Thai Oil Public Co. Ltd. · SET:TOP
Thai Oil Public — Investor Presentation (July 2020)
78 slides from Thai Oil Public's investor presentation, Jul 15, 2020
Slide 1: Thai Oil Public Company Limited Presentation to Investors
- 1- Thai Oil Public Company Limited Presentation to Investors June 2020
Slide 2: Disclaimer
-2- - 2- Disclaimer 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. Some statement
Slide 3: Presentation Agenda
-3- - 3- Presentation Agenda TOP GROUP BUSINESS OVERVIEW CRISIS RESPONSE MEASURES KEY FINANCIAL HIGHLIGHTS STRATEGIC INVESTMENT PLANS INDUSTRY OUTLOOK APPENDIX
Slide 4: Strategic Relationship and Operational Integration with PTT
-4- - 4- Strategic Relationship and Operational Integration with PTT Thai Oil’s strong shareholder base • Benefits from PTT’s dual role 6.6% as our major shareholder and key business partner • All transactions take place at arm’s length and in 31.0% 47.0% adherence with strong corporate governance p
Slide 5: TOP Group Synergy & Strategic Role in PTT Group Value Chain
-5- - 5- TOP Group Synergy & Strategic Role in PTT Group Value Chain Upstream Intermediate Downstream Solvent Pentane Hexane Toluene Diversifying to a broad SOLVENTS Mixed-Xylene range of downstream Paraxylene The majority of products to enjoy higher Mixed-Xylene refined petroleum profit margins and
Slide 6: Key Milestones: 59 Years, A Long Track Record of Success
-6- - 6- Key Milestones: 59 Years, A Long Track Record of Success 1961 – 1997 2004 – 2011 Today Capacity expansion and initial stage of business Listing, expansion and A leading integrated refining and diversification diversification petrochemical group in Asia Pacific 1961 1970 2004 • 275 kbd refin
Slide 7: Thai Oil Group Business Structure
-7- - 7- Thai Oil Group Business Structure 100.0% 100.0% 74.0% PTT 26.0% 100.0% 100.0% Thai Paraxylene Thai Lube Base Thaioil Power Thaioil Marine Thaioil Ethanol Thaioil (TOP) (TPX) (TLB) (TP) (TM) (TET) Capacity : Aromatics Capacity: Lube Base Oil Sells Electricity/Steam to • 5 Oil & Chemical Tank
Slide 8: Process Linkage: Beauty of Integration
-8- - 8- Process Linkage: Beauty of Integration PROCESS FLOWCHART Thai Paraxylene ADIP FUEL GAS Thai Oil ISOM LPG 20,000 MX HDT-1 MX 40,000 HDT-2 HDT-3 CCR-1 CCR-2 ULG95 85,000 CDU-1 50,000 CC ULG91 45,000 R KMT-1 CDU-2 KMT-2 JET 50,000 CDU-3 180,00 KEROSENE 0 HVU-1 HVU-2 FCCU 10,40 HDS-2 HVU-3 HVU-
Slide 9: One of Region’s Leading Refineries
-9- - 9- One of Region’s Leading Refineries Total Thailand crude refining capacity 1,257 kbd (1) Market shares for refined petroleum product (3) Thai Oil 22% Share Nameplate Capacity 30% 35% market market Thai Oil (275 kbpd) shares shares PTT’s Principal Refiner BCP (135 kbpd) Esso (177 kbpd) Q1/20
Slide 10: Strategic Location with Competitive Advantages in Access to Key Markets
-10- -10- Strategic Location with Competitive Advantages in Access to Key Markets Access to Indochina markets through deep Close proximity to the key domestic markets water ports and trucks Our strategic location provide us with 1. Close proximity with the key LAOS domestic markets and Indochina Ban
Slide 11: Optimised & Flexible Operations…Superior Performance
Crude & Production -11- Optimised & Flexible Operations…Superior Performance Thai Oil is able to diversify its type of crude intake and product outputs to maximise demand and margin Crude Assays based on Sources of Product Reference Domestic demand for TOP configuration* Crude output Price petroleum
Slide 12: Refinery: High U-Rate and Robust Domestic & CLMV Sales
-12- Refinery: High U-Rate and Robust Domestic & CLMV Sales TOP/ Domestic Refinery Utilization Rate Domestic Oil Demand Unit: % Utilization Rate Mar’20 Mogas Jet/Kero Gasoil Total 120% 116% 113% 112% 113% 111% (yoy) 103% (1) 107% -7.3% -42.3% -4.5% -11.8% 97% 100% KBD 3M/2019 3M/2020 98% 96% 800 -5.
