DRIVES US TOWARD FURTHER SUCCESS · On schedule : Mechanical completion in Feb 19 Project Objective...
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GDP DRIVES US TOWARD FURTHER SUCCESS
Transcript of DRIVES US TOWARD FURTHER SUCCESS · On schedule : Mechanical completion in Feb 19 Project Objective...
GDP
DRIVES US TOWARD FURTHER SUCCESS
Performance by Business
Financial Performance
Strategic Direction
Y2018 & 4Q18 Highlight
2
45
50
55
60
65
70
75
80
85
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18
3
Key DriversMaintained high margin through projects completion amid volatile crude oil price
Dubai Crude Oil Price (avg.)
Gross Refining Margin (GRM)
Foreign Exchange (avg.)
Product to Feed Margin (PTF)
Unit: $/bbl Unit : THB/USD
5.5 4.3
5.9 5.2 5.2
4Q17 3Q18 4Q18 2017 2018
7.8 7.0 7.1
8.3 7.3
4Q17 3Q18 4Q18 2017 2018
Unit: $/bbl Unit: $/bbl
31
32
33
34
35
36
37
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18
53.1
49.8 50.5
59.3
69.4
74.3
67.4
35.29
34.47
33.5533.11
31.71
32.09
33.1532.98
53.2
63.9 72.1
34.11 32.48
YoY 7%
QoQ 37% YoY - Unchanged
YoY 9%
QoQ 1% YoY 12%
Financial Highlight: Y2018 & 4Q18 performance2018 : Maintained high operating income from higher U-Rate despite crude premium increased4Q18 : Better operating income as RDCC resumption after planned TA in 3Q18
-4%
83%
21%
58,443 68,831 64,233
197,594 258,919
QoQ 7%
YoY 10%
Overview of Business
Net Sales(net excise tax)
Dubai (Avg.)
Unit: $/bbl
Net Income
Unit: MB
Unit: MB
YoY 136%
QoQ 164%
EBITDA
Unit: MB
6,530 5,258 534
20,420 18,344
QoQ 90%
YoY 92%
Petroleum Petrochemical Utilities and Others
Net Sales(net excise tax)
EBITDA
Net income
2018
30%
58%
12%
71%
28%
1%
258,919MB
18,344MB
2,3501,632 2,285
8,621 8,859
4,513 2,560
(1,627)
11,354 7,735
4Q17 3Q18 4Q18 2017 2018
7,735MB
Market GIM ($/bbl) 14.33 12.37 14.09
59.3 74.3 67.4 53.2 69.4
Crude run KBD 207 203 208
Acct. GIM ($/bbl) 17.22 14.10 6.58
4
Net Stock G/(L)($/bbl) 2.89 1.73 (7.51)
YoY 32%
YoY 10%
YoY 31%
180 208
TA in 1Q17
14.48
13.10
(0.50)
13.60
15.49
1.01
22%
63%
15%
2017
37%
54%
9%
68%
30%
2%
197,594MB
20,420MB
11,354MBOperating NI
Net Income
5
Project Update : Catalyst CoolerOn schedule : Mechanical completion in Feb 19
Project Objective :
Crude selection more heavy crude
More electricity & steam
CAPEX : ~ 1,320 MB
IRR : ~ 35%
Benefit : GIM: 0.3$/bbl
Project Progressas of Feb. 2019
: 89% of Target
Construction Progress
Mechanical Completion : Catalyst Cooler
System on 8 Feb 2019.
