4Q 2014 Analyst Presentation

Transcription

1 March 5, Q 2014 Analyst Presentation This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ materially due to changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in Item 1A of ExxonMobil s latest report on Form 10-K or information set forth under "factors affecting future results" on the "investors" page of our website at This material is not to be reproduced without the permission of Exxon Mobil Corporation.

2 Business Strategies 2

3 4Q14 Macro Environment Thailand GDP grew approximately 2.3% year-on-year Government revised LPG pricing structure effective from February 2 nd Dubai crude oil price decreased by $36/bbl Industry gross refining margins improved with the sharp decline in crude oil prices Thailand industry retail market grew by 4% year-on-year 3

4 4Q14 Business Highlights Crude run of 113 KBD with a negative gross refining margin of $14.6/bbl Paraxylene production of 56 Kton Planned shutdown of units at Sriracha for 46 days ending on Nov 5 th Energy efficiency projects completed as planned 24 new service stations opened as of year-end

5 Operating Performance Industry Gross Refining Margin ($/bbl) Crack Spread ($/bbl) Crude Intake (KBD) Gross Refining Margin ($/bbl) Dubai ($/bbl) (Dubai crude oil price at the quarter-end) Industry GRM and Crack Spread Source: Reuters 5

6 Operating Performance Crude Intake by source Refinery Production 24% 21% 0% 3% 33% 52% 44% 24% FY2013 FY2014 Caspian West African Far East Middle East 5% 5% 3% 5% LPG 18% 20% Naphtha 36% 38% 8% 1% 1% 7% 9% 10% 17% 16% FY2013 FY2014 Gasoline Diesel Jet/Kerosene Asphalt Fuel Oil Feedstock & other Sales Channel 15% 14% 37% 38% 48% 48% Export Retail Commercial Processed higher levels of Far East crude, reflecting economics and catalyst management in the hydrofiner unit Higher medium yields from Far East crude; maintained heavy yields even with impacts from planned and unplanned shutdowns FY2013 FY2014 Sales channel performance improved with greater proportion of retail sales 6

7 Operating Performance Px Spread ($/Ton) Px Production (K Ton / quarter) Q 14 4Q AVG Q 14 4Q 14 AVG 2014 PX-UGP PX-MX FY 2013 : 324 K Ton FY 2014 : 254 K Ton Paraxylene spreads declined with weaker industry Px-UGP / Px-MX spreads due to excess capacity in the region Production levels were lower due to planned shutdown of 46 days that completed on Nov 5 th 7

8 Refinery Investment Plans Completed key energy efficiency projects during planned shutdown Improved Energy Intensity Index by 1.5% Completed modification for capacity improvement of direct feeds into conversion unit; expected to start up in 1H

9 Marketing Business Performance Service Stations offering Premium ADO Service Stations offering E YE 2013 YE Plan YE 2013 YE Plan New Service Stations Mobil 1 Centers Plan YE 2013 YE

10 Comprehensive Income Key Income Statement Indicators Comprehensive Income Factor Analysis Key contributing factors to changes in comprehensive income Refining and Marketing: impact from stock loss in 2014 vs a stock gain in 2013, combined with lower industry gross refining margins Chemical: impact from lower paraxylene margins Other: reflects a payment for a customs fine paid following a Supreme Court ruling against the company Note: All units are in Billion Baht 10

11 Financial Position and Cash Flows Balance Sheet Indicators Use of Funds Source of Funds D/E 1.5 D/E 2.9 Use of Funds Decrease driven by lower account receivables and inventory value Source of Funds Decrease mainly driven by 2014 loss, partly offset by higher debt Debt was Baht 35.7 billion, an increase of Baht 1.3 billion. Debt to Equity increased with the higher debt levels and lower shareholders equity resulting from loss Cash Flow Payables Level Cash Flow Financing activities primarily reflects incremental borrowing Cash from operating activities mainly reflects the 2014 loss Decline in payables due to lower crude payable from declining crude price 11

12 2015 Business Plan Service Station offering Premium ADO/E20 New Service Station Plan Premium Diesel Supreme Gasohol E Plan Refinery & Petrochemical Continue to focus on reliability, cost savings, and energy efficiency enhancement Margin enhancement and capacity utilization improvement projects Energy saving and crude cost reduction initiatives Marketing High margin products focus and sales channels Expansion of 30 new sites in 2015 Expand offering of premium products to all sites for E20 and to 200 sites for premium ADO Strengthen alliance offerings to optimize non-fuel income Continue to expand network of Mobil 1 Centers 12

13 Summary Maintain focus on operational excellence Execute energy efficiency and margin enhancement projects Expand Retail network and premium product offerings Leverage strong financial rating with support from parent 13