The year 2025 marks yet another challenging period for the global petroleum and petrochemical industries, facing prolonged structural pressures from excess supply, fluctuation of energy prices due to geopolitical reasons, trade uncertainties, and increasingly stringent regulations. These conditions have affected the investment climate and confidence in many regions, including Thailand.

In 2025, the Thai economy faced a range of challenges, including geopolitical tensions and trade wars that have had an impact on exports. At the same time, domestic factors remain fragile due to high household debt levels, limiting purchasing power and consumption. Additionally, volatile energy prices, climate change, and supply chain vulnerabilities continue to put pressure on business operations. This is especially true for the petrochemical industry, which must contend with a significant increase in new production capacity, amid slowing demand. As a result, product prices and profit margins remain under ongoing pressure.

The Board of Directors of IRPC Public Company Limited recognizes that these challenges are not simply part of a business cycle, but represent a “new industry context” that requires proactive governance, strategic and careful decision-making, and robust financial discipline. These will help maintain competitiveness, financial stability, and growth that is stable and sustainable.

Driving the Company Forward with “4Rs” Strategic Framework

In 2025, the Company established the “4Rs” framework as its main five-year strategic roadmap (2026-2030). The plan clearly prioritizes actions in each period; strengthening financial stability in the short term; enhancing core business capabilities in the medium term; and fostering new business growth in the long term. The strategy also integrates aspects related to environment, sustainability, and digitalization into the Company’s approach, while restructuring and developing workforce capabilities to align with new business directions in a rapidly changing industry context.

Short Term: Re-capitalize – Strengthening Financial Stability

The Company places great importance on disciplined liquidity and capital structure management, coupled with optimizing its asset portfolio by divesting non-core assets to reinvest the capital in strengthening financial stability, reducing financial costs, and supporting value-creating investments in the future.

In 2025, the Company successfully issued and offered bonds, including digital bonds, with a total value of 11,000 million Baht. These were well received by investors, reflecting confidence in the Company’s financial position and strategic direction. In addition, the Company adjusted its investment structure to enhance capital efficiency, such as selling its 40% stake in WHA Industrial Estate Rayong Co., Ltd. (WHAIER) to WHA Industrial Development Public Company Limited (WHAID) for 896 million Baht, which was completed in the first quarter of 2026.

In terms of asset management, the Company focuses on increasing value and utilizing high-potential land through strategic investments. This includes the sale of approximately 32 rai of land within the IRPC Industrial Estate and leasing 716 rai of land in Chana District, Songkhla Province, to IRPC Clean Power Co., Ltd. (IRPCCP) for the development of a 74.88-megawatt solar power project over a 30-year period, generating income and supporting the use of clean energy. Additionally, the Company managers high-potential land assets by utilizing them for joint ventures, specifically through hospital and rehabilitation center development projects in Rayong Province to promote sustainable long-term growth.

Medium Term: Re-vitalize – Enhancing Core Business Capabilities

The Company is advancing the Performance Uplift project to boost organizational efficiency through process adjustments (Rationalization) and systematic cost management. This effort covers three main areas: 1) enhancing production process efficiency; 2) improving internal management within factories; and 3) shifting the portfolio toward high-value products. The Company achieved EBITDA from this project totaling over 1,000 million Baht, exceeding the set target. This also includes implementing projects to improve energy efficiency, developing innovative low-carbon and environmentally friendly products, focusing on clean energy technology and carbon capture development to drive the organization toward achieving net zero greenhouse gas emissions by 2050, while maintaining sustainable business competitiveness.

Petroleum Business is able to create added value through the production and sale of Euro 5 standard diesel fuel and Jet A-1 aviation fuel, supporting the recovery of the aviation industry. At the same time, the “Domestic First” strategy is being implemented to increase the proportion of domestic sales alongside strict cost management.

Petrochemical Business is accelerating portfolio adjustment toward specialty products, aiming to increase their share to 60% by 2030. In 2025, the share was raised to 40% of total sales, and the Company is preparing to commence commercial operations for additional specialty product projects in 2026 to support the medical, electric vehicle, and electronics industries. This is carried out alongside the development of eco-friendly products under the “Re-material” concept to promote the circular economy.

Port Business is focused on enhancing the capabilities of existing bulk terminals to accommodate high-value goods and to elevate overall operational efficiency.

Long Term: Re-invent – Creating New Sources of Income to Become a Solution Provider

The Company is expanding its investments into downstream and value-added businesses, leveraging assets, infrastructure, and expertise to elevate its role from manufacturer to “Solution Provider.” “Solution Provider” which is not only a producer and seller of products, but also focuses on providing consulting and services to offer comprehensive solutions for customers and partners.

In 2025, the Company partnered with Bayer Co., Ltd. to develop paints and coatings for steel structures in key industries, such as refineries, petrochemical plants, airports, ports, and bridges, which can significantly extend the lifespan of these structures.

Additionally, the Company collaborated with partners to launch “Graphenix X KleanTeQ,” a smart textile innovation that integrates the Company’s Graphene Ink technology, demonstrating the potential to advance innovation into downstream businesses and expand markets to consumers in the future.

Short Term-Long Term: Reframe – Develop People:

Integrating sustainability and digitalization into corporate strategy, restructuring and enhancing employee capabilities to align with new business directions.

Sustainability, Governance, and Social Value The Company operates with responsibility towards society and the environment, under transparent and robust governance principles, and continuously drives social and environmental projects. For example, the “From Wastes to Walk” project, in collaboration with Eastern Polypack Co., Ltd. (EPP), delivers high-quality recycled PP plastic sheets to the Prostheses Foundation of Her Royal Highness The Princess Mother for use in producing assistive devices to support patients and people with disabilities. Another initiative, “We Care by IRPC,” provides disaster relief both domestically and internationally, in partnership with business allies and the PTT Group.

This commitment has been recognized both nationally and internationally, as evidenced by the Company’s continued membership in the DJSI, receiving 12 SET Awards 2025 for innovation, including being the first in Thailand to achieve success with the PTFE/SAN Core-Shell project, winning the Thailand Energy Awards 2025 for its Digitalization initiative, achieving an “Excellent” rating in corporate governance for 17 consecutive years, and being the first and only private organization to receive the GOLD-level Human Rights Model Organization award for two consecutive years (2024-2025), among others.

The Board of Directors is confident that through disciplined financial management, comprehensive risk management, and proactive business restructuring, the Company will not only navigate through industry volatility but also establish a foundation for a resilient organization, delivering stable and sustainable value to our shareholders and stakeholders.