Powering Ahead with Singapore Petroleum July 2008 Delivering More 2007 Revenue: $145.1 million Upstream Production volume: 10,000 boepd 2004 Revenue: $36.1 million Production volume: 2,600 boepd 2007 Revenue: $8.6 billion 2001 Volume: 76.9 million Revenue: $30.9 million barrels Production volume: 2004 1,605 boepd Revenue: $4.9 billion Volume: 73.2 million barrels Downstream 2001 SPC Revenue: $2.3 billion Volume: 44.9 million barrels 2 1
2Q08 Summary Financial � Turnover of $3.3 billion , an increase of 64.6% over 2Q07 � Cost of sales was $3.0 billion , an increase of 70.1% over 2Q07 � Gross profit grew to $281.7 million , an increase of 22.8% over 2Q07 � Profit before tax grew to $225.3 million from $204.9 million in 2Q07 � PATMI increased to $180.2 million, a new quarterly record. � EPS at 34.96 cents per share 3 2Q08 Summary Others � Record average refining margin of about US$13.00 per barrel � Total crude processed was 11.6 million barrels � Sales volumes of 19.3 million barrels � Average realisation of US$122.90 per barrel � Commenced drilling of Ham Rong-1X exploration well in Vietnam Blocks 102 and 106 � Share buy-back – purchased a total of 2.1 million shares from 11 - 17 June 4 2
2Q08 Financial Highlights Revenue by Quarter $M 8,766.7 9,000.0 8,000.0 7,000.0 6,000.0 5,000.0 4,000.0 3,251.0 2,706.4 3,000.0 2,238.6 1,924.9 1,974.6 2,000.0 1,000.0 0.0 1Q07 2Q07 3Q07 FY07 1Q08 2Q08 5 2Q08 Financial Highlights PATMI by Quarter $M 200.0 180.2 179.2 180.0 160.0 140.0 117.2 112.1 120.0 98.4 99.8 100.0 80.0 60.0 40.0 20.0 0.0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 6 3
2Q08 Financial Highlights Earnings Per Share S$ 0.35 0.35 0.35 0.30 0.23 0.25 0.22 0.19 0.19 0.20 0.15 0.10 0.05 0.00 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 7 1H08 Summary Financial � Turnover of $6.0 billion , an increase of 52.8% over 1H07 � Profit before tax grew to $346.2 million � PATMI at $278.6 million � EPS at 54.07 cents per share � Gearing ratio of 0.27X � Return on equity of 30.5% � Average realisation of US$110.56 per barrel, compared to US$65.72 per barrel in 1H07 � Sales volume of 38.6 million barrels 8 4
1H08 Financial Highlights Annual Revenue $M 10,000 8,766.7 8,574.2 9,000 7,474.2 8,000 7,000 5,957.4 6,000 4,974.4 5,000 4,000 3,187.6 3,000 2,000 1,000 0 2003 2004 2005 2006 2007 1H08 9 1H08 Financial Highlights Annual PATMI $M 600.0 508.3 500.0 403.6 400.0 284.6 278.6 300.0 252.1 200.0 59.0 100.0 0.0 2003 2004 2005 2006 2007 1H08 10 5
1H08 Financial Highlights Segmental breakdown Revenue Profit Before Tax $M $M • Exploration & Production 180.8 99.3 • Downstream 5776.6 246.9 E & P fuels growth - PBT margin of about 55% - contributes 3% of 1H08 revenue and 28.7% of PBT Downstream provides steady income stream - operating profit margin of about 4% - contributes 97% of 1H08 revenue and 71% of PBT 11 Value Proposition Viable Growth Catalyst & Sustainable Earnings Stream PBT Margins % 70 60 E&P 50 40 30 20 Downstream 10 0 2002 2003 2004 2005 2006 2007 1Q08 2Q08 12 6
1H08 Financial Highlights Earnings Per Share S$ 0.99 1.00 0.90 0.85 0.80 0.70 0.60 0.59 0.60 0.55 0.54 0.50 EPS DPS 0.40 0.35 0.32 0.30 0.20 0.20 0.20 0.13 0.06 0.10 0.00 2003 2004 2005 2006 2007 1H08 13 Looking Ahead � Demand for refined petroleum products may soften against an expected slowdown of the global economy and the reduction of government subsidies in several Asian countries � Sustainable demand from China, India, Russia and Middle East will continue to lend support to refining margins � Global refining capacity will continue to be limited by high costs and resource constraints � Refining margins expected to remain healthy � For SPC: • Downstream will continue to provide steady earnings • Continuing organic and external growth in E&P for long-term growth - 4 producing assets with 10,000 boepd, growing to 15,000 boepd in 2009 - 5 other assets at exploration and development stages 14 7
