Hello. Good morning. My name is Voranart, Investor Relations Manager . I would like to welcome you to SPRC analyst meeting for the first quarter of 2025 performance. Before we begin, I would like to introduce SPRC management team who are present in the meeting with me today. First, Khun Robert Dobrik, our CEO.
[Non-English content] . Hey, look, as you may have noticed in our announcement last night on the SET, I will be stepping down as CEO effective July 1 of this year. I'd like to take the opportunity to just thank you for the opportunity to work with all of you and to help SPRC advance for the last four years. I'd like to also take the opportunity to recognize and to introduce the new CEO, effective July 1, who'll be Matthew Payne. Matthew, you want to say hello?
[Non-English content] , everyone. Look, I'm very humbled and appreciative of the opportunity to take over this position. Rob has been great for SPRC, and I'm looking forward to having a nice full turnover with him next month. I'm very much looking forward to the opportunity.
Yeah. Let me just add a bit. Matthew has over 25 years of refining experience, worked in multiple refineries. He's had roles in value chain optimization and supply planning. He's had roles in strategy. Most recently, he's been a director as part of SPRC for the last couple of years, so he's well-versed with SPRC. So we're fully anticipating Matthew to be up to speed and keeping SPRC moving forward in a very steadfast manner. So welcome, Matthew, and maybe I'll turn it back to introduce our other management.
Thank you. The second management is Shashank Shreepal Nanavati , Executive Vice President of Commercial.
[Non-English content] . Good morning, everyone.
Nutsara Somkiatweera, Vice President of Finance and Accounting.
[Non-English content] . Good morning.
And last one, Chaowasri Luengratanakorn, Vice President, Strategy, Policy, and Development.
Good morning. [Non-English content] .
We will refer to the presentation that is now available on SPRC.website. Today, the meeting will begin with a key strategy and highlight by Rob, and followed by the performance analysis by Shashank and Nutsara Somkiatweera. Then Chaowasri will present on the looking ahead before we start the Q&A sessions. If you have any questions, please click on the right-hand buttons or send the question through the chat channels. As a reminder, this virtual meeting is being recorded. At this time, I would like to turn the session over to our CEO, Dobrik. Please go ahead, [inaudible].
Well, thank you. Once again, thank you for joining us today. We are excited to represent our efforts over the first quarter, but also speak to a little bit where we are going as we move forward. Maybe just skip to the next slide. We always start with a frame of what is our ultimate objective, to drive total shareholder value. Next slide, please. Really, this starts with making sure that we are making the right trade-offs around trying to drive enterprise margin, really managing our costs, especially in moments like we are in right now, where we are seeing some challenging margins environments. Drive reliability, utilization of not only refining assets but our marketing assets.
And then as we look throughout the company, make sure we continue to be thoughtful around the types of investments and the timing of those investments to where these are value creative, not just for activity sake, but actually truly driving incremental value. If we do that right, build on a foundation of strong operational excellence, leverage our ORC capability, leverage data visualization as key enablers, we're confident we'll be a competitive and sustainable entity moving forward and ultimately driving maximum shareholder return to each of our shareholders. Next slide. I think every day is a new day, stimulated by a variety of items in our world. We can't predict the future. We can't arguably prevent some of these things from happening. But what we can control is the things that we can control.
As I said to my previous slide, we are trying to optimize the trade-offs across all those different parameters to optimize the rates we run at, the nature crudes we bring in, and really think through that full value chain optimization. But during these challenging periods, we also are trying to manage our cash effectively. As we step back, we're trying to make sure that we think very thoughtfully around how we're spending money, where we're spending money, and perhaps looking for ways to do things differently. Perhaps defer expenditure that don't need to be done in the moment, and really build a culture that actually thinks that way, behaves that way each and every day. We're kind of continuing the journey. This is not a new phenomenon. This is arguably what defines us over time.
But we're constantly refreshing that, especially as we move towards a shutdown at the end of early next year, how do we preserve cash as best we can while still doing the execution of that key event in a cost-effective manner? So once again, we're looking at our each and every dime we spend, and we're looking to make sure that it's going to be value accretive. And sometimes we're going to slow down if we don't see the margins or if we don't see the immediate return that we would expect on some of our investments. Next slide. As we look to the first quarter, I think we've already shared with everyone, our EBITDA was roughly $54 million, converted to a net profit of $21 million or about our 545 enterprise margin.
