1Q2020 Analyst Presentation May 21, 2020 Disclaimer The - - PowerPoint PPT Presentation

1q2020 analyst presentation
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1Q2020 Analyst Presentation May 21, 2020 Disclaimer The - - PowerPoint PPT Presentation

TM 1Q2020 Analyst Presentation May 21, 2020 Disclaimer The information contained in this presentation is provided by Esso (Thailand) Public Company Limited (the "Company") and is subject to change without notice, its accuracy is not


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1Q2020 Analyst Presentation

May 21, 2020

TM

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The information contained in this presentation is provided by Esso (Thailand) Public Company Limited (the "Company") and is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the

  • Company. None of the Company, or any of their respective members, directors, officers, employees or affiliates nor any other

person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or

  • therwise arising in connection therewith.

This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of

  • perations and financial condition, and future events and plans of the Company. These statements can be recognized by the use
  • f words such as "expects," "plans," "will," "estimates," "projects," or words of similar meaning. Such forward-looking statements

are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. Forward-looking statements are based on management’s knowledge and reasonable expectations on the date hereof, and the Company assumes no duty to update these statements as of any future date. This presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information set forth in this presentation or on its completeness.

Disclaimer

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Industry and Business Environment

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  • 1Q2020 GDP growth was -1.8%
  • Average Dubai prices in Mar was $33.7/Bbl
  • 1Q20 Industry gross refining margin was $1.2/Bbl
  • Mar 20 YTD Thailand fuel demand decreased 7.4% year on year

Source : NESDC: GDP, Reuters: Oil prices and Industry GRM, DOEB: Industry demand growth

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Headline Results

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  • Safely managed people and facilities during

Covid-19 pandemic

  • Refinery crude intake at 122 KBD, production

adjusted to cope with jet demand drop

  • Gross Refining Margin of -$19.3/Bbl driven

by unfavorable inventory effects

  • Esso retail network totaling of 641 sites
  • First quarter net loss of Baht 6,307 million
xxx
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Margins and Crude Intake

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Industry Gross Refining Margin ($/Bbl) Crack Spread ($/Bbl) Crude Intake (KBD)

Source : Industry GRM and Crack Spread from Reuters

Gross Refining Margin ($/Bbl)

146 135 100 76 122 1Q19 2Q19 3Q19 4Q19 1Q20 3.2 3.5 6.5 1.6 1.2 1Q19 2Q19 3Q19 4Q19 1Q20 3.7 7.5 11.6 12.9 6.7 13.5 12.8 15.9 14.8 11.7 1Q19 2Q19 3Q19 4Q19 1Q20 UGP ADO 4.5 1.3 2.8

  • 2.5
  • 19.3

1Q19 2Q19 3Q19 4Q19 1Q20

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1Q2019 1Q2020 19% 30% 46% 37% 35% 33%

Middle East Far East & South East Asia Others

Crude Source and Sales Channels

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  • Continued crude diversification with 3 additional new crudes processed in 1Q20
  • Remained focus on high margin sales through retail and commercial channels

Crude Intake by Source Sales Channel

1Q19 1Q20 4% 6% 39% 39% 57% 55% Commercial Retail Export

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Refinery Yields

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Production by Type Product Yields

  • Production yields mainly reflected Jet demand drop in the period

1Q19 1Q20 17% 17% 11% 10% 44% 45% 28% 28% Light Middle Heavy Feedstock 1Q19 1Q20

17% 17% 9% 9%

2% 1%

9% 8% 35% 37% 19% 21% 4% 3% 5% 4%

LPG Naphtha Gasoline Diesel Jet/Kerosene Asphalt Fuel Oil Feedstock and

  • thers
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Petrochemical Spreads and Production

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  • Px margins improved following UGP prices larger drop
  • Production run to meet sales obligation

Px Spread ($/Ton) Px Production (kTon/quarter)

100 90 53 39 53 1Q19 2Q19 3Q19 4Q19 1Q20 473 270 194 164 219 372 201 111 113 118 1Q19 2Q19 3Q19 4Q19 1Q20 PX-UGP PX-MX

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Marketing Business Update

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Number of Service Stations offering Supreme Plus Diesel Number of New Service Stations Number of Service Stations offering B10 Number of Outlets with Mobil Signage Number of New Service Stations Number of Service Stations offering Premium Products

15 27 73 41 4 2016 2017 2018 2019 1Q20 337 382 425 426 141 205 254 259 2017 2018 2019 1Q20 542 553 608 638 641 125 328 2016 2017 2018 2019 1Q20 Total Service Stations B10 345 779 1,221 1,641 1,648 2016 2017 2018 2019 1Q20

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Financial Performance

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Sales Revenue (Billion Baht) Cash Flow from Operations (Billion Baht) EBITDA (Billion Baht) Net Profit (Billion Baht)

46.0 39.4 1Q19 1Q20 1.4 1.1 1Q19 1Q20 1.7 (7.3) 1Q19 1Q20 1.0 (6.3) 1Q19 1Q20

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22.1 15.4 26.9 26.8 YE2019 1Q20

Shareholders’ equity Debt

Financial Position

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Balance Sheet Indicators (Billion Baht) Cash Flows (Billion Baht)

  • Decreased in assets mainly driven by lower

inventory balances and trade receivables, partly offset by an increase in non-current assets from TFRS 16 adoption

  • Debt was at Baht 26.8 billion
  • Debt-to-equity ratio at 1.7
  • Cash flow used in investing activities reflected

capital investment for Refinery and Marketing

  • Financing activities reflect net repayment of

borrowings and payments on lease liabilities

D/E = 1.7 D/E = 1.2

(0.3) (0.5) (0.9) (0.2) 1.4 1.1 1Q19 1Q20

Cash flow from (used in) operating activities Cash flow from (used in) financing activities Cash flow from (used in) investing activities

34.3 37.7 19.1 15.1 6.5 4.6 6.4 5.3 YE2019 1Q20 Non-current assets Inventory Receivables Other current assets

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Summary

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  • Safe operations in an unprecedented

challenging environment of Covid-19

  • Fuel demand significantly impacted, hence

dampened crude, products prices and margins

  • Refinery production reduced to cope with

demand plunge

  • Retail network continued expansion
  • Look ahead in 2Q20, see a sign of demand
  • recovery. Focus on conservative and effective

spending