Tipco Asphalt Public Company Limited (TASCO) 3-2018 Analyst meeting 16 th August 2018
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Agenda 1 Q2 2018 Financial Performance 2 Q2 2018 Highlights 3 H2 2018 Outlook 4 Q&A
Q2 2018 Financial Performance : Sales & Services Revenue vs. Sales Volume Sales & Services Revenue Unit: Mil. THB 5,263 8,350 5,7668,212 5,164 6,535 28,260 Sales and services stood at Baht 5,766 million, reflecting a decrease of 29.8% from the same period of last year This reduction was mainly attributable to the significant drop in total sale volume Q1 Q2 Q3 Q4 Year 2018 2017 Sales Volume Unit: Mil. Ton 0.32 0.53 0.60 0.34 0.37 0.41 Q1 Q2 Q3 Q4 Year 2018 2017 1.90 Decrease in sales volumes was mainly due to decrease in international markets The reduced production was result of operations delay of crude supply and refinery planned shut down for maintenance in June 2018
Q2 2018 Financial Performance : Operating Gross Profit Operating Gross Profit Unit: Mil. THB 1,570 607 518 943 619 747 Q1 Q2 Q3 Q4 Year 11.5% 18.8% 9.0% 2018 2017 3,478 6.6% 12.0% 11.4% 12.3% Cost of sales and services in the 2 nd quarter 2018 stood at Baht 5,059 million or 87.7% (90.2% in corresponding quarter in 2017) of sales and services before the allowance for diminution in value of inventory and hedging The improvement of gross margin was mainly due to increase in selling price of asphalt products together with low inventory crude cost brought forward from the 1 st quarter. Brent price increased from USD 69.93/bbl at the end of March 2018 to USD 78.16/bbl at the end of June 2018
Q2 2018 Financial Performance : EBITDA & Net Profit EBITDA Unit: Mil. THB 162 1,811 588 850 730 1,123 Q1 Q2 Q3 Q4 Year Net Profit After Tax Unit: Mil. THB 304 1,237 121 2018 2017 344 402 554 Q1 Q2 Q3 Q4 Year 2018 2017 4,514 2,537 The Group s cashflow generated from operations stood at Baht 588.6 million compared to Baht 850.41 million in corresponding period in 2017 due to the decrease in sales volume during 2 nd quarter of 2018 as compared to corresponding period of 2017 The Net Profit After Tax of Baht 121 million for the 2 nd quarter 2018 represented earning per share of Baht 0.08 (par value of Baht 1 each) as compared to Baht 0.22 per share in corresponding quarter of 2017
Q2 2018 Financial Performance : Debt to Equity Ratio Debt/Equity Ratio 0.47 0.54 0.68 0.06 0.03 0.03 Q2 2017 Q1 2018 Q2 2018 Total liabilities/total equity LT debt/total equity The Group s consolidated debt to equity ratio (D/E ratio) remained low at 0.68 comparing to 0.47 in corresponding period of 2017 due to increase in working capital financing
Q2 2018 Financial Performance : Key Ratios and Historical Dividend Return on Equity 1/ Unit: % 2018 2017 Return on Asset 2/ Unit: % 2018 2017 25.9 23.4 24.3 12.3 11.2 20.3 20.0 19.5 19.9 9.1 8.5 15.6 Q1 Q2 Q3 Q4 1/ Return is based on sum of last 12 months net profit Historical Dividend Unit: Baht per share 0.00 Payout ratio 0.13 0.00 0.10 0.20 27% 45% 0.90 0.90 74% 1.20 Q1 Q2 Q3 Q4 2/ Return is based on sum of last 12 months net profit Return is based on profit before interest and tax TASCO has still been qualified in SET High dividend ( SET HD ) since H2 2016 up to H2 2018 2010 2011 2012 2013 2014 2015 2016 2017
Q2 2018 Highlights Crude 4 crude cargoes have been received year to date July 18 Domestic Market Sales volume Q2 was lower than Q1 but still comparable to Q2 2017 However, margin was slightly affected due to strong competition International Market Sales volume Q2 was higher than Q1 due to crude receipt has improved slightly, but still much lower than to Q2 2017 New JV in Laos started trading business
Highlights - Refinery Damaged Tank Farm in KBC/KOC Unaffected tanks but wait for integrity test Partially damaged Unaffected and available - KBC had been shutdown from 2 Mar - 3 Apr and 17 Jun - 5 Jul 2018 - On evening 5 Jul 2018, a fire broke out and damaged 3 crude tanks in crude oil tank farm area at KBC - The fire was completely extinguished within 38 hours on 7 July 2018 morning - There was no fatality nor environmental damage. Refining facilities, product tanks and 5 other crude tanks are not affected as the fire was well contained from spreading Storage capacity - m 3 / barrel - 3 damaged tanks 101,030 / 635,500-3 other tanks (wait for integrity test) 135,080 / 849,630-2 available tanks 120,000 / 755,000 Total (8 tanks) 356,110 / 2,240,130 - The 3 affected tanks storage accounted for 635,500 barrels out of 2,240,130 barrel storage capacity - The refining operations has resumed since 30 Jul 2018 - Insurance policies cover the fire damages including assets, inventories, and business interruptions up to 24 months
Asphalt Selling Price vs. Ice Brent Price Unit: USD/barrel 120.0 100.0 80.0 60.0 40.0 20.0 109.7 103.4 89.5 94.2 90.9 77.1 80.1 55.2 70.1 63.5 Avg. asphalt selling price Avg. Ice Brent price 60.0 57.3 45.8 46.9 47.1 51.1 54.7 50.9 52.2 51.2 53.8 45.3 48.2 44.7 38.0 34.7 37.4 38.5 61.5 57.9 67.2 74.9 62.2 63.6 0.0 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
Highlights : Asphalt Volume & Asphalt Revenue Structure Asphalt sales volume concentration by market Unit: % Domestic International 0.60 0.33 0.34 Mil tons Mil tons Mil tons 83% 17% Asphalt Revenue (Exc. Non asphalt & service income) Unit: % Domestic International 77% 23% 55% 72% 45% 28% Q2 2017 Q1 2018 Q2 2018 6.96 Bil. Baht 4.45 Bil. Baht 4.61 Bil. Baht 51% 68% 49% 32% Q2 2017 Q1 2018 Q2 2018 Main International Markets China Malaysia Australia Vietnam Indonesia
H2 2018 Outlook Refinery and Marine Crude Confirmed target for 9 crude cargos in 2018 Refinery Since the fire incident on 5 th July, the Refinery has resumed processing from 30 July 2018 and ready to take the next delivery of crude in August
H2 2018 Outlook Domestic & International market Domestic Market Domestic price has increased to catch up with the Brent price increased during late Q2 Q3 sales is expected to remain unchanged, but Q4 sales will benefit from 2019 government budget spending expected to start in October International Market ; International market sales is expected to increase due to the availability of crude/products Indonesia, one of main market, will enter in high working season
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