Op Oppo portunit rtunity y Da Day 2Q/2019 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 regardi ng 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
Our Vision: Our Mission: “ One Family… “We are a highly engaged Family, dedicated to Fueling the Future of Thailand” 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 Vision, Caring Responsible citizen / Compassion / Sincere Mission & Core Values Investor 3 Update
CONTENTS 01 Highlights 02 Market overview 03 Operational review 04 Financial performance 4
CONTENTS 01 Highlights 02 Market overview 03 Operational review 04 Financial performance 5
SPRC’s Winning formula Highlights “At SPRC we believe that nothing is more important than being safe and reliable. We work together as one family to protect our employees, the environment, the community, and to be our customers partner of choice. All of which creates maximum value for SPRC’s shareholders.” Tim Potter, CEO 6
2Q/2019 Highlights Highlights 0 99.8% 85.1% 9 7.1% 91.0%* TOTAL DAYS AWAY UTILIZATION OF EQUIVALENT AVAILABILITY FROM WORK RATE (‘DAFWR’) EX. TURNAROUND DISTILLATION CAPACITY (UEDC)** $1.81/bbl THB 0.1202 $2.57/bbl $2.39/bbl /share INTERIM DIVIDEND BOTTOM LINE OPEX PER BARREL MARKET GRM Dividend payout of 50% IMPROVEMENT PROGRAM Excluding T&I and Project OPEX * Normalized UEDC excluding economically concern for the best profitability. 7 ** Lower UEDC to optimize economic returns and due to end of run plant conditions .
SPRC’s Formula for success Highlights A strong foundation of personal safety … …exceptional reliability… …driving optimization & cost efficiencies… …and maximizing GRM RELIABILITY MARKET GRM SAFETY OPTIMIZATION TOTAL DAYS AWAY US$/bbl OPERATIONAL AVAILABILITY PERFORMANCE UPLIFT FROM WORK RATE FROM “BLIP ” EX. TURNAROUND BLIP: Bottom Line Improvement Program SG GRM (Injuries per 200,000 man-hours) 99.9% 99.8% 99.7% 99.1% 96.4% US$/bbl 7.34 6.68 5.67 2016 2017 2018 1Q19 2Q19 2.93 5.36 2.69 No one gets hurt 2.59 4.67 2.39 2.34 EDC UTILIZATION RATE 4.10 3.07 97.3% 94.2% 90.9% 2.57 88.8% 85.1% 2.51 2.24 0 0 0 0 0 * 2016 2017 2018 1Q19 2Q19 2016 2017 2018 1Q19 2Q19 2016 2017 2018 1Q19 2Q19 2016 2017 2018 1Q19 2Q19 Lower margins due to weaker crack ▪ Sustained high availability but ▪ Captured BLIP benefit from good ▪ ▪ Achieved over 6 years without spreads especially gasoline and lower EDC to optimize economic process and crude optimization. Days Away From Work injury. higher crude costs relative to return during narrowed crack The last DAFW was 24 Jun 2013. ▪ Maximized domestic placement for benchmarks. spread in 2Q19 and end of run Gasoline and Diesel. ▪ Achieved 20.2 million man-hours plant conditions. without Days Away From Work ▪ Target top quartile performance in injury. availability and utilization among over 90 refineries in the Asia Pacific and India Ocean region. *Adjusted 1Q19 BLIP number to reflect end of run plant conditions. 8 .
2019 Event Project Highlights 2019 Event Project ($25 6 M) Turnaround & Inspection (T&I) Reliability Projects Increase Capacity to 175 KBD Current Status of Event 2019 • Schedule has been optimized through a multi-party approach with consultants and primary maintenance and construction contractor. • Shut down is scheduled for a period of 45 days (+/- 5 days), starting from 1 November 2019. • Operational planning in progress to capture benefits from reliability and capacity upgrades. • Lower future structure OPEX per barrel. • Looking for margin improvement opportunities post Event project. 9
CONTENTS 01 Highlights 02 Market overview 03 Operational review 04 Financial performance 10
Overview of oil demand growth and GRM Market overview OIL MARKET OUTLOOK SINGAPORE GRM Million barrels/day Million barrels/day INCREMENTAL OIL DEMAND US$/bbl Strong gasoline 10 demand & low crude oil premium 0.48 0.36 9 1.00 0.18 0.18 0.13 0.80 0.07 0.60 0.40 0.20 0.00 -0.20 8 -0.40 SPRC FSU -0.60 -0.80 NORTH AMERICA -1.00 1.00 GRM 0.80 7 0.07 0.01 0.60 0.40 0.20 0.00 -0.20 -0.40 -0.03 6 -0.60 -0.80 EUROPE -1.00 5 0.08 0.06 4 -0.01 3 Singapore AFRICA 2 GRM 0.04 0.70 1.00 0.14 0.80 0.01 0.60 High product 0.40 -0.06 -0.04 0.20 1 0.00 -0.20 inventory globally -0.40 -0.60 -0.80 2019e 2020e 2018 -1.00 0 ASIA LATIN AMERICA 2010201220142016 Q1 Q3 Q1 Q3 Q1 Q3 (include Middle East) 2018 2019 2020 ▪ Typical SPRC GRM is in range of US$5-7/bbl. ▪ Global oil demand growth in 2019/2020 is 1.2/1.4 mb/d. Demand in the Middle East and parts of Asia was revised slightly upwards. ▪ Global refining capacity increase in 2019/2020 are 1.8/0.7 mb/d and Asia refinery capacity increase are 1.2/0.4 mb/d. Source: IEA, IHS Source: Wood Mackenzie and IHS 11
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