The Bangchak Petroleum PLC - listed...

The Bangchak Petroleum PLCOpportunity Day FY/2015February 25, 2016

AGENDA

2

Performance Summary1

Oil Market Outlook2

Financial Performance Update3

Going Forward in 20164

AGENDA

3


Oil Market Outlook2



Q1/15

Major Milestones in FY15

4

Funding

• Bond Issuance – Green Bond THB 3,000 Million

The first corporate in Thailand with A- rating to offer more

than 10-year tenor

Investment

• Increased interest in production oil field through NIDO

interest in Galoc oil field increased from 22.88% to 55.88%

total amount of THB 2,876 Million

Q2/15 Q4/15

Q3/15

• Completed asset transfer between BCP and BCPG

• Divestment of Shares in ASEAN Potash

Chaiyaphum Public Company Limited

Recent Activity

• BCPG acquired Solar Power Plant Business from

SunEdison in Japan

• PTT divested 27.22% shares in BCP on 30 April 2015

• Set up new subsidiaries - BCPG Co. Ltd.

Investment

• Purchased Cogeneration Power Plant (25MW)

Total amount of THB 1,292 millionQ1/16

3E Project

• New Co-Gen project : awarded EPC, started detail design

and site preparation.

Investment

• Investment in lithium mining business (WLC)

Invested USD 5 Million in Western Lithium USA Corporation

(WLC) totaling 7% of total WLC share outstanding

5,162

11,081

15,440

4,358

Actual FY14

Accounting

Operating

EBITDA Inventory Loss / Insurance Claim

Full Year Review Summary

5

Unit: THB Million

FY15 EBITDA Performance

Actual performance above target

Operating EBITDA grew +56% YoY Core profit grew +70% YoY

FY15 = THB 7,637 million, EPS 5.55 Baht/shareFY14 = THB 4,482 million, EPS 3.25 Baht/share

Unit: THB Million

EBITDA Performance Review

Accounting Operating Accounting Operating

Refinery Marketing Solar Power Biofuel E&P

5,162

11,081

FY2014 FY2015

Substantial return from refining contributed to superior performance

Strong Market GRM since the beginning of the year Lesser impact from Inventory loss compared to last

year Marketing sales volume continued to grow while

Marketing margin was very satisfied Full year operation of solar

15,440

9,895

Note: Operating EBITDA is defined as EBITDA excluding Inventory G/L, LCM, and Insurance Claim

+56% YoY

Note: Core Profit is defined as Net profit excluding after tax Inventory G/L, LCM, and Insurance Claim

Accounting

Refinery Performance – The year of refinery business

6

Strong Market GRM through out the year: AVG ≈ 9 $/BBL

Q4/15 - Crude cost increased from the widening gap between Dated Brent and Dubai (DTD/DB), a hedging loss of THB 339 Million, an inventory loss of THB 1,526 Million, and an LCM of THB 105 Million. Soften premium on FOVS due to lower demand.

FY15 – Cheaper crude cost, strong UNL95 spread all year round amidst weakening GO spread.

Unit: $/BBL

GRM Performance

AccountingGRM

0

2

4

0

50

100

Q4/14

Q1/15 Q2 Q3 Q4

FY14

FY15

Crude Price and Spread ($/BBL)

5

15

25

Q4/14

Q1/15 Q2 Q3 Q4

FY14

FY15

GO/DB

UNL95/DB

-10

-5

0

FO/DB

Crack Spreads ($/BBL)