Slide 13: Competitive Performance Benchmarking (Yr 2016 vs 2018)
-13- -13- Competitive Performance Benchmarking (Yr 2016 vs 2018) Solomon for GOC 3(1) Category 2018 : TOP 2016 : TOP Total Operating Expenses, US cents/UEDC Solomon Associates is the independent 3rd Mechanical Maintenance Availability, % Index, US $/EDC party who applies Comparative Performance Anal
Slide 14: Crisis Response Measures
-14- -14- CRISIS RESPONSE MEASURES
Slide 15: 2020 - A Perfect Storm
-15- 2020 - A Perfect Storm COVID-19 & Global Lockdown Oil Price War • Global economy expected to shrink to 3% (1) due to restrictions • March’20 : Failure of OPEC+ agreement on the economic activities GDP GDP GDP GDP • April’20 : Historic 10 mbd production cut deal -5.9% 1.2% -3.5% -6.7% Oil Price
Slide 16: Impact on Thaioil
-16- Impact on Thaioil Impact on TOP • Huge stock loss from sharp oil price drop, down 48% from $65/bbl in Dec’19 to $34/bbl in Mar’20 • However, resetting crude cost to low level going forward, especially from low benchmark prices & OSP discount • Lower petroleum demand pressuring GRM/GIM • Inabili
Slide 17: Crisis Response Measures
-17- Crisis Response Measures People First Care for people (staffs, stakeholders, community) - Proactive staff & contractors health & safety precaution - Business continuity management - Community & social contribution Business Excellent Management – Last Man Standing - Operation & commercial optimi
Slide 18: People First
-18- People First Employee Health Protection and BCM Social Contribution Care for Employee Health • Thaioil CSR program support medical staffs • Establish I-COVID Center and communities with • Monitor & communicate COVID hygiene equipment situation with staffs including protective suits PAPR, cloth
Slide 19: Business Excellence - Last Man Standing
-19- Business Excellence - Last Man Standing Operation & Commercial Optimisation & Flexibility Productivity Improvement & Cost Control • More operational efficiency Optimise Intake Optimise Production Optimise Sales • More Hydrocarbon Management Review (HMR) Crude procurement Minimise Jet Maximise e
Slide 20: Capitalize on the Rebound – Agile & Flexible
-20- Capitalize on the Rebound – Agile & Flexible Business People & Digital Platform Crude Processing Optimisation People • Increase crude stock for operational flexibility by • Fully prepared for the new normal utilizing our newly constructed crude tank Digital Platform Product Sales Strategy • WFH
Slide 21: Key Financial Highlights
-21- -21- KEY FINANCIAL HIGHLIGHTS
Slide 22: Q1/20 Key Market Highlights
-22- Q1/20 Key Market Highlights Crude Oil (Dubai fell to $33.7/bbl from $64.9/bbl) Dubai ($/bbl) (ending price) 66.9 64.9 • Saudi-Russia oil price war in March’20 after OPEC+ failed to agree on production cut • A significant drop in global oil demand due to COVID-19 outbreak 33.7 • Massive Surplus
Slide 23: Q1/20 Key Business Highlight & Financial Performance
-23- Q1/20 Key Business Highlight & Financial Performance Key Business Highlight TOP Group Net Profit Operational Q1/19 Q4/19 Q1/20 Unit :Million THB (MB) • Maintain high and reliable production U-Rate % Q1/19 Q4/19 Q1/20 4,408 MB 1,984 MB (13,754) MB Refinery 116% 113% 111% 334 495 647 - Lower Mark
Slide 24: Integrated Margin & Competitive Cash Cost
-24- Integrated Margin & Competitive Cash Cost Gross Refining Margin Refinery’s Cash Cost (Unit: US$/bbl) (Unit: US$/bbl) Market GRM Accounting GRM (Market GRM + Stock G/L) Operating Cost Interest Expense (net) (excl. one-time non-operating item) 7.8 6.8 7.6 6.7 5.9 5.2 5.7 4.7 4.3 3.4 3.6 3.1 3.0 2
Slide 25: Financial Performance
-25- Financial Performance Sales Revenue EBITDA Unit: Million THB Unit: Million THB EBITDA (excl stk G/L) EBITDA (incl stk G/L) 36,925 32,675 31,099 33,448 389,344 362,179 25,492 25,496 22,867 337,388 293,569 20,239 274,739 13,833 13,214 6,889 4,293 3,102 3,674 91,626 96,263 76,652 -1,476 (12,248) 2
Slide 26: Q1/20 TOP Group Strong Financial Position & Financial Ratios