Progress : during commissioning process
COD : ~ 1Q19
Catalyst Cooler
Demin
2018 Actual
Everest+E4E Project Highlight 2018: Everest+E4E contributed 87% of plan
Key Area
EverestEverestEverest
Unit : MB of EBIT
2018 (Plan)
2017 Actual
Operations Area
Commercial Area
Integrated Supply Chain
Procurement Area
Corporate Area - HR
Corporate Area – Non HR$
6
Total Everest
Total Everest + E4E
3,011 4,276 4,736
2,077 1,821 2,456
1,179 1,444 1,870
234 31 211
287 397 275
18 1 19
6,807 7,970 9,569
1,397 1,157
9,367 10,726
Everest Forever (E4E)
87% of Plan
10 12 14
2016 2017 2018
14 plants in 2018 vs 12 plants in 2017 : 2 plants
0.45% 0.39%
Total Recordable Injuries Rate (TRIR)* at 0.39% in 2018 : 0.06%
0.58%
2016 2017 2018
Achievement in 2018
● Moody’s Rating affirms at
‘Ba1’
Outlook: Stable Positive
Improving Operating Performance
● Standard & Poor’s Ratings affirms at
‘BB+’
Outlook: Stable Positive
Improving Operating Performance
● Fitch Ratings affirms at
‘A-(tha)’
Outlook Stable
Zero Unplanned Shutdown Plant
Safety Improvement
Credit Rating
Marketing
Energy Intensity Index (EII) at 89% in 2018 : 1.40%
2016 2018
90.40% 89.00%
2017
93.89%
Efficient Energy Usage ManagementInvestment in Plastic Product
E-Commerce Business
● IRPC Join Guangzhao Saiju Performance Polymer Ltd. in the People’s Republic of China (PRC)
● Registered iPolymer Co., Ltd
IRPC 55% GZSJ 45%
Total Recordable Injuries Case: TRIC x 200,000*TRIR =
Working Hour7
8
received outstanding plant management
Awards and Recognition in 2018
Dow Jones Sustainability Indices (DJSI) Member
For the fifth consecutive year,with the highest score
By SAM
IRPC’s Achievement
Social Contribution Innovation
The Prime Minister's Industry
Award 2018
By Ministry of Industry
Sustainability Report Award 2018
“Excellent Level”
By The Stock Exchange of Thailand
SET Awards 2018Outstanding Innovative Company
Awards
“Convert HDPE to Specialty Pipe”
By The Stock Exchange
of Thailand (SET) in collaboration with the Money and Banking Magazine
Thailand Quality Class Award 2018
Thailand Quality Class : TQC
By Thailand Productivity Institute, a network institution under the
Ministry of Industry
“Lumsaiyong Model” “Prosthetics Project”
Performance by Business
Financial Performance
Strategic Direction
Y2018 & 4Q18 Highlight
9
Petroleum Spread
10
- Soften demand in Asia
11.8 11.4 13.9 13.0 14.8 14.6 14.4 14.8 12.5 14.6
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
- Oversupply result in higher Gasoline inventory in U.S. and Europe
- Higher export volume from China
14.8 14.2 16.1 14.4 13.7 12.1 11.64.7
14.910.5
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
(3.1) (1.8) (1.4) (3.1) (4.9) (4.4) (2.5)
1.4
(2.3) (2.6)
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
500SN – FO 180 3.5%S Spread
150 BS – FO 180 3.5%S Spread
Asphalt – FO 180 3.5%S Spread
$/bbl
$/bbl
$/bbl
Lube Base SpreadRefinery Spread
Gas oil - Dubai
ULG 95 - Dubai
HSFO - Dubai
(13) (38) (28) (44) (55) (68) (41) (20) (31) (46)
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
635 658 579 536 588 544 471 471 602 518
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