Business Strategy E&P to fuel future growth An integrated oil and gas value chain Downstream to provide stable earnings 15 Exploration & Production In 2000, SPC repositioned its business to create sustainable long-term growth. SPC began investing in the upstream sector. Its activities include the exploration, development and production of crude oil and natural gas. Today, SPC has 8 Production Sharing Contracts (PSC), 1 exploration permit and 3 gas pipelines. Its E&P footprint extends across 5 countries – Australia, Cambodia, China, Indonesia and Vietnam. 16 8
E&P Asset Summary 17 E&P Stacking Up Nicely Year Revenue ($M) Profit Before Tax ($M) PBT Margin (%) 1H2008 180.8 99.3 54.9 2007 145.1 52.4 36.1 2006 49.2 14.6 29.7 2005 39.1 22.1 56.5 2004 36.1 18.5 51.2 2003 36.0 15.4 42.8 2002 28.8 11.9 41.3 18 9
E&P Increasing Contribution to Revenue and PBT Revenue Profit Before Tax $M $M 200.0 180.8 99.3 100.0 180.0 90.0 160.0 145.1 80.0 140.0 70.0 120.0 60.0 52.4 100.0 50.0 80.0 40.0 49.2 60.0 30.0 22.1 39.1 36.0 36.1 18.5 15.4 28.8 20.0 14.6 40.0 11.9 10.0 20.0 0.0 0.0 2002 2003 2004 2005 2006 2007 1H08 2002 2003 2004 2005 2006 2007 1H08 E&P – SPC’s Growth Catalyst 19 E&P Vietnam – Blocks 102 and 106 (Song Hong Basin) Location : Song Hong Basin, offshore Status: Commenced drilling of Gulf of Tonkin, Vietnam Ham Rong exploration well in : approx 8,560 km 2 Area June 2008 Type : exploration Operator: Petronas Share : 20% 20 10
E&P Cambodia – Block B (Gulf of Thailand) Location : Gulf of Thailand, Status: Commenced drilling of its first exploration well in Southeast of the Khmer Basin July 2008. : 6560 km 2 Area Type : exploration Operator : PTTEP Share : 33.3% 21 Midstream Pipeline Assets 6% interest in two regional gas transmission pipelines – the 536km Grissik-Duri Pipeline and the 468km Grissik-Batam-Singapore Pipeline. Approximately 3% interest in the 654km undersea gas pipeline from West Natuna, Indonesia to Singapore. 22 11
Downstream � 50% share in a 290,000 bpd refinery � Operates a 220,000 m 3 offshore oil storage terminal in Singapore � Operates an inland oil distribution depot in Singapore � Runs a network of 38 service stations in Singapore 23 Downstream Steady Income Revenue Profit Before Tax $M $M 8621.6 8525.0 9000 600 523.2 8000 7435.1 500 7000 424.8 5776.6 6000 400 338.2 4938.3 5000 300 268.7 246.9 4000 3151.5 3000 2406.7 200 2000 100 58.2 38.8 1000 0 0 2002 2003 2004 2005 2006 2007 1H08 2002 2003 2004 2005 2006 2007 1H08 Sustained profitability from downstream 24 12
Downstream Refined Products Range * SPC per barrel yield varies with crude 25 Q & A 26 13
For further information, please contact the SPC Investor Relations & Communications Team Ms Elaine ANG Email: elaine.ang@spc.com.sg Tel: (65) 6477-1815 Ms Joey HO Email: joey.ho@spc.com.sg Tel: (65) 6477-1550 27 Thank You! Powering Ahead with Singapore Petroleum Singapore Petroleum Company Limited 1 Maritime Square #10-10 HarbourFront Centre Singapore 099253 Tel : (65) 6276 6006 Fax : (65) 6275 6006 Retail Hotline: 1800 – 477 1800 www.spc.com.sg 28 14
Disclaimer This release may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic situations, competition, and legal, governmental and regulatory changes. The forward-looking statements reflect the current views of Management on future trends and developments. 29 15
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