-26- Q1/20 TOP Group Strong Financial Position & Financial Ratios Statements of Financial Position Consolidated Long-Term Debt as at 31 Mar 20 (Unit: million THB) Total IBD Net Debt 283,445 272,366 125,642 million THB 63,137 million THB 41,322 Trade Payable Cash & ST 76,937 62,505 38,395 (US$ 3,827
Slide 27: Dividend Payment
-27- -27- Dividend Payment Dividend Policy : Not less than 25% of consolidated net profit after deducting reserves, subject to cash flow and investment plan Unit : THB/Share EPSR 2H dividend 1H dividend Year Dividend 12.18 10.40 9.19 9.40 8.66 7.82 7.28 5.91 6.04 5.97 4.57 4.97 4.39 2.75 3.75 3.08 3
Slide 28: Finance Strategy
-28- Finance Strategy Liquidity Management Efficiency & Cost Management Investment Rationalization & Fund Raising • Pursue more cost control • Revisit/reprioritize CAPEX • Ensure short term liquidity (OPEX) • Review CAPEX and payment • Ample cash at beginning of year • SG&A & operating cost reductio
Slide 29: Strategic Investment Plans
-29- -29- STRATEGIC INVESTMENT PLANS
Slide 30: Key Strategic Projects
-30- Key Strategic Projects Vision Empowering Human Life through Sustainable Energy and Chemicals Measurement Growth | Diversity | Returns | Sustainability | Stakeholder Portfolio To transform TOP to a World-Class refinery with competitive & comprehensive Petchem portfolio Strategic Strengthen the C
Slide 31: TOP Group Strategic Investment Plan
CAPEX -31- TOP Group Strategic Investment Plan CAPEX Plan (Unit US$ million) Updated as of April 2020 Estimated Budgeting for Investment Plan Project Total 2020 2021 2022 2023 2024 2020 - 2024 CFP project * 3,263 1,660 1,434 492 (323) Total Ongoing CAPEX 223 128 58 31 5 1 Reliability, Efficiency and
Slide 32: CFP Rationale & Timeline
-32- -32- CFP Rationale & Timeline Project Rationale • Risk of losing competitiveness to others regional refineries as more new refineries with higher capacity and more advanced technologies are on stream. • Adjust product portfolio by producing high demand and clean product to serve customer needs
Slide 33: Scope of CFP & Technical Aspect
-33- -33- Scope of CFP & Technical Aspect LPG Tops ISOM SRU Sulfur 5 HDT-3 Naphtha PX/BZ CCR-1/2 Platformate TPX HDT-4 Hy. Naph CDU-3 4 180 kbd Crude LPG LPG Kerosene Tops KMT-1/2 Lt.Naph 400 kbd Isomerate Gasoline New HDS-2/3 CDU-4 Diesel Jet/Kero 220 kbd HDS-4 Diesel 4 HMU-1/2&PSA-1/3 2 Fuel Oil H
Slide 34: CFP Competitiveness
-34- -34- CFP Competitiveness Without CFP With CFP CDU Capacity CDU Capacity 275,000 bbl per day 400,000 bbl per day Upgrading Ratio 28 % Upgrading Ratio 50% (upgrading capacity(1) over CDU capacity) (upgrading capacity(2) over CDU capacity) Power Plant 250 MW Remark : (1) including HCU 1/2, FCCU, T
Slide 35: CFP Value Proposition
-35- -35- CFP Value Proposition Flexibility of crude intake Product Upgrading Light Distillate 25% (LPG, Light naphtha, Heavy naphtha, Light Crude Gasoline) 40% - 50% (API > 31) 23% 5% - 15% Medium Crude Middle Distillate (25 < API < 31) 62% (Jet , Gasoil) 100% 53% 40% - 50% Heavy Crude (API < 25) 1
Slide 36: CFP Key Progress
-36- -36- CFP Key Progress Key Progress Overall Project Progress Budget Utilization Key Progress in 2020 • Piling, foundation and underground works in progress. (Apr’20) 28% 39% • Ongoing tanks construction (Apr’20) • Complete Site preparation in almost all construction area (Apr’20) • Foundation st
Slide 37: CFP Key Progress
-37- -37- CFP Key Progress CFP Plan in 2020 Module Fabrication Foundation Completion Module Delivery • Fabrication work at local and oversea • Completion of detailed design phase • Delivery of key module and long lead items construction yard on-site • Completion of early civil work and • Assembly of
Slide 38: 2020 Industry Outlook
-38- -38- 2020 INDUSTRY OUTLOOK • Crude Oil • Refinery • Aromatic • Base Oil & Bitumen
Slide 39: Crude Oil Market Outlook: Dubai Prices Movement
-39- -39- CRUDE OIL MARKET OUTLOOK Dubai Prices Movement $/BBL *as of 24 Jun’20 : 40.68 $/BBL Falling Risk Assets due New Tariff U.S.-China Trade 90 to rising FED Rates U.S.-China U.S.-China War Conflict OPEC+ Phase one deal deeper cut 70 COVID-19 Pandemic OPEC+ 50 OPEC & Non-OPEC Concern Over Suppl
Slide 40: Demand Recovery from COVID-19 Relief (Cont.)
