Opportunity Day 2Q/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
Our Vision: One Family… Fueling the Future of Thailand Our Mission: “We are a highly engaged Family, dedicated to providing sustained superior returns to our shareholders through Core Values: safe and reliable operations, producing quality products that exceed customer expectations, in harmony with our communities and the environment.” Stars Professional Reliable Caring 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
2Q/2017 Highlights Highlights Market overview Operational review Financial performance 0 97.3% 84.7% UEDC * AVAILABILITY TOTAL DAYS AWAY EX. TURNAROUND FROM WORK RATE (‘DAFWR’) 0.4621 $6.85/bbl $2.46/bbl BOTTOM LINE MARKET INTERIM DIVIDEND PAYMENT IMPROVEMENT PROGRAM GRM ON 8 SEP 2017 * Utilization of Equivalent Distillation Capacity 6
SPRC’s winning formula Highlights Market overview Operational review Financial performance “At SPRC our safety objective is simple: No incidents No injuries We do whatever it takes to make sure our people go home safely and in good health to their families each and every day” Bill Stone, CEO 7
Summary of 2Q/2017 Event Highlights Market overview Operational review Financial performance 2Q17 vs 2Q16 6M17 vs 6M16 US$ M US$ M Normalized EBITDA Normalized EBITDA Pit stop CDU Maintenance Activity CDU Maintenance Activity FX (gain)/loss FX (gain)/loss Stock (gain)/loss net NRV Stock (gain)/loss net NRV 154 153 209 70 165 127 54 11 42 21 11 4 (5) (44) (67) (25) 2Q16 2Q17 6M16 6M17 (13) (6) 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 US$/bbl FROM WORK RATE EX . TURNAROUND FROM “BLIP” BLIP: Bottom Line Improvement Program (Injuries per 200,000 man hours) 99.7% 99.8% 99.7% 99.0% 97.3% 10.40 US$/bbl 7.98 3.11 6.85 2.95 6.68 2.81 2.69 6.15 2014 2015 2016 1Q17 2Q17 2.46 2.29 EDC UTILIZATION RATE 5.63 3.32 4.63 4.99 4.10 97.8% 97.3% 95.2% 91.9% 84.7% 0.0 0 0 0 0 6M17 1Q17 2Q17 1Q17 2Q17 2014 2015 2016 2014 2015 2016 2014 2015 2016 1Q17 2Q17 SG GRM 2014 2015 2016 1Q17 2Q17 ▪ Lower crude optimization benefit from Stay competitive over Singapore ▪ Sustained top quartile performance in ▪ Last DAFWR over 4 years ago (24 Jun ▪ availability and utilization among over favorable benchmark crude margin thru Bottom Line Improvement 2013) 90 refineries in the Asia Pacific and margin captured ▪ Favorable benchmark crude drove to run India Ocean region Achieved 14.2 million man-hours ▪ more benchmark crude which generated Lower margins due to weaker product ▪ without days away from work injury Lower utilization from the Crude positive margin of 0.31 $/bbl YTD crack spreads ▪ Distillation Unit (CDU) maintenance ▪ Increased Gasoline production capability activity for 10 days in June for internal by 5% inspection and cleaning ▪ Reduced synergy benefit as economics did not support unequal transfers Source: Company Data 9
Overview of oil demand growth and GRM Highlights Market overview Operational review Financial performance OIL MARKET OUTLOOK SINGAPORE GRM US$/bbl Million barrels/day Million barrels/day INCREMENTAL OIL DEMAND 10 Strong gasoline 0.15 0.09 9 0.39 demand & low SPRC GRM 0.29 crude oil 0.14 0.14 8 0.22 - premium 0.14 0.04 7 NORTH AMERICA 6 EUROPE 0.23 5 0.13 0.10 4 Singapore 3 1.22 AFRICA 1.02 0.87 FCC GRM 2 0.00 Subprime 1 2015 2016e 2017e -0.06 crisis ASIA 0 -0.12 2010 2012 2014 2016 Q2 Q4 Q2 Q4 LATIN AMERICA 2017 2018 ▪ Asia is the global demand driver with highest demand growth ▪ Typical SPRC GRM is in the range of $5-7/bbl ▪ Expected CDU growth between year 2017 - 2022 is 300-500 KBD/ ▪ 2015 SPRC GRM vs. Singapore GRM was aided by very low crude year in Asia and ME premiums and high domestic product placement Source: IEA Source: Wood Mackenzie and IHS 10
Contents 1 Highlights 2 Market overview Drop your image here 3 Operational review 4 Financial performance 11
Overview of product cracks in 2Q/2017 Highlights Market overview Operational review Financial performance DUBAI PRICE DIESEL CRACK GASOLINE CRACK US$/bbl US$/bbl US$/bbl 53 50 43 15 14 14 12 11 11 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 JET FUEL CRACK FUEL OIL CRACK KEY HIGHLIGHT DUBAI US$/bbl US$/bbl - Supply increased from US Shale oil & Libya/Nigeria + OPEC and non-OPEC decided to extend the oil output reduction by 1.8 million barrels until the end of Mar’18. GASOLINE + Abu Dhabi National Oil Company (ADNOC) postponed restart of upgrading unit at its Ruwais refinery to 1Q/2018 11 11 11 2Q16 1Q17 2Q17 - US gasoline demand was weaker than expect. -2 -3 FUEL OIL + Healthy Singapore bunker demand. + Less supply from more refinery upgrading such as 2Q16 1Q17 2Q17 -9 China and Russia cut supply. +Lower fuel oil arbitrage coming to Asia Pacific Source: Platts 12
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