Our equity sales volume is roughly a little over 17 million, and we challenge ourselves to drive bottom-line improvements to almost $0.62 a barrel. Really, our refinery operation, relatively level. We are running at almost 98% optimize the various components we have was something around close to 91%. On the retail side of our business and sales side of our business, continue to place volume in the market, which we typically are going to see as value accretive. And we're looking to represent our market, gasoline and diesel in country, which is roughly 17%. We market those volumes in a variety of sales channels, whether it be our own retail networks or other commercial and bulk types. Since we initiated this integrated organization starting January of last year with enterprise mindset.
We're not really around driving a metric here, or driving a metric here, or driving a metric here. Really, it's around how do we create crude to customer value opportunities, how do we surface the opportunities leveraging on all employees, all teams to really identify the best opportunities that can create more value for the company. I think last year we reported roughly almost $30 million of consolidated enterprise value capture for the entire year. As we open up this year, we've worked up to about roughly almost $13 million just even through the first quarter of this year. We're pretty excited about how our teams are responding to the opportunity to grow value, work as one team, be boundary less in terms of how we come up with ideas and then execute across boundaries to just once again drive enterprise value capture. Next slide.
This just describes some of the mechanisms in terms of how we're doing so. This really just speaks to, first and foremost, it's really thinking through our value chain optimization, opening up new markets, opening up new customers, thinking different ways to deliver products logistically to create lower costs or create new opportunities to flow volumes to new customers. So using our terminals efficiently and effectively in different ways to create even more value. Keeping our inventories, managing our working capital, keeping inventories down to just-in-time inventory around meeting our demands. Then continuously looking at our crude slate, not being afraid to adjust our crude slate over time to match the marketing, the market demands, and product pricing environment.
Finally, we constantly look for ways to optimize our process in the refineries, but also in some of our sequencing operations, logistic operations, and keep looking for efficiencies each and every day across all our enterprise. So, continually looking for ways to maximize enterprise value capture is how we think is our winning strategy ultimately to continue to drive that crude to customer value chain, and ultimately drive superior shareholder return for all our shareholders. With that, I think I'll turn it over probably to Shashank Shreepal Nanavati or to perhaps move on to just or actually to Shashank to provide the overarching market update.
Thanks, Rob. Looking at the market performance in Q1, you'll see the refinery GRMs compared to Singapore, and you'll notice the trend in the last few years of it being much narrower. I think we saw that in Q1. We saw a pretty weak GRM, a pretty weak refining outlook compared to where we expected the year to be at the start of the year. So you see some of that reflected in our financial results as well. The price of crude oil kind of volatile lately with all the latest announcements around the geopolitical arena. Average about $77 in the Dubai price, and the Murban was about $1.70 above Dubai. So that was our primary grade. We're designed to run medium crude from the Middle East, and so we're most susceptible to the Dubai price basis and then the OSPs from the Middle East producers.
The cracks, as you see in Q1, continued to slide a bit from where we ended the year last year. A big change from Q1 year-over-year 2024. That has weighed quite a bit on our Q1 results, as you will see when we report the financials. We go to the next slide. This continues to kind of reinforce SPRC's position in Thailand. I think we have shown this in different ways in prior meetings, but this is an attempt to really bring it all together in a summary format. We are trying to demonstrate that SPRC, on the gasoline and diesel side, supplies almost 18% of the country's consumption of the land transportation fuels of gasoline and diesel.
The way we sell those products, if you look at the bar chart for the first quarter on the rightmost bar chart, about 4.5% of that goes direct to consumers through the retail marketing sales channel. We have about 5.5% that we sell directly to business end users in the market. About 7.5% goes through third parties, who then further market the product to the end user. Overall, it is about 17.5% of the country's consumption of land transport. More generally, when you look at the broader picture on the pie charts on the right, SPRC supplies about 22% of the gasoline that is produced in Thailand. A significant of the gasoline is produced by SPRC. Almost 15% of the diesel produced within Thailand is produced by SPRC, and almost 17% of the jet fuel.
