Opportunity Day 3Q/2018 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
SPRC Our Vision: Vision, Mission One Family… Fueling the Future of Thailand & Core Values Our Mission: “We are a highly engaged Family, dedicated to 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 : S tars Leader / Outstanding / Role model P rofessional Integrity / Professionalism / Performance driven R eliable Accountable / Ready / Trustworthy C aring Responsible citizen / Compassion / Sincere 3
Contents 1 Highlights 2 Market overview 3 Operational review 4 Financial performance 4
Contents 1 Highlights 2 Market overview 3 Operational review 4 Financial performance 5
3Q/2018 Updates Highlights Market overview Operational review Financial performance CSR-DIW Continuous Award 2018 for 3rd Consecutive Year. Interim dividend of US$78.2M was paid in Sep18. Minor maintenance on the Vacuum Distillation Unit (VDU) and Crude Distillation Unit (CDU) was executed during 1-15 August 2018 (15 days). All other units remained operational. The activity finished safely as planned with financial impact of US$11M (AT) and there was no supply disruption. All units are now running at full capacity. Temporary short term loan incurred during the maintenance has been fully paid in Oct 18. 6
3Q/2018 Highlights Highlights Market overview Operational review Financial performance 0 97.2% 88.0% TOTAL DAYS AWAY AVAILABILITY UEDC* FROM WORK RATE (‘DAFWR’) EX. TURNAROUND $2.15/bbl $5.05/bbl $2.63/bbl BOTTOM LINE OPEX PER BARREL MARKET GRM IMPROVEMENT PROGRAM 7 * Utilization of Equivalent Distillation Capacity
SPRC’s Winning formula Highlights Market overview Operational review Financial performance “At SPRC we believe that nothing is more important than being safe and reliable. We work together as one family to protect our employees, the environment, the community, and to be our customers partner of choice. All of which creates maximum value for SPRC’s shareholders.” Tim Potter, CEO 8
SPRC’s Formula for success Highlights Market overview Operational review Financial performance A strong foundation of personal safety … …exceptional reliability… …driving optimization & cost efficiencies … …and maximizing GRM RELIABILITY MARKET GRM SAFETY OPTIMIZATION TOTAL DAYS AWAY OPERATIONAL AVAILABILITY PERFORMANCE UPLIFT US$/bbl FROM WORK RATE FROM “BLIP ” EX. TURNAROUND 99.0% 99.9% 100.0% BLIP: Bottom Line Improvement Program 99.7% (Injuries per 200,000 man-hours) 97.2% 96.4% SG GRM US$/bbl 7.34 7.17 6.68 6.12 6.02 3.15 2.91 2.93 5.05 2016 2017 9M18 1Q18 2Q18 3Q18 5.36 2.69 2.63 2.59 4.69 5.06 4.27 No one gets hurt 4.75 EDC UTILIZATION RATE 4.10 97.3% 93.8% 96.6% 97.1% 88.8% 88.0% 0 0 0 0 0 0 2016 2017 9M18 1Q18 2Q18 3Q18 2016 2017 9M18 1Q18 2Q18 3Q18 2016 2017 9M18 1Q18 2Q18 3Q18 2016 2017 9M181Q182Q183Q18 ▪ ▪ BLIP impacts from VDU and CDU ▪ Stayed competitive over Singapore Lower availability and EDC ▪ Achieved over 5 years without margin thru Bottom Line utilization from VDU and CDU shutdown. DAFW. The last DAFW was 24 Improvement margin captured. shutdown. Jun 2013. ▪ Stable operation post shutdown ▪ ▪ Lower margins due to weaker crack Despite the shutdown, our enables to capture good BLIP ▪ Achieved 17.5 million man-hours performance in availability, SPRC’s spreads and VDU and CDU benefit. without days away from work utilization remains top quartile shutdown. injury. among over 90 refineries in the Asia Pacific and India Ocean region. Source: Company Data 9
Contents 1 Highlights 2 Market overview 3 Operational review 4 Financial performance 10
Overview of oil demand growth and GRM Highlights Market overview Operational review Financial performance OIL MARKET OUTLOOK SINGAPORE GRM Million barrels/day Million barrels/day INCREMENTAL OIL DEMAND US$/bbl 10 0.12 Strong gasoline 0.33 0.08 0.21 SPRC demand & low 0.18 0.06 9 crude oil premium GRM 0.31 8 FSU 0.09 NORTH AMERICA 7 -0.05 6 EUROPE 0.09 5 0.03 0.02 4 Singapore 3 AFRICA 1.02 GRM 0.97 0.97 2 0.05 0.02 Subprime 1 crisis -0.03 2017 2018e 2019e 0 ASIA LATIN AMERICA 2009 2011 2013 2015 Q1 Q3 Q1 Q3 Q1 Q3 (include Middle East) 2017 2018 2019 ▪ Global oil demand growth estimates for 2019 is 1.4 mb/d. Demand in ▪ Typical SPRC GRM is in range of US$5-7/bbl. China and India combined pace slows to 640 kb/d in 2019. ▪ Estimate Asia refinery capacity increase 1.0-1.2 mb/d in 2019 and in 2020. Source: IEA, IHS Source: Wood Mackenzie and HIS 11
Overview of product cracks Highlights Market overview Operational review Financial performance DUBAI PRICE GASOLINE CRACK DIESEL CRACK JET FUEL CRACK US$/bbl US$/bbl US$/bbl US$/bbl 74.3 72.1 50.5 16.1 15.3 14.6 14.5 14.4 13.9 13.1 12.1 11.5 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 KEY HIGHLIGHT FUEL OIL CRACK DUBAI US$/bbl + Tight supply from concern ahead of U.S. sanctions against Iran and OPEC may not raise output to address shrinking supplies from Iran. + Demand ahead of winter, declining of US inventory. GASOLINE - Oversupplied in global market, high inventory in Europe, increase supply from Vietnam, and Middle East. + Supported by the peak summer driving demand from US. JET -2.5 + Asian Jet and Kerosene market firmed as robust demand. -1.3 -4.4 DIESEL 3Q17 2Q18 3Q18 - The diesel market eased due to the monsoon season, particularly in South Asia and Southeast Asia among firmed supply. + Stronger demand from the Middle East for power generation as temperatures soar have resulted in falling diesel inventory levels across the region. FUEL OIL + Fuel oil market remained firm as Middle Eastern and East Asian power producers increased demand for electricity generation during summer. 12
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