Operating profit is arrived at after charging/(crediting) the following:

Transcription

1 Financial Statement SINGAPORE PETROLEUM COMPANY LIMITED 1 UNAUDITED RESULTS FOR THE FIRST QUARTER ENDED 31 MARCH 2004 The Directors of Singapore Petroleum Company Limited (SPC) advise the following unaudited results of the Group for the first quarter 31 March (a) GROUP INCOME STATEMENT 31/03/04 31/03/03 S$'000 +/()% Revenues 953, , Other operating income 5,110 4, Changes in refined petroleum products (24,455) (24,571) (0.5) Crude oil and other inventories used (682,500) (579,999) 17.7 Cost of refined petroleum products traded (170,211) (216,816) (21.5) Salaries and employee benefits (4,089) (4,662) (12.3) Depreciation and amortisation expenses (10,330) (9,311) 10.9 Other operating expenses (22,795) (25,328) (10.0) Operating profit 43,946 20, Finance income Finance costs (2,270) (2,183) 4.0 Share of results of associates and joint ventures 1, Profit before tax 44,016 19, Tax (2,009) (4,036) (50.2) Profit from ordinary activities before minority interests 42,007 15, Minority interests 23 N.M. Profit after tax attributable to the members of the Company 42,007 15, ======== ======= Notes: (i) Operating profit is arrived at after charging/(crediting) the following: 31/03/04 31/03/03 S$'000 +/()% Investment income (551) (126) Other income including interest income (149) (189) (21.2) Interest on borrowings 2,270 2, Write down of inventories to net realisable value 1,589 14,704 (89.2) Foreign exchange gain (643) (985) (34.7) Gain on disposal of investments (85) N.M. (ii) (iii) (iv) (v) There was no provision for doubtful debts nor bad debts written off during the period and during the corresponding period of the preceding year. There was no impairment of investments during the period and during the corresponding period of the preceding year. There were no adjustments for under or overprovision of tax in respect of prior years during the period and during the corresponding period of the preceding year. There was no disposal of properties, plant or equipment during the period and during the corresponding period of the preceding year.

2 (vi) There were no exceptional items nor extraordinary items during the period and during the corresponding period of the preceding year. (vii) Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current period. 1(b)(i) BALANCE SHEETS Group Company 31/03/04 31/12/03 31/03/04 31/12/03 S$ 000 S$ 000 S$ 000 S$ 000 Current assets Cash and cash equivalents 46,058 55,432 14,375 28,399 Receivables 371, , , ,646 Inventories 202, , , ,047 Other assets 12,312 16,745 11,681 5,981 Other investments 9,323 4,438 9,323 4, , , , ,511 Noncurrent assets Investments in associates and joint ventures 106, ,458 58,238 58,238 Investments in subsidiaries 126, ,548 Other investments 5,023 4,617 1,025 1,025 Property, plant and equipment 632, , , ,792 Loan to an investee company 49,770 50, , , , ,603 Total assets 1,435,466 1,441,796 1,422,464 1,331,114 Current liabilities Trade and other payables 317, , , ,680 Borrowings 393, , , ,035 Provision for current income tax , , , ,715 Noncurrent liabilities Borrowings 35,000 40,000 35,000 40,000 Provision for retirement benefits 5,245 5,178 5,245 5,178 Provision for deferred income tax 52,419 51,977 37,336 37,335 Deferred liabilities ,840 97,331 77,581 82,513 Total liabilities 804, , , ,228 Net assets 631, , , ,886 Share capital and reserves Share capital 213, , , ,337 Share premium 72,681 72,402 72,681 72,402 Capital reserve 1,182 1,182 Foreign currency translation reserve (56) Retained earnings 344, , , , , , , ,886

3 1(b)(ii) GROUP S BORROWINGS AND DEBT SECURITIES Amount repayable in one year or less, or on demand As at 31/03/04 As at 31/12/03 Secured Unsecured Secured Unsecured S$ 000 S$ 000 S$ 000 S$ , ,519 Amount repayable after one year As at 31/03/04 As at 31/12/03 Secured Unsecured Secured Unsecured S$ 000 S$ 000 S$ 000 S$ ,000 40,000 Details of any collateral

