The Bangchak Petroleum PLC Analyst Meeting Q3/2015 November 12, - - PowerPoint PPT Presentation

The Bangchak Petroleum PLC

Analyst Meeting Q3/2015

November 12, 2015

AGENDA

2

Quarterly Summary

1

Oil Market Outlook

2

Financial Performance Update

3

Investment Update

4

AGENDA

3

Quarterly Summary

1

Oil Market Outlook

2

Financial Performance Update

3

Investment Update

4

4

Quarterly Highlight – Running smooth at new historical high crude run

GRM Shut Down Max Run Crude A Crude B Crude C Crude D Variable Cost/Unit

Crude E

How do we determine our crude run rate?

Running smooth

Above 100 KBD for 12 months

97 102 109 112 115 118 117 117

Q3/14 Q4/14 Q1/15 Q2/15 Jul Aug Sep Q3/15

Historical High Previous High Unit: KBD

Crude run

 Above 120 KBD for more than 20 days during the quarter

5

(Unit: THB Million)

Performance Review

Smooth & satisfied return from refining contributed to superior performance

 EBITDA from refinery was very satisfied compared to FY2015 target from the result of strong market GRM since the beginning of the year

Quarterly Summary - Performance was right on track and improved from last year

2,654 4,967 4,209 1,929 1,948 2,417 1,832 2,140 2,776 204 242 515 (12) 498 721

9M/14 Accounting EBITDA 9M/15 Accounting EBITDA Target FY15 E&P Biofuel Solar Power Marketing Refinery 6,418 9,681

100%

+51% YoY

10,472

92%

• Zero Unplanned Shutdown
• Strong Market GRM

Quarterly Summary – Refinery ran smoothly at high rate and a slightly contracted overall

sales volume from seasonal factors

6

Unit: KBD

Total Sales Volume

83 94 97 87 30 29 27 34 Q3/14 Q1/15 Q2/15 Q3/15 Other Channels Marketing Sales Volume 113 123 124 121

Seasonality affected volume sold

 Marketing Business is always our priorities  YoY – Demand improved from retail price drop

Running Smooth without any interruption

 The result of new and improved refining technologies from last year turnaround maintenance  An ability to boost up crude run to capture window of opportunities (high GRM)

Unit: KBD

Crude run

97 109 112 117 Q3/14 Q1/15 Q2/15 Q3/15

Record High

Plan level

105-110 KBD

7

Refinery Performance – Running smooth with stable feedstock

LPG Gasoline Jet Diesel

Fuel Oil

18% 16% 13% 14%

1%

49% 50% 54% 53% 10% 12% 11% 10% 20% 20% 20% 19% 3% 3% 2% 2%

Q3/14 Q1/15 Q2/15 Q3/15

Product Yield Crude Sourcing

54 52 47 48 42 56 65 69 Q3/14 Q1/15 Q2/15 Q3/15

109 112 97 117

Domestic Import

Stable Feed

 The marginal crude run were supplied by imported crude

No Unplanned Shutdown

 New a value added product for more diversities

• Unconverted Oil (UCO) for lube feedstock

Unit: KBD

UCO

8

Unit: $/BBL

GRM Performance 6.94 10.19 10.41 7.90

• 4.28
• 5.93

1.48

• 3.84

Q3/14 Q1/15 Q2/15 Q3/15 Hedging + Inventory Gain/Loss Market GRM 2.66 4.07 11.90 4.26

1 2 3 10 20 30

Crack Spreads ($/BBL)

GO/DB UNL95/DB

• 10
• 5

FO/DB DTD/DB ($/BBL)

Refinery Performance – Soften Market GRM from diesel spread Market GRM started to normalize

 QoQ - Soften Market GRM from weakening spreads, a hedging loss of THB 44 Million and an inventory loss

• f THB 1,415 Million.

 YoY - Improved Market GRM from strong UNL95 spreads.

