OPPORTUNITY DAY 26 August 2019
Achievement Financial Performance Agenda Performance by Business Projects Update IRPC Next Move
Awards and Achievement in 2Q19 IRPC’s Achievement “Signing Ceremony” IRPC joined hands with partners, using “Asian Excellence Awards 2019” “Asia Responsible Entrepreneurship plastic crude oil while minimizing the Awards (AREA) 2019” ● Asia’s Best CFO mounting waste problem Social Empowerment This option supports the circular economy, ● Best IR Company (Thailand) aligning with the government’s policy to solve by Corporate Governance Asia by Enterprise Asia and manage the waste problem sustainably Social Contribution Credit Rating “IRPC commits to proceed Fitch Ratings with sustainable plastic waste management Upgrades to ‘A( tha )’ mission” from ‘A -(tha )’ by Thailand Business Council Outlook Stable for Sustainable Development (TBCSD) 3
Achievement Financial Performance Agenda Performance by Business Projects Update IRPC Next Move
Key Drivers GRM improved after RDCC operated while PTF was pressured from U.S.-China Trade War Dubai Crude Oil Price (avg.) Foreign Exchange (avg.) Unit: $/bbl Unit : THB/USD QoQ appreciated 0.1% QoQ 6% Brent Dubai YoY appreciated 1% YoY 7% 85 81.2 35 78.9 80 33.15 32.98 31.71 32.09 31.78 31.76 76.9 79.4 74.3 74.3 34 72.6 75 71.8 77.2 71.3 71.1 33.44 69.2 74.4 73.6 73.1 72.5 70 33 66.1 65.2 65.9 33.20 33.14 71.0 64.0 64.7 64.2 32.80 32.94 32.87 65 68.3 69.4 32.64 32.02 66.9 66.2 65.6 32 59.5 64.6 32.05 32.15 60 57.4 62.7 62.7 61.8 31.98 31.96 31.89 31.64 31.4431.49 57.3 59.1 31 31.47 55 31.29 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 30 Brent (Avg) 66.8 74.4 75.3 67.8 63.2 68.8 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Dubai (Avg) 63.9 72.1 74.3 67.4 63.5 67.4 Gross Refining Margin (GRM) Product to Feed Margin (PTF) Unit: $/bbl Unit: $/bbl QoQ 9% YoY 29% QoQ 42% YoY 57% YoY 32% YoY 48% 7.6 7.6 5.7 5.4 5.2 5.3 5.2 2.7 2.3 1.9 2Q18 1Q19 2Q19 1H18 1H19 2Q18 1Q19 2Q19 1H18 1H19 5
Financial Highlight: 2Q19 performance Performance improved after plants resuming operation despite weaker products spread and one time staff cost Overview of Business 72.1 Dubai (Avg.) 68.0 67.4 65.5 1Q19 2Q19 63.5 Unit: $/bbl Crude run KBD 1% 210 200 206 211 203 1% Net Sales (net excise tax) QoQ 6% YoY 11% Net Sales 27% 29% YoY 12% (net excise tax) 125,855 111,976 54,274 57,702 65,367 54,274 57,702 MB MB Unit: MB 70% 72% Market GIM ($/bbl) 13.86 8.68 9.11 13.96 8.90 Net Stock G/(L)($/bbl) 3.61 1.26 0.82 1.97 1.04 Acct. GIM ($/bbl) 17.47 9.94 9.94 15.93 9.94 EBITDA EBITDA QoQ 2% YoY 63% 21% 24% 18% 25% YoY 68% Unit: MB 2,355 2,304 12,551 MB MB 7,162 4,659 2,355 2,304 54% 58% QoQ 231% YoY 90% Net income Net Income 62% YoY 87% 74% Unit: MB 6,801 (94%) 4,050 4,702 153 507 Net Income 2,166 MB MB 660 507 Operating NI 384 153 20 % 120 (650) (630) (345%) % 2Q18 1Q19 2Q19 1H18 1H19 Petroleum Petrochemical Utilities and Others 6
Financial Highlight: 2Q19 performance Unit: MB %Change Unit: $/bbl 2Q19 2Q18 1Q19 2Q19 QoQ YoY 2Q18 1Q19 2Q19 Net Sales 65,367 54,274 57,702 6% (12)% 106.65 95.04 96.74 1% Net Sales Market GIM 8,493 4,958 5,429 10% (36)% 13.86 8.67 9.11 (net excise tax) 27% Stock Gain/(Loss) 2,177 (122) 176 244% (92)% 3.55 (0.21) 0.30 57,702 LCM (6) 841 (148) (118)% n.a. (0.01) 1.47 (0.25) MB 72% Oil Hedging Gain/(Loss) 44 1 463 n.a. n.a. 0.07 0.00 0.78 Net Stock Gain/(Loss) 2,215 720 491 (32)% (78)% 3.60 1.26 0.83 Accounting GIM 10,708 5,678 5,920 4% (45)% 17.47 9.93 9.94 EBITDA OPEX + Selling Exp. (3,942) (3,744) (4,340) (16)% (10)% (6.43) (6.56) (7.28) 24% 18% Other Incomes 396 422 723 71% 83% 0.65 0.74 1.21 2,304 MB EBITDA 7,162 2,355 2,304 (2)% (68)% 11.68 4.11 3.87 Depreciation (2,047) (2,016) (2,135) (6)% (4)% (3.34) (3.53) (3.58) 58% Cost of Finance (437) (387) 23 106% 105% (0.71) (0.68) 0.04 Net income FX Gain/(Loss) (73) 127 213 67% 392% (0.12) 0.22 0.36 74% (94%) Impairment Gain/(Loss) 51 (8) (2) 76% (104)% 0.08 (0.01) (0.00) 507 MB Investment Gain/(Loss) 202 83 112 35% (45)% 0.33 0.15 0.19 120 Other Expenses - (5) 5 208% - - (0.01) 0.01 % Income Tax (795) 9 (5) (160)% 99% (1.30) 0.01 (0.01) Petroleum Petrochemical Utilities and Others Net Profit 4,050 153 507 231% (87)% 6.60 0.27 0.87 7