All total, when you add all that up in terms of all the transportation fuels, SPRC accounts for almost 20% of the country's supply of transport fuels. We continue to feel very positive about our ability to produce and supply affordable, reliable energy and transport fuels to the Kingdom of Thailand. We will continue to place those barrels as best we can and support the goals of the kingdom and the government. Okay, if you go to the next slide. This is talking a little more detail into the volumes. As I mentioned, you will see the total volume we reported, 17.1 million barrels for the quarter.
This shows a bit of a split of how we take that to market, starting with the bottom chart that shows specialty and export products and then the bulk sales, which essentially sales to third party, as I referenced in the prior slide, and then sales through our asphalt sales channel, our aviation sales channel, direct to businesses and then direct to consumers. Pretty flat from the fourth quarter of last year. Year-over-year, it is a bit down on total production, and that is just a function of our throughputs being a bit lower through the refinery. In general, as Rob referenced, our crude to customer enterprise value strategy remains to be in lockstep between what we produce and what we sell.
We want to continue to sell everything we produce and of course, everything we produce, it depends on market factors and our ability to process the crude into product. As far as the split between domestic sales and export sales, in general, we continue to optimize that as the market would suggest and allow us to realize a return to shareholders. In general, the trend from 2024 first quarter has been to place more of our production domestically, all the way up to 95% in the first quarter of 2025, with the balance 5% being exported out to nearby markets. In general, our strategy continues to be to place more of our production directly to the consumer, whether that is directly to a business consumer end user or an actual consumer of fuels in a vehicle or an aircraft.
Retail market share has continued to increase year-over-year. It was about 4.5% two years ago, ending the year about 5.5%, and we are currently at 5.6%. We do forecast that to continue to increase as we fully integrate our partnership with the Pure Thai Energy Group here in the months to come. Okay. With that, maybe I will pass it over to Nutsara Somkiatweera to talk more about the financial performance.
Thank you, Shashank. On the financial performance for the first quarter of this year, all the numbers are reported on the consolidated basis, which is the combination of the refinery and marketing. The first chart shows the enterprise margin. Again, this is the margin that include both refinery and the marketing business. The margin is at around $5.5 that [inaudible] report earlier, which lower than previous quarter. The decline was driven by concerns over the economic slowdown and together with the market anxiety into the U.S. tariff policy and also increased gasoline export from China. In this quarter, there is a slight up gain of $0.46 from a slight increase in the average of crude buys this quarter. The next chart is the enterprise operating expense in first quarter.
Again, this quarter we change and start to report on the operating expense for the enterprise instead of the refinery only. The enterprise OPEX for first quarter was $2.9 per barrel, which down from $3.9 per barrel in previous quarter. The decrease primarily into the timing of the operational activities and also the company continued efforts in cost control in this year. On the EBITDA and earnings that [inaudible] report earlier, SPRC report EBITDA of THB 54 billion and net earnings of THB 21 billion for the quarter, both higher than last quarter. Despite a lower enterprise margin, the improvement in this quarter earning performance was support by a slight inventory gain and the reduced operating expense during the quarter. Next slide. On this slide, the key highlight on the financial position.
SPRC continues to maintain strong financial health with a solid debt- to- equity ratio of just 0.18x and the debt- to- EBITDA ratio stands at 2.7x, which is a strong number in terms of the debt currency of the company and reflecting the company financial leverage and flexibility in managing the financial priorities. In terms of the statement of financial position, you can see that total assets at the end of March were lower compared to the end of last year, and this is mainly due to the reduction in inventory driven by effective inventory control and optimization. On the reliability side also reflect the optimization of inventory, so we can reduce down our borrowing and our bank borrowing and the equity ratio reduce in this quarter.
The final chart illustrate historical dividend payout, which fluctuate in the past, fluctuate in line with the change in the oil price and refining margin. As we communicate earlier, SPRC is shifting the focus from variable dividend to providing stable and reliable return to the shareholders. This is aligned with the financial priorities that we communicate. We will continue effort in providing, delivering the financial priority of the company. I pass to Chaowasri .