-40- Crude Oil -40 - 1 Demand Recovery from COVID-19 Relief (Cont.) Post-Crisis Recovery : Oil Demand Moving Back Towards Normal Level 2020 Change in Global Oil Demand (YoY) MBD Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 2020 -5 • COVID-19 come under -10 control within 1H/20 and will return t
Slide 41: Lower Supply from OPEC+ Cut Deal
Crude Oil -41- -41- 2 Lower Supply from OPEC+ Cut Deal A A Record High Supply Cut From OPEC+ MBD Saudi Arabia, UAE, Kuwait and Oman volunteer cut output by New OPEC+ Agreement 12 1, 0.1, 0.08 and 0.01 MBD in Jun’20 on top of the agreement 9.7 MBD 10 7.7 MBD 8 OPEC+ failed to negotiate policy cut 5.8
Slide 42: Lowest ME OSP in Decade will support Refinery Margin (Cont.)
-42- Crude Oil -42 - 2 Lowest ME OSP in Decade will support Refinery Margin (Cont.) Sharply Dropped in Middle East Crude OSP Price Resulting from Crude Oil Price War and Demand Dropped $/BBL Official Selling Price (OSP) Spread over Benchmark Crude (for Asian Buyers) 8.0 Murban2 4.0 Arab Extra Light1
Slide 43: Lowest Non-OPEC Production and Remain low until 2021
Crude Oil -43- -43- 3 Lowest Non-OPEC Production and Remain low until 2021 A U.S. Crude Oil Production Slowdown B Non-OPEC remain below 2019 through 2021 U.S. Crude Production vs Oil Rig Count Non-OPEC Crude and Condensate Production (Non-Opec e.g. USA, Canada, Brazil, EU, Russia, China etc.) MBD Ri
Slide 44: Oil Cut Deal to Ease a Global Glut and Seeing Market to be Balance
Crude Oil -44- -44- Oil Cut Deal to Ease a Global Glut and Seeing Market to be Balance on 4 Mid-Year Extended Oil Production Cuts bring Stock Draw and Good Sign of Oil Demand Recovery Global Oil Demand/Production* Avg 2020 Production 93.4 MBD (-7.1 MBD YoY) Avg 2020 Demand 91.7 MBD (-8.1 MBD YoY) MB
Slide 45: Petroleum Products
-45- -45- PETROLEUM PRODUCTS
Slide 46: Recovering Demand after COVID-19 Easing Concerns
Petroleum -46- -46- Recovering Demand after COVID-19 Easing Concerns Singapore Cracking GRM ($/BBL) 15 10 5 0 -5 -10 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Singapore Cracking Singapore Hydroskiming ($/BBL) Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2TD-20* Key
Slide 47: Weakening Global Oil Demand to Overtake Supply loss
Petroleum -47- -47- Weakening Global Oil Demand to Overtake Supply loss Change in Global Oil Demand by Product (y-o-y) MBD LPG Gasoline Jet/Kero Gasoil Other products* Total products Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 5 0 -5 -10 Recovered demand in 2H
Slide 48: Firmer Gasoline Demand Due To Country Lockdown Easing
Petroleum -48- -48- Firmer Gasoline Demand Due To Country Lockdown Easing A U.S. Returning to Normal Driving Activity B Other Countries to Step Up Covid-19 Recovery U.S. Mobility and Gasoline Demand in 2020 Apple Mobility Index in Major Countries 160 Mobility Index* = 100 on 13 Jan’20 (Before COVID-
Slide 49: Recovering Gasoil Demand in 2H’20 on Relaxing Lockdown Measures
Petroleum -49- -49- Recovering Gasoil Demand in 2H’20 on Relaxing Lockdown Measures A Stimulus Policies and Easing Lockdown to Boost Demand B Increasing Demand for Industrial and Transportation MBD Global Gasoil Demand Growth by Region (y-o-y) MBD Global Gasoil Demand 2 30 0 28 y-o-y -2 26 2018 : 28
Slide 50: Improving Fuel Oil Demand after Easing Lockdown, Rising VLSFO Market Share