4 1(c) CONSOLIDATED CASH FLOW STATEMENT 31/03/04 31/03/03 S$'000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax and after share of profits less losses of associates and joint ventures 44,016 19,148 Adjustments for: Depreciation of property, plant and equipment 10,330 9,311 Dividend income (551) (126) Interest income (149) (189) Interest expense 2,270 2,183 Share of profits less losses of associates and joint ventures (1,640) (791) Gain on disposal of investments (85) Operating cash flow before working capital changes 54,276 29,451 Changes in operating assets and liabilities: Receivables (15,902) (11,807) Inventories 6,128 (36,981) Other assets 4,433 Payables (19,016) 2,132 Foreign currency translation (320) 350 Cash generated from/(used in) operations 29,599 (16,855) Income tax paid (1,125) (3,224) Net cash generated from/(used in) operating activities 28,474 (20,079) ======= ======= CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment (2,112) (10,256) Dividends received Interest received Acquisition of other investments (5,675) (1,688) Proceeds from sale of other investments 620 Loan to an investee company 351 (1,334) Net cash used in investing activities (6,844) (12,366) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from share issue 993 (Repayment of)/proceeds from shortterm borrowings (30,734) 64,652 Interest paid (1,706) (2,183) Net cash (used in)/generated from financing activities (31,447) 62,469 (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (9,817) 30,024 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 55,432 47,167 CASH AND CASH EQUIVALENTS AT END OF PERIOD 45,615 77,191 ======= ======= Cash and cash equivalents included in the cash flow statement consists of the following Balance Sheet amounts: Bank balances, deposits and cash 46,058 77,291 Bank overdraft (443) (100) 45,615 77,191 ======= =======

5 1(d)(i) STATEMENT OF CHANGES IN EQUITY Group Share Capital Share Premium Capital Reserve S$ 000 Foreign Currency Translation Reserve Retained Earnings Total Balance as at 1 January ,337 72,402 1, , ,862 Net gain recognised in income statement Net loss not recognised in income statement Issue of share capital (730) 42,007 42,007 (730) 993 Balance as at 31 March ,051 72,681 1,182 (56) 344, ,132 Balance as at 1 January ,756 72,155 1,182 3, , ,770 Net gain recognised in income statement 15,135 15,135 Balance as at 31 March ,756 72,155 1,182 3, , ,905 Company Share Capital Share Premium Capital Reserve S$ 000 Foreign Currency Translation Reserve Retained Earnings Total Balance as at 1 January ,337 72, , ,886 Net gain recognised in income statement Issue of share capital ,042 38, Balance as at 31 March ,051 72, , ,921 Balance as at 1 January ,756 72,155 (642) 182, ,377 Net gain recognised in income statement 11,421 11,421 Balance as at 31 March ,756 72,155 (642) 193, ,798

6 1(d)(ii) SHARE CAPITAL During the first quarter of 2004, the Company issued and alloted 1,429,000 ordinary shares of $0.50 each upon the exercise of options granted under the SPC Share Option Scheme The share capital of the Company as at 31 March 2004 was 426,102,398 ordinary shares of $0.50 each. As at 31 March 2004, there were unexercised options for 9,490,000 ordinary shares of $0.50 each under the SPC Share Option Scheme AUDIT The figures have not been audited nor reviewed. 3. AUDITORS REPORT 4. ACCOUNTING POLICIES The Group has applied the same accounting policies and methods of computation in the financial statements for the current financial period compared with those of the audited financial statements as at 31 December CHANGES IN THE ACCOUNTING POLICIES None. 6. EARNINGS PER ORDINARY SHARE (CENTS) 31/03/04 GROUP 31/03/03 +()% Earnings per Ordinary Share of the Group based on net profit attributable to shareholders and on the weighted average number of shares on issue: (i) Basic (ii) Diluted NET ASSET VALUE GROUP 31/03/04 31/12/03 COMPANY +/()% 31/03/04 31/12/03 +()% Net asset value per Ordinary Share (cents) based on issued share capital at the end of the financial period

