The Bangchak Petroleum PLC Analyst Meeting FY2014 February 26, 2015 - PowerPoint PPT Presentation

The Bangchak Petroleum PLC Analyst Meeting FY2014 February 26, 2015

AGENDA การใช ้ 1 1 สี FY2014 Highlights 2 FY2014 Financial Performance 3 FY2015 Target

AGENDA การใช ้ 1 1 สี FY2014 Highlights 2 FY2014 Financial Performance 3 FY2015 Target

FY2014 Highlights R&M Renewable Businesses E&P Business Fully Operated Solar Power Business Refinery Business E&P Business • 46 Days of TAM resulting in AVG 86.5 KBD • Full 118 MW PPA : 2 months • Acquired Nido Petroleum Limited • Total inventory loss of 5,454 THB Million ahead of schedule (own 81.41% of total shares) • AVG Market GRM 6.96 $/BBL • Further acquired 33% interest in Biofuel Business Galoc Field Marketing Business • Full capacity utilization • Consistently rank no.2 market share throughout the year • Total sales volume of 5,006 Million litre (417 ML/MO); 60% Retail compared to 59% last year • MKM 0.71 THB/Litre 4

R&M : Refinery Operation Review Crude Run (KBD) Product Yield (%) 3% 102.48 LPG 3% 99.34 97.82 96.99 3% 86.48 TAM 20% Gasoline 20% 20% 48.45 10% Jet 11% 11% FY2013 FY2014 1Q/14 2Q/14 3Q/14 4Q/14 Diesel *TAM = Annual Turnaround Maintenance 49% 49% 49% Crude Sourcing (%) Fuel Oil/VGO 17% 18% 17% FY2013 4Q/14 FY2014 53% 56% 55% 50% 47% 46% 4Q/14 Review A temporary shutdown of Hydrocracking Unit • 45% 53% 44% 50% 54% 47% (HCU) for equipment inspection and reparation 1Q/14 2Q/14 3Q/14 4Q/14 FY2013 FY2014 FY2014 Review Domestic Import Annual Turnaround Maintenance (46 Days) • Changing CDU (from 80 KBD to 100 KBD) • 5

R&M : Refinery Performance Review GRM Performance ($/BBL) -5.28 6.88 7.66 7.61 2.15 2.66 FY2014 Review 0.48 1.06 0.16 0.61 0.48 Lower total GRM from an impact of • 2.15 0.71 0.31 0.58 Inventory Loss 8.45 6.94 6.96 6.41 5.88 4.89 Total Inventory loss of -5.30 $/BBL • LCM of -0.96 $/BBL • (4.89) (5.30) 4Q/14 Review (14.21) Market GRM improve as crude oil • price drop faster than crack spreads Total Inventory loss of -14.21 $/BBL • LCM of -3.20 $/BBL • 1Q/14 2Q/14 3Q/14 4Q/14 FY2013 FY2014 Market GRM Hedging Inventory G/L Crack Spreads Movement : $/BBL Dubai Price Movement : $/BBL 30 120 20 100 109.21 10 104.76 80 94.61 0 60 -10 52.89 -20 40 1Q/14 3Q/14 4Q/14 1Q/14 3Q/14 4Q/14 2Q/14 2Q/14 Figures represented in the graph are close price GO/DB FO/DB UNL95/DB 6

BCP Trading Channels Refined Petroleum Products Total Sales Volume Unit: Million Litre Marketing Business 1Q/14 2Q/14 3Q/14 4Q/14 FY2013 FY2014 Retail Customer +3% 713 780 746 777 2,935 3,016 45% YoY Industrial Customer -4% 527 431 475 558 2,070 1,991 30% YoY Wholesales 11% 192 18 149 142 698 502 -28% YoY OIL Export -13% 214 130 283 275 1,039 902 14% YoY -5% 1,646 1,358 1,654 1,752 6,742 6,410 Total % Data are as of FY2014 YoY 7

R&M : Marketing Business Marketing Sales Volume (Million Litre) +0.02% YoY 5,005 5,006 +3% YoY +9% QoQ 1,991 -4% YoY 2,070 1,335 1,240 1,221 1,210 +3% YoY 558 431 527 475 +17% QoQ 3,016 +3% YoY 2,935 +3% YoY 780 777 746 713 +4% QoQ FY2013 FY2014 1Q/14 2Q/14 3Q/14 4Q/14 Retail Market Industrial Market 4Q/14 Review FY2014 Review Retail market grew +4% QoQ Total sales volume was in relative to previous year as • • (seasonal demand; long holidays) sales volume through industrial market declined due Industrial market grew +17% QoQ to Refinery turnaround • (from higher crude run of BCP’s refinery) Total retail sales volume increased by +3% YoY • Market share improved (from 3 rd to 2 nd Rank) • 8

R&M : Marketing Business Performance Retail Market Share Thruput per station (K.litre/Station/Month) Susco 7.8% Others 1.5% 600 Caltex 5.2% Major oil excluding BCP PTTRM 6.2% 455 36.9% 12.8% 400 424 nd Rank 2 14.5% 15.1% BCP Standard Type 200 130 Jan- Dec 2014 BCP Co-Op Type 0 Note: All products excluding LPG and NG Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Jun Jul Aug Sep Oct Nov Dec May Jan-Dec 2013 = 14.8% Rank: 3 rd FY2013 FY2014 Note: Major oil excluding BCP is defined as PTT, Esso, Shell, Caltex 9