451 556 528 458 513 481 417 375
498 447
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
QoQ 59% YoY 10%
YoY 13%
YoY 14% YoY 17%
YoY 48%
+ Higher Global demand + Lower export volume from China
YoY 30%
- Soften demand as a decrease of road construction project
QoQ 3%
QoQ 156%
QoQ 10%
QoQ -Stable
QoQ 51%
YoY
YoY
YoY
YoY
YoY
$/TON
$/TON
$/TON
- Lower import from China as Yuan depreciation against USD
15.0 15.3 15.4
52.4 60.8
1.8 1.7 1.7
6.4 7.0
16.8 17.0 17.2
58.8 67.8
4Q17 3Q18 4Q18 2017 2018
Lube Base
Refinery
207 203 208 180 208
2.6 2.8 3.2 2.1 3.2
1.9 2.3
29.535.0
6.2
9.95.1
3.01.8
2.36.4
7.0
2017 2018
Lube Base Oil
LPG & Other
Naphtha &Reformate
Gasoline
Diesel & JetOil
Fuel Oil
3.8 2.9
4.4
3.1 3.5
1.8
1.5
1.6
2.1 1.7
5.5
4.3
5.9
5.2 5.2
4Q17 3Q18 4Q18 2017 2018
Lube Base
Refinery4Q17 3Q18 4Q18 2017 2018
11
Petroleum Group2018: Higher crude run resulted in higher petroleum sales4Q18 : Better product yield after RDCC plant resumed its operation leading to higher MKT GRM
Crude Intake
GRMSales Volume & Revenue
Production
68% 59% 69% 67% 66%
32% 41% 31% 33% 34%
4Q17 3Q18 4Q18 2017 2018
Sweet Crude
Sour Crude
96% 94% 97% 84% 97% % U-Rate
Premium over Dubai ($/bbl)
64% 57% 66% 65% 63%
14% 21% 12% 18% 15%9% 9% 8% 7% 8%
13% 13% 14% 10% 14% Others
Domestic
Far East
Middle East
Crude Run (KBD)
4,404 4,915 4,981 16,110 19,229
36,243 43,998 40,924 119,015 163,724 Refinery
40,647 48,913 45,905 135,125 182,953
YoY 2%
QoQ 1%
YoY 13%
QoQ 6% Revenue
YoY 15%
YoY 35%
Petroleum
Lube Base
Crude intake (Mbbl)
Unit : $/bbl
Unit : Mbbl
Unit : Mbbl
0.5 0.9 0.58.4 8.5 8.9
2.0 2.3 2.61.4 1.0 0.90.7 0.5 0.6
1.8 1.7 1.7
4Q17 3Q18 4Q18
15.3
59.6
14.8 14.9
50.9
19.1 18.7 19.1
65.5 76.1Sales Volume
Unit : MB
YoY 0.4%
QoQ 2% YoY 16%
YoY 3%
QoQ 3%
YoY 17%
YoY 7%
QoQ 37% YoY - Unchanged
1,029 878 977 905 998 945 898 807 947 912
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
1,382 1,226 1,377 1,353 1,428 1,379 1,248 1,032
1,334 1,272
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 12
Petrochemical Spread
200 170 159
109 137 115 121 119
159 123
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
591 544 622 626 659 581 550 306
596 526
171 286 201 284 367 427 267
389 235 360
762 830 823 910 1,026 1,008
817 695
831 886
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
Ethylene-NP HDPE-Ethylene
192 202 182 114
182 164 217 219
172 196
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
435 296 323 258 406 362 361 369 328 375
228 365 356 363 287 298 256 272 328 278
663 661 679 621 693 660 617 641 656 653
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018
Propylene-NP PP-Propylene
HDPE-Ethylene –Naphtha Spread
PP-Propylene –Naphtha Spread
MX – Naphtha SpreadToluene – Naphtha Spread
PS –Naphtha SpreadABS –Naphtha Spread
Ole
fin
sS
tyre
nic
sA
rom
ati
cs
+ Continuously increasing demand from pipe production especially China
QoQ 15% QoQ 4%
QoQ 2%
QoQ 10% QoQ 17%
QoQ 1%
YoY 7%
YoY 23%
YoY 5%
YoY - Stable
YoY 14%
YoY 4%
- Soften demand from China as the U.S. – China trade war concerns
+ Decrease addition supply- Trade War : between the U.S. and
China
YoY
YoY
YoY
YoY
YoY
YoY