DB DTD/DB

4.2611.90

4.07 2.78 2.15 5.65109 112 117 114

86

113

Q1/15 Q2 Q3 Q4 FY14 FY15

Crude run

Unit: KBD

• Running Smooth• No Unplanned

TAM

Plan level105-110 KBD 10.19 10.41 7.90 7.98 6.96 9.05

-0.42

0.14

-0.12 -0.90

0.48

-0.33-5.51

1.34

-3.72 -4.30 -5.30 -3.07

Q1/15 Q2 Q3 Q4 FY14 FY15

Market GRM Hedging Inventory Gain Loss

BCP Trading Channels – Retail customer is our priority

7

Q1/15 Q2/15 Q3/15 Q4/15

782

562

173

245

849

555

169

219

803

469

158

342

851

538

154

278

1,761 1,792 1,773 1,822

FY2014 FY2015

3,285

2,124

653

1,084

7,148

3,016

1,991

502

902

6,410

Total Sales Volume Unit: Million Litre

+9% YoY

+7%YoY

+30% YoY

+20% YoY

+12% YoY

Refined

Petroleum Products

Export

OIL

Wholesales

Marketing Business

Industrial Customer

Retail Customer

9%

15%

% Portion of Total Sales volume from data as of FY2015

30%

Total

46%

Marketing Performance – Marketing sales volume continued to grow

8

Low Oil Prices Driven Demand

Demand improved from retail price drop

Retail Margin improved significantly from decline momentum in oil prices

Unit: Million Litre

Marketing Sales Volume

782 849 803 851

562 555 469 538

Q1/15 Q2 Q3 Q4

3,016 3,285

1,991 2,124

FY14 FY15

Industrial MarketRetail Market

5,0065,410 +8% YoY

+9% YoY

+7% YoY

1,3901,2721,4041,344

0.95 0.87 0.97 1.17 0.98 0.99

0.48 0.43 0.240.48

0.31 0.41

Q1/15 Q2 Q3 Q4 FY14 FY15

Unit: THB/Litre

Net MKM Margin

TotalMKM

+33% YoY

+2% YoY

0.75 0.69 0.70 0.90 0.71 0.76

Unit: Percentage

Market Share (Retail Channel)

37.1%

15.0%13.6%

13.0%

6.9%

6.0%

5.2% 1.5% 1.6%0.1%

2nd

Rank

Jan- Dec 2015

Marketing Performance – Maintain 2nd rank market share

9

180

200

220

240

260

280

300

320

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

FY2012

FY2013

FY2014

FY2015

Unit: Million Litre/ Month

Retail Sales Volume

0

100

200

300

400

500

600

Major oil excluding BCP

BCP Standard Type

BCP Co-Op Type

Unit: K.litre/Station/Month

Thruput per station

Retail sales volume grew higher every year

New product launches : E20 S (March), Hi Diesel S (December)

Thruput per station inline with industry

Strong 2nd Rank Market Share

Solar Power Plant – Better than expected performance

10

4

5

6

7

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Target Actual

Phase 1

4

5

6

7

8

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Target Actual

Phase 2

7

8

9

10

11

12

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Target Actual

Phase 3

Electricity sales by phase (Million kWh)

ActualTarget

Steady steam of cash flow

Q4/15 - Cool temperature led to superior production efficiency for all phases, especially phase 3 which had higher irradiation hours and located in the coldest location when compared to other phases

FY15 – Fully operation of Phase 3 (last site COD in Apr 2014)

Q1/15 Q2 Q3 Q4

72 62 56 6465 68 64 66

Total Electricity Sales (Million kWh)

FY14 FY15

218 253232 264

+14% YoY

Biofuel – Demand increased as diesel price was cheaper

11

Lower diesel price led demand

Q4/15 – Seasonal demand and cheaper diesel price led sales volume growth

FY15 – Bangchak demand increased as retail price of diesel drop

Daily Production and Sales Volume (K. Litre per day)

Q1/15 Q2 Q3 Q4 FY14 FY15

355 371 366 367 361 365405582 568 620

492 544

Daily Production Sales Volume

+11% YoY

E&P

12

Q1/15 Q2 Q3 Q4

Volumes lifted and Sold (bbls)

277,165 396,793 200,998 409,112

Cargo 2 Cargoes 2 Cargoes 1 Cargo 2 Cargoes

All prices are on FOB

realized basis

Cargo 4360.16 $/BBL

Cargo 4560.62 $/BBL

Cargo 4749.84 $/BBL

Cargo 4847.04 $/BBL

Cargo 4454.44 $/BBL

Cargo 4662.98 $/BBL

Cargo 4937.59 $/BBL

• Production uptime for Galoc Field was 99.51%

• Nido ended the quarter with USD 17.5 million cash on hand

Performance Review

6.51 6.40 6.11 5.71

2.503.58 3.41 3.19

Q1/15 Q2 Q3 Q4

Gross Production Net to NIDO

Production (KBD)

BCP E&P Timeline

July 2015

The independent assessment completed by GaffneyCline & Associates estimates the mid-Galocarea of the field Contingent Resources on a gross basis as at 30 June 2015 as

2C = 9.5 mmstb (5.3 mmstb)

Contingent Resource Estimate for mid-Galoc

February 2015

Purchase additional 33% shares in Galoc Production Company WLL (GPC)Overall interest in Galoc oil field is 55.88%(Total investment of 2,876 THB Million)

AGENDA

13


Oil Market Outlook2



Market oversupply is still supply problemOutlook for 2016 demand growth is moderating at 1.2 MBD

14Source: IEA Jan’16

56.26 57.63 57.05

6.50 6.66 6.89

30.98 32.02

92.80 94.47 95.68

0

10

20

30

40

50

60

70

80

90

100

2014 2015 2016

MB

D

Non-OPEC Supply OPEC(NGLs) OPEC Production Total Demand

Call on OPEC 31.76 MBD

Global oil balance 2014-2016 • Persistent oversupply continues in 2016

• Non-OPEC production likely to decline by 0.6 MBD in 2016

• OPEC production stays high as Iran ramps up production after sanction lifted

• Global crude supply is heavier and push quality differential wider

• Good global demand but subsidy cuts in Middle East weigh on growth

• 1,000 MB of oil was added to global inventories over 2014-2015 and the latest balance still suggests inventory build of 285 MB over 2016