Renewable Businesses : Solar Power Plant Performance Electricity Sales (Million kWh) +83% YoY 232 218 Fully Operation of all phases 127 125 +6% QoQ 67 64 63 62 58 56 40 39 1Q2014 2Q2014 3Q2014 4Q2014 FY2013 FY2014 Target Actual 4Q/14 Review FY2014 Review Higher electricity sales due to fully operation Although the solar irradiation on average was less • • than 3Q/14 but the cold weather helped solar power plant phase 3 and higher solar increasing the electricity generation irradiation hours 10

Renewable Businesses : Biodiesel Plant Performance Daily Production and Sales Volume (K. Litre per day) +11% QoQ +8% YoY 579 522 492 456 438 432 366 361 364 361 352 343 1Q/14 2Q/14 3Q/14 4Q/14 FY2013 FY2014 Daily Production Sales Volume FY2014 Review 4Q/14 Review Sales volume increased due to an Sales volume increased due to change in the • • increase in Bangchak’s diesel demand government’s policy regarding the portion of B100 mixing with diesel (an increase from 5% to 7%) 11

New Business : E&P Business BCP E&P Timeline 2015 December Purchase of additional 33% shares in September - October Galoc Production “ Bangchak is successfully acquired On September 19, BCP Company WLL 81.41% shares of Nido Petroleum Limited, acquired 50.10% total investment ≈2,900 THB Million ” On October 3 July BCP successfully Established BCPE  On December 12, 2014 Nido acquired 33% of working acquired 81.41% of Nido Petroleum Limited interest in the Galoc Oil field for a purchase price of $US 108 million.  As of February 17, 2015 Nido holds 55.88% of working interest in the Galoc Oil field  FY2014 Reserves = 13.4 mmbbls 2014 2P Reserves Galoc* = 9.9 mmbbls • 2P Reserves West Linapacan = 3.5 mmbbls • *Note: 2P of Galoc = 5.0 mmbbls, Mid Galoc = 4.9 mmbbls 12

AGENDA การใช ้ 1 1 สี FY2014 Highlights 2 FY2014 Financial Performance 3 FY2015 Target

Key Financial Highlight (Consolidated) Revenue (THB Million) -2% YoY 186,490 183,016 -5% YoY -2% QoQ 48,059 46,835 45,749 4Q/13 3Q/14 4Q/14 FY2013 FY2014 (Restated) (Restated) FY2014 Review 4Q/14 Review Revenue from oil business decreased; Oil sales • Revenue from oil business decreased; • volume decreased due to annual turnaround and Average selling price of oil products per unit average selling price of oil products per unit decreased due to a drop in crude oil price decreased from a drop in crude oil price Revenue from renewable businesses • Revenue from renewable businesses increased • increased (both Biodiesel and Solar Power) • Fully operation of Solar Power phase 3 • Biodiesel - government ’ s policy regarding the portion of B100 mixing with diesel (an increase from 5% to 7%) 14

Key Financial Highlight (Consolidated) EBITDA (THB Million) 9,463 -45% YoY 5,162 -168% YoY -188% QoQ 1,840 1,429 (1,256) 4Q/13 3Q/14 4Q/14 FY2013 FY2014 (Restated) (Restated) 4Q/14 Review FY2014 Review There was an Inventory Loss (including LCM) of There was an Inventory Loss (including LCM) of • • THB 4,400 Million (An LCM of THB 992 Million) THB 5,454 Million (An LCM of THB 992 Million) Higher GRM due to high crack spreads from the Insurance Claim of THB 764 Million • • rapidly drop of crude price Higher GRM due to high crack spreads from the • Insurance Claim of THB 243 Million rapidly drop of crude price • Higher EBITDA in renewable businesses; Solar Improved in Marketing Margin from higher retail • • Power generated higher electricity sales due to margin (lower cost of ethanol and high margin seasonal effect, higher margin per unit from a product sales volume growth) slight rebound in CPO and B100 in the quarter Fully operation of Solar power plant • 15

Performance Results (Consolidated) Business Units Performance FY2013 4Q2013 1/ 3Q2014 4Q2014 YoY QoQ FY2014  Unit: THB Million ( Restated ) (Restated) Total EBITDA 2/ 1,840 1,429 (1,256) 9,463 5,162 1,189 113 (2,414) 6,336 137 EBITDA Refinery 116 612 318 1,366 2,208 EBITDA Marketing EBITDA Solar Power 412 709 740 1,388 2,572 123 54 99 379 303 EBITDA Biofuel EBITDA BCPE (E&P) - (59) 1 - (58) Net Profit 689 381 (2,489) 4,652 712 (Attributable to owners of the company) EPS 0.50 0.28 (1.81) 3.38 0.52 1/ The Company and its subsidiaries’ operating results of 1Q2013, 2Q2013, 3Q2013, and 4Q2013 were restated according to the new and revised TFRS that are effective for annual periods beginning on or after 1 January 2014 2 / The different between total EBITDA and the sum of each business EBITDA was due to the elimination items 16