Thai Oil Public Company Limited

Transcription

1 -1- Thai Oil Public Company Limited Q2/2014 Financial Result Conference Call 7 & 8 Aug 2014 For Thai Analysts & Investors: : / pin code # ( PM) For Foreigner Investors: / pin code # ( AM)

2 Disclaimer -2- The information contained in this presentation is intended solely for your personal reference. Please do not circulate this material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any action in reliance upon it.

3 Q2/14 Business Highlights -3- Macro-economies / Industry Highlights Surge in diesel export from CN as weak local demand offset limited regional supply from refinery maintenance $4/bbl rise in Dubai crude price as escalating violence in Iraq, Libya, Ukraine & Russia New PX capacities & slow CN polyester demand continued pressure But downside capped by run cut in N.Asia Tight Base oil supply due to plants maintenance in CN, while soften regional bitumen demand Business Highlights Soften Market GRM Stock Gains from rising Dubai Weak Aromatics spread Soften Bitumen spread offset improving Base Oil margins Financial Highlights Refinery : 94% u-rate (CDU-3 MTA started from 15 Jun 2014) Capture domestic sale 86% Aromatic/Base Oil : Optimized run at 79% / 99% (Aromatic unit MTA started from 15 Jun 14) Power : Higher u-rate & power sales from GPSC, while lower TP u-rate as MTA in TOP/TPX Marine : Fully utilized crew boat fleet offset VLCC dry dock Solvent : Higher sales volume both local & international Ethanol : Lack of gov t policy supporting cassava-based ethanol pressured production & selling prices Gain from commodity hedging ~ 593 MB Slightly gains from FX as THB stable ~ 291 MB Higher effective tax rate at 17 % in Q2/14 ( ~ 1H/14 effective tax rate is 12% ) Affirmed credit ratings : S&P :BBB, Moody s : Baa1, Fitch : AA- (Tha)

4 *redeemed BOI privilege for tax exemption on environmental projects in Q1/14 = 265 MB, Q2/14 = 59 MB, 1H/14 = 324 MB ** Cracking SIN GRM from Reuters based on product yield of LPG 3%, MOGAS 31%, Naphtha 7%, Jet 18%, GO 16%, FO 22%. Adj Cracking SG GRM assuming 3% F&L of Dubai crude cost Q2 & 1H/14: Group s Earnings -4- Unit : million THB Top Group Net Profit NP w/o Stock G/L Stock G/(L) LCM Before tax Gross Refining Margin - GRM $/bbl Q1/14 Q2/14 1H/14 Q1/14 Q2/14 1H/14 Marketing GRM ,534* MB 2,094* MB 4,628* MB Stock Gain/(Loss) (1.7) 1.4 (0.2) Accounting GRM Cracking SIN GRM** Adj Cracking SG GRM ** ,967 1,074 4,975 Gross Integrated Margin - GIM $/bbl Q1/14 Q2/14 1H/14 1,020 Aromatics Lube base , Marketing GIM Accounting GIM

5 Performance Breakdown Q2/14: Performance Breakdown -5- Refinery Aromatic Production Lube Base Production IPT Plant Availability TP Plant SAKC Ship Sapthip Mae Sod UBON 130% 138% 94% 102% 79% 87% 99% 105% 100% 99% 87% 83% 91% 84% 90% 75% 68% 67% 63% 65% Q2/14 Q2/13 Acc GRM ($/bbl) P2F ($/ton) P2F ($/ton) Q2/ Q2/ Q1/14 Q2/14 Net Profit Breakdown (include stock gain / loss) ** 32.39% holding TOP/ TPX : lower intake due to CDU-3 Major Turnaround and aromatics complex planned maintenance from 15 June 2014 GPSC: Higher u-rate as IPT s resumption from its Q1/14 S/D & higher power sales TP: lower u-rate QoQ as MTA in TOP/TPX TS: higher sales as rising domestic and international solvents demand TM: crew boats were fully operated while VLCC has been dry docked in Jun 14 TET: lower sales volume as lack of gov t policy supporting cassava-based ethanol 74% holding Stock G/(L) & LCM Q2/14* Net Profit excl. stock G/(L)* 1,729 (397) (13) 2,094 4,638 (1,094) 3 82 (3) (8) 3,643 (200) (236) (100) 125 (14) 8 24 (77) (440) ** Apply on an equity accounted basis in the consolidated financial statement.(gpsc has been hold by TOP 11.88% and TP 27.71% since 10 Jan 13) ***TP performance only (excluding 27.71% shares of profit from the investment in GPSC). TOP hold TP 74% since 4 Dec 12 *** Conso. = 1,074 MB = 1,020 MB *before tax (Unit: million THB) NP YoY QoQ

