage and maximise its asset utilisation with a new Reformer Unit Heat Exchanger (Packinox) replacement, which work together for improvement of the efficiency of units TAC9, PAREX and Feed Fractionation in order to maximise a high product-value yield and increase the flexibility of condensate feedstock use.

The project requires about $27 million in investment. After completion of the Aromatics Complex I Improvement Project, it is expected that high-value  products such as benzene, toluene and xylenes can be increased by 10-12 per cent from the current capacity of 984,000 tonnes per year while using the same amount of condensate feedstock.