Thank you, Nutsara Somkiatweera, for the looking ahead our future opportunity. As Robert Dobrik mentioned earlier, with the current high uncertainty situation, we are strengthening and focusing on our financial discipline and priority by optimizing our operations, preserving cash and cutting the cost. This will help us to be resilient during high uncertainty and challenging period. We are also looking for the opportunity to enhance our value creation with the upcoming turnaround that we will have the value and growth project that allow us to process more light crude to the refinery. Because with the narrower of the gap of the light, heavy differential price, the light crude will create more benefits to us by producing more gasoline and jet fuel and producing less fuel oil.
In term of the commercial side, we find a way to sell our equity product to the highest net back channel and have more reputable demand channel. Reducing our cost to serve by deconstraining our logistic and try to increase our supply efficiency. Also try to anchor our volume domestically, which include our fuel oil and asphalt in domestic market as well. Also, we try to open ourself to explore the new business. We are working collaboratively with our partner to step into the circular business. It is a small trial with low investment cost that we can understand the market and business. If the opportunity allow us, it can grow the business in the future. So we can grow the market in the future, if this makes sense.
Lastly, we continue to explore the integration, the synergy opportunity with our petchem and refinery partners, which it will help us to expand our value chain to capture the benefits. Next slide, please. As we notify to the Stock Exchange of Thailand last night that we target to have the turnaround and inspection during the first quarter of 2026. So we set our goal and objective for this turnaround that we will execute the turnaround safely and no environmental impact during the execution. Also we measure the quality of the turnaround that we aim to have leak-free start and have no reliability issue after the turnaround. The scope of work, apart from the normal turnaround and inspection maintenance, we also have the reliability improvement project. Also we have the operating project, that as I mentioned earlier about the light crude processing project.
The cost of this turnaround in the range of $ 120 million- $ 150 million, which include our scope that I mentioned earlier. So I would like to turn to Rob for the summary.
Yeah. Thank you. Thank you everyone for your comments. Look, I think as we opened up with, our priorities are to deliver superior returns to our shareholders. We think we are well positioned with our, arguably our financial health with relatively low debt to service our dividends, to seek opportunities, to fund through low cycles. But even though we're in a good position, we want to maintain that position, thus I opened up with how we're trying to look at ways to preserve cash through these more challenging margin environments. The margins giveth and the margins taketh away. I think we've come through a first quarter, which was on the lower side of historic, and actually went into, in early April through to April, perhaps even lower.
We're seeing some recovery in the markets as we speak, and we're cautiously optimistic we can see some quality margins through the next period, but there are never any guarantees, thus our efforts to really preserve cash. We're really thinking through how we execute these, the shutdown, and like ourselves and others, I think every refinery in Thailand, I believe, is going through a shutdown in the coming quarters. So our challenge is to be a quality, reliable supplier of product, while everyone else is taking their shutdowns, and meet the demands of the country and then vice versa, really execute our shutdown in a timely and efficient manner, so that we can come out of that and continue to grow significant elements of cash beyond.
Once again, I think, we step back, we could have some cash demands in the coming quarters, but well within our means to finance. We are very confident that we can honor our financial priorities in terms of being a reliable dividend supplier. It is really starting with having a really strong balance sheet and continue to look for only smart investments. Frankly, I mean, it is a bit of a pun, but nonetheless, we are just not in the sake of investing for investing's sake. But we are not afraid to invest, but at the same time, we are not going to invest if the true fundamentals are not there. We will continue to be cautious and careful in how we use our shareholders' funds as we continue to grow value for our shareholders.
Really, I think that is all I would like to maybe leave right now, then perhaps we can move over to taking on some questions.
Thank you. That concludes our presentation. Next, we go into the Q&A section. If you have any question, please put the bottom of the raise hands, or you can send the question to the chat channels. Okay, Komsun Suksumrun , please ask your questions.
Thank you for the thorough presentation. I have a few questions. First one is, Mr. Dobrik, can you add color on the upgrading project? What is the cost of that project out of $120 million-$150 million you mentioned? Secondly, what do you expect as the benefit of that? You mentioned that heavy and light has been narrowing. Is that what you are seeing going forward in the next few years? Is the return for this project is over 12%-13% that you always mention? The second one is that, for Khun Rob, even without a TA project, cost excluding from the refinery, cash OPEX, $2.61 is still high for your standard. How do you plan to bring that down to below $2, as we have seen in the past? The third one is for Khun Shashank .