- Soften demand following lower gasoline demand
$/TON
$/TON
$/TON$/TON
$/TON
$/TON
+ Higher demand to be feedstock for PX
- Weaken demand from trade war (U.S. VS China)
- “Single use plastic” Ban
13
Petrochemical Group2018: dropped PTF as the decline in petchem. spread vs better product yield after projects completion4Q18 : Maintained high PTF though weaken products spread
Production
PTF
Sales Volume and Revenue
172 176 176 631 728 276 275 278
952 1,107 448 451 454
1,583 1,835
4Q17 3Q18 4Q18 2017 2018
Olefins &Polyolefins
Aromatics &Styrenics
QoQ 1%
QoQ 8% Revenue (MB)
4Q17 3Q18 4Q18 2017 2018
YoY 1%
YoY 2%
17,054 19,058 17,475 59,728 72,740
10,342 11,495 10,815 35,044 43,980
6,712 7,563 6,660 24,684 28,760
YoY 16%
YoY 22%
Petrochem
OlefinsAromaitcs &Styrenics
Unit : KMT
2018 : Petrochemical revenue was Bt 73 bn
YoY : 22% increase from 6% price increase & 16% volume increase (major TA in 1Q17)
2018 Market PTF was $7.3/bbl:
YoY : $0.9/bbl decrease as lower products spread
4Q18 : Petrochemical revenue was Bt 17 bn QoQ : 8% decrease from 9% price decrease vs 1% vol. increase YoY : 2% increase from 1% price increase & 1% volume increase
4Q18 Market PTF was $7.1/bbl:
QoQ : $0.1/bbl increase as better sales performance despite soften products spread
YoY : $0.7/bbl decrease as lower products spread
2.7 2.7 2.6 3.0 2.6
5.1 4.3 4.5
5.2 4.7
7.8
7.0 7.1
8.3
7.3
4Q17 3Q18 4Q18 2017 2018
Olefins &Polyolefins
Aromatics &Styrenics
Crude intake (Mbbl)
Unit : $/bbl
97 87 103 350 400
3 6 5
12 19
84 86 88
313 338
88 62 76
317 295
199 202 215
600
807
471 443 488
1,591
1,860
4Q17 3Q18 4Q18 2017 2018
Polyolefins
Olefins
Polystyrenics
Styrenics
Aromatics
Unit : KMT
19.1 18.7 19.1
65.5 76.1
Sales Volume
Unit : MB
YoY 4%
QoQ 10%
YoY 17%
YoY 9%
QoQ 1% YoY 12%
437 517 507
1,629 1,947
251 279 284
916
1,034
54 64 62
196
245
742860 853
2,741
3,226
4Q17 3Q18 4Q18 2017 2018
Other
Steam
Electricity
14
Power & Utility 2018: Increasing revenue of Power & UT resulted from high production vol. after major TA 4Q18 : Higher U-Rate QoQ due to RDCC & Hyvahl shutdown during 3Q18
Utilization Rate
GIM
Revenue
QoQ 1%
YoY 15%
YoY 18%
2018 U-Rate of Electricity was 79%; 4%
2018 U-Rate of Steam was 79%; 6%
YoY : increase from higher production volume after major TA in 1Q17
2018 : Power & Utility revenue was 3,226 MB
YoY : 18% increase from higher U-Rate
4Q18 U-Rate of Electricity was 80%; 4%
4Q18 U-Rate of Steam was 83%; 7%
QoQ : increase from lower usage of both electricity and steam amid the RDCC & Hyvahl planned shutdown during 3Q18
4Q18 : Power & Utility revenue was 853 MB QoQ : 1% decrease from 1% vol. decrease YoY : 15% increase owing to planned maintenance of power plant in
4Q17
1.0 1.1 1.1
1.0 1.1
4Q17 3Q18 4Q18 2017 2018
Power &Utility
Unit : $/bbl
Unit : MB
76% 76% 80% 75% 79%
4Q17 3Q18 4Q18 2017 2018
Electricity
79% 76% 83% 73% 79%
4Q17 3Q18 4Q18 2017 2018
Steam
YoY 10%
QoQ - Unchanged YoY 10%
YoY 4%
QoQ 7% YoY 6%
YoY 4%
QoQ 4% YoY 4%
2.7 2.7 2.6 3.0 2.6
5.1 4.3 4.5 5.2 4.7
7.8 7.0 7.1 8.3 7.3
Aromatics&Styrenics Olefins
14.3 12.4 14.1 14.5 13.6
3.3 1.6
(7.4)
1.7
(0.5)(0.4)
0.1
(0.1)(0.7)
0.0
