Opportunity Day 3Q/2017 results “One family … fueling the future of Thailand”
DISCLAIMER The information contained in this presentation is intended solely for your reference. This presentation contains “forward - looking” statements that relate to future events, which are, by their nature, subject to sig nificant risks and uncertainties. All statements, other than statements of historical fact contained in this presentation including, without limitation, those regarding SPRC’s future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets where SPRC participates or is seeking to participate and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “will”, “may”, “project”, “estimate”, “anticipate”, “predict”, “seek”, “should” or similar words or expressions, are forward-looking statements. The future events referred to in these forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond our control, which may cause the actual results, performance or achievements, or industry results to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which SPRC will operate in the future and are not a guarantee of future performance. Such forward-looking statements speak only as of the date on which they are made. SPRC does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. The information set out herein is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the Company. SPRC makes no representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one if many possible scenarios and should not be viewed as the most likely or standard scenario. No assurance given that future events will occur or our assumptions are correct. Actual results may materially differ from those provided in the forward-looking statements and indications of past performance are not indications of future performance. In no event shall SPRC be responsible or liable for the correctness of any such material or for any damage or lost opportunities resulting from use of this material. SPRC makes no representation whatsoever about the opinion or statements of any analyst or other third party. SPRC does not monitor or control the content of third party opinions or statements and does not endorse or accept any responsibility for the content or use of any such opinion or statement. SPRC’s securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or the securiti es laws of any state of the United States, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of such act or such laws. This presentation does not constitute an offer to sell or a solicitation of an offer to buy or sell SPRC’s securities in any jurisdiction. 2
One Family… Our Vision: Fueling the Future of Thailand Our Mission: “We are a highly engaged Family, dedicated to providing sustained superior returns to our shareholders through industry leading safe and reliable operations, producing quality products that exceed customer expectations, in harmony with our communities and the environment.” Core Values: Stars Leader / Outstanding / Role model Professional Integrity / Professionalism / Performance driven Reliable Accountable / Ready / Trustworthy Caring Responsible citizen / Compassion / Sincere 3
Contents 1 Highlights 2 Market overview Drop your image here 3 Operational review 4 Financial performance 4
Contents 1 Highlights 2 Market overview Drop your image here 3 Operational review 4 Financial performance 5
Update RFCCU Shutdown Highlights Market overview Operational review Financial performance What happen on RFCCU in Oct? There were issues on reliability of equipment and products quality. How long of maintenance period? 20 days during 10 – 30 Oct. What impact to utilization rate? It will impact only October’s rate. We shut down only RFCCU whereas others continued to operate. Residue Fluidized What impact to margin? Catalytic Cracking Unit It’s approximately US$18M (AT). (RFCCU) 41 KBD 6
3Q/2017 Highlights Highlights Market overview Operational review Financial performance 0 98.9% 94.0% UEDC * AVAILABILITY TOTAL DAYS AWAY EX. TURNAROUND FROM WORK RATE (‘DAFWR’) $ 1.77/bbl $8.91/bbl $2.27/bbl BOTTOM LINE MARKET OPEX PER BARREL IMPROVEMENT PROGRAM GRM * Utilization of Equivalent Distillation Capacity 7
SPRC’s winning formula Highlights Market overview Operational review Financial performance “ At SPRC our safety objective is simple: No incidents No injuries We do whatever it takes to make sure our people go home safely and in good health to their families each and every day” Bill Stone, CEO 8
SPRC’s formula for success Highlights Market overview Operational review Financial performance A strong foundation of personal …exceptional reliability… …driving optimization & cost …and maximizing GRM safety … efficiencies… SAFETY RELIABILITY OPTIMIZATION MARKET GRM TOTAL DAYS AWAY OPERATIONAL AVAILABILITY PERFORMANCE UPLIFT FROM “BLIP ” US$/bbl FROM WORK RATE EX. TURNAROUND SG GRM BLIP: Bottom Line Improvement Program (Injuries per 200,000 man hours) 99.7% 99.8% 99.7% 99.0% 97.3% 98.9% 10.40 US$/bbl 8.91 7.98 3.11 6.85 6.68 2.95 6.36 2014 2015 2016 1Q17 2Q17 3Q17 6.15 2.69 2.62 2.46 2.29 2.27 EDC UTILIZATION RATE 5.63 3.32 4.99 4.63 91.9% 97.8% 97.3% 95.2% 94.0% 84.7% 4.10 0 0 0 0 0 0 2014 2015 2016 1Q17 2Q17 3Q17 2014 2015 2016 1Q17 2Q17 3Q17 2014 2015 2016 1Q17 2Q17 3Q17 9M17 2014 2015 2016 1Q17 2Q17 3Q17 ▪ ▪ Lower benefit from opportunity crude ▪ High CDU throughput and crude Sustained top quartile YTD ▪ Last DAFWR over 4 years ago as favorable benchmark crude optimization benefit from high performance in availability and (24 Jun 2013) generated more positive on margin crude selection flexibility post utilization among over 90 refineries ▪ Achieved 14.9 million man-hours CDU pit stop in the Asia Pacific and India Ocean ▪ Low seasonal domestic demand without days away from work region ▪ Higher margins due to strong injury ▪ No synergy benefit as economics ▪ product crack spreads Lower utilization from low RFCCU did not support unequal transfers throughput resulted in low CDU ▪ Stay competitive over Singapore and downstream unit throughput margin thru Bottom Line Improvement margin captured Source: Company Data 9
Overview of oil demand growth and GRM Highlights Market overview Operational review Financial performance OIL MARKET OUTLOOK SINGAPORE GRM Million barrels/day Million barrels/day US$/bbl INCREMENTAL OIL DEMAND 10 0.15 Strong gasoline 0.09 0.39 SPRC GRM 9 demand & low 0.29 0.14 0.14 0.22 crude oil 8 0.14 -0.04 premium FSU 7 NORTH AMERICA EUROPE 6 0.23 0.13 5 0.10 4 1.22 AFRICA 1.02 Singapore 0.87 3 FCC GRM 0.00 2 2015 2016e 2017e Subprime 1 -0.06 ASIA crisis -0.12 0 LATIN AMERICA 2010 2012 2014 2016 Q2 Q4 Q2 Q4 2017 2018 ▪ Asia is the global demand driver with highest demand growth ▪ Typical SPRC GRM is in the range of $5-7/bbl ▪ Expected CDU growth between year 2017 - 2022 is 300-500 KBD/ ▪ 2015 SPRC GRM vs. Singapore GRM was aided by very low crude year in Asia and ME premiums and high domestic product placement Source: IEA Source: Wood Mackenzie and IHS 10
Contents 1 Highlights 2 Market overview Drop your image here 3 Operational review 4 Financial performance 11
Overview of product cracks Highlights Market overview Operational review Financial performance DUBAI PRICE GASOLINE CRACK DIESEL CRACK JET FUEL CRACK US$/bbl US$/bbl US$/bbl US$/bbl 50 50 43 16 14 14 13 12 11 11 11 11 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 KEY HIGHLIGHT FUEL OIL CRACK DUBAI US$/bbl + High demand after refineries back from Hurricane GASOLINE + Refineries shutdowns in U.S. from Hurricane Harvey and in Japan and Mexico DIESEL + Lower supplies due to Hurricane Harvey + GS Caltex had shut a heavy oil upgrading after a fire JET 3Q16 2Q17 3Q17 + Robust demand as peak travel season & winter demand -2 -1 -4 FUEL OIL + Peaking demand in summer season for power generation Source: Platts 12
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