Accounting GRM

9

Total Sales Volume as of 9M2015 : 5,326 ML

746 803 8% 475 469

• 1%

149 158 6% 283 342 21% 1,654 1,773 7%

Q3/14 Q3/15 YoY

BCP Trading Channels – Retail customer is our priority

Marketing Business

Retail : Service Station

>1,000 Service Station Nationwide Under brand “Bangchak”

46%

Industrial Customer

Factories, Jobbers, and Aviation Customer

30%

FUEL OIL

Export

Fuel Oil exported

15%

Other Oil Companies

9%

Unit: ML

10

Marketing Performance – Total sales volume continued to expand from last year

746 782 849 803 475 562 555 469 Q3/14 Q1/15 Q2/15 Q3/15 +4% YoY +8% YoY

• 1% YoY

1,272 1,404

Unit: Million Litre

Marketing Sales Volume

1,344 1,221 Industrial Market Retail Market 0.71 0.75 0.69 0.70 0.98 0.95 0.87 0.97 0.29 0.48 0.43 0.24 Q3/14 Q1/15 Q2/15 Q3/15

Unit: THB/Litre

Net MKM Margin

Total MKM

Industrial Margin Retail Margin

• 1% YoY
• 17% YoY

Seasonal factor affected volume sold while demand increased consumption

 Demand improved from retail price drop

11

Market Share (Retail Channels)

37.0%

15.0%

13.8% 13.0% 6.9% 6.0% 5.3% 1.4% 1.4%0.2%

2

nd Rank

Jan- Sep 2015 Thruput per station (K.litre/Station/Month)

100 200 300 400 500 600

Major oil excluding BCP BCP Standard Type BCP Co-Op Type

Marketing Performance – Maintain 2nd rank market share

Retail Sales Volume (Million Litre/ Month)

FY2012 FY2014 FY2013 FY2015 180 200 220 240 260 280 300 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

12

Phase 1

Electricity sales by phase (Million kWh)

Phase 2

4 5 6 7

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15

Target

Actual

4 5 6 7

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15

Phase 3

5 10 15

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15

Q3/14 Q1/15 Q2/15 Q3/15

56 72 62 56 63 65 68 64

Electricity Sales (Million kWh) +1% YoY

Actual Target

Solar Power Plant – Contributing stable income Steady steam of cash flow

 Seasonality factor (Rainy season) caused electricity generation to come down  Tropical Rainstorm Vamco

13

Biofuel – Demand return to normal : B100 mixing with diesel of 7%

Daily Production and Sales Volume (K. Litre per day) Q3/14 Q1/15 Q2/15 Q3/15

364 355 371 366 522 405 582 568

Demand increased as government increased mixing mandate

 YoY - Government’s policy of increasing the portion of B100 mixing with diesel from 3.5% to 7% +9% YoY

Daily Production Sales Volume

14

E&P – Contingent resource estimated for the mid-Galoc was released by Gaffney Cline and

Associates

2 Cargoes 2 Cargoes 1 Cargo Cargo 43 60.16 $/BBL Cargo 45 60.62 $/BBL Cargo 47 49.84 $/BBL Cargo 44 54.44 $/BBL Cargo 46 62.98 $/BBL 277,165 396,793 200,998

Q1/15 Q2/15 Q3/15

Volumes lifted and Sold (bbls)

All prices are on FOB realized basis

• Production uptime for Galoc Field was 100%

Performance Review

6.51 6.40 6.11 2.50 3.58 3.41

Q1/15 Q2/15 Q3/15

Gross Production Net to NIDO

Production (KBD) The independent assessment completed by Gaffney Cline & Associates estimates the mid-Galoc area of the field Contingent Resources on a gross basis as at 30 June 2015 as

• 1C = 6.2 mmstb (3.4 mmstb)
• 2C = 9.5 mmstb (5.3 mmstb)

Contingent Resource Estimate for mid-Galoc

AGENDA

15

Quarterly Summary

1

Oil Market Outlook

2

Financial Performance Update

3

Investment Update

4

16

Oil glut to persist but slower excess supplied could seen in 2H/16

57.04 58.28 57.77 6.36 6.56 6.82 30.28

92.75 94.52 95.72 2014 2015 2016

Non-OPEC Supply OPEC(NGLs) OPEC Production Total Demand +1.24

• 0.51

+1.77 +1.20

29.70 MBD 31.13 MBD Global Oil Balance 2014 - 2016

Call on OPEC Call on OPEC

 Oil glut to persist as global demand growth slows  Non-OPEC supply growth disappearing fast on low prices  OPEC still pumps oil at around 31.5 MBD while Iran is keen to recover the market share by next year  In Q4/2016, OPEC would need to pump almost 32 MBD - the first time the world would require more

