SMO is watching for the expiry of biodiesel and ethanol price compensation measures under Section 55 of the Fuel Fund Act on September 24, 2026, with no clarity yet on support measures after the subsidies end. Kittipong Puangmala, chief executive of Samo Thong Group Public Company Limited, or SMO, said the end of the measures could affect the pricing structure of biodiesel, particularly the retail price gap between B20 and B7, where B20 was previously about 3 baht per litre cheaper. He also called on the government to provide clarity on ways to promote the palm oil and biodiesel industries. As for the third-quarter 2026 outlook, it has improved from a year earlier on higher exports and a weaker baht, but the company has cut production to about 70% of total capacity because of a raw material shortage after palm output was delayed from the second and third quarters to late in the year due to the El Nino phenomenon. Currently, fresh fruit bunch prices are around 9 baht per kilogram and crude palm oil prices are around 40 to 41 baht per kilogram. The company expects total sales for the year to grow better than last year and sees a chance of returning to a net profit in the fourth quarter of 2026 after a net loss of about 29.48 million baht in the first half, driven by an expected increase in raw material volumes entering its plants and high selling prices.
Smothong Group Public Company LimitedRaw material shortage from delayed palm output due to El Nino forced production cut to ~70% capacity, though higher exports, weaker baht and expected Q4 raw material recovery support a profit turnaround.
