Bangchak Corporation Plc. Analyst Meeting Q2/19 14 th August 2019 - - PowerPoint PPT Presentation

Bangchak Corporation Plc.

Analyst Meeting Q2/19

14th August 2019

Table of Content

Q2/19 Financial Performance

02 03

Appendices

04

Q2/19 Performance Update

01

Business Updates

BCP Group Performance – Q2/19 Key Takeaways

Marketing

• Total sales volume expanded, mainly from retail sales which grew 8% YoY
• Net MKM at 83 st./litre increased following crude oil price downward trend, and

increased retail sales portion

• Maintained 2nd rank (15.8%) retail sales market share as of 6M19

Refinery & Trading

• Crude run at 112.67 KBD
• Total GRM recovered QoQ to 4.53 $/BBL from recovering UNL spread,

but YoY still weak from oil product oversupply Power Plant

• Electricity generation remained stable YoY but increased QoQ
• New COD of 9 MW Lom Ligor Wind power plant in Apr’19
• Wind power plant entering low season in Q2 resulted in an operating loss
• Geothermal power plant operating profit lower from its shutdown maintenance

Bio-Based Product

• B100 sales volume increased from gov’t B20 diesel promotion
• Ethanol sales volume grew YoY from capacity added, lower QoQ from plant maintenance
• Intense B100 market competition and decreasing price of ethanol and glycerin resulting in

biofuel margin squeeze

Natural Resources

• Realize share of profit from OKEA at 102 MB, comprised of 94 MB gain

from changes in investment interest in OKEA, PPA revision and technical impairment on goodwill from lowered gas price of Gjoa oil field 1,929 517 650 509 610 630 762 737 721 171 194 136 36 (23) 145

Natural Resources Bio-Based Products Power Plant Marketing Refinery & Trading

EBITDA Performance

2,189 3,335 1,959 985 214 528

Net Profit

attributable to

• wners of the

parent

Q2/18 Q1/19 Q2/19 Q2/18 Q1/19 Q2/19

Unit: THB Million Unit: THB Million

3

Bangchak Corporation Plc.

EBITDA Performance – BCP Group

Bangchak Corporation Plc.

4

0% 50% 100% 150% 200%

0.5 1.5 2.5 3.5 4.5 5.5

Target 100%

Power Plant 1,458 Marketing 1,240 Refinery 1,167 Biofuel 330 E&P 122 1H/19 Performance Compare to Target by Business Unit Accounting EBITDA 4,147 Million Baht

Unit: THB Million

28% 30% 35%

8%

3%

6,358 4,147 1H/18 1H/19 2,153 742 1H/18 1H/19

1.56 0.54

Unit: THB Million

EBITDA

Unit: THB Million

Net Profit 1/

1/ Profit attributable to owners of the parent Unit: THB/Share

EPS

Refinery Business – Maintain high production rate & smooth operation

Bangchak Corporation Plc.

5

Production Profile

Actual Crude Run Unit: KBD

GRM Performance Unit: $/BBL

8.81 3.43 4.95 7.51 4.20 (0.39) 0.09 (0.09) (0.22) 4.39 (0.03) (0.33) 1.55 (0.18)

12.82 3.49 4.53 8.84 4.02 Q2/18 Q1/19 Q2/19 1H/18 1H/19

Market GRM Hedging Inventory Gain/Loss

2Q/19 Refinery Group

• Acc. EBITDA 650 MB (-66% YoY, +26% QoQ) Operating EBITDA 812 MB

GRM weaken YoY from global production over supply and US – China trade war situation GRM better QoQ mainly due to UNL spread recovery, and refinery’s smooth production 107 MB Inventory Loss from the sharp crude price fall in Jun’19 (Q2/18 and Q1/19 Inventory Gain(Loss) at 856 MB and (9) MB respectively) BCP Trading transaction volume grew YoY from products and trade partners expansion, but soften QoQ from weak oil demand from the effect of trade war

• 10
• 5

5 10 15 20 GO/DB UNL95/DB IK/DB FO/DB

AVG Crack spread movement ($/BBL)

50 60 70 80 90

DB DTD

AVG Crude oil price movement ($/BBL)

* Operating EBITDA : exclude Inventory gain/loss, One-time items, Gain/loss from FX forward contracts

