BBGI profit surges on B7 biodiesel, SAF start-up and biofuel tax support
B7 biodiesel mandate lifts volumes and profit The government raised the required biodiesel blend in diesel from B5 to B7, and later extended it to mid-December. That forces more biodiesel into every litre of diesel sold, so BBGI sells far more B100 and earns more per litre. This is the single biggest reason profit jumped.
It is the core policy driver behind the profit surge and the repeated target-price upgrades.
Q2 profit actually surged, beating the year before BBGI reported second-quarter 2026 net profit of 485 million baht, up 1,318% from a year earlier, with revenue up 69%. Biodiesel sales rose 39% and ethanol 45%. This confirms the policy-driven boom is showing up in real money, not just forecasts.
It is the hard reported result that validates the biodiesel and SAF story for investors.
SAF plant starts paying off, with more feedstock work BBGI's 20%-owned sustainable aviation fuel plant began commercial production in May, and analysts expect it to add 250-300 million baht of profit in the third quarter. BBGI also signed a study deal with BioVeritas on new renewable feedstock. This adds a second growth engine beyond biodiesel.
It shows a new profit source and future expansion, supporting higher earnings and the raised target price.
Tax cuts help demand, but a biotech project is scrapped The government is weighing excise tax cuts on E20 and B20 fuels, which would lift ethanol and biodiesel demand and benefit BBGI. Offsetting this, BBGI cancelled its BBFB biotech plant project, though it says the impact on finances and core business is not material.
It captures both the fresh demand-side policy support and the one real negative of the period.