17.2 14.16.6 15.5 13.1
Market GIM Stk G/(L) & LCM Hedging
5.5 4.3 5.9 5.2 5.2
7.8 7.0 7.1 8.3 7.3
1.0 1.1 1.1 1.0 1.1
14.3 12.4 14.1 14.5 13.6
Petroleum Petrochem Power & Utility
3.8 2.9 4.4 3.1 3.5
1.8 1.5
1.6 2.1 1.7
5.5 4.3
5.9 5.2 5.2
4Q17 3Q18 4Q18 2017 2018
Refinery Lube Base
3,493 2,681 3,732 11,663 12,858 4,911 4,312 4,469
18,443 18,085 632 674 678
2,264 2,663
9,036 7,667 8,879
32,370 33,607
4Q17 3Q18 4Q18 2017 2018
9,036 7,667 8,879
32,370 33,607 2,059 1,017
(4,650)
3,720
(1,268)(231)
54
(78)(1,452)
30
10,864 8,738
4,151
34,638 32,370
4Q17 3Q18 4Q18 2017 2018
Market GIM
Unit: $/bbl
Accounting GIM
Unit: $/bbl
Unit: MB
Market GIM by business
Unit: $/bblPetrochemical
Petroleum
Unit: MB
15
Gross Integrated Margin (GIM)2018: Higher crude premium & stock loss caused lower Acc. GIM4Q18: High stock loss as a sharply decline in crude oil price VS better MKT GIM
YoY 1%
QoQ 14% YoY 6%
YoY 62% YoY 15% QoQ 53%
Accounting GIM
2018 Acct GIM was $13.1/bbl: $2.4/bbl from 2017 due to $1.5 higher stock loss and $0.9/bbl lower of market GIM
4Q18 Acct GIM was $6.6/bbl
QoQ: $7.5/bbl due to $9.2/bbl higher stock loss VS $1.7/bbl higher market GIM
YoY: $10.6/bbl due to $10.4/bbl higher stock loss and $0.2/bbl lower market GIM
Market GIM
2018 Market GIM was $13.6/bbl: $0.9/bbl from 2017
Due to higher crude premium and lower products spread offsetting by better product yield after the COD of projects
4Q18 Market GIM was $14.1/bbl,
QoQ: $1.7/bbl due to resuming operation of Hyvahl and RDCC units
YoY: $0.2/bbl due to higher crude premium VS better product yield
YoY 2%
QoQ 16% YoY 4%
YoY 62%
YoY 7% QoQ 52%
Performance by Business
Financial Performance
Strategic Direction
Y2018 & 4Q18 Highlight
16
2017 2018 2017 2018
Net Sales 197,594 258,919 31% 88.37 104.82
Market GIM 32,370 33,607 4% 14.48 13.60
Stock Gain/(Loss) 3,720 (420) (111)% 1.66 (0.17)
LCM 0 (848) - 0.00 (0.34)
Oil Hedging Gain/(Loss) (1,452) 30 102% (0.65) 0.01
Net Stock Gain/(Loss) 2,268 (1,238) (155)% 1.01 (0.50)
Accounting GIM 34,638 32,370 (7)% 15.49 13.10
OPEX + Selling Exp. (15,641) (15,604) 0% (7.00) (6.32)
Other Incomes 1,423 1,577 11% 0.64 0.64
EBITDA 20,420 18,344 (10)% 9.14 7.42
Depreciation (7,062) (8,237) (17)% (3.16) (3.33)
Cost of Finance (1,983) (2,227) (12)% (0.89) (0.90)
FX Gain/(Loss) 764 68 (91)% 0.34 0.03
Impairment Gain/(Loss) 832 296 - 0.37 0.12
Investment Gain/(Loss) 577 680 18% 0.25 0.27
Other Expenses (7) (8) (14)% (0.00) -
Income Tax (2,181) (1,147) 47% (0.98) (0.46)
Net Profit 11,354 7,735 (32)% 5.07 3.14
Unit: $/bbl%
Change
Unit: MB
17
Financial Highlight: 2018 performance
-4%
83%
21%
2018
30%
58%
12%
71%
28%
1%
258,919MB
18,344MB
7,735MB
Net Sales(net excise tax)
EBITDA
Net income
Petroleum Petrochemical Utilities and Others
4Q17 3Q18 4Q18 QoQ YoY 4Q17 3Q18 4Q18
Net Sales 58,443 68,831 64,233 (7)% 10% 92.66 111.15 102.02
Market GIM 9,036 7,667 8,879 16% (2)% 14.33 12.37 14.09
Stock Gain/(Loss) 2,058 1,017 (3,809) (475)% (285)% 3.26 1.64 (6.05)
LCM 1 - (841) - - 0.00 - (1.34)
Oil Hedging Gain/(Loss) (231) 54 (78) (244)% 66% (0.37) 0.09 (0.12)
Net Stock Gain/(Loss) 1,828 1,070 (4,728) (542)% (359)% 2.90 1.73 (7.51)
