Many companies expected to reap benefits of low oil price

He added that oil refinery businesses also gained some benefit as fuel cost had decreased, however the global demand had also dropped.
“Oil price has fallen since March this year, while companies would respond to the positive sentiment within one or two months as some companies would still have stocks of raw materials.”
Pawat Vitoorapakorn, chief executive officer of EPG, said that the company had benefited from the falling oil price as petrochemical cost had also dropped.
“Falling costs will help improve the overall situation when the demand for products decrease,” he said.
“We expect the company to overcome the lowest point, as domestic businesses which accountfor 40 per cent of total revenue, begin to see signs of recovery, especially packaging businesses. Therefore, the falling oil price will help the company improve its profit margin in the next phase.”
A stock analyst at Krungsri Securities said that the profit margin of EPG would increase as the cost of making plastic beads cost had dropped due to the slide in oil price.
“The company's profit from January to March this year would rise by over Bt200 million, as Aeroflex and Aeroklas had benefited from the weakening baht and more than 60 per cent of revenue of both business are from overseas,” the stock analyst said.
A stock analyst at Country Group Securities said that asphalt manufacturer Tipco Asphalt (TASCO) is another company that would benefit from the falling oil price.
“We have cut the company’s net profit forecast by 23 per cent to Bt2.5 billion due to declining sales in China and Malaysia.
“Full-year sales are expected to be around 2.05 million tonnes, lower than the target of 2.1 million to 2.2 million tonnes compared to last year's sales of 2.27 million tonnes.”
The analyst added that sales in the second quarter of this year would rise, especially with orders from China, while the company had benefited from the falling oil price, resulting in a decline in costs.