7 8. REVIEW OF GROUP PERFORMANCE In a favourable economic environment, the SPC Group turned in an outstanding performance for the first quarter of 2004 (1Q2004). China s GDP growth was reported to be 9.7% for the first quarter of Air travel volume, both for passenger and freight, recovered strongly for the quarter under review. The widespread economic recovery in the region resulted in a surge in demand for petroleum products. Refining margins, as a consequence, rose to record levels in January and February. The unprecedented demand for products from China and the region kept product prices high throughout the first quarter. The continuing uncertainties in Iraq and OPEC s determination to protect its crude pricing band through production quota management had also provided support for crude prices at well above US$35.00 per barrel (WTI crude) for the first three months of this year. The robust economic growth in the region enabled the SPC Group to achieve a turnover of $953.2 million for 1Q 2004 which was 8.8% higher than the corresponding 1Q This was due to a 10.9% increase in the volume of crude and products handled and a slightly higher average realisation of US$33.86 per barrel for the quarter. The favorable operating environment in the first quarter enabled the Group to achieve an average refining margin of above US$4.00 per barrel for the first quarter compared to the average of US$2.23 per barrel for FY2003. An operating profit of $43.9 million was recorded for the quarter compared to $20.2 million for the corresponding quarter of 2003, an increase of 117.3%. The Group s activities are segregated into Downstream and Upstream activities. For the first quarter, Downstream activities which encompassed jet fuel sales and the supply, trading and marketing of petroleum products totalled 16.4 million barrels compared to 14.3 million barrels for the corresponding period last year. On this volume, Downstream recorded a total revenue of $944.2 million and an operating profit of $39.1 million. The Group s Upstream activities in the first quarter continued to be focused on the Kakap PSC (Production Sharing Contract). Total oil and gas production for the first quarter was 2,900 boepd (barrels of oil equivalent per day). Upstream contributed $9.0 million in revenues and $4.3 million in operating profits for the first quarter. Realisations for the Upstream oil and gas barrels averaged US$31.00 per boe. Other operating income for the period under review rose due to higher freight income for the quarter under review. Share of results of associates and joint ventures were higher compared to 1Q 2003 due to the relatively better performance of the Group s overseas joint ventures for 1Q Income tax for the quarter was lower relative to the corresponding quarter due to lower provision required as a result of the availability of capital allowances to offset the Group s tax liability and the lowering of the corporate tax rate to 20% announced recently. The three components of cost of goods sold, namely changes in refined petroleum products, crude oil and other inventories used and cost of refined petroleum products traded were in total higher compared to the corresponding period due mainly to the higher volume of products sold in 1Q The SPC Group posted a PATMI of $42.0 million for 1Q 2004, an improvement of 177.5% against the corresponding prior year period. Cash flow/balance sheet review There were no material variances in the Group s cash flow and balance sheet items. Changes in the cash flow and balance sheet components are the result of the Group s normal ongoing operations.

8 9. VARIANCE FROM PROSPECT STATEMENT No variance. 10. PROSPECTS The consensus for the rest of the year appears to be that the current robust economic expansion in the region could be sustained barring any major terrorist act or disease contagion. The economic recovery in the region has resulted in strong petroleum product demand and healthy refining margins. We expect that the general underlying economic trend is likely to be a positive one going forward. The SPC Group has recently announced that together with ChevronTexaco, it will acquire BP s refining interests in Singapore. The additional share of refining capacity represented by this acquisition will enable the Group to take full advantage of the strong and growing demand for petroleum products in the region. The acquisition, to be effective from the third quarter of 2004 onwards, will result in the Company having higher inventory and hence greater exposure to movement in oil prices. The Company, however, has taken steps to manage this. The Group is, therefore, positive about its prospects in the next 12 months. 11. DIVIDEND (a) Current Financial Period Reported On Any dividend recomm for the current financial year reported on? None (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? None (c) Date payable (d) Books closure date 12. If no dividend has been declared/recomm, a statement to that effect

9 13. INTERESTED PERSONS TRANSACTION Name of Interested Person Aggregate value of all interested person transactions during the financial period under review (excluding transactions less than $100,000 and transactions conducted under shareholders mandate pursuant to Rule 920) The Group Aggregate value of all interested person transactions conducted under shareholders mandate pursuant to Rule 920 (excluding transactions less than $100,000) 31/03/04 31/03/03 31/03/04 31/03/03 S$ 000 S$ 000 S$ 000 S$ 000 A Transactions for the Sales of Goods and Services 1 Keppel Corporation Group PSA Corporation Group SempCorp Marine Group 3,273 2,890 4 Singapore Airlines Group 56,099 65,329 5 Power Seraya/Senoko Power Group 6 SembCorp Industries Group 12,140 18,041 7 Temasek Holdings Group (other than the above) 72,819 87,203 B Transactions for the Purchase of Goods and Services 8 PSA Corporation Group 3,322 2,884 C Treasury Transactions 9 Keppel Corporation Group 2 D Management and Support Services 10 Keppel Corporation Group ,266 90,214 BY ORDER OF THE BOARD Helen Chong/Lam Chee Kin Secretaries 21 April 2004