In order to ramp up the refinery capacity to 175, do SPRC need a higher retail network market share in order to absorb that incremental production? Or simply you need higher GRM over $4.7 per barrel, and the market share, do you expect the similar deal like PTT is going to. You expect that is going to happen again for other dealers? Thank you.
Thank you, Komsun Suksumrun .
Thank you for your multi-part question. Good questions. Maybe I will ask Khun Nutsara just to speak or maybe Nutsara to speak to the light oil project. We are pretty excited about it. Go for it.
Okay. In term of the investment cost, this one is around $30 million for the investment. And we have seen that the light crude differential, I mean, the heavy differential in the future should be, say, in this narrow range because of the higher production from the U.S., which the U.S. crude is high off the light crude. And in term of the return on this project, we do the sensitivity analysis, P10, P50, and P90, and the expected value for the return is more than 20% of the IRR of this project.
Yeah, look, I think that we keep challenging ourselves as we look at margins outlook, whether we continue to pursue projects we formerly approved. We've dropped some. We honestly have dropped some where we said, "You know what? We just don't see the outlook, and we're going to preserve the cash and not go after this particular." But this opportunity, we're pretty confident under a wide range of scenarios that it's going to give us quite a good rate of return. So quick payout in the order of years, like one or two, and relatively limited investment.
Maybe I'll just drift into your other questions around when are we going to run to 175,000 barrels a day. Once again, that's always crude specific. We could be running at 175,000 barrels a day by bringing in crudes that would take advantage of how we run the columns and all the downstairs equipment.
But that's not our maximum value opportunity in the moment. We continually look at different crudes, and we continue to look for ways to utilize our assets, and we're really dialing to the combination of crudes that will actually create the most value. So at the moment, we're not seeing that opportunity to run to the full crude column distillation capacities, but that continually changes. With the changes that we'll be making, we'll actually have the ability to actually process even more light up to the nameplate capacity of 175,000 barrels a day. We're confident we can continue to grow value, utilizing all the equipment even more effectively beyond. Maybe just to build on our capital costs. The numbers we showcase there, the $120 million-$ 150 million barrels a day, 1/3 of that, normally 1/3 , at least 25% of this roughly is this light oil crude project.
Another key project in that window is actually our SPM upgrade. That's probably another equivalent value cost. So probably over half the cost of this shutdown is actually those two projects is our SPM upgrade. This is a 50/50 joint venture with PTTGC, and we'll be upgrading our single point mooring facility offshore to the latest technology to allow us to continue to operate for decades beyond. We're excited to be able to get that executed during the shutdown, minimizing the need for ship transfers both before or after. Perhaps maybe I'll turn it over to Shashank to comment about his ability to market products from running a refinery at 160,000 barrels, 175,000 barrels a day.
Yeah, thanks, Rob, and thanks for the questions. To just build on what Rob said, obviously the crude throughput that we run is a function of the feedstocks we buy. A certain set of conditions and certain set of, I'll call it crude slate options, would allow us to run the 175,000 barrels a day, assuming that the GRM is supportive, right? So obviously everything's underpinned by the econs across the unit. I think the answer to your question is, it is largely GRM driven. However, assuming the right GRM exists and the right conditions exist, we don't need necessarily retail expansion or market share increases to run to full capacity. It comes down to all the various elements of where we can market our products. Some of it is going to be through direct to consumer retail.
Other parts of production will go direct to businesses or even to third parties, or in some cases export to markets, for example, in Indochina, markets like Cambodia or Vietnam or Laos. There are various options for us to optimize not only our feedstocks, but also our production and what we make, and then also where we market those products. So it is not reliant entirely on retail. Maybe if I just add on that in the last part of the question about the Pure Thai Energy and other opportunities. We are always looking for opportunities to partner with consumers and customers and marketers of fuels in Thailand. Whether it is a Pure Thai Energy or someone else that could be similar or even smaller scale, we are always looking for opportunities.
We have a good, strong pipeline of partnerships that we are evaluating as we speak, and we will continue evaluating that in the future, as it fits into our portfolio.