• il OPEC currently produces

17

Crude Oil Prices Outlook - Market rebalancing and price recovery will be limited

30 40 50 60 70 80 90 100 110 120 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

Crude Oil Prices Movement

WTI Brent Dubai Dubai Outlook

Iran resume export

Q1/14 Q2 Q3 Q4 Q1/15 Q2 Q3 Q4 Q1/16 Q2 Q3 Q4

Iran nuclear deal reach China’s stock rout

Oil rig count dropped / Upstream investment cut OPEC decided against

• utput cut

Russia Ukraine crisis ISIS sudden attack in Iraq Inventories declined U.S. election

Refinery maintenance

Outlook

$/BBL

Dubai Avg Q3/15 = 50.0 Q4/15(F) = 49.0 2015(F) = 53.0 $/BBL Dubai Avg 2016(F) = 55.0 $/BBL

• Higher oil demand during winter

(Warmer winter?)

• Refineries return from maintenance
• Oil inventories build up moved from crude to products
• No signal for policy change in OPEC meeting in Dec
• FOMC Meeting focus on interest rate hike
• Chinese economic slowdown

Q4/15 2016

• Slower non-OPEC supplies
• China buying for SPR filling
• On going unrest in MENA
• Stronger U.S. dollar outlook to pressure oil prices
• Iran to resume oil export
• Weak Chinese economy

18

Gasoline Goes On Growing / Limited Diesel Growth / Rebalancing Fuel Oil Market

Q4/15 Driving season in Australia Less demand seasonally 2016 U.S. demand growth continues in 2016 Strong demand growth in India following government road- building scheme China’s car usage outweighs car sales slowdown More supply from Russia due to refinery upgrades Less demand from Indonesia as increase domestic production Q4/15 Winter demand globally despite forecast warmer winter in U.S. and Japan Demand from India for agricultural activities Refinery return from maintenance Export from China 2016 Global GDP increase Demand from India, Africa and Vietnam Export from China following less domestic demand Persisting high stock globally Q4/15 Bunker demand seasonally Refinery return from maintenance Less demand from China and Japan 2016 Less supply from Russia due to refinery upgrades Demand from energy source substitution for thermal power plant More import crude oil processing quotas to Teapot refineries in China Gradually restart of nuclear reactors in Japan Arbitrage from west and persisting high stock 14.6 16.1 13.2 13.4 15.4 19.8 19.3 15.6 13.7 14.3 17.5 15.8 10 12 14 16 18 20

1Q'14 2Q 3Q 4Q 1Q'15 2Q 3Q 4Q 2013 2014 2015 2016

Gasoline 95 - DB ($/BBL) 17.8 16.0 14.4 16.0 16.3 13.7 10.8 14.2 17.9 16.0 13.8 14.3 10 12 14 16 18 20

1Q'14 2Q 3Q 4Q 1Q'15 2Q 3Q 4Q 2013 2014 2015 2016

Gas oil 0.05%S - DB ($/BBL)

• 8.5
• 10.6
• 8.4
• 5.6
• 1.9
• 3.5
• 8.1 -7.7
• 8.0 -8.3
• 5.3
• 6.4
• 12
• 10
• 8
• 6
• 4
• 2

1Q'14 2Q 3Q 4Q 1Q'15 2Q 3Q 4Q 2013 2014 2015 2016

Fuel oil 3.5%S - DB ($/BBL)

AGENDA

19

Quarterly Summary

1

Oil Market Outlook

2

Financial Performance Update

3

Investment Update

4

Major Milestones in FY2015

20

• EGM approved the restructuring plan for the group of

renewable power business

• NIDO acquired Galoc Production Company WLL (GPC)

increased interest in Galoc oil field from 22.88% to 55.88%

• NIDO changed in functional & reporting currency

from AUD to USD with effect from 1 April 2015

• PTT Divestment 27.22% shares in BCP on 30 April 2015
• Purchased PTT’s Cogeneration Power Plant (25 MW)

