Thai Oil Public Co. Ltd. · SET:TOP
Thai Oil Public — Investor Presentation (October 2017)
82 slides from Thai Oil Public's investor presentation, Oct 16, 2017
Slide 1: Presentation to Investors October 2017
-1- Thai Oil Public Company Limited Presentation to Investors October 2017
Slide 2: Disclaimer
-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 statements mad
Slide 3: Corporate Vision, Mission and Values
-3- Corporate Vision, Mission and Values A LEADING FULLY INTEGRATED REFINING & PETROCHEMICAL VISION COMPANY IN ASIA PACIFIC • To be in top quartile on performance and return on investment • To create a high-performance organization that promotes MISSION teamwork, innovation and trust for sustainabil
Slide 4: Corporate Governance
-4- Corporate Governance Corporate Governance Policy Roles and Responsibilities The board of directors, management and all staff shall commit to moral principles, equitable treatment to all for Stakeholders stakeholders and perform their duties for the company’s interest with dedication, integrity,
Slide 5: Our Achievement in Sustainable Development
-5- Our Achievement in Sustainable Development 5th Consecutive Year as the Member of DJSI Emerging Markets 4th Consecutive Year of leading positions: Energy Industry Group Leader Oil & Gas Refining & Marketing industry Leader
Slide 6: Presentation Agenda
-6- Presentation Agenda TOP GROUP BUSINESS OVERVIEW KEY FINANCIAL HIGHLIGHTS STRATEGIC INVESTMENT PLANS MARKET OUTLOOK APPENDIX
Slide 7: TOP Group Business Overview
-7- TOP GROUP BUSINESS OVERVIEW
Slide 8: Strategic Relationship and Operational Integration with PTT
-8- Strategic Relationship and Operational Integration with PTT Thai Oil’s strong shareholder base 16.0% • Benefits from PTT’s dual role as our major shareholder and key 12.6% 49.1% business partner • All transactions take place at arm’s length 22.3% and in adherence with PTT strong corporate 49.1%
Slide 9: TOP Group Synergy & Strategic Role in PTT Group Value Chain
-9- TOP Group Synergy & Strategic Role in PTT Group Value Chain Upstream Intermediate Downstream Solvent Pentane Diversifying to a broad Hexane range of downstream Toluene SOLVENTS The majority of Mixed-Xylene products to enjoy higher refined petroleum profit margins and Paraxylene products are sold
Slide 10: Key Milestones: 56 Years, A Long Track Record of Success
-10- Key Milestones: 56 Years, A Long Track Record of Success 1961 – 1997 2004 – 2011 Today Capacity expansion and initial stage of Listing, expansion and A leading integrated refining and business diversification diversification petrochemical group in Asia Pacific 1961 1970 2004 • 275 kbd refinery
Slide 11: Thai Oil Group Business Structure
-11- 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) Aromatics Capacity: Lube Base Oil • 5 Oil & Chemical Tankers Sells Electricity/Steam to Capacity :
Slide 12: Process Linkage: Beauty of Integration
-12- Process Linkage: Beauty of Integration PROCESS FLOWCHART Thai Paraxylene ADIP FUELGAS Thai Oil ISOM LPG 20,000 MX HDT-1 MX 40,000 HDT-2 HDT-3 CCR-1 ULG95 85,000 CCR-2 CDU-1 50,000 ULG91 45,000 KMT-1 CDU-2 JET KMT-2 50,000 CDU-3 165,000 KEROSENE HVU-1 Thai Lube Base HVU-2 HVU-3 FCCU HDS-2 10,400
Slide 13: One of Region's Leading Refineries
-13- One of Region’s Leading Refineries Total Thailand crude refining capacity 1,235 kbd Market shares for refined petroleum product3 Thai Oil 22% Share Nameplate Capacity 32% 31% Fang (3 kbpd) market market Thai Oil (275 kbpd) shares shares PTT’s Principal Refiner Q2/17 Q1/17 BCP (120 kbpd) Esso (1
Slide 14: Strategic Location with Competitive Advantages in Access to Key Markets
-14- Strategic Location with Competitive Advantages in Access to Key Markets Close proximity to the key domestic markets Access to Indochina markets through deep water ports Our strategic location provide us with LAOS 1. Close proximity with the key domestic markets and VIETNAM Indochina Bangkok Sri
Slide 15: Optimized & Flexible Operations…Superior Performance
Crude -15- Optimized & Flexible Operations…Superior Performance Crude Assays based on Sources of Product Domestic demand for Reference Price TOP configuration* Crude output petroleum products** % S = 1.43 % S = 2.52 % S = 0.78 % S = 1.97 SAUDI LPG 4% API = 32.0 API = 31.2 API = 39.4 API = 32.8 Other
