TM 1Q2020 Analyst Presentation May 21, 2020
Disclaimer The information contained in this presentation is provided by Esso (Thailand) Public Company Limited (the "Company") and is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the Company. None of the Company, or any of their respective members, directors, officers, employees or affiliates nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition, and future events and plans of the Company. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. Forward-looking statements are based on management’s knowledge and reasonable expectations on the date hereof, and the Company assumes no duty to update these statements as of any future date. This presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information set forth in this presentation or on its completeness. 2
Industry and Business Environment 1Q2020 GDP growth was -1.8% • Average Dubai prices in Mar was $33.7/Bbl • • 1Q20 Industry gross refining margin was $1.2/Bbl Mar 20 YTD Thailand fuel demand decreased 7.4% year on year • Source : NESDC: GDP, Reuters: Oil prices and Industry GRM, DOEB: Industry demand growth 3
Headline Results • Safely managed people and facilities during Covid-19 pandemic Refinery crude intake at 122 KBD, production • adjusted to cope with jet demand drop Gross Refining Margin of -$19.3/Bbl driven • by unfavorable inventory effects Esso retail network totaling of 641 sites • xxx First quarter net loss of Baht 6,307 million • 4
Margins and Crude Intake Industry Gross Refining Margin ($/Bbl) Crack Spread ($/Bbl) 6.5 UGP 15.9 ADO 14.8 13.5 12.8 12.9 3.5 11.6 11.7 3.2 7.5 6.7 1.6 1.2 3.7 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Gross Refining Margin ($/Bbl) Crude Intake (KBD) 4.5 146 2.8 1.3 135 122 100 -2.5 76 -19.3 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 5 Source : Industry GRM and Crack Spread from Reuters
Crude Source and Sales Channels Crude Intake by Source Sales Channel 33% 35% Middle East 55% Commercial 57% Far East & South East Retail Asia 37% Export 46% Others 39% 39% 30% 19% 6% 4% 1Q2019 1Q2020 1Q19 1Q20 • Continued crude diversification with 3 additional new crudes processed in 1Q20 • Remained focus on high margin sales through retail and commercial channels 6
Refinery Yields Production by Type Product Yields LPG 4% 5% 3% Light 4% Naphtha 28% 28% 21% Middle 19% Gasoline Heavy Diesel Feedstock 35% 37% 44% 45% Jet/Kerosene Asphalt 9% 8% 2% 1% 11% 10% Fuel Oil 9% 9% 17% 17% 17% 17% Feedstock and others 1Q19 1Q20 1Q19 1Q20 • Production yields mainly reflected Jet demand drop in the period 7
Petrochemical Spreads and Production Px Spread ($/Ton) Px Production (kTon/quarter) PX-UGP PX-MX 473 100 90 372 270 219 53 53 201 194 164 39 118 113 111 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 • Px margins improved following UGP prices larger drop • Production run to meet sales obligation 8
Marketing Business Update Number of New Service Stations Number of Service Stations offering Premium Products Number of Service Stations offering Supreme Plus Diesel Number of New Service Stations 73 425 426 382 337 259 41 254 205 27 141 15 4 2016 2017 2018 2019 1Q20 2017 2018 2019 1Q20 Number of Service Stations offering B10 Number of Outlets with Mobil Signage Total Service Stations B10 1,641 1,648 641 638 608 1,221 553 542 779 328 125 345 2016 2017 2018 2019 1Q20 2016 2017 2018 2019 1Q20 9
Financial Performance Sales Revenue (Billion Baht) Cash Flow from Operations (Billion Baht) 46.0 1.4 1.1 39.4 1Q19 1Q20 1Q19 1Q20 EBITDA (Billion Baht) Net Profit (Billion Baht) 1.7 1.0 (6.3) (7.3) 1Q19 1Q20 1Q19 1Q20 10
Financial Position • Decreased in assets mainly driven by lower Balance Sheet Indicators (Billion Baht) inventory balances and trade receivables, D/E = 1.2 D/E = 1.7 6.4 5.3 partly offset by an increase in non-current 6.5 4.6 15.1 26.9 assets from TFRS 16 adoption 19.1 26.8 • Debt was at Baht 26.8 billion 37.7 34.3 22.1 15.4 • Debt-to-equity ratio at 1.7 YE2019 1Q20 YE2019 1Q20 Non-current assets Inventory Shareholders’ equity Debt Receivables Other current assets Cash Flows (Billion Baht) • Cash flow used in investing activities reflected capital investment for Refinery and Marketing 1.4 Cash flow from (used in) operating activities 1.1 • Financing activities reflect net repayment of Cash flow from (used in) financing activities (0.3) (0.5) borrowings and payments on lease liabilities (0.2) (0.9) Cash flow from (used in) investing activities 1Q19 1Q20 11
Summary Safe operations in an unprecedented - challenging environment of Covid-19 Fuel demand significantly impacted, hence - dampened crude, products prices and margins Refinery production reduced to cope with - demand plunge Retail network continued expansion - Look ahead in 2Q20, see a sign of demand - recovery. Focus on conservative and effective spending 12
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