(+0.88) (+1.67) (+1.16)

(+1.63) (+1.37) (-0.58)

S =

93

.74

S =

96

.31

12.010.9 11.3

12.911.1

11.912.411.1

12.0

0.0

5.0

10.0

US Russia Saudi Arabia

2014 2015 2016

MB

D

*comprises crude oil, condensates, NGLs and oil from non-conventional sources

$/B

BL

Operating cost to extract oil from existing wellsMajor Oil Producers Production

Crude Oil Prices OutlookMarket slowly readjust itself and price recovery will take longer time

15

10

20

30

40

50

60

70

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

De

c-1

5

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

De

c-1

6

Oil

Pri

ce (

$/B

BL)

WTI

Brent

Dubai

Dubai OutlookIran nuclear deal reach

China’s stock rout

Upstream investment cut /

rig count drop

No production ceiling from OPEC

Inventories decline

U.S. election

Refineries maintenance

Dubai Avg.: Q4’15 = 40.68 Q1’16 (F) = 27.3 2015 = 50.84 $/BBL 2016 (F) = 33.0 $/BBL

Outlook

Q1/16

Factors to watch

2016

Possibility of OPEC/non-OPEC

cooperation

Refinery Turnarounds

Increasing Iranian oil output

High crude stock

Warmer-than-normal winter

Slowly decline of non-OPEC supplies

China buying crude for SPR

Tension escalating in MENA

U.S. election

**OPEC policy !?!? **

Fed rate hike plan

Weak economic growth in China and

emerging LatAm

Iran sanction lifted

OPEC Meeting

Product Cracks Spread OutlookSlower Gasoline demand growth but remains supportive / Limited Diesel growth / Rebalancing Fuel Oil Market

16

Q1/16Healthy demand in AsiaHigher Asian refinery maintenance in MarchLess U.S. demand seasonallyChinese keeps high exportReturn of Shell’s CDU in Singapore and commissioning of Paradip refinery

2016Demand remains supportiveChina’s car usage outweighs car sales slowdownLess import demand from Indonesia as increase domestic production

Q1/16Winter demand globallyDemand from India for agricultural activitiesChinese production continued to outpaceLimit of arbitrage to Europe

2016Demand from India, Africa and VietnamLight/middle distillates imbalance persistPersisting high stock globally

Q1/16Bunker demand seasonallyLess demand from China’s teapot and Japan’s power

2016Less supply from Russia due to refinery upgradesMore import crude oil processing quotas to Teapot refineries in ChinaGradually restart of nuclear reactors in JapanArbitrage from west and persisting high stock

15.4

19.8 19.418.7

18.0

14.0

16.0

12.0

14.3

18.3

15.0

8

13

18

1Q'15 2Q 3Q 4Q 1Q'16 2Q 3Q 4Q 2014 2015 2016

Gasoline 95 - DB ($/BBL)

16.3

13.7

10.8

13.7

9.09.8

11.012.0

16.0

13.6

10.5

5

10

15

20

1Q'15 2Q 3Q 4Q 1Q'16 2Q 3Q 4Q 2014 2015 2016

Gas oil 0.05%S - DB ($/BBL)

-1.9

-3.5

-8.1

-6.6

-4.2-5.0

-5.6

-7.0-8.3

-5.0 -5.5

-10

-8

-6

-4

-2

0

1Q'15 2Q 3Q 4Q 1Q'16 2Q 3Q 4Q 2014 2015 2016

Fuel oil 3.5%S - DB ($/BBL)

Outlook

AGENDA

17


Oil Market Outlook2



Key Financial Performance - Consolidated

18

Unit: THB Million

Sales Revenue

39,44541,357

35,203 35,136

Q1/15 Q2 Q3 Q4

183,016151,140

FY14 FY15

2,333

5,164

2,184 1,401

Q1/15 Q2 Q3 Q4

5,162

11,081

FY14 FY15

Unit: THB Million

EBITDA

Unit: THB Million

Net Profit attributable to owners of the company

1,0372,794

432

-112

Q1/15 Q2 Q3 Q4

696

4,151

FY14 FY15

Unit: THB

Earning per Share

0.75 2.03 0.31 (0.08) 0.51 3.01

Q1/15 Q2 Q3 Q4 FY14 FY15

FY15: Fallen oil price lead to revenue decreaseTotal sales volume grew 12%Refinery crude run increased 31%

Q4/15: Consolidated Inventory loss ≈ 1,634 MBSoften Market from widening gap DTD/DB

FY15: Historical high crude run in multiple quartersCheaper crude costStronger market GRM