66.8 110.1

112.7

88.0 111.4 56% 92% 94% 73% 93%

• 50%
• 30%
• 10%

10% 30% 50% 70% 90% 10 20 30 40 50 60 70 80 90 100 110 120 130 140

Q2/18 Q1/19 Q2/19 1H/18 1H/19

Crude Run Utilization

TAM TAM

Distribution channel – Retail market sales continues to grow as our main priority

284 307 334 342 364 179 190 184 167 150 51 86 58 50 50 93 82 112 111 68

50 100 150 200 250 300 350

Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19

Unit: ML/Mo

Total Sales Volume Retail Industrial Wholesales Exports (FO & UCO)

2Q/19 Marketing Group – Acc. EBITDA 630 MB (+24% YoY, +3% QoQ) Total marketing sales volume +6% YoY and +1% QoQ

• Retail sales volume +8% YoY and +6% QoQ from customer base

expansion, service station sales push, and B20 diesel promotion

• Industrial sales volume +1% YoY but -8% QoQ from the intensified

competition Total Marketing Margin increased from the higher retail sales portion, and the lower product cost following crude oil price downward trend Non-oil business Bangchak Retail Revenue grew 28% YoY and 7% QoQ, and cost controlling measure still implemented

Net Marketing Margin

Unit: Baht/Litre 0.75 0.71 0.83 0.79 0.77 Q2/18 Q1/19 Q2/19 1H/18 1H/19

Retail

58%

Industrial

24%

Total Sales Volume

(% Portion of total sales volume in 2Q/19) Service Stations Factories, Jobbers, Aviations

Export

Very low sulfur Fuel Oil

8%

Other oil companies

11%

Wholesale

161 193 206 308 400 Q2/18 Q1/19 Q2/19 1H/18 1H/19

Bangchak Corporation Plc.

6 Unit: THB Million

Bangchak Retail Revenue

Marketing Network – Increasing Market Share & Thruput per station

Bangchak Corporation Plc.

7

15.5% 12.6% 12.1% 9.3% 4.3% 1.6% 1.7% 1.7% 15.8% 12.2% 12.1% 10.2% 4.1% 1.9% 1.8% 1.7%

6M/18 6M/19

Retail sales volume Market Share (%) 41.2% 40.2%

+21

New Service Stations

1H/19

service stations as of Jun 2019

1,185

Standard Type

570 sites

(≈79% of Retail Sales Volume)

COOP Type

615 sites

(≈21% of Retail Sales Volume)

541 branches

Jun’19

+18 stores

1H/19

46 stores

+1 stores

1H/19

Jun’19

Supporting non-oil businesses Service stations outlets

436 479 510 496 496 128 131 125 118 118

495 464 452 446 437 2015 2016 2017 2018 6M/19

Thruput per station

Unit: K.Litre/Mo

BCP Standard

BCP Co-op AVG Major oil

Source: DOEB

Bangchak B20 promotion campaign

Bangchak Corporation Plc.

8

4 5 9 17 29 35

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 1.3% 1.8% 3.4% 6.4% 10.5% 13.9%

% compared to total Diesel sales through marketing business

B20 Sales Volume

Unit: Million Litre

Bangchak B20s is better than normal B20 products, with

• S Super Booster - Boost combustion efficiency, engine runs smoothly giving

a more responsive driving experience both on flat terrain and inclines

• S Super Purifier - Able to cleanse injectors even more, and protects the

engine, lowering corrosions helps reduce pollution, but sells at the same price, allow more energy for the engine, and more economical for the customers

B20 is currently available in

stations nationwide

and still expanding

+400

Bangchak Corporation Plc.

9

Power Plant Business Bio-based Products Business Natural Resources Business

Powe BCP Group Portfolio – Refinery & Marketing Business BCP Group Portfolio – Subsidiaries

BCP Group Portfolio

Subsidiaries

Power Plant Business – BCPG

Bangchak Corporation Plc.

10

130 139 148 34 15 15 158 158 158 14 14 14 Q2/18 Q1/19 Q2/19 Operating Capacity (MW PPA)

Solar Wind Solar Geothermal Wind

336 326 335 66.7 71.9 75.9 132.7 147.8 14.9 4.1 5.4 24.0 9.5 Q2/18 Q1/19 Q2/19 1H/18 1H/19

JP TH

81.6 76.0 81.3

Electricity Sales

Unit: Million kWh

2Q/19 Power Plant Group – Acc. EBITDA 721 MB (-5% YoY, -2% QoQ) Electricity Sales slightly higher: TH: Increase both YoY & QoQ from:

• Irradiation rate higher from more favorable weather YoY & QoQ
• Apr’19 – COD Lom Ligor Wind project (9 MW PPA)

JP: decrease YoY but increase QoQ:

• Irradiation rate seasonally higher QoQ
• Sep’18 – Nikaho & Nagi project sold (total 19 MW PPA)

Share of profit from associated companies:

• Geothermal power plant: 74 MB / Wind power plant: -12 MB

156.8 157.2

Bio-Based Product Business – BBGI

Bangchak Corporation Plc.