Total amount of THB 1,292 million

• BCP reduced the registered capital

from THB 1,532 Million to THB 1,377 Million

Q1/15 Q2/15 Q3/15

21

Key Financial Performance - Consolidated

46,835 41,357 35,203 137,267 116,005 Q3/14 Q2/15 Q3/15 9M/14 9M/15

Unit: THB

Earning per Share

1,429 5,164 2,184 6,418 9,681 Q3/14 Q2/15 Q3/15 9M/14 9M/15 0.27 2.03 0.31 2.32 3.10

• 25% YoY
• 15% QoQ

+53% YoY

• 58% QoQ

Unit: THB Million

EBITDA

Unit: THB Million

Sales Revenue

Unit: THB Million

Net Profit attributable to owners of the company

378 2,794 432 3,198 4,263 Q3/14 Q2/15 Q3/15 9M/14 9M/15

• Average crude run for Q3/15 was

116.70 KBD, historical high crude run

• Fallen oil price lead to revenue decrease
• Soften accounting GRM of 4.07 $/BBL

from weakening spreads

• Total Sales volume was 1,773 million

litre, +7% YoY, -1% QoQ Q3/15 Highlights

BCP Group Performance - Consolidated

22

Consolidation for Q3/15 (THB Million) BCP BGN BBF BSE BCPE BCPI BCPG NIDO UBE Total Net Profit 646 (8) 47 402 (1) (0.2) (121) (9) % of Share holding 100% 70% 100% 100% 100% 100% 81.41% 21.28% Total Net Profit 646 (8) 33 402 (1) (0.2) (98) (2) 972 Eliminations (540)

Net Profit contributable to owner of the company 432

BCP BGN BBF BSE BCPE BCPI BCPG NIDO UBE Total Net Profit 4,766 6 177 1,277 (2) (1) (0.2) (149) 42 % of Share holding 100% 70% 100% 100% 100% 100% 81.41% 21.28% Total Net Profit 4,766 6 124 1,277 (2) (1) (0.2) (121) 9 6,058 Eliminations (1,770)

Net Profit contributable to owner of the company 4,288

Consolidation for 9M/15 (THB Million)

Key Financial Performance - Consolidated

23

Profit and Loss Q3/2014 Q2/2015 Q3/2015 Revenue from sale of goods and rendering of services 46,835 41,357 35,203 Cost of sale of goodsand rendering of services (45,526) (36,390) (33,118) Gross Profit 1,308 4,967 2,085 Investment income and other income 107 139 201 Selling and administrative expenses (1,005) (1,314) (1,133) Gain (loss) from oil hedging contract 176 47 (5) Gain (loss) from FX forward contracts 5 (8) (167) Gain (loss) on foreign exchange 175 (26) (155) Reversal loss from impairment of assets 3 (0.3) (5) Share of profit (loss) of associate (10) (1) (2) EBIT 759 3,804 819 Finance costs (392) (401) (391) Income tax (expense) credit 38 (594) (6) Profit for the period 405 2,809 423 Owners of the Company 378 2,794 432 Non-controlling interests 27 15 (9) Earnings per share (Baht per Share) 0.27 2.03 0.31

Unit: THB Million

Baht depreciated Q2/15 Q3/15

Mainly from Loan to subsidiary and GRM (Unrealized loss) FX loss from USD loan THB -521 Million AP loss THB -119 Million Gain from loan to subsidiaries THB +237 Million AR and Others THB +253 Million Majority of the profit received was from BOI tax privilege business

Key Performance - Consolidated

24

Q3/2014 Q2/2015 Q3/2015 YoY QoQ Total Revenue 46,835 41,357 35,203

• 25%
• 15%

Total EBITDA 1,429 5,164 2,184 53%

• 58%

EBITDA Refinery 173 3,404 764 342%

• 78%

EBITDA Marketing 1/ 639 657 551

• 14%
• 16%

EBITDA Solar Power 2/ 709 735 692

• 2%
• 6%

EBITDA Biofuel 3/ 54 99 62 16%

• 37%

EBITDA Exploration and Production 4/ (12) 314 156

• 50%

EBITDA Others 5/ (134) (45) (41)