Accounting GIM 10,864 8,738 4,151 (52)% (62)% 17.22 14.10 6.58
OPEX + Selling Exp. (4,637) (3,850) (4,050) (5)% 13% (7.35) (6.22) (6.43)
Other Incomes 303 371 432 16% 43% 0.48 0.60 0.69
EBITDA 6,530 5,258 534 (90)% (92)% 10.35 8.48 0.84
Depreciation (2,024) (2,046) (2,105) (3)% (4)% (3.21) (3.30) (3.34)
Cost of Finance (194) (500) (818) (64)% (322)% (0.31) (0.81) (1.30)
FX Gain/(Loss) 87 57 (14) (124)% (116)% 0.14 0.09 (0.02)
Impairment Gain/(Loss) 594 (5) 250 - (58)% 0.94 (0.01) 0.40
Investment Gain/(Loss) 256 203 105 (48)% (59)% 0.41 0.33 0.17
Other Expenses 2 (2) (6) (167)% (388)% 0.00 (0.00) (0.01)
Income Tax (736) (395) 435 210% 159% (1.17) (0.64) 0.69
Net Profit 4,513 2,560 (1,627) (164)% (136)% 7.15 4.12 (2.58)
Unit: $/bblUnit: MB % Change
18
Financial Highlight: 4Q18 performance
4Q18
-43%
41%
16%
72%
27%
1%
64,233MB
534MB
-163%
33%
31%
(1,627)MB
Net Sales(net excise tax)
EBITDA
Net income
Petroleum Petrochemical Utilities and Others
11,354
8,859 69
5,162 364
1,619
1,510 38
669
843
1,890
3,227
2,960
1,300
1,706
1,065
59
8,621
7,735
19
Operating Net Income: 2017 vs 2018Increasing U-Rate plus product yield improvement to counter with high crude premium
Uncontrolled Controlled
Operating Income 3%
11,354
7,735
8,621 8,859
Unit: MB
Net Income2018
(effective Tax rate = 14%)
Net Income 2017
(effective tax rate = 17%)
Volume IncreaseMargin
Increase
Income Tax
Decrease
OPEX +Selling Exp.
Others(Depre/FX loan/
Take quity)
Stock Gain& Hedging
+LCM
FX. Effect
NonOperating
Items
Operating Income
2017
NonOperating
Items
Operating Income
2018
Crude Premium
Stock Loss& Hedging
+LCM
Fuel Loss & Internal
UsedControllable
UHV+PPE+PPC
Everest + E4E
Fuel Loss &
Internal Used
20
Operating Net Income: 3Q18 vs 4Q18Operating NI improvement driven by the resumption of RDCC after planned shutdown in 3Q18
Operating Income 40%
2,560
(1,627)
1,632
2,285
Unit: MB
2,560 2,285
525 91 102 26
471 297
-928
267 32
200 28278
130
1,632
Net Income 4Q18
(Tax rate = 20%)
Net Income3Q18
(effective tax rate = 13%)
Volume IncreaseMargin
Increase
Income Tax
Increase
OPEX +Selling Exp.
OthersStock Gain& Hedging
+LCM
FX. EffectNonOperating
Items
Operating Income 3Q18
NonOperating
Items
Operating Income 4Q18
Crude Premium
Stock Loss& Hedging
+LCM
Fuel Loss &
Internal Used
UHV+PPE+PPC
Everest + E4E
(1,627)
Controlled
Fuel Loss & Internal
UsedControllable
3,782
Uncontrolled
128,324 125,965
8,637 9,852
45,438 44,291
2,145 2,338
87,650 87,380
2,378 2,609
55,812 50,665
38,704 41,792
0.96 1.00 0.95
4Q17 3Q18 4Q18
0.96 0.95
2017 2018
0.65 0.69 0.63
4Q17 3Q18 4Q18
0.65 0.63
2017 2018
3,735 6,360 6,439 6,439
10,980 -
1,939 - 1,293
3,231
3,364 -
6,887 -
-
7,099 8,298
13,326
7,731
14,211
2019 2020 2021 2022 >2023
THB Bond
USD Loan
THB Loan
ST Loan12%
LT Loan (USD)11%
LT Loan (THB)59%
Bond (THB)18%
Financial PositionLower net debt due to high operating cash flow and less CAPEX
Maturity of Long-term Debt
Debt ProfileStatements of Financial Position
Cash Flow
Unit : MB
Remark: Long-term debt as at 31 Dec 2018
Unit: MB
PP&E
Other Non-C/A
Cash
Other CurrentLiabilities
LT Liabilities incl. current port.