11

2Q/19 Bio-based products group

• Acc. EBITDA 136 MB (-21% YoY, -30% QoQ)

Biodiesel

• Sales volume +20% YoY and +15% QoQ from B20 promotion
• Gross margin -37% YoY and -1% QoQ, due to the squeezed glycerin margin

from its oversupply situation, and higher price competition on B100 product

Ethanol

• Sales volume +29% YoY from capacity increment of KGI plant (+100

KL/day), but -4% QoQ from BBE annual maintenance

• Gross margin +5% YoY from higher sales volume, but -30% QoQ from

ethanol price and sales volume decline

• BBE started raw material price management program, which could result in

a better profitability from Q3/19 onwards

35 48 46 70 94 39 54 44 81 98 Q2/18 Q1/19 Q2/19 1H/18 1H/19 Sales Production

Ethanol Production & Sales Volume

Unit: million litres 18 20 22 24 26 28 30 32 34 36

Ethanol B100

Biofuel Price Movement

Unit: Baht/litre Source: EPPO

68 71 82 141 153 61 67 74 132 141 Q2/18 Q1/19 Q2/19 1H/18 1H/19 Sales Production

Biodiesel Production & Sales Volume

Unit: Million litres

Natural Resource Business – Petroleum Exploration & Production

Bangchak Corporation Plc.

12

Full quarter share of profit from OKEA 102 MB; comprised of

• 30 MB Operating profit sharing, including technical goodwill

from Gjøa Field from the lower gas price

• (22) MB from purchase price allocation revision for Gjøa Field
• 94 MB gain from changes in investment interest in OKEA

(additional share allocation and IPO share purchase)

BCP, 49.33 % Seacest, 34.98% Minor Shareholders, 15.70% Prior to IPO BCP, 46.62% Seacrest , 20.22% Minor Shareholder, 33.16% Post IPO

OKEA shareholding Structure

8.64 9.24 10.49 10.50 0.37 0.31 Q1/19 Q2/19

Production Volume (Net to OKEA)

(unit: kboe/d)

56.2 60.7 6.49 4.05

• 1

1 3 5 7 9 11 13 15 10 20 30 40 50 60 70 Gas Price ($/MMBTU) Liquid Price ($/BBL)

Realized Prices

Source: OKEA

Ivar Assen Gjoa Draugen

OKEA has successfully listed its shares in Oslo stock exchange

Table of Content

Q2/19 Financial Performance

02

Business Updates

03

Appendices

04

Q2/19 Performance Update

01

Q2/19 Highlights

Bangchak Corporation Plc.

14

Cash Activities OKEA’s IPO

 OKEA’s IPO transaction issue 15 M.Share in Jun’19  BCPR SG’s additional investment of 226 MB in OKEA ASA’s IPO  Proportion of shareholding in OKEA ASA change from 49.33% to 46.75%  Recorded gain from changes in investment interest in OKEA of 94 MB Noted: Greenshoe option was excercised on 17 July 2019, proportion of BCPR shareholding change to 46.62%  BCP Bond repayment 4,000 MB in Apr’19  BCP 80 MUSD Long term loan drawdown  Dividend payment BCP paid dividend from 2H/18 performance of 688 MB (0.50 THB/Share) BCPG paid dividend from Q1/19 performance of 320 MB (0.16 THB/Share), paid to BCP 224 MB

Statement of Income - Consolidated

Bangchak Corporation Plc.