Great.
Thank you, Shashank. Can I ask follow-up question to Nutsara? With the upgrading unit, how much is that light distillate that you are going to increase or particularly, how much is the gasoline portion that you can bump up from the current level? And for Nut, out of $120 million-$150 million barrels a day, are you going to expense all of these or some of it, like SPM upgrade, can be capitalized as a CapEx? Thank you.
Thank you. So I answer in term of the yield shift first. We expect to process more light crude, about 10%-15%, which we will see the gasoline plus middle distillate can increase around in the range of 3%-5%.
Yes. You can speak to the Capital Expenditure.
Yes. Actually,
[inaudible]
yes, referring to the number of 120,000-150,000 barrels and approximate, like 30%-40%, that going to be capitalized. The other 60%, around 60% approximate, that will be expense.
Those expenditures, when we say it is a shutdown in 2026, there is a large portion of those costs are actually going to be in the latter half of 2025 as well as the first quarter of 2026. So that will be spread across probably the fourth quarter, first quarter of next year. We did not answer your other question, was around our operating expenses. So maybe I will ask Nutsara Somkiatweera to just speak to our operating expenses and the efforts we are doing to try and drive those costs to more competitive levels, short term and long term.
Yes. Actually, there is the slide that we present in term of the enterprise OPEX. What we try is not to manage refinery only or marketing only. What we try is to emphasize on the performance of the enterprise. In the slide, you can see that the enterprise OPEX in first quarter of this year, lower than quarter four of last year. One thing is, it is normal that in the beginning of the year, there is also less activity during beginning of the year. There is also the effort that we try to have the cost efficiency to build a cost mindset and cut our OPEX with the MBO mindset, minimal function objective. We have the action in place that Chaowasri also mentioned, that we try to preserve cash by optimize in term of the cost spending of the OPEX spending of the company.
Thank you. Very clear. Thank you.
Now we are ready for our next question. If you have any question, please press on the raise hand and ask your question, or you can send the question through the chat channel. Kunupat, please ask your questions.
Hi. Thank you for presentation. I have just a quick question because I try to extract out the fuel margin, and I see in the first quarter it improved. May I know the reason of the expansion, and is it just going to be the trend, in the second quarter as well?
Maybe I will just take this on and maybe turn it over to Shashank as well. We mirror quite readily the Singapore margin over time. We have always maintained a relatively spread to the Singapore margin, and I think you have seen that reestablished. From an enterprise perspective, what we are trying to do is even go that further, create even more spread, as we really look for full crude-to-customer value chain optimization. So how do we grow our margin beyond what was formerly just refining margin to really reflect our full enterprise margin and how we are really creating value? Thus, we talked about the nominal 12 million of enterprise value capture that we have done in the first quarter. Hopefully those value captures are incremental to what you have historically seen as just pure refining margin, and we can continue to sustain the momentum into quarters.
The actual margins, we are a victim of the environment, so we will see similar margins to that the globe is seeing and from a Singapore reference point perspective. But how we buffer ourselves against those by preserving our cash, how can I say this? Buffer ourselves by further leveraging our marketing capabilities. We kind of feel that we can maintain if not grow that margin differential that you have seen historically and hopefully continue to showcase how that is quite competitive against our peer group.
Thank you. One last question. I saw in your presentation said that you gain market share in the retail segment. Can you explain more on how you get higher market share? Or is it because of the partnership with Pure Thai Energy?
Shashank, if you want to take that one.
Yeah, sure. I think the answer is a bit of all of the above. Our goal is to be increasing market share, like I said, to be in step with our production. Currently, we market to consumer and retail, only about 4.5% of the demand in the country. But we produce a lot more than that in terms of gasoline and diesel. So one way to do that is to compete for market share, as you mentioned, with partners such as Pure Thai Energy and others that want an international high-quality brand like a Caltex station. And consumers want more of the Caltex fuel quality. We want to be able to provide that in as many places as we can. So that's one way to increase our market share. Another way is actually to drive efficiencies through our existing stations.
We have about 529 stations, including with Pure Thai Energy partnership, and so we want to continue driving the same store sales and efficiencies and throughputs at those stations higher. And that means doing more support in terms of marketing and brand awareness and educating consumers about our quality of fuel that makes them want to come back to our stations and increase our share that way as well.
