4Q & FY2015 Analyst Presentation. March 3, 2016

Transcription

1 4Q & FY215 Analyst Presentation March 3, 216

2 1 Macro Environment Thailand GDP grew 2.8% in fourth quarter and 2.8 % in 215 Dubai oil price decreased by $25.7/bbl in 215, including a $1.8/bbl decline in the fourth quarter Industry refining margins remained strong during the year and strengthened in the fourth quarter PX margins improved slightly in the fourth quarter but excess capacity negatively impacted full year margins Thailand Industry retail market grew by 9% year-on-year

3 2 Business Highlights Refinery achieved full-year flawless operations with an average crude run of 142 KBD in 4Q15 and 14 KBD for 215, 1 KBD higher than 214 4Q15 Gross Refining Margin was $4.2/bbl, an increase from negative $.9/bbl in the 3Q15; Full year gross refining margin was $4.7/bbl, an increase of $8.27/bbl compared to 214 including impact of stock gains/losses Retail Network expanded to 541 sites with premium ADO at 24 sites and E2 at 4 sites Cash generated from operating activities in 215 was Baht 6.9B, reflecting the strong financial and operating performance

4 Operating Performance Industry Gross Refining Margin ($/bbl) 25. Crack Spread ($/bbl) UGP ADO Q Q 15 4Q Q Q 15 4Q Crude Intake (KBD) Gross Refining Margin ($/bbl) Q Q 15 4Q Q Q 15 4Q Industry GRM and Crack Spread Source: Reuters Dubai ($/bbl) (Dubai crude oil price at quarter-end) 3

5 Operating Performance Crude Intake by source Refinery Production 21% 3% 52% 24% 1% 2% 55% 32% Caspian West African Far East & South East Middle East 15% 18% Feedstock 28% 27% 45% 45% 11% 1% Light Middle Heavy FY214 FY215 Sales Channel FY214 FY215 Processed higher levels of less-expensive crudes (Middle East and South East ) reflecting effective catalyst management and streamlined operations 14% 13% 38% 38% 48% 49% FY214 FY215 Export Retail Commercial Higher feedstock and lower heavy yield production from improved crude diversification and successful efforts to produce higher- margin products Greater proportion of commercial sales with reduction in exports 4

6 5 Operating Performance Px Spread ($/Ton) Px Production (KTon / quarter) Q 14 3Q 15 4Q Q 14 3Q 15 4Q PX-UGP PX-MX Paraxylene spreads decreased from the same period as last year; industry conditions remained challenging due to excess capacity in the region 215 Paraxylene Production was 244 Kton, a decrease of 1Kton versus 214.

7 Marketing Business Performance Service Stations offering Premium ADO Service Stations offering E Total Service Stations Mobil 1 Centers

8 Comprehensive Income Sales Revenue Interest Expenses FY 214 FY 215 FY 214 FY 215 EBITDA Net Profit/(Loss) FY 214 FY 215 FY 214 FY 215 (9.7) 7 (1.3)

9 8 Financial Position Cash Receivables.4 19 Non-current Assets Balance Sheet Indicators Inventory Other current Asset D/E D/E Shareholder's Equity Debt Payables Others Decrease in assets driven by lower inventory value Decrease in liabilities driven by lower debt and crude payables Debt to equity decreased with lower debt and higher shareholders equity Cash Flow (1.) 214 (1.1) 215 (6.3) (.8) Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash flow from operating activities reflects strong operating performance Cash flow used in investing activities include investments for capacity maintenance and retail network enhancement Financing activities reflect repayment of debt

10 216 Focus Areas Refining and Petrochemical Manufacturing Maintain high reliability and capture cost savings and energy efficiencies Execute margin enhancement and capacity utilization improvement projects Progress energy saving and crude cost reduction initiatives Marketing Expand retail network with 3 new sites and increase offering of premium products Introduce Esso Loyalty program 215 Projects Further strengthen alliance offerings to optimize non-fuel income Increase sales of high-value branded passenger vehicle lubes in target sectors Expand distribution of lubes products in Mobil 1 Centers and multi-branded outlets Strengthen capability and capacity of lubes distributor network 9