15

(Unit: MB)

Gross Profit -33% YoY, +19% QoQ: fluctuated mainly due to refinery performance

Unit: MB

Statement of Income

Q2/18 Q1/19 Q2/19 (Restated) Revenue 45,558 45,535 48,326 Cost of goods sold (41,699) (43,355) (45,738) Gross Profit 3,858 2,181 2,588 Investment income and dividend income 12 37 31 Other income 181 81 77 Selling and administrative expenses (1,785) (1,721) (1,897) Gain (loss) from oil hedging contract (136) 29 (28) Exploration and evaluation expense (13) (4) (0.2) Gain (loss) from FX forward contracts 95 (11) 27 Gain (loss) on foreign exchange (39) 57 168 Loss from impairment of assets (412)

• Share of profit of associate and JV

(8) 157 156 EBIT 1,753 806 1,121 Finance costs (374) (443) (421) Income tax expense (253) 32 (25) Profit for the period 1,126 395 675 Owners of the Company 985 214 528 Non-controlling interests 141 181 147 Earnings per share (Baht per Share) 0.72 0.16 0.38

(Unit: MB)

(Unit: $/BBL) Q2/18 Q1/19 Q2/19 Market GRM 8.81 3.43 4.95

• Inv. G/L

4.39 (0.03) (0.33) Hedging (0.39) 0.09 (0.09) Crude run (KBD) 66.80 110.12 112.68 Revenue +6% YoY, +6% QoQ: mainly increased from Refinery & Marketing

• YoY: Higher crude run and sales volume
• QoQ: Higher average selling price per unit

Revenue portion from subsidiaries increased by 4% YoY, 2% QoQ Share of profit of associate and JV Q2/2019

• Bongkot Marine Services

7 MB

• Ubon Bioethanol Plc.

(15) MB

• Petrowind Energy Inc.

(12) MB

• Star Energy Group Holdings Pte. Ltd

74 MB

• OKEA ASA

102 MB

Statement of Income - Consolidated

Bangchak Corporation Plc.

16

Statement of Income

6M/18 6M/19 Revenue 89,783 93,861 Cost of goods sold (82,597) (89,093) Gross Profit 7,186 4,768 Investment income and dividend income 28 68 Other income 240 159 Selling and administrative expenses (3,446) (3,618) Exploration and evaluation expense (22) (5) Gain (loss) from oil hedging contract (209) 1 Gain (loss) from FX forward contracts 95 16 Gain on foreign exchange 133 225 Loss from impairment of assets (412)

• Share of profit of associate and joint venture

115 314 EBIT 3,710 1,928 Finance costs (739) (864) Income tax expense (476) 7 Profit for the period 2,494 1,070 Owners of the Company 2,153 742 Non-controlling interests 341 328 Earnings per share (Baht per Share) 1.56 0.54 The company groups’ 6M/19 performance declined compared to 6M/18, mainly from refinery business was affected by the year round global oil price fluctuation.

(Unit: MB)

(Unit: $/BBL) 6M/18 6M/19 Market GRM 7.51 4.20

• Inv. G/L

1.55 (0.18) Hedging (0.22)

• Crude run (KBD)

87.96 111.40

Financial Position - Consolidated

Bangchak Corporation Plc.

17

Total Asset 117,369 116,183 1% Total Liabilities 67,831 66,423 2% Total Equity 49,538 49,760 0.4%

1,185 MB

31 Dec 18

Unit: MB

 Cash and Equivalents & ST Investment 5,887 MB

• BCP Bond repayment 4,000 MB in Apr 19
• finance cost and dividend paid

 Inventory 2,086 MB BCP increase crude oil and oil products inventories in preparation for the Hydrocrack unit maintenance at the beginning of 3rd quarter

30,896 32,177 48,877 49,704 3,680 3,356 15,135 17,221 6,969 7,799 11,813 5,926 31 DEC 18 30 JUN 19 Cash and Equivalents & Short term Investment Other Current Assets Inventory PP&E Other Non Current Assets

117,369

Assets

31 Dec 18 30 Jun 19 Account Receivable

116,183 30 Jun 19  PP&E 827 MB

+ Increased mainly from refinery 3E projects 1,313 MB and power plant assets

1,189 MB

• Depreciation for Q2/2019 of 2,208 MB

 Other Non Current Assets 1,282 MB

+ Increased of Long-term loans to related parties from loan to LAC 702 MB + Other long-term investments + Change in net fair value of available-for-sale investment (LAC) 384 MB + Investment in new start up 126 MB

31 Dec 18 30 Jun 19 Crude 3.16 MBBL 3.43 MBBL Product 1.77 MBBL 2.43 MBBL

Financial Position - Consolidated

Bangchak Corporation Plc.