Shareholders’Equity
Dec. 2018Dec. 2017
Other CA
Other Non-CurrentLiabilities
Beginning Cash
1 Jan 2018
Ending Cash31 Dec 2018
Cash Flow from
Operating
Unit: MB
Cash Flow from
Investing
Cash Flow from
Financing
Net Debt = 55,028 MB
Ex. Rate = 32.61 Baht/$
Financial Ratios
< 1.0x
Net D/E CA/CL
21
184,544 182,446
1%
Interest Rate Currency
Float 82% THB 62%
Fixed 18% USD 38%
Performance by Business
Financial Performance
Strategic Direction
Y2018 & 4Q18 Highlight
22
23
Leading Integrated Petrochemical Complex in Asia by 2020
Power of GrowthG
Power of DigitalD
Power of PeopleP
Incremental Margin and Organization Health
Capability Building Owner mindset & Performance
Orientation Cultural Changes
Propylene (UHV)
412 KTA 732 KTA
Capacity Before After
PP(PPE-PPC)
475 KTA 775 KTA
Capacity Before After
Fully Integrated PP
Margin Improvement
Operational Excellence Commercial Excellence Procurement & HR Excellence
Benefit +135 MUSD
Other Projects Completion
Operational Efficiency Improvement Asset Utilization Enhancement Product and Service Improvement Capacity and Products Expansion
CHP I• Electricity• SteamPRPEBSM
108 MW200 T/hr312 KTA200 KTA
328 MW620 T/hr412 KTA260 KTA
Capacity Before After
BIG
Revenue Growth : 5%EBITDA Growth : 10%
1st Quartile ROIC in Petroleum
and Petrochemical Industry
STRONG LONG
Member of DJSI Emerging
Markets Universe
2010
20142016
2018
2020ROIC 14%
24
GDP: From Aspiration to Execution
Power Three : 3 Pillars for achieve Top Quartile in 2020
Power of Digital
Power of People
Truly embedand live the IRPC DNA
Develop next generation of
Top 30 leaders
Continue to establish lean, fit-for-purpose organization
P
Power of Growth Maximum
aromatics for competitiveness
Growth byM&A
Everest forever for sustainable
growth
Drive R&D excellenceG
100MUSD
100MUSD
OPS 4.0Smart
Operation (AI)
ISC 4.0Integrated
Supply Chain
CCM 4.0Customer
Centric Digital
ERP 4.0ERP
Transformation
PRO 4.0Lean
procurement
100MUSD
D
MARS - Maximum Aromatics
Reformer Benzene
300-500 KTA
Paraxylene
1,000-1,300 KTA
Naphtha PX
Project:
Aromatic
Complex
Internal use
& Export
Export
Naphtha
Treating
unitHCN
Toluene, Xylene, HA
Internal use
& Export
Other Products: LPG, Raffinate, Raw
Hydrogen, Fuel Gas
200 KTA
CAPEX: $1.1 bn - $1.3 bn IRR 14%-16%
Petrochemical Yield 17% Existing + UHV
Petrochemical Yield 27% >>
Key Rational
• Utilize excess Naphtha
/Toluene/Xylene as feedstock to
maximize PX and BZ products
• Cost competitiveness
thru new technology
• Affirmed PX demand growth:
CAGR: 4% - 5%
G
Maximum Aromatic Project : MARSTo increase Petrochemical Yield
COD:1Q23
Feasibility study and Technology selection
Basic Engineer Design Package/FEED
Construction
202320192017 20202018
EPC
BOD acknowledged on project economics
Early 2019 BOD final approval on EPC Bidding by mid 2019
25
26
M&A under “Galaxy” projectInvestment in plastic product E-commerce business
Company: Guangzhao Saiju Performance Polymer Ltd (GZSJ), China
Business: E-commerce platform for variety of plastic products under “IPLAS” platform
Website: www.isuwang.com & www.suwen8.com
Investment size: ~ 650 MB
E-commerce Platform – in China
Provide market place for supplier and buyer focusing in SME
Service logistic as option for buyers and be included in prices
Service credit term thru interest charged in prices
Provide Technical service solution by the experts
E-commerce Platform : one stop service provider
Company: iPolymer Company Limited
Business: E-commerce platform in Thailand focusing in plastic and chemical products
Investment size: ~ 120 MB
E-commerce Platform – in Thailand
1
New market and distribution
Big data analyticLeverage know-how
Benefit
GZSJ15%
45%
55%
iPolymer Ltd.