• 69%
• 9%

Profit attributable to

• wners of the Company

378 2,794 432 14%

• 85%

Basic earnings per share (Baht) 0.27 2.03 0.31 14%

• 85%

EBITDA Structure of the Company and its subsidiaries

1/ EBITDA from Marketing Business and Bangchak Greenet Co.,Ltd 2/ EBITDA from Solar Power Plant Business, Bangchak Solar Energy Co.,Ltd. and its subsidiaries 3/ EBITDA from Bangchak Biofuel Co., Ltd. and share of profit/ (loss) from Ubon Bio Ethanol Co, Ltd 4/ EBITDA from Nido Petroleum Limited 5/ EBITDA from BCP Energy International Pte, Ltd. and others

Cash Flow - Consolidated

25

Sources of Cash

Unit: THB Million

15,400 13,147

From Operation From Investing Issuance

• f Bond

Debt & Other Financing

9M2014 9M2015

Strong cash flow from operation

 Cash flow from operation increased significantly from last year as a result of strong market GRM

Cash flow from operation was sufficed for investment and dividend payment

 Maintain a discipline of profit distribution to shareholder  Surplus cash were invested in the safest instrument

Cash From Operation Cash From Investing Issuance of Bond Debt & Other Financing

11,337 155 2,996 913 6,042 2,098 1,979

15,400 10,119

Sources of Cash Used of Cash

PP&E and Others

Dividend Repayment of debt 9M2015 Sources and Uses of Cash

Unit: THB Million

Ending Cash 4,937 Cash in deposit 8,394 Total Cash Available 13,331

Mainly from: GPC acquisition THB 2,407 million PTT’s Co-gen acquisition THB 1,329 million PP&E of refinery and biodiesel plant THB 996 million Refinery Equipment THB 445 million

2,217 11,337 843 155 9,987 2,996 100 913

Key Financial Position - Consolidated

26

Assets:

• Cash & Equivalents decreased by THB 3,017 million
• Inventory decreased by THB 412 million as crude oil

and finished oil product price decreased while the volume increased 114 million litre

• PP&E increased by THB 1,519 million mainly from an

increase in exploration and production of petroleum assets from Galoc Production Company WLL (GPC) and an increase in refinery machinery and equipment

• Intangible assets increased by Baht 1,145 million from

a recognition of Exploration and Evaluation Expenditure from GPC Liabilities & Equity:

• Current Liabilities decreased mainly by
• Other liabilities decreased THB 753 million mainly

from the termination of electricity and steam purchasing agreement as BCP recently acquired PTT’s Co-gen power plant

• Long-term debt increased by THB 2,998 million
• Bond issuance of THB 3,000 million in March 2015
• Debenture expense amortization of THB 2 million

38,136 39,655 33,966 36,355 6,535 7,619 14,059 13,647 2,804 2,630 10,282 15,474 30,198 33,761 7,954 4,937 9,997 8,587

Cash and Equivalents Current Assets Inventory PP&E Non Current Assets

76,966 81,333 76,966 81,333 Assets Liabilities & Equity

Unit: THB Million

31 Dec 14 30 Sep 15 31 Dec 14 30 Sep 15

Current Liabilities Long Term Debt Total Equity Non Current Liabilities

(Including current portion of L/T debt)

Key Financial Ratio - Consolidated

27 0.64 0.67 0.55 0.50

0.54

Q3/14 Q4/14 Q1/15 Q2/15 Q3/15

Net IBD/E Ratio (Times) 10,526 31% 7,252 22% 15,983 47%

Baht Loan Baht Bond USD Loan

33,761

THB Million (as of September 30, 2015)

Long-Term Debt Portion

2.48 2.86 2.88 3.32

3.55

Q3/14 Q4/14 Q1/15 Q2/15 Q3/15

Current Ratio (Times)

1.25 1.61 1.86 2.08

2.13

Q3/14 Q4/14 Q1/15 Q2/15 Q3/15

Quick Ratio (Times)

AGENDA

28

Quarterly Summary

1

Oil Market Outlook

2

Financial Performance Update

3

Investment Update

4

Refinery Upgrade Programs : On progress

29

3E: Efficiency Energy Environment

Progress  Replacing new CDU (100 KBD)  EIA Approved  BOI Approved (Import duty)  EPC contractor bidding process (Co-Gen Power Plant) World Class Refinery