REMARK

Consolidated P&L

Key Financial Performance - Consolidated

19

Unit: THB Million FY14 FY15

Revenue from sale of goods and rendering of services

183,016 151,140

Cost of sale of goodsand rendering of services (178,473) (139,686)

Gross Profit 4,543 11,454

Investment income and other income 1,197 543

Selling and administrative expenses (4,480) (5,175)

Gain (loss) from oil hedging contract 499 (407)

Gain (loss) from FX forward contracts 84 (155)

Gain (loss) on foreign exchange 674 178

Reversal loss from impairment of assets (1,157) (65)

Share of profit (loss) of associate 5 12

EBIT 1,365 6,385

Finance costs (1,427) (1,615)

Income tax (expense) credit 691 (673)

Profit for the period 629 4,097

Owners of the Company 696 4,151

Non-controlling interests (67) (53)

Earnings per share (Baht per Share) 0.51 3.01

REMARK

ImpairmentMainly from asset in NIDO = 58MB

Finance CostsBond Issuance Green Bond = 3,000 MB

Insurance Claim FY14 = 764 MB, FY15 =76 MB

Oil Hedging ContractInventory hedging

FX ForwardMainly from Loan to subsidiary (Unrealized Loss) and GRM

Foreign ExchangeFX loss from USD loan THB -628 MillionGain from loan to subsidiaries THB +284 MillionAR and Others THB +521 Million

NIDO Impairment

20

Nido Realized Value

Unit: USD Million

ImpairmentNet Realized Value

91

64 62

27

Acquisition of Nido Nido valueDec 14

Nido valueDec 15

Additional Impairment

1.7 MMUSD(THB 58 Million)

2,929 THB Million

2,104 THB Million

2,239 THB Million

≈3 THBGain from FX

32.13Acquisition

32.82Dec 14

35.92Dec 15

Foreign Exchange

Unit: USD/THB

30

33

36

39

Jan-1

4

Mar-

14

May-1

4

Jun-1

4

Aug-1

4

Oct

-14

Nov-1

4

Jan-1

5

Mar-

15

Apr-

15

Jun-1

5

Aug-1

5

Oct

-15

Nov-1

5

Jan-1

6

Acquisition

FX RateUnit: USD/THB

Key Performance - Consolidated

21

Q4/14 Q3/15 Q4/15 YoY QoQ FY14 FY15

Total Revenue 45,749 35,203 35,136 -23% -0.19% 183,016 151,140

Total EBITDA (1,256) 2,184 1,401 -212% -36% 5,162 11,081

EBITDA Refinery (2,369)764

130 -105% -83% 285 5,097

EBITDA Marketing 1/

334 551 549 64% 0% 2,263 2,497

EBITDA Solar Power 2/

740 692 865 17% 25% 2,572 3,005

EBITDA Biofuel 3/

99 62 113 14% 82% 303 355

EBITDA Exploration and

Production 4/ 13 156 (26) - -117% 2 472

EBITDA Others 5/ (74) (41) (56) -23% 37% (263) (171)

Profit attributable to

owners of the Company(2,502) 432 (112) -96% -126% 696 4,151

Earnings per share (Baht) (1.82) 0.31 (0.08) -96% -126% 0.51 3.01

EBITDA Structure of the Company and its subsidiaries

1/ EBITDA from Marketing Business and Bangchak Greenet Co.,Ltd2/ EBITDA from Solar Power Plant Business, BCPG Co.,Ltd. and its subsidiaries3/ EBITDA from Bangchak Biofuel Co., Ltd. and share of profit/ (loss) from Ubon Bio Ethanol Co, Ltd4/ EBITDA from Nido Petroleum Limited 5/ EBITDA from BCP Energy International Pte, Ltd. and others

Cash Flow - Consolidated

22

Sources of Cash

Unit: THB Million

Strong cash flow from operation

Cash flow from operation increased significantly from last year as a result of strong market GRM

Funding(Bond Issuance, Proceed from L/T Loan)

9,987 4,118

FY2014 FY2015

Others 288 267 FY2014 FY2015

Cash From Operation 6,068

12,033

FY2014 FY2015

Total 16,343

16,418

FY2015 Sources and Uses of Cash

Unit: THB Million

12,033

2,971

4,118

2,462

267

5,252

2,039

Cash From Operation

Funding

Others

16,418

Sources of Cash Used of Cash

Dividend Paid

Debt Service

12,725

Existing Assets Enhancement

InvestmentAcquisition

GPC acquisition PTT’s Co-gen acquisition

THB 2,407 million THB 1,329 million

PP&E Refinery & Biodiesel plant Intangible assets and Others

THB 1,137 million THB 214 million

Investment Acquisition

Ending Cash 7,872

Cash in deposit 4,518

Total Cash Available 12,390

Key Financial Position - Consolidated

23

Assets:

• Cash & Equivalents decreased by THB 82 million

• Inventory decreased by THB 114 million as crude oil and finished oil product price decreased while the volume increased 214 million litre

• PP&E increased by THB 1,908 million mainly from an increase in exploration and production of petroleum assets from Galoc Production Company WLL (GPC), refinery machinery and equipment, acquisition Co-Gen power plant

• Intangible assets increased by Baht 1,132 million from a recognition of Exploration and Evaluation Expenditure from GPC

Liabilities & Equity:

• Current Liabilities decreased mainly by

• Other liabilities decreased THB 396 million mainly from the termination of electricity and steam purchasing agreement as BCP recently acquired PTT’s Co-gen power plant

• Long-term debt increased by THB 3,460 million

• Bond issuance of THB 3,000 million in March 2015

• Current portion of long-term loans of THB 460 million

38,136 40,044 33,966 35,983

6,535 8,099

14,05913,945

2,804 2,838

10,28211,983

30,19833,658

7,9547,872

9,9979,462

Cash and Equivalents

Current Assets

Inventory

PP&E

Non Current Assets

76,96681,942

76,96681,942

Assets Liabilities & EquityUnit: THB Million

31 Dec 14 31 Dec 15 31 Dec 14 31 Dec 15

Current Liabilities

Long Term Debt

Total Equity

Non Current Liabilities

(Including current portion of L/T debt)

Key Financial Ratio - Consolidated

24

0.55 0.50 0.54 0.590.67

0.59

Q1/15 Q2 Q3 Q4 FY14 FY15

Net IBD/E Ratio (Times)

10,47331%

7,20121%

15,98248%

Baht Loan

Baht Bond

USD Loan

33,658 THB Million

(as of December 31, 2015)

Long-Term Debt Portion

2.883.32 3.55 3.22 2.86 3.22

Q1/15 Q2 Q3 Q4 FY14 FY15

Current Ratio (Times)

AGENDA

25


Oil Market Outlook2



Refinery41%

Marketing20%

Renewable32%

E&P7%

FY2016(Target)

FY2016 Guidance

26

FY2016 Guidance

Crude run plan ≈ 96 KBD

GRM ≈ 6-7 $/BBL

Refinery Business

MK Sales Volume ≈ 480 ML/MO

Net MKM ≈ 0.70-0.75 THB/litre

Marketing Business

BCPG – Green Power Plant

Operational PPA = 131 MW

Additional operational PPA = 27 MW

Biofuel Business

• Full UtilizationBiodiesel Plant#2 (450,000 Litre/day)

• New Ethanol Plant - BBE (150,000 Litre/day)

RenewableBusiness

• Cost Saving Program

• Production rate ≈2,900 Barrels/day net to NIDO

• New asset (target size ≈6KBD)

E&PBusiness

12,600THB Million

EBITDA

Turnaround Maintenance Detail

27

Equipment Inspection and Maintenance as planRemove Existing Fractionator Column 3C-101 (The new fractionator column 3C-101 was commissioned in Jun 2014)

Improving Efficiency and Yield• Conduct the heater coating in Catalytic Reforming no.2 Heater (YES-R)• Overhaul some equipment e.g. recycle gas compressor, Turbine Generator, etc.• Change Catalyst for improving yield

Improving safety and reliability • Upgrade Safety Integrity Level of Control System • Install Power Management System (YES-R)• Improve reliability of Cogeneration Plant

Tie in for YES-R (Yield Energy Safety + Reliability) (Phase I) Tie in for new Cogeneration Plant (3E Project)

Turnaround Maintenance

46 Days (8 Feb-24 Mar 2016)

YES-R

YES-R

YES-R

3E

Extracting Value by Enhancing Existing Assets

28

Refining capacity upgrading

Cost saving on energy consumption

Debottlenecking for higher crude run

Enhancing product yield

Investment Cost : ≈7,800 THB Million

3E Project

Refinery-wide improvements focused on Efficiency and Safety

Investment Cost : ≈3,000 THB Million

YES-R ProjectImprovement Program

Benefits

Improving product value

Saving cost and energy

Reducing emission

“ Enhance Efficiency, Improve Energy Consumption, Better Environment ”

3E Timeline

FY2016 FY2018

Completion of Co-Gen Debottlenecking HCU, VDU, and KTU for the higher level of crude run

New Continuous Catalyst Regeneration Unit (CCR)

FY2019FY2017

• Start Construction of Co-Gen Power Plant • Debottlenecking project feasibility• CCR project bidding

74

99

86

113

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Previous Optimal100-105 KBD

Optimal Crude Run

120+ KBD

NEWProduction Profile

Bangchak Service Station : Customer Destination

29

Distinguishable Market Position: Renewable Energy Leader and ProviderTotal Service Station as of December 2015 : 1,072 sites