6 Performance Breakdown 1H/14: Performance Breakdown -6- Refinery Aromatic Production Lube Base Production IPT Plant Availability TP Plant SAKC Ship Sapthip Mae Sod UBON 99% 101% 87% 84% 100% 101% 89% 87% 78% 85% 132% 133% 94% 83% 84% 70% 100% 79% 73% 58% 1H/14 1H/13 Acc GRM ($/bbl) P2F ($/ton) P2F ($/ton) H/ H/13 TOP/ TPX: lower intake due to CDU-3 Major Turnaround and aromatics complex planned maintenance from 15 June 2014 GPSC: Higher u-rate as IPT s resumption from its Q1/14 S/D & higher power sales TP: lower u-rate QoQ as MTA in TOP/TPX TS: higher sales as rising domestic and international solvents demand TM: crew boats were fully operated while VLCC has been dry docked in Jun 14 TET: lower sales volume as lack of gov t policy supporting cassava-based ethanol 1H/14 Net Profit Breakdown (include stock gain / loss) ** 32.39% holding 74% holding Stock G/(L) & LCM 1H/14* Net Profit excl. stock G/(L)* 3,658 (558) ,628 3,984 (2,142) (5) ,950 *** Conso. = (347) MB = 4,975 MB *before tax (Unit: million THB) NP YoY ** Apply on an equity accounted basis in the consolidated financial statement.(gpsc has been hold by TOP 11.88% and TP 27.71% since 10 Jan 13) ***TP performance only (excluding 27.71% shares of profit from the investment in GPSC). TOP hold TP 74% since 4 Dec 12

7 Financial Consolidated Financial Performance -7- (US$/bbl) Q2/14 Q1/14 Q2/13 R QoQ+/(-) Marketing GRM (0.7) Marketing GIM (1.0) Accounting GIM H/14 1H/13 R YoY+/(-) (0.3) (1.6) (0.5) (million THB) Sales Revenue 101, ,228 93,233 (11,165) EBITDA 4,467 4,102 e 3, Financial Charges 1, FX G/(L) & CCS (2,764) (401) Tax Expense Net Profit / (Loss) 2,094 2,534 (1,549) (440) 213, ,123 15,168 8,569 7, ,969 1, (1,047) 2, ,628 1,678 2,950 EPS (THB/Share) (0.76) (0.21) THB/US$ - average (0.22) THB/US$ - ending Effective Tax Rate (%) 17% 8% N/A 9% % 19% (7%) R Restated financial statement. As on 1 January 2014, Thaioil Group adopted Thai Financial Reporting Interpretations Committee 4 (TFRIC4) on determining whether an arrangement contains a lease. e Revised EBITDA *redeemed BOI privilege for tax exemption on environmental projects in Q2/14 = 59 MB, Q1/14 = 265 MB, Q2/13 = None,1H/14 = 324 MB, 1H/13 = 1 MB (from subsidiary)

8 Financial Strong Financial Performance -8- (Unit: million THB) Cash & ST investment Current Assets Non-Current Assets R Restated financial statement as TOP has adopt TFRIC4 since 1 Jan 14 1) Including current portion of Long-Term Debt Net Debt / EBITDA** Policy 2.0x 0.9 Statements of Financial Position 208,662 43, Financial Ratios ,539 39,482 24,406 46,890 83,334 74,199 59,64476,508 81,51394,981 91,00596, Dec 13 R 30 June 14 Net Debt / Equity Policy 1.0x Trade Payable / Others LT Debt 1) Equities Consolidated Long-Term Debt as at 30 Jun 14 1) Total Long-Term Debt 76,508 million THB (US$ 2,347 million) 5% 1% 94% Interest Rate Cost of Debt (Net*) Currency 6% Float 40% THB 94%Fixed THB Bond, 33% Net Debt 30,498 million THB (US$ 936 million) As at 30 Jun 14 (32.60 THB/US$) THB Loan, 7% US$ Bond, 60% 60% USD TOP Group 3.50% 31-Dec Dec Jun Dec Dec Jun-14 *Calculated by interest expense net off interest income as per FS as at 30 Jun 14 ** EBITDA1H/14 (excl stock loss & LCM)*2 Baa1 Stable Outlook BBB Stable Outlook AA- Stable Outlook

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