Petroleum -50- -50- Improving Fuel Oil Demand after Easing Lockdown, Rising VLSFO Market Share for Bunker A Improving Demand on Rising Global Trade Activity B Rising VLSFO Supply in China to Extend Bunker Market NOCs have VLSFO exports quotas to reduce on foreign imports and aligns well MBD Global F
Slide 51: Improving Jet Demand on A Return of Domestic Flights
Petroleum -51- -51- Improving Jet Demand on A Return of Domestic Flights A Jet Demand to Improve Mostly on Domestic Flights B Resuming Domestic Flights in Some Countries MBD Global Jet Demand Growth by Region (y-o-y) Total Number of Flights Globally 2 200 0 160 +49% from Apr’20 -2 120 -4 80 -6 2020:
Slide 52: Rising Demand Growth in 2021 after Easing COVID-19 Restriction
Petroleum -52- -52- Rising Demand Growth in 2021 after Easing COVID-19 Restriction with Delayed New Addition Asia Pacific and Middle East Effective CDU Addition VS Additional Demand AP & ME Demand Growth Thailand Teapot Vietnam India Japan Other AP China ME Close Middle East Net Addition Operating R
Slide 53: Recovery of Domestic Petroleum Market after Fallout of COVID-19 Pandemic
-53- -53- Recovery of Domestic Petroleum Market after Fallout of COVID-19 Pandemic A Recovering Mogas Demand from Higher Transports Activities B Recovering Gasoil Demand from Better Production Sectors ML Mogas Demand ML Gasoil Demand 1100 2400 1000 2200 2018 2018 900 2019 2000 2019 800 2020 2020 180
Slide 54: Pressured Aromatic Market from New Additional Capacity
-54- -54- Pressured Aromatic Market from New Additional Capacity A Market Pressured by Surplus Capacity B Lower Chinese Import due to Additional Capacity in China AP/ME PX and BZ Capacity Addition vs. Demand Growth Chinese PX Import Chinese BZ Import Mil TON PX Mil TON BZ Mil TON PX Zhejiang 2 (Mar)
Slide 55: Soft Base Oil Market amid Less Capacity Addition
-55- -55- Soft Base Oil Market amid Less Capacity Addition A Gradually Softer Base Oil Spread on Weak Market C Healthy Bitumen Spread on Weaker HSFO price USD/t Base Oil Historical Price Low USD/t USD/t Bitumen Historical Price USD/t 1000 HSFO 600 500 150 price Positive 800 500 100 400 400 600 50 30
Slide 56: 2020 Market Outlook Conclusion
-56- -56 - Conclusion 2020 Market Outlook Conclusion (vs. 2019) Recovering Demand and Expectation of Extended OPEC+ Production Crude Oil Cut to Support Oil Prices Refinery Recovering Product Demand after Easing Country Lockdown Measures Aromatics Pressured PX and BZ Markets mainly due to Heavy Suppl
Slide 57: Appendix
-57- -57- APPENDIX • Performance analysis • Sustainability / ESG • Awards & Recognitions • CDU Addition VS Additional Demand – AP & ME • World GRM / Inventories • Thailand petroleum demand by products
Slide 58: Refinery: Weak Mkt GRM Pressured by Lower Product Spread
-58- Refinery: Weak Mkt GRM Pressured by Lower Product Spread Key Highlights Performance Industry Outlook Final Remarks Refinery Aromatic Base Oil GIM Power All business F/S & others Dubai Crude Price & Key Petroleum Product Spreads Refinery Utilization 2019 2020 2019 Q1/19 Q4/19 Q1/20 $/bbl Q1 Q2 Q
Slide 59: Aromatic: Improving Contribution due to Low Feedstock Cost