Okay. Thank you, Shashank. We are ready for our next questions. If you have any questions, please. Komsun Suksumrun , please ask your questions.
Since nobody was asking, I take the opportunity to ask my one last question for Shashank. How will SPRC respond to pricing strategy initiated by PTT OR since last month with the 50 Satang discount for their Blue Card member? Thank you.
Yeah, great question. If you have any ideas, let me know. I think in general, as we mentioned in the MD&A document as well, just a discussion. It is a very competitive market. It is frankly a bit surprising because that is a very different strategy that has been deployed by our competition lately, as you mentioned, that 50 Satang per liter. It is quite a deep discount to offer.
At the moment, we are kind of monitoring and watching to see what the market response is. We do not necessarily believe that just following everything the competition does is in the best interest of SPRC and in the best interest of shareholders. We are going to take a look and see what the market reception is and respond in a way that allows us to compete better using our strengths without necessarily just sort of following what they have done.
It is very interesting to see what they have done. It just shows how competitive the market can be in Thailand, especially on the retail side. So interesting.
Thank you. That is all I have.
Kunupat Srisuwan , please ask your questions.
Hi. Thank you for your presentation. I would like to ask a few questions. First, I would like to ask about the outlook that you see for the second quarter and for the whole year, for the crude run that you expect and also the crack spread trend. The other thing is that I would like to ask about the current market GRM and accounting GRM, because I haven't filed in the MD&A. Thank you.
Shashank, we will let you take the first part of it. Get your crystal ball out and give us an outlook for the coming quarters, both from a margin and demand perspective.
Yeah, sure. Thanks. I would just say, I think in general, obviously Q1 was fairly weak starting the year. April continued that trend actually, kind of a bit downwards on the market margins across all commodities. We are a bit optimistic, cautiously optimistic that recent events would suggest that maybe the margin, the crack margins heading into second quarter would be a bit more supportive than they were in the first quarter. I think towards the end of the year, I think we'd see maybe more of a stabilization in the pricing and the margin that we're seeing on the crack margins. It's a bit of a mixed bag, obviously, between commodities, depending on which one you look at, I think.
But in general, we'd expect gasoline and jet to be a little stronger from here on to the end of the year, just with some typical behavior you see on inventories as well as demand for gasoline, as well as for jet fuel, given travel and tourism and global travel picking up. Gas oil cracks, we expect it to decline a bit in the short term. But I'd say the big wild card, I think, is just all the geopolitical factors out there, right? Obviously, everyone sees the headlines around the tariffs and everything else to the U.S. and China, and it kind of reacts almost on a daily basis, I think, to what's being announced.
But in general, I think that is expected to stabilize a bit as the year progresses. I think our view is that the crack margins should stabilize and get a little stronger than they were in the first quarter through the end of the year. As far as demand, I think just in general, domestically, if you look at it, as I just mentioned in the last question, it's a very competitive market. In general, the market is oversupplied, slightly balanced. There is some planned activity around the refining landscape that may move us to closer to balanced in Thailand domestically over the course of the year. If that does happen, then that should suggest that we would be able to enjoy the typical premium over a Singapore-based crack margin in Thailand domestically.
We're well-positioned with a 90%-95% domestic sales profile to capitalize on a stronger margin in Singapore with the demand.
Yeah, thanks, Shashank. I think, as we alluded to earlier, pretty much all the refineries are going through a shutdown over the course of the next coming quarter. That will obviously tighten the supply dynamic in the coming few quarters. That will be obviously, we need to be prepared to provide maximum volume during these. There are other outages, and then obviously our shutdown in very timely manner next year. Look, I think we're going to see quarter-on-quarter fluctuations. That's just the new reality. That's also part of the drivers why we stepped back and looked at our financial priorities. We recognize from a shareholder perspective, that's a pretty dynamic roller coaster of potential dividends.