Shareholding Structure
1
2
(IPLAS Platform)
Founder & Others
85%
2
G
Company: 2DM Materials Pte. Ltd. In SG
Business: Investment size: ~ 47 MB
Shareholding Structure
• Founders 63%
• IRPC (new shares) 20%
• Others 17%
M&A under “Galaxy” projectMarina Project : Step into “advance material” to add more specialties
27
Investment Profile
Strategic Intent
First mover in the advance material
“Graphene”
Co-creation with existing project for new
market
Secure and shorten New S-curve
product development
2D honeycomb arrangement of carbon atoms
What is Graphene?
Electric Vehicles
- Short and sharp bursts of energy
Advanced Batteries
- Increase efficiency and life span
Food Packaging
- Good O2, H2O barriers
Water Purification
- 99% contaminant removal
Aerospace
- Decrease weight
Ship Coating
- Prevent rusting
Application of Graphene
Energy Storage Membranes Composites & Coating
AFM: monolayer graphene
Height ~ 0.8 nm.
With Unique Properties;
200X Stronger than steel
Bendy & High transparency
Thinnest imaginable material
High electrical & thermal conductivity
G
IRPC 4.0 : €KON$Online monitoring economics platform
28
Economics visualized real-time in the control room
Management reports on performance against targets
Globally accessible web platform for all IRPC
Objectives:
Margin improvement through real-time
understanding of economic implications
Optimized trade-off decisions across operational
parameters and closer tracking of targets
Benefit : ~ 30 M$/year
Timeline : May 2018 – May 2019
1st Wave: Basic Refinery ~ 5 months (11 Units)
2nd Wave: Basic Petrochemical & Specialist ~ 4 months
(13 Units)
3rd Wave: Derivative Petrochemical ~ 4 months (13
Units)
Key FeaturesA tool optimizes key economics through refinery &
petrochemical operations
D
29
CAPEX Plan in 2019 – 2023Bt 71 bn committed CAPEX
2,878 2,481 2,912 2,743 4,782
2,821 64
1,924 387 188
4,034 9,532
16,256 10,765
616
389
642
533
4,103
3,314
2,327
2,235
723
108
83
49
5,846
11,316
14,087
23,210
18,944
3,486
2018A 2019 2020 2021 2022 2023
General & Maintenance Project
E4E, IRPC 4.0
MARS project
Strategic Investment Projects
Others
Unit: MB
15,739 ,
22%
2,311 , 3%
41,203 ,
58%
8,592 ,
12%
3,198 , 5%
IRPC 5 year CAPEX Plan
General & Maintenance Project
E4E, IRPC 4.0
Others
Total
71,043 MB
Strategic Investment Projects
MARS Project
* Excluding capex for investment opportunities of Bt 34 bn
*
0.270.31
0.19
-0.04
0.04
-0.26
0.46 0.480.56
0.38
0.18 0.180.12
0.08 0.10 0.08
0.22 0.230.29
0.10
0.09
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
EPS
Year Dividend
1H Dividend
2H Dividend
30
Dividend Policy & PaymentIRPC is firmly committed to pay dividend at no less than 25% of net income
67% 58% 63%
25% 25% 25%
48% 48% 52% 50%
Dividend Yield 4.1% 2.8% 2.9% 1.9% 3.1% 2.6% 5.1% 4.8% 4.1% 3.3%
Share Price 2 4.38 6.50 4.08 4.12 3.26 3.06 4.30 4.80 7.05 5.75
IRPC pay at 48-67% payout ratio with average dividend yield of 3.5%
Dividend Payout
Unit: THB/Share
Div. Policy ≥ 25%
Note: 1 2H18 Dividend is subject to the approval of the Company’s Annual General Meeting of shareholders for the year 2019
2 Closing price at the end of period
N.A.N.A.N.A.
1
Thank You
This presentation material has been prepared solely for informational purposes only. IRPC is furnishing it solely for use by prospective investors / analysts in
the proposed event. IRPC makes no representations or warranties as to the accuracy or completeness of such information. By accepting this material each
recipient agrees that IRPC shall not have any liability for any representations (express or implied) contained in, or for any omissions from this presentation.
The information contained herein does not purport to be all-inclusive or to contain all of the Information that may be material to the recipient’s decision. Each
recipient of the information and data contained herein should perform its own independent investigation and analysis of the transaction and the creditworthiness of IRPC . Reference in this Disclaimer to this shall include references to the Appendices (if any) hereto.
Investor Relations Contact: [email protected]
Tel. +662-765-7380, Fax. +662-765-7379