+60Stations Targetin FY2016

Service Station in FY2015

+66NEWService Stations

1,072 Service Stations

As of Dec 2015

Maximizing Value through Expanding Assets Capabilities

30

Oil70%

30%

Marketing EBITDA Portion

Oil

FY2020

Convenience Store

Fresh Cooking Food

GrowingNon-Oil Portfolio

Premium Coffee

+85 Stores

+62 Stores

Non Oil Business as of FY15

Coffee Store

10 Stores

Fresh Cooking Food

3 Stores

Convenience store

357 Stores

154 Stores

BCPGGreen Power Plant Investment Stories

BCPG Progress Update

31

30th June 2015: Establishment of BCPG

EstablishmentCompleted in December 2015

Restructuring

Progress

Prior Restructuring Post Structure BCPG

BCP Subsidiaries

500 MWIn FY2020

Geothermal

Wind

Biomass & Biogas

Existing Portfolio

118 MWFully Operated

BCPG Japan Portfolio

198 MWFully Operated 13 MW

Solar Power Plant

Strategic Position of BCPG

Develop, Own & Operate

Green Power Plant

Looking for favorable return together

with social & environmental friendly

Broaden opportunities scope outside

Thailand

Expected to IPO in

2H2016

BCPG – A Strategic Move to Japan

32

Mark TypeCapacity

(MW)FiT

(JPY/kWh)SCOD

4 Operating 13 40 2014 - 2015

2 Construction 27 40 & 36 2016 - 2017

4 Advanced Development 108 36 & 32 2017 - 2018

4 Development 50 36 2018 - 2019

Total 198

Japan

Acquisition budget of JPY 9,626 million (equivalent to THB 2,915 million) with total capacity of 198 MW portfolio.

The Business includes:

• Development, Construction and O&M Platform in Japan with experience professionals

• Operating : 13 megawatts (40 JPY/kWh FiT 20 Years)

• Construction : 27 megawatts(40 & 36 JPY/kWh FiT 20 Years)

• Pipeline : 158 megawatts(36 - 32 JPY/kWh FiT 20 Years)

Capitalized on opportunities : Biodiesel Business

33

Progress 86% as of Jan 16

“ An investment for greater certainty of Biodiesel supply

and supporting demand growth ”Biodiesel Expansion:

Bangchak Biofuel (BBF)

Expansion Capacity:

Phase 2: 450,000 litre/day

COD: 3Q2016

Investment Cost: ≈1,800 THB Million

Mainly supplied to BCP

BBF Sales Volume

BBF sales volume = 0.54 ML per Day

BCP captive use = 0.45 ML per Day

Note: Jan-Dec 2015

Nido Update – Self revision, survival plan cutting down costs

34

Budget After Revision

FieldRelated

Cost

FieldRelated

Cost

G&A

G&A

32 $/BBL

28 $/BBL

33 $/BBL

41 $/BBL

General And Administrative Expense• Cut exploration BD project• Reduce staff costs

(no raise, decease working day, let go contractors) • 50% of travel budget, no donations, no marketing,

no entertainment, reduced training

Galoc Field cash cost• Government share down according to oil price• FPSO discount

NIDO Cash Cost Diagram

Investment CAPEX

35

19%

21%35%

15%

10%

Maintenance CAPEX

Growth CAPEX on Existing Business• Refinery Project• Marketing Project

E&P

Green Power Plant

Investment

≈79,000

THB Million

Investment CAPEX 2016-2020Unit: THB Million FY2016

MaintenanceCAPEX

3,000

Growth CAPEX

5,000

Green Power Plant

7,500

E&P 3,000

Renewable &Others

2,000

Renewable & Others

APPENDIXProfit and Loss (Consolidated)

Profit and Loss (Company)

Financial Performance:

• Refinery BU (Company)

• Marketing BU (Company)

• Solar Business

• Biodiesel Business (BBF)

Financial Ratio (Consolidated)

Profit and Loss (Consolidated)

37

Unit: THB Million Q4/14 Q3/15 Q4/15

Sales Revenue 45,749 35,203 35,136

Cost of Goods Sold (47,017) (33,118) (33,097)

EBITDA (1,256) 2,184 1,401

Depreciation and Amortization (1,142) (1,205) (1,219)

Gain (loss) on foreign exchange 192 (155) 92

Net reversal of allowance for loss from impairment of assets

(1,162) (5) (70)

Other Expense - - -

Financial Cost (403) (391) (412)

Pre-tax Profit (3,769) 429 (208)

Income Tax Expense 1,140 (6) 17

Profit for the year (2,629) 423 (191)

Owners of the Company (2,502) 432 (112)

Non-controlling interests (127) (9) (79)