We've really restructured how we think about our business in terms of how we're going to prioritize paying dividends, to kind of take that noise out, at least that dimension of the equation. We've communicated that, how we'll continue to prioritize dividends. We believe we have a balance sheet to enable that, and we're going to continue to look for ways to preserve cash and strengthen to even enable that even going forward. Once again, we have some commitments with the shutdown, but we believe we have a very strong balance sheet, very low debt ratio that we can deliver on consistent, reliable dividends. Despite some quarter-on-quarter fluctuations, we're pretty confident we can continue to do that in the coming period. Hopefully that there will be noise, but we're trying to eliminate some of the noise from what shareholders can expect as returns from SPRC.
Okay.
Yeah. Sorry, just to address one last point of the question. Sorry, just jumping on the GRM question. I know the GRM is obviously of interest because we've historically produced GRM numbers. But it's a conscious decision to reflect the fact that we believe our differentiation actually in the market and where we can drive the most value for shareholders is looking across the enterprise, looking through the customer and looking at enterprise margin, of which GRM is a big factor obviously, the majority factor. But looking across the enterprise, that's going to give us the best ability to deliver the financial priorities of paying dividend, for example, to shareholders. So in general, I'd say just looking ahead, the GRM is about $5-$7 a barrel. That's the outlook going forward.
That's kind of the range of the first quarter is probably 80% of the enterprise margin that we reported out. But I think the discussion and the focus of the team is really to drive enterprise outcomes that allow us to perhaps outperform some of our competitors that may not be looking across the enterprise or may not have an enterprise that's integrated between refining and marketing. That's kind of why you see the charts reflected as they are.
Shashank, may I have a request? If you are able to include the Singapore's market GRM back to the presentation or MD&A, that would be greatly helpful for us because some of your competitors are peer refiners, so it would be great to compare what you already achieved, which is better than the others, so we can ascribe more value to you. Thank you.
Yep, noted. Okay.
Okay. Thank you for the questions. Okay, we are now ready for the next questions. If you have any question, please put your raise hand buttons, or you can send the question through the chat channels. Any more questions? If it's not question right now, maybe Rob. Rob, will you say something?
Something.
You would like to recap for the overall before we.
Once again, I want to thank everybody for joining us today. It's truly been my honor to represent SPRC over these past four years and to see us mature and expand our business from really a pure refining into a full value chain business and how our employees and teams have responded to that enterprise value capture challenge. We're here to grow value, not to just be active. We try not to be focusing on metrics that don't drive value. Bottom line, we challenge ourselves on the value we're representing. Hopefully, you'll see quarter on quarter us represent ourselves, superior performance relative to our peers, and ultimately driving maximum shareholder return, not only in the near term but in the long term. This will be my last analyst briefing with you as a collective community. I just want to thank you for your support, your questions, your interest.
I'm really excited about handing this baton to Matthew, who will be carrying it on going forward. Matthew will be an upgrade. I think you'll get much better answers. Just joking aside, the team is solid, and I am very confident Matthew will continue to help drive SPRC to even greater heights in the coming years going forward. So thank you for your support, and look forward to perhaps our paths crossing again in future. Thank you.
There is one question. Sorry, before we end it. There is one question asking about the throughput per stations. There is the increase in throughput per station in this quarter regarding to the MD&A. But there is already the lower volumes of the retail sales. Can management explain more about this?
Sure.
Shashank, please.
Yeah, sure. I can take this one. I appreciate the question, and I recognize maybe there is a little bit of confusion in the basis we use for reporting the various numbers. Just to sort of share that 265,000 liters per month that we reported in Q1, that was focused only on the Caltex stations without the Pure Thai Energy partnership. That was meant to allow an apples-to-apples comparison with the prior quarter and prior periods, which would not have had the Pure Thai Energy partnership stations in there. When you have the Pure managed Caltex sites, which came on board and were fully branded at the end of January, we left it out as a separate element. So it would be included in the total volume because that matches up with government reporting, but not in the throughput as reported.
Moving forward for the next quarter onwards, I think we will make sure to include that and have more of an explanation on that just so it is more consistent as you look at the total volume, the same store sales, as well as the throughput per site. So hope that clarifies.
Thank you, Shashank. Now we already cover all the questions, and at this moment, we would like to thank you, everyone, for your time today. We appreciate your interest in SPRC and your participation in our meeting. Before you leave, please take a moment to conduct our survey for us. Thank you very much.