Financial Highlight: 1H19 performance 1H19 Unit: MB Unit: $/bbl % Change 1H18 1H19 1H18 1H19 1% Net Sales 125,855 111,976 (11)% 103.06 95.91 28% Market GIM 17,062 10,387 (39)% 13.96 8.90 111,976 Stock Gain/(Loss) 2,372 54 (98)% 1.94 0.05 MB 71% LCM (7) 693 n.a. (0.01) 0.59 Oil Hedging Gain/(Loss) 54 464 n.a. 0.04 0.40 Net Stock Gain/(Loss) 2,419 1,211 (50)% 1.98 1.04 Accounting GIM 19,481 11,598 (40)% 15.93 9.94 23% 21% OPEX + Selling Exp. (7,704) (8,084) (5)% (6.31) (6.93) 4,659 MB Other Incomes 774 1,145 48% 0.63 0.98 EBITDA 12,551 4,659 (63)% 10.25 3.99 56% Depreciation (4,086) (4,151) (2)% (3.35) (3.56) Cost of Finance (909) (364) 60% (0.74) (0.31) (150%) FX Gain/(Loss) 24 340 n.a. 0.02 0.29 72% Impairment Gain/(Loss) 51 (10) (119)% 0.04 (0.01) 660 MB Investment Gain/(Loss) 372 195 (47)% 0.30 0.17 178 % Income Tax (1,186) 4 100% (0.97) 0.00 Net Profit 6,801 660 (90)% 5.54 0.56 Petroleum Petrochemical Utilities and Others 8
Operating Net Income: 2Q19 vs 1Q19 Resuming RDCC operation plus projects led to better operating income Unit: MB Net Income 231% 153 507 Operating Income 103% (650) 20 491 4 507 153 83 720 (650) 46 -650 20 14 167 137 588 242 437 481 59 2 367 Uncontrolled Controlled Net Income Others Net Income Stock Gain OPEX + Fuel Loss Volume UHV+ 1Q19 (Port&Tank 2Q19 Stock Loss Margin Selling & Hedging & Internal Increase PPE+ (effective tax /Depre/ (effective Tax & Hedging Decrease +LCM Used Exp. PPC rate = 0%) FX loan/ rate = 1%) +LCM (Exl. UHV) Take Fuel Loss & FX. Income Everest + Crude equity) Internal Effect Operating E4E Tax Non Non Operating Premium Used Income Increase Operating Operating Income Controllable 2Q19 Items Items 1Q19 9
Operating Net Income: 1H19 vs 1H18 According to lower spread & RDCC planned shutdown led to lower operating income Unit: MB Net Income 90% 6,801 660 Operating Income 113% 4,702 (630) 2,058 42 6,801 8,141 4,702 1,211 79 660 -630 139 (630) 821 29 383 62 1,011 175 750 78 1,269 Uncontrolled Controlled Net Income Others Net Income Stock Gain OPEX + Fuel Loss Volume UHV+ 1H18 (Depre/ 1H19 Stock Gain Margin Selling & Hedging & Internal Decrease PPE+ (effective tax FX loan/ (effective Tax & Hedging Decrease +LCM Used Exp. PPC rate = 15%) Take rate = 1%) +LCM (Exl. UHV) equity) Fuel Loss & Income Crude FX. Effect Internal Everest + Operating Tax Non Non Operating Premium Used E4E Income Decrease Operating Operating Income Controllable 1H19 Items Items 1H18 10
Financial Position Net D/E dropped as a result of lower LT loan Statements of Financial Position Debt Profile Unit: MB Net Debt = 54,596 MB 182,446 183,388 Interest Rate Currency 2,338 1,915 Bond (THB) ST Loan Cash 1% 12% 20% Float 8 8% THB 73% Other 41,792 48,618 44,291 47,505 Current Other CA LT Loan (USD) Fixed 1 2% USD 27% Liabilities 11% LT Loan (THB) Other 9,852 10,310 57% Non-C/A Ex. Rate = 30.92 Baht/$ LT Liabilities incl. 50,665 45,111 current port. Other Non- 2,609 3,475 Current Maturity of Long-term Debt Unit : MB Liabilities 125,965 123,658 PP&E 14,047 13,329 THB Bond - 87,380 86,184 Shareholders’ 8,201 3,065 7,666 6,888 USD Loan Equity - 1,839 - 1,226 - 1,868 10,982 6,362 6,441 6,440 THB Loan - - 1,868 2019 2020 2021 2022 >2022 Dec. 2018 Jun. 2019 Remark: Long-term debt as at 30 June 2019 Cash Flow Financial Ratios Unit: MB Net D/E CA/CL 0.96 0.91 0.90 < 1.0x 0.63 0.61 0.66 Beginning Cash Flow Cash Flow Cash Flow Ending Cash Cash from 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 from from 30 Jun 2019 1 Jan 2019 Operating Investing Financing 11
Achievement Financial Performance Agenda Performance by Business Projects Update IRPC Next Move
Recommend
More recommend