EPS (Baht/Share) (1.81) 0.31 (0.09)

YoY QoQ

-23% 0%

-30% 0%

-212% -36%

7% 1%

-52% -160%

-94% N/A

N/A N/A

2% 5%

-94% -149%

-98% -408%

-93% -145%

-96% -126%

-38% 802%

-95% -128%

Profit and Loss (Consolidated)

38


Sales Revenue 183,016 151,140

Cost of Goods Sold (178,473) (139,686)

EBITDA 5,162 11,081

Depreciation and Amortization (3,313) (4,708)



(1,157) (65)

Other Expense* - (101)

Financial Cost (1,427) (1,615)

Pre-tax Profit (61) 4,770

Income Tax Expense 691 (673)

Profit for the period 629 4,097

Owner of the Company 696 4,151

Non-controlling interests (67) (53)

EPS (Baht/Share) 0.51 3.01

* Write-off item (from recent PTT’s Co-gen power plant acquisition)

YoY

-17%

-22%

115%

42%

-74%

-94%

N/A

13%

-N/A%

-197%

551%

496%

-21%

491%


39


Sales Revenue 44,256 33,774 33,286

Cost of Goods Sold (46,306) (32,328) (31,895)

EBITDA (1,328) 2,081 1,388

Depreciation and Amortization (929) (879) (875)

Gain (loss) on foreign exchange (17) (150) 95


(833) (5) 135

Other Expense - - -

Financial Cost (355) (367) (362)

Pre-tax Profit (3,462) 681 380

Income Tax Expense 759 (35) (19)

Net Profit (2,702) 646 360

EPS (Baht/Share) (1.96) 2.31 0.26

YoY QoQ

-25% -1%

-31% -1%

-205% -33%

-6% 0%

-669% -163%

-116% N/A

N/A N/A

2% -1%

-111% -44%

-103% -45%

-113% -44%

-113% -89%


40


Sales Revenue 178,300 144,346

Cost of Goods Sold (176,384) (135,749)

EBITDA 4,554 10,701

Depreciation and Amortization (2,840) (3,427)



(828) 129

Other Expense* - (101)

Financial Cost (1,294) (1,463)

Pre-tax Profit -30 5,862

Income Tax Expense 326 (736)

Net Profit 296 5,126

EPS (Baht/Share) 0.22 3.72

* Write-off item (from recent PTT’s Co-gen power plant acquisition)

YoY

-19%

-23%

135%

21%

-94%

-116%

N/A

13%

N/A

-325%

N/A

N/A

Financial Ratio (Consolidated)

41

Q4/14 Q3/15 Q4/15 FY14 FY15

Profitability Ratios (%)

EBITDA Margin -2.74% 6.20% 3.99% 2.82% 7.33%

Profit Margin -5.48% 1.20% -0.54% 0.41% 2.71%

Return on Assets (ROA) 2.09% 4.96% 12.07% 2.09% 12.07%

Return on Equity (ROE) 1/ 2.29% 3.80% 8.04% 2.29% 8.04%

31-Dec-14 30-Sep-14 31-Dec-15

Liquidity Ratios (times)

Current Ratio 2.86 3.55 3.22

Quick Ratio 1.61 2.13 1.89

Financial Policy Ratios (times)

Interest bearing debt to Equity 0.92 0.93 0.94

Net Interest bearing debt to Equity 0.67 0.54 0.59

Q4/14 Q3/15 Q4/15

DSCR 1.93 2.74 3.73

1/ Profit and Total equity attributable to owners of the Company

Note: ROE, ROA are annualized figures.

Financial Performance: Refinery BU (Company)

42

Q4/14 Q3/15 Q4/15

THB Million $/BBL THB Million $/BBL THB Million $/BBL

Market GRM 2,617 8.45 3,004 7.90 3,023 7.98

Oil Hedging 150 0.48 (44) (0.12) (339) (0.90)

Inventory Gain/Loss (4,400) (14.21) (1,415) (3.72) (1,631) (4.30)

Total GRM (1,634) (5.28) 1,546 4.07 1,053 2.78

Other Income 70 0.23 41 0.11 42 0.11

Insurance Claim 243 0.79 76 0.20 - -

FX Forward Contract (2) (0.01) (167) (0.44) 25 0.06

Operating Expenses (1,046) (3.38) (732) (1.92) (989) (2.61)

EBITDA (2,369) (7.65) 764 2.01 130 0.34

Key factor:

Crude Run (KBD) 102.48 116.70 114.37

Exchange Rate (THB/USD) 32.85 35.40 36.00

Avg. Dubai Price (USD/BBL) 74.37 49.99 40.68

Financial Performance: Refinery BU (Company)

43

FY14 FY15

THB Million $/BBL THB Million $/BBL

Market GRM 7,167 6.96 12,838 9.05

Oil Hedging 499 0.48 (472) (0.33)