18

 Account Payable 2,231 MB from: YE 2018 had usual less AP since prepayment was made in December 2018  Other Current Liabilities 1,772 MB

• Excise tax and oil fuel fund payable decreased by 802 MB
• Other payables decreased by 1,051 MB mainly from accrued expenses,
• ther current payable, payable from project construction

Total Asset 117,369 116,183 1% Total Liabilities 67,831 66,423 2% Total Equity 49,538 49,760 0.4% 31 Dec 18

Unit: MB

30 Jun 19

Other Current Liabilities Long Term Debt Other Non Current Liabilities

(Including current portion of L/T debt)

45,460 43,825 7,603 5,831 6,680 8,911 5,004 4,639 3,083 3,217 31 DEC 18 30 JUN19

Liabilities

31 Dec 18 30 Jun 19

67,831 66,423

Account Payable Short term loan

 Other non current liabilities 134 MB

• Non-current provisions for employee benefit increased by 183 MB

 Long-term debt 1,635 MB

• BCP bond repayment 4,000 MB

+ Loans from financial institutions increased by 2,328 MB mainly from BCP and BBGI

1,408 MB

Financial Position - Consolidated

Bangchak Corporation Plc.

19

Equity Total Asset 117,369 116,183 1% Total Liabilities 67,831 66,423 2% Total Equity 49,538 49,760 0.4% 31 Dec 18

Unit: MB

30 Jun 19

6,823 6,946 27,607 27,623 15,273 15,279 31 DEC 18 31 MAR 19 49,538 49,760 Other Components Non-Controlling Interests Retained Earnings Paid up capital, Share premium and capital surplus

(87)

223 MB 30 Jun 19 31 Dec 18

(165)

 Retained Earnings 16 MB

+ 6M2019 BCP Net Profit of 742 MB

• Dividend paid 688 MB
• Impact of changes in accounting policies (net of tax) 38 MB

 Non-controlling interest 123 MB  Other component of equity 79 MB

+ Net fair value change in available-for-sale investment (LAC)

increased by 384 MB

• Loss in foreign currency conversion of financial statement 295 MB
• Share of other comprehensive income of associates decreased

by 10 MB

Cash Flow - Consolidated

Bangchak Corporation Plc.

20

BCP Liquidity Management

Beginning Cash 11,551 MB Ending Cash 5,703 MB FX adjustment (228) MB

BCP bond repayment (4,000) MB Working capital management (1,298) MB

Other activities (320) MB 3,600 3,811 2,309 60 3,022 959 880 320 300 Cash From Operation Funding

7,470

Sources of Cash Uses of Cash

7,791

Debt Service - Repayment Investment in PPE Tax Paid Investment in intangible assets and others Dividend paid Investment in subsidiaries, associated companies Selling of PPE, Selling

• f investments and
• thers

6M/19: Other cash activities

Unit: THB Million

Debt Structure as of 30 Jun 2019

Bangchak Corporation Plc.

21

10% 19% 71% 80% 20%

29,434 MB

55% 45% 13% 43% 30% 14%

48,464 MB

BCP only Consolidated

Baht Bond USD Loan Baht Loan JPY Loan Baht Bond Baht Loan USD Loan %Fixed %Float %Fixed %Float 0.76 0.80 0.85 1.26 1.35 1.59

Q2/18 Q1/19 Q2/19

Liquidity and Leverage Ratios

Unit: Times Current Ratio Net IBD to Equity

Table of Content

Q2/19 Financial Performance

02

Business Updates

03

Appendices

04

Q2/19 Performance Update

01

Refinery Business – Updates

Bangchak Corporation Plc.

23

Status Progress Expected Completion

Continuous Catalyst Regeneration Unit (CCR)

(CCR: Higher Capacity & maintenance cycle extension)

• Construction

80% 2020

Debottlenecking Hydrocracker Unit (HCU) Revamping

(Higher Optimal Crude Run: Distillate)

• Construction

80% 2020

3E Project Updates

Piping installation

Hydrocracker maintenance to change catalyst went as planned

• Shutdown 19 Jul – 19 Aug
• Production ramp up since 9 Aug

Equipment Erection Overall CCR Construction Area

Plan after resume normal operation

• Crude Run 120 KBD
• Product Yield remains the same

maintenance Upgrading projects

Refinery Business – IMO analysis

Bangchak Corporation Plc.

24

Global Refinery Industry Global bunker fuel demand will shift to marine gasoil in 2020

• The specification change requires a major shift in the blend stocks used

for bunker fuels, initially creating a huge disposition issue for HSFO.

