0716 GMT - Thai Oil's clean fuel project is a de-catalyst for stock, DBS Group Research team writes in a note. The board recently approved additional funding of $2.28 billion required for the project. DBS says the project resulting in net loss, given depreciation and interest expenses, is highly likely. The breakeven level for the capital-intensive project will likely lead to the shrinkage of return-on-equity and dividend payments, the team adds. DBS also expects there will be a cost overrun and delay in project completion, adding that the stock lacks short- to near-term catalysts. DBS downgrades its rating on the stock to fully valued from buy, trimming its target price to THB26 from THB64. Shares are 1.8% higher at THB28.25. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
December 27, 2024 02:16 ET (07:16 GMT)
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