• New CDU
• New Co-Gen
• Debottlenecking
• New CCR Unit



YES-R: Yield Efficiency Safety Reliability

• Energy Saving
• Power Generation from Low Temp Heat Recovery
• Heater Efficiency & Safety Improvement
• Upgrading mechanical seal to double seal
• Upgrading monitoring system
• Power Management System

Efficiency & Reliability Refinery IT Enhancement

• Computerized Operator Training System
• Integrated Refinery Operation Information System
• Computerized process safety, Engineering and

Maintenance System

• Advance Process Control Phase II
• Online Utility Optimization & Monitoring

Progress  Co-gen Power plant Acquisition  Advance Process Control Phase II : Functional Designed System  Power Management System : Under Contracting Process  Other Projects: Under Procurement Process

Oil Business: Marketing Plan

30

9M Actual

22

Service Stations

40

New Service Stations 2015 Target

+ 5 Flagships + 35 Standard + 22 Standard

Capitalized on opportunities : Biodiesel Business

31

Progress 64% as of Sep

“ An investment for greater certainty

• f Biodiesel supply

and supporting demand growth ”

Biodiesel Expansion: Bangchak Biofuel (BBF)

 Expansion Capacity: Phase 2: 450,000 litre/day  COD: 3Q2016  Investment Cost: ≈1,800 THB Million  Mainly supplied to BCP BBF Sales Volume BBF sales volume = 0.52 ML per Day BCP captive use = 0.43 ML per Day

Note: Jan-Sep 2015

Nido Update

32

Asset Locations : South East Asian focused West Linapacan A Nido is continuing to assess its options with respect to this project Galoc Field The independent assessment estimates the mid- Galoc area of the field as at 30 June 2015 contains Contingent Resources 1C = 6.2 mmstb (3.4 mmstb net to Nido) 2C = 9.5 mmstb (5.3 mmstb net to Nido) Additional Development

The Establishment of New Subsidiary Companies

33

Objective: To operate and invest in alternative energy businesses Initial Registered Capital: 20 million THB % of Shareholding: 100%

established in Thailand

BCPG

“ Re-structuring of existing business ”

Green Power Plant Solar Power Plant Geothermal Biomass & Biogas Wind

BCPG Timeline

2015 2016

October EGM Approved December Completion Restructuring Q1 – Q2 Filing Process Q3 onwards IPO Depended on market condition

APPENDIX

Profit and Loss (Consolidated) Profit and Loss (Company) Financial Performance:

• Refinery BU (Company)
• Marketing BU (Company)
• Biodiesel Business (BBF)
• Solar Business

Financial Ratio (Consolidated)

Profit and Loss (Consolidated)

35

Unit: THB Million Q3/14 Q2/15 Q3/15 Sales Revenue 46,835 41,357 35,203 Cost of Goods Sold (45,526) (36,390) (33,118) EBITDA 1,429 5,164 2,184 Depreciation and Amortization (847) (1,233) (1,205) Gain (loss) on foreign exchange 175 (26) (155) Net reversal of allowance for loss from impairment

• f assets

3 (0) (5) Other Expense*

• (101)
• Financial Cost

(392) (401) (391) Pre-tax Profit 367 3,403 429 Income Tax Expense 38 (594) (6) Net Profit** 378 2,794 432 EPS (Baht/Share) 0.27 2.03 0.31 YoY QoQ

• 25%
• 15%
• 27%
• 9%

53%

• 58%

42%

• 2%
• 189%

490%

• 263%

1565% N/A N/A 0%

• 3%

17%

• 87%
• 115%
• 99%

14%

• 85%

* Write-off item (from recent PTT’s Co-gen power plant acquisition) ** Net Profit attributable to owners of the company

Profit and Loss (Consolidated)

36

Unit: THB Million 9M/14 9M/15 Sales Revenue 137,267 116,005 Cost of Goods Sold (131,456) (106,590) EBITDA 6,418 9,681 Depreciation and Amortization (2,172) (3,490) Gain (loss) on foreign exchange 482 86 Net reversal of allowance for loss from impairment

