Delivering More 2007 Revenue: $145.1 million Upstream Production - - PDF document

1 Powering Ahead with Singapore Petroleum

July 2008

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Delivering More

SPC

2007

Revenue: $145.1 million Production volume: 10,000 boepd

2007

Revenue: $8.6 billion Volume: 76.9 million barrels

Upstream Downstream

2004

Revenue: $36.1 million Production volume: 2,600 boepd

2004

Revenue: $4.9 billion Volume: 73.2 million barrels

2001

Revenue: $2.3 billion Volume: 44.9 million barrels

2001

Revenue: $30.9 million Production volume: 1,605 boepd

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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

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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

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2Q08 Financial Highlights

Revenue by Quarter $M 1,924.9 1,974.6 2,238.6 8,766.7 2,706.4 3,251.0

0.0 1,000.0 2,000.0 3,000.0 4,000.0 5,000.0 6,000.0 7,000.0 8,000.0 9,000.0 1Q07 2Q07 3Q07 FY07 1Q08 2Q08 6

2Q08 Financial Highlights

PATMI by Quarter 112.1 179.2 99.8 117.2 98.4 180.2

0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08

$M

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2Q08 Financial Highlights

Earnings Per Share

0.22 0.35 0.19 0.23 0.19 0.35 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 S$

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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

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1H08 Financial Highlights

Annual Revenue

3,187.6 4,974.4 7,474.2 8,574.2 8,766.7 5,957.4

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

2003 2004 2005 2006 2007 1H08 $M

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1H08 Financial Highlights

Annual PATMI 59.0 252.1 403.6 284.6 508.3 278.6 0.0 100.0 200.0 300.0 400.0 500.0 600.0

2003 2004 2005 2006 2007 1H08

$M

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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

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Value Proposition

Viable Growth Catalyst & Sustainable Earnings Stream

10 20 30 40 50 60 70 2002 2003 2004 2005 2006 2007 1Q08 2Q08

PBT Margins % E&P Downstream

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1H08 Financial Highlights

Earnings Per Share

0.13 0.06 0.59 0.20 0.85 0.32 0.55 0.35 0.99 0.60 0.54 0.20 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00

2003 2004 2005 2006 2007 1H08 EPS DPS S$

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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

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Business Strategy

E&P to fuel future growth

Downstream to provide stable earnings

An integrated oil and gas value chain

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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.

Exploration & Production

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E&P

Asset Summary

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E&P

Stacking Up Nicely

41.3 11.9 28.8 2002 42.8 15.4 36.0 2003 51.2 18.5 36.1 2004 56.5 22.1 39.1 2005 29.7 14.6 49.2 2006 36.1 52.4 145.1 2007 54.9 99.3 180.8 1H2008 PBT Margin (%) Profit Before Tax ($M) Revenue ($M) Year

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E&P

Increasing Contribution to Revenue and PBT

28.8 36.0 36.1 39.1 49.2 145.1 180.8

0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0

2002 2003 2004 2005 2006 2007 1H08

Revenue

E&P – SPC’s Growth Catalyst $M

11.9 15.4 18.5 22.1 14.6 52.4 99.3 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

2002 2003 2004 2005 2006 2007 1H08

Profit Before Tax

$M

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Location : Song Hong Basin, offshore Gulf of Tonkin, Vietnam Area : approx 8,560 km2 Type : exploration Operator: Petronas Share : 20%

E&P

Vietnam – Blocks 102 and 106 (Song Hong Basin)

Status: Commenced drilling of Ham Rong exploration well in June 2008

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E&P

Cambodia – Block B (Gulf of Thailand)

Location : Gulf of Thailand, Southeast of the Khmer Basin Area : 6560 km2 Type : exploration Operator : PTTEP Share : 33.3% Status: Commenced drilling

• f its first exploration well in

July 2008.

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Midstream

Pipeline Assets Approximately 3% interest in the 654km undersea gas pipeline from West Natuna, Indonesia to Singapore. 6% interest in two regional gas transmission pipelines – the 536km Grissik-Duri Pipeline and the 468km Grissik-Batam-Singapore Pipeline.

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Downstream

• 50% share in a 290,000 bpd refinery
• Operates a 220,000 m3 offshore oil storage terminal in Singapore
• Operates an inland oil distribution depot in Singapore
• Runs a network of 38 service stations in Singapore

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Downstream

Steady Income

2406.7 3151.5 4938.3 7435.1 8525.0 8621.6 5776.6 1000 2000 3000 4000 5000 6000 7000 8000 9000

2002 2003 2004 2005 2006 2007 1H08

Revenue

$M

38.8 58.2 268.7 424.8 338.2 523.2 246.9

100 200 300 400 500 600

2002 2003 2004 2005 2006 2007 1H08

Profit Before Tax

$M Sustained profitability from downstream

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Downstream

Refined Products Range * SPC per barrel yield varies with crude

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Q & A

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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

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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

Thank You!

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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.