• That volume will be replaced by marine gas oil and various low-sulfur

blends of gasoil/residuals

• Expected strong growth in diesel consumption to meet the fuel

demand 0.5%S => Strong distillates cracks spread

• Excess HSFO supply => weaken HSFO cracks spread

Bangchak’s preparation

• Prepare LSFO for alternative market
• Study crude sourcing flexibility according to price situation
• Secure sweet crude

3.46 1.21* 1.5 2.95 0.97 2019 2020

Source: FGE Energy Consultant

• 2.25

MBD Gap

*Scrubber & Cheating & etc.

(Unit: MBD)

Global Bunker Fuel Switch

HSFO Marine FO Marine GO

Crack Spread movement

Source: Consensus Balancing

Marine GO/DB Marine FO/DB HSFO/DB

$/BBL

Marketing Business – 2H2019 network expansion plans updates

Bangchak Corporation Plc.

25

Continue to increase market share in Retail Sales 2019 Network Expansion

+60

New Stations Mostly Standard size

SPAR convenient stores is under business plan revision, and will enhance its efficiency before continue to roll out more branches The award considered by three factors namely BRAND QUALITY, BRAND AFFINITY and BRAND PERSONALITY of eligible brands, as voted by 15,000 consumers, marketing/branding/PR experts, and independent assessors of Superbrands.

Bangchak named a “Superbrand”

Inthanin coffee shop is developing a new business model “Inthanin Grocery” to serve middle-sized service stations

Marketing Business – 35th year Bangchak promotions

26

To celebrate 35th years anniversary Bangchak offer various marketing promotional campaigns via loyalty card and service stations sales

Bio-Based Products Business – Capacity increment project continues as planned

Bangchak Corporation Plc.

27

KGI-NP II Ethanol

66 ML/Yr

200,000 L/D Expected COD Q3/20 BBF Biodiesel

330 ML/Yr

1,000,000 L/D COD July 2019 Additional plant

Kanchanaburi Khonkaen Ayudhaya Chachoengsao Bangkok

KGI-NP I Ethanol

49.5 ML/Yr

150,000 L/D BBGI holds 100% BBF Biodiesel

307 ML/Yr

930,000 L/D BBGI holds 70% KGI-BP Ethanol

99 ML/Yr

300,000 L/D BBGI holds 100%

Ubonratchathani

UBE Ethanol

120 ML/Yr

400,000 L/D (Associated company)

BBE Ethanol

45 ML/Yr

150,000 L/D BBGI holds 85%

+

Capacity increment in existing plant Additional plant Refined Glycerin

27,000 Ton/Yr

Expected COD Q3/20

IPO plan to be in 2020 currently waiting for clarification in high value bio-based investment projects

Completed

Bio-Based Products Business – opportunities in refined glycerin plant & B10 mandate policy

Bangchak Corporation Plc.

28 5 10 15 20 25 30 35 40 Market Glycerin Price Unit: THB/Kg.

Refined Glycerin Crude Glycerin

(Current B100 by-product)

Refined Glycerin plant is expected to allow BBF to gain extra margin

Source: ICIS

Additional plant Refined Glycerin

27,000 Ton/Yr

Expected COD Q3/20 Crude Glycerin

≈33,000 Ton/Yr

Current By-Product Affected by the softened crude glycerin price

Sales volume

Production volume

0.56 0.72 0.76 0.92 0.98 1.03 1.06 0.19 0.10 0.10 0.14 0.14 0.14 0.14 0.76 0.82 0.86 1.06 1.12 1.17 1.20 2018 2019 2020 2021 2022 2023 2024

Mandate Policy

B7 B7 (Option B10/B20) B7/ B10 Mandate

Capacity 0.90 ML/day*

* Plant capacity based

• n 330 operating days

Plant Capacity

BBGI B100 sales volume

Unit: ML/Day

Sales to BCP Sales to others

B10 Refined Glycerin

Capacity 0.84 ML/day*

OKEA – Project update

29

Bangchak Corporation Plc.

Planning activities are ongoing for drilling of:

• ne infill pilot well in the Draugen field
• ne exploration well in the “Skumnisse” prospect north-east of Draugen.

Both wells will be drilled in Q4 2019.

Draugen

Development is on track towards first oil in H1 2020 The Wellhead Module is planned to be transported to the Yme Field in Q3 2019, and the Jack-up unit is planned to be departing the yard for transport to the Yme Field in Q4 2019

Yme

THANK YOU

ir@bangchak.co.th

• Tel. +662 335 4370, 4390, 8518

www.bangchak.co.th click Investor Relations

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