• f assets

4 5 Other Expense* (101) Financial Cost (1,024) (1,203) Pre-tax Profit 3,708 4,978 Income Tax Expense (450) (690) Net Profit** 3,198 4,263 EPS (Baht/Share) 2.32 3.10

* Write-off item (from recent PTT’s Co-gen power plant acquisition) ** Net Profit attributable to owners of the company

Profit and Loss (Company)

37

Unit: THB Million Q3/14 Q2/15 Q3/15 Sales Revenue 45,718 39,397 33,774 Cost of Goods Sold (45,096) (35,273) (32,328) EBITDA 1,161 5,104 2,081 Depreciation and Amortization (730) (848) (879) Gain (loss) on foreign exchange 87 (28) (150) Net reversal of allowance for loss from impairment

• f assets

3 (1) (5) Other Expense*

• (101)
• Financial Cost

(353) (378) (367) Pre-tax Profit 168 3,749 681 Income Tax Expense 43 (568) (35) Net Profit 211 3,180 646 EPS (Baht/Share) 0.15 2.31 0.47 YoY QoQ

• 26%
• 14%
• 28%
• 8%

79%

• 59%

20% 4%

• 271%

436%

• 260%

349% N/A N/A 4%

• 3%

305%

• 82%
• 183%
• 94%

206%

• 80%

* Write-off item (from recent PTT’s Co-gen power plant acquisition)

Profit and Loss (Company)

38

Unit: THB Million 9M/14 9M/15 Sales Revenue 134,044 111,060 Cost of Goods Sold (130,079) (103,854) EBITDA 5,882 9,314 Depreciation and Amortization (1,910) (2,551) Gain (loss) on foreign exchange 395 (72) Net reversal of allowance for loss from impairment

• f assets

4 (6) Other Expense* (101) Financial Cost (939) (1,101) Pre-tax Profit 4,370 5,482 Income Tax Expense (433) (716) Net Profit 2,998 4,766 EPS (Baht/Share) 2.18 3.46

* Write-off item (from recent PTT’s Co-gen power plant acquisition)

Financial Ratio (Consolidated)

39

Q3/14 Q2/15 Q3/15 9M/14 9M/15 Profitability Ratios (%) EBITDA Margin 3.05% 12.49% 6.20% 4.68% 8.35% Profit Margin 0.87% 6.79% 1.20% 2.37% 3.70% Return on Assets (ROA) 11.11% 4.72% 4.96% Return on Equity (ROE) 1/ 7.45% 3.72% 3.80% 30-Sep-14 31-Dec-14 30-Sep-15 Liquidity Ratios (times) Current Ratio 2.48 2.86 3.55 Quick Ratio 1.25 1.61 2.13 Financial Policy Ratios (times) Interest bearing debt to Equity 0.85 0.92 0.93 Net Interest bearing debt to Equity 0.64 0.67 0.54 Q2/14 Q1/15 Q2/15 DSCR 3.55 2.42 2.74

1/ Profit and Total equity attributable to owners of the Company Note: ROE, ROA are annualized figures.

Financial Performance: Refinery BU (Company)

40

Q3/14 Q2/15 Q3/15 THB Million $/BBL THB Million $/BBL THB Million $/BBL Market GRM 1,997 6.94 3,544 10.41 3,004 7.90 GRM Hedging 176 0.61 47 0.14 (44)

• 0.12

Inventory Gain/Loss (1,408)

• 4.89

457 1.34 (1,415)

• 3.72

Total GRM 766 2.66 4,048 11.90 1,546 4.07 Other Income 36 0.13 91 0.27 41 0.11 Insurance Claim

• 76

0.20 FX Forward Contract 5 0.02 (24)

• 0.07

(167)

• 0.44

Operating Expenses (634)

• 2.20

(662)

• 1.94

(732)

• 1.92

EBITDA 173 0.60 3,454 10.15 764 2.01 Key factor: Crude Run (KBD) 96.99 111.93 116.70 Exchange Rate (THB/USD) 32.25 33.41 35.40

• Avg. Dubai Price (USD/BBL)

101.45 61.26 49.99

Financial Performance: Refinery BU (Company)

41

9M/14 9M/15 THB Million $/BBL THB Million $/BBL Market GRM 4,551 6.32 9,816 9.44 GRM Hedging 350 0.49 (133)