-59- Aromatic: Improving Contribution due to Low Feedstock Cost Key Highlights Performance Industry Outlook Final Remarks Refinery Aromatic Base Oil GIM Power All business F/S & others Aromatics Spreads and Margins Aromatics Production 2019 2020 2019 Q1/19 Q4/19 Q1/20 $/ton Q1 Q2 Q3 Q4 Q1 Q2TD* FY 9
Slide 60: Base Oil: Lower Contributions from Soften Lube & Bitumen Spread
-60- Base Oil: Lower Contributions from Soften Lube & Bitumen Spread Key Highlights Performance Industry Outlook Final Remarks Refinery Aromatic Base Oil GIM Power All business F/S & others Base Oil & Bitumen Spreads & Margins Base oil Production 2019 2020 2019 Q1/19 Q4/19 Q1/20 $/ton Q1 Q2 Q3 Q4 Q1
Slide 61: Power Sector Performance…Growing Contribution to the Group
Performance analysis : Power -61- Power Sector Performance…Growing Contribution to the Group Power Business Sector Equity holding in SPP **** 74% 100% Power & Steam Sales **** TOP shareholding 24.29% (8.91% via (1) TOP and 20.79% via TP) Electricity 2,544 2,487 GPSC is an associate company of TOP. (
Slide 62: Performance Breakdown
Performance Breakdown -62- Performance Breakdown Petrochemical & (2) Others & (3) Consolidated Net Stock Gain/ Consolidated Net Petroleum (1) Power Profit Profit Lube Base New Business (excl. Stock G/(L) (Loss) (incl. Stock G/(L) Q1/19 495 830 482 112 1,935 2,473 4,408 Q4/19 123 779 516 28 1,365 619
Slide 63: Q1/20 TOP Group Consolidated P&L
Performance analysis : P&L -63- Q1/20 TOP Group Consolidated P&L (MB) Q1/20 Q4/19 QoQ+/(-) Q1/19 YoY+/(-) (A) (A) Sales Revenue 76,652 96,263 (19,611) 91,626 (14,974) Net realized gain/(loss) on financial instruments (19) 288 (307) (166) 147 (B) (B) EBITDA (12,225) 3,927 (16,152) 6,889 (19,114) Net
Slide 64: Q1/20 Consolidated Cash Flow
Performance analysis : Cash Flow -64- Q1/20 Consolidated Cash Flow (Unit: MB) Q1/20 Q1/19 Q1/20 Q1/19 Operating Cash Flow (4,011) 3,891 Investments (33,218) 7,878 Net income (13,692) 4,472 Dividend income 14 7 Depreciation & NRV 7,303 450 + ST investments (18,599) 11,309 Non-cash adj. (861)(1) 1,538
Slide 65: ESG/Sustainability Highlights 2020
ESG -65- ESG/Sustainability Highlights 2020 Industry Leader in Oil & Gas Refining & Marketing Industry (OGR) in 2019* Member of DJSI Emerging Market For 7 consecutive years in OGR * Industry Leader in OGR from 2014-2019 2020 Sustainability Award (Gold Class) 6th year of “Gold Class" position Oil & G
Slide 66: Asia Pacific and Middle East Refinery Addition
Refinery -66- Asia Pacific and Middle East Refinery Addition AP & ME Demand Growth Middle East Start-up Nameplate ME Close China Country Company period) (KBD) Other AP Japan India Vietnam Q1-20 India 56 BPCL Mumbai Thailand Net Addition North Refining Company – Q2-20 Iraq 66 Baiji KBD South Refining
Slide 67: Asian Margin Vs. US-EU margin
World GRM -67- Asian Margin Vs. US-EU margin $/BBL $/BBL SINGAPORE GRM EU – US Margins 30 15 25 10 20 5 15 0 10 -5 5 -10 0 -15 -5 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 SING CRACK SING HYDRO BRENT CRACK BRENT HYDRO WTI CRACK MBD U.S. Crude Refinery Input
Slide 68: Global Crude Oil Inventories
Inventories -68- Global Crude Oil Inventories MBBL U.S. Crude Stocks (excl. SPR) MBBL Crude Oil, Cushing, Oklahoma 600 Source : EIA 80 Source : EIA 550 70 500 60 50 450 40 400 30 350 20 300 10 250 0 1 5 9 13 17 21 25 29 33 37 41 45 49 1 5 9 13 17 21 25 29 33 37 41 45 49 5yr-range 2019 2020 avg 15-19