Inventory Gain/Loss (5,454) (5.30) (4,354) (3.07)

Total GRM 2,213 2.15 8,012 5.65

Other Income 175 0.17 158 0.11

Insurance Claim 764 0.74 76 0.05

FX Forward Contract 84 0.08 (162) (0.11)

Operating Expenses (2,950) (2.86) (2,987) (2.11)

EBITDA 285 0.28 5,097 3.59

Key factor:

Crude Run (KBD) 86.48 112.94

Exchange Rate (THB/USD) 32.63 34.40

Avg. Dubai Price (USD/BBL) 96.66 50.84

Financial Performance: Marketing BU (Company)

44

Q4/14 Q3/15 Q4/15

THB Million Baht/L THB Million Baht/L THB Million Baht/L

Net Retail Margin 722 0.93 781 0.97 998 1.17

Net Industrial Margin 176 0.32 112 0.24 257 0.48

Net Marketing Margin 898 0.67 893 0.70 1,255 0.90

Other Income 250 0.19 230 0.18 254 0.18

Operating Expenses (769) (0.58) (566) (0.44) (927) (0.67)

EBITDA 379 0.28 557 0.44 581 0.42

Sales Volume KBD ML/Mo KBD ML/Mo KBD ML/Mo

- Retail 53 259 55 268 58 284

- Industrial 38 186 32 156 37 179

Total Sales Volume 91 445 87 424 95 463

Financial Performance: Marketing BU (Company)

45

FY14 FY15

THB Million Baht/L THB Million Baht/L

Net Retail Margin 2,943 0.98 3,255 0.99

Net Industrial Margin 619 0.31 880 0.41

Net Marketing Margin 3,562 0.71 4,134 0.76

Other Income 949 0.19 1,071 0.20

Operating Expenses (2,280) (0.46) (2,664) (0.49)

EBITDA 2,231 0.45 2,541 0.47

Sales Volume KBD ML/Mo KBD ML/Mo

- Retail 52 251 57 274

- Industrial 34 166 37 177

Total Sales Volume 86 417 93 451

Financial Performance: Solar Business

46


Revenue 780 731 752

Gross Profit 620 570 563

Other Income/(Other Expense) 4 5 187

Operating Expense (5) (5) (23)

EBITDA 740 692 865

Electricity Sales (MM kWh) 67.30 63.88 66.40

YoY% QoQ%

-4% 3%

-9% -1%

N/A N/A

376% 336%

17% 25%

-1% 4%

Financial Performance: Solar Business

47


Revenue 2,692 3,010

Gross Profit 2,132 2,340

Other Income/(Other Expense) 28 205

Operating Expense (25) (41)

EBITDA 2,572 3,005

Electricity Sales (MM kWh) 231.53 263.61

YoY%

12%

10%

635%

64%

17%

14%

Financial Performance: Biodiesel BU (BBF)

48


Revenue 1,535 1,326 1,423

Gross Profit 86 57 109

Other Income/(Other Expense) 0 1 1

Operating Expense (13) (9) (15)

EBITDA 89 64 109

Average Production Rate (K. Litre/Day)

366 366 367

YoY% QoQ%

-7% 7%

26% 90%

107% -2%

17% 65%

23% 71%

0.1% 0.2%

Financial Performance: Biodiesel BU (BBF)

49


Revenue 5,316 5,414

Gross Profit 280 318

Other Income/(Other Expense) 0 8

Operating Expense (40) (43)

EBITDA 298 342

Average Production Rate (K. Litre/Day)

361 365

YoY%

2%

14%

N/A

8%

15%

1%

Disclaimer : The information contained herein is being furnished on a confidential basis for discussion purposes only and only for the use of the

recipient, and may be subject to completion or amendment through the delivery of additional documentation. Except as otherwise provided herein, this

document does not constitute an offer to sell or purchase any security or engage in any transaction. The information contained herein has been

obtained from sources that The Bangchak Petroleum Public Company Limited (“BCP”) considers to be reliable; however, BCP makes no representation

as to, and accepts no responsibility or liability for, the accuracy or completeness of the information contained herein. Any projections, valuations and

statistical analyses contained herein have been provided to assist the recipient in the evaluation of the matters described herein; such projections,

valuations and analyses may be based on subjective assessments and assumptions and may utilize one among alternative methodologies that produce

differing results; accordingly, such projections, valuations and statistical analyses are not to be viewed as facts and should not be relied upon as an

accurate representation of future events. The recipient should make an independent evaluation and judgment with respect to the matters contained

herein.

Thank [email protected]. +662 335 4580, 335 4583

www.bangchak.co.th

click Investor Relations

The Bangchak Petroleum PLC - listed...

Documents

Transcript of The Bangchak Petroleum PLC - listed...