• 0.13

Inventory Gain/Loss (1,054)

• 1.46

(2,724)

• 2.62

Total GRM 3,846 5.34 6,959 6.69 Other Income 156 0.22 168 0.16 Insurance Claim 521 0.72 76 0.07 FX Forward Contract 86 0.12 (187)

• 0.18

Operating Expenses (1,904)

• 2.64

(1,998)

• 1.92

EBITDA 2,705 3.75 5,018 4.83 Key factor: Crude Run (KBD) 81.09 112.45 Exchange Rate (THB/USD) 32.55 33.87

• Avg. Dubai Price (USD/BBL)

103.97 54.38

Financial Performance: Marketing BU (Company)

42

Q3/14 Q2/15 Q3/15 THB Million Baht/L THB Million Baht/L THB Million Baht/L Net Retail Margin 730 0.98 737 0.87 781 0.97 Net Industrial Margin 137 0.29 238 0.43 112 0.24 Net Marketing Margin 867 0.71 975 0.69 893 0.70 Other Income 233 0.19 318 0.23 230 0.18 Operating Expenses (485)

• 0.40

(625)

• 0.44

(566)

• 0.44

EBITDA 614.87 0.50 668 0.48 557 0.44 Sales Volume KBD ML/Mo KBD ML/Mo KBD ML/Mo

• Retail

51 249 59 283 55 268

• Industrial

32 158 38 185 32 156 Total Sales Volume 84 407 97 468 87 424

Financial Performance: Marketing BU (Company)

43

9M/14 9M/15 THB Million Baht/L THB Million Baht/L Net Retail Margin 2,221 0.99 2,257 0.93 Net Industrial Margin 442.84 0.31 623 0.39 Net Marketing Margin 2,663 0.73 2,880 0.72 Other Income 699 0.19 817 0.20 Operating Expenses (1,511)

• 0.41

(1,737)

• 0.43

EBITDA 1,852 0.50 1,959 0.49 Sales Volume KBD ML/Mo KBD ML/Mo

• Retail

52 249 56 270

• Industrial

33 160 37 176 Total Sales Volume 85 408 93 447

Financial Performance: Solar Business

44

Unit: THB Million Q3/14 Q2/15 Q3/15 Revenue 743 775 731 Gross Profit 590 615 570 Other Income/(Other Expense) 6 8 5 Operating Expense (9) (9) (5) EBITDA 709 735 692 Electricity Sales (MM kWh) 63.50 68.16 63.88 YoY% QoQ%

• 2%
• 6%
• 3%
• 7%
• 15%
• 42%
• 44%
• 43%
• 2%
• 6%

1%

• 6%

Financial Performance: Solar Business

45

Unit: THB Million

9M/14 9M/15

Revenue 1,912 2,258 Gross Profit 1,511 1,777 Other Income/(Other Expense) 24 19 Operating Expense (21) (19) EBITDA 1,832 2,140 Electricity Sales (MM kWh) 164.23 197.21

Financial Performance: Biodiesel BU (BBF)

46

Unit: THB Million Q3/14 Q2/15 Q3/15 Revenue 1,243 1,430 1,326 Gross Profit 59 78 57 Other Income/(Other Expense) 16 1 Operating Expense (10) (10) (9) EBITDA 63 100 64 Average Production Rate (K. Litre/Day) 364 371 366 YoY% QoQ% 7%

• 7%
• 2%
• 27%

186%

• 95%
• 9%
• 5%

1%

• 36%

1%

• 1%

Note: Other expense increased in 2015 due to Gain/Loss of foreign currency forward contracts for the construction of the 2nd Biodiesel plant.

Financial Performance: Biodiesel BU (BBF)

47

Unit: THB Million

9M/14 9M/15

Revenue 3,782 3,991 Gross Profit 193 209 Other Income/(Other Expense) (0) 8 Operating Expense (27) (28) EBITDA 210 233 Average Production Rate (K. Litre/Day) 359 364 Note: Other expense increased in 2015 due to Gain/Loss of foreign currency forward contracts for the construction of the 2nd Biodiesel plant.

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• btained from sources that The Bangchak Petroleum Public Company Limited (“BCP”) considers to be reliable; however, BCP makes no representation

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