Slide 69: Global Gasoline Inventories
Inventories -69- Global Gasoline Inventories U.S. Gasoline Stocks Singapore Gasoline Stocks MBBL Source : EIA MBBL 280 20 Source : IE Singapore 260 240 10 220 200 180 0 1 5 9 13 17 21 25 29 33 37 41 45 49 1 5 9 13 17 21 25 29 33 37 41 45 49 5yr-range 2019 2020 avg 15-19 5yr-range 2019 2020 avg 15-19
Slide 70: Global Middle Distillate Inventories
Inventories -70- Global Middle Distillate Inventories U.S. Diesel Stocks Singapore Middle Distillate Stocks MBBL MBBL 180 Source : EIA 20 Source : IE Singapore 160 140 10 120 100 80 0 1 5 9 13 17 21 25 29 33 37 41 45 49 1 5 9 13 17 21 25 29 33 37 41 45 49 5yr-range 2019 2020 avg 15-19 5yr-range 2019
Slide 71: Global Fuel Oil Inventories
Inventories -71- Global Fuel Oil Inventories U.S. Residual Fuel Oil Stocks Singapore Residual Fuel Oil Stocks MBBL MBBL Source : IE Singapore Source : EIA 50 40 30 40 20 30 10 20 0 1 5 9 13 17 21 25 29 33 37 41 45 49 1 5 9 13 17 21 25 29 33 37 41 45 49 5yr-range 2019 2020 avg 15-19 5yr-range 2019 20
Slide 72: China’s Refined Product Exports
Inventories -72- China’s Refined Product Exports China’s Gasoline Exports China’s Gasoil Exports KBD KBD Source : China Custom Source : China Custom 600 800 500 700 600 400 500 300 400 200 300 200 100 100 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 2020 2
Slide 73: Domestic LPG Demand
Thailand petroleum demand by products -73- Domestic LPG Demand Thailand LPG Demand LPG Demand Highlight KT/Day 2020 2019 2018 2017 • In 2M’20, LPG demand plunged by 12.8% YoY following the decrease in all sectors, especially in the petrochemical sector. 20 LPG demand in the petrochemical sector decr
Slide 74: Domestic Gasoline/Gasohol Demand
Thailand petroleum demand by products -74- Domestic Gasoline/Gasohol Demand Thailand Gasoline/Gasohol Demand GASOLINE/Gasohol Demand Highlight MML/Day • In 3M’20, Gasoline demand decreased by 2.3% YoY to an 2020 2019 2018 2017 average 31.1 MML/day. The demand growth was mainly 34 pressured by the CO
Slide 75: Domestic Jet Demand
Thailand petroleum demand by products -75- Domestic Jet Demand Thailand JET Demand JET Demand Highlight MML/Day 2020 2019 2018 2017 • In 3M’20, Jet consumption decreased by -17.1% YoY as the 24 22.4 COVID-19 pandemic had initially started and become more vital since the end of January leading to ban
Slide 76: Domestic Gasoil and NGV Demand
Thailand petroleum demand by products -76- Domestic Gasoil and NGV Demand Thailand Gasoil Demand Diesel Demand Highlight MML/Day 2020 2019 2018 2017 • In 3M’20, Diesel demand decreased by 2.9% YoY as it was pressured 72 by 3.8% YoY lower in manufacturing product transportation due to temporary shutd
Slide 77: Domestic Fuel Oil Demand
Thailand petroleum demand by products -77- Domestic Fuel Oil Demand Thailand Fuel Oil Demand Fuel Oil Demand Highlight 2020 2019 2018 2017 MML/Day • In 3M’20, Fuel Oil consumption fell by 29.9% YoY, as the demand 8 for bunker still dropped by 43.6% YoY due to lower goods import and export. Together
Slide 78: Thank You
--78- 78- Thank You Any queries, please contact: at email: [email protected] Tel: 662-797-2999 / 662-797-2961 Fax: 662-797-2976
Thai Oil Public Company — Investor Presentation (July 2020) on 6ix