Slide 16: Refinery: Recorded High Quarterly Utilization Rate
Refining -16- Refinery: Recorded High Quarterly Utilization Rate TOP/ Domestic Refinery Utilization Rate Domestic Oil Demand Unit: % Utilization Rate 1H/16 1H/17 112% 110%111% 108% KBD 110% 107% 109% 107% 108% 3.0% 800 98% 600 2.3% 90% 95% 94% 91% 400 3.8% 91% 89% 91% 88% 89% 4.4% 85% 200 0 70% * Mo
Slide 17: Competitive Performance Benchmarking
-17- Competitive Performance Benchmarking Solomon Associates is the independent 3rd party who applies Comparative Performance Analysis methodology to industry peers in the area of reliability, equipment, utilization, operating expense, gross margin and overall performance range and come up with comp
Slide 18: TOP Group Key Highlights
-18- TOP Group Key Highlights Thailand’s largest and Diversified earnings 2 one of the region’s through integration 1 most advanced and with, and significant competitive refineries contribution from, our subsidiaries Strategic relationship Strategic location with Industry with high 3 4 5 and operati
Slide 19: Key Financial Highlights
-19- KEY FINANCIAL HIGHLIGHTS
Slide 20: Q2/17 Key Market Drivers Highlights
Key Highlights -20- Q2/17 Key Market Drivers Highlights Refinery Lower Market GRM pressured by lower product spread especially Implication 1) weaker gasoline from high U.S. inventory and soften middle Lower Mkt GRM at 6.1 $/bbl distillate as a decrease in demand after winter. However, lower (Q1/17
Slide 21: Q2/17 Reliable Operation & Ongoing Competitive Cash Cost
Key Highlights -21- Q2/17 Reliable Operation & Ongoing Competitive Cash Cost Key Achievements Q2/17 TOP Group Net Profit Unit : million THB (MB) Operational Maintain high reliable production Net Operating Profit Profitability Improvement Excellence Q2/17 Q1/17 Stock G/(L) Reversal of NRV /(NRV) Re
Slide 22: Q2/17 Profitability Improvement (VS Corporate Plan)
Key Highlights -22- Q2/17 Profitability Improvement (VS Corporate Plan) Cost Management General & Admin , Procurement Margin Improvement & warehouse , Operation & (Supply & Marketing / Maintenance , Project & Hydrocarbon Management / Manpower management Unit: million THB ) 48 LP Upgrading Model , Pr
Slide 23: Integrated Margin & Competitive Cash Cost
Financial -23- Integrated Margin & Competitive Cash Cost Gross Refining Margin Refinery’s Cash Cost (Unit: US$/bbl) (Unit: US$/bbl) Market GRM Accounting GRM (Market GRM + Stock G/L) Operating Cost Interest Expense (net) (excl. one-time non- operating item) 7.8 6.5 6.4 6.8 6.3 6.1 6.3 6.2 5.9 5.3 5.
Slide 24: Financial Performance
Financial -24- Financial Performance Sales Revenue EBITDA Unit: Million THB Unit: Million THB 447,432 EBITDA (excl stk G/L & NRV) EBITDA (incl stk G/L & NRV) 446,241 399,125 414,575 390,090 32,675 31,099 318,391 28,760 22,337 25,492 284,123 293,569 22,897 23,868 22,808 25,496 274,739 20,350 21,393 1
Slide 25: Q2/17 TOP Group Strong Financial Position & Financial Ratios
Financial -25- Q2/17 TOP Group Strong Financial Position & Financial Ratios Statements of Financial Position Consolidated Long-Term Debt as at 30 Jun 17 (Unit: million THB) Total Long-Term Debt Net Debt 217,731 208,051 67,643 million THB 10,909 million THB Cash & ST 30,700 Trade Payable (US$ 1,981 m
Slide 26: 1H/17 Dividend Payment
Financial -26- 1H/17 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 10.40 9.19 9.40 7.82 8.13 7.28 5.91 6.04 5.97 5.06 4.39 4.57 2.75 3.00 2
Slide 27: Strategic Investment Plans
-27- STRATEGIC INVESTMENT PLANS
Slide 28: Broadening Growth, Capturing Step Out, Pursuing Sustainability
Strategy -28- Broadening Growth, Capturing Step Out ,Pursuing Sustainability Vision A Leading fully integrated refining and petrochemical company in Asia Pacific END Vision Top quartile Top Qrt ROIC & DJSI Measurement performer NP Growth (Sustainability) by 2021 • Operational excellence • Complete p
Slide 29: Strategic Investment Plan Approved by Board of Directors
Updated CAPEX plan -29- Strategic Investment Plan Approved by Board of Directors CAPEX Plan (Unit US$ million) Projects Planned capital investment 2016 2017 2018 2019 Reliability, Efficiency and Flexibility Improvement 32 48 18 8 Benzene Derivatives – LAB 41 11 13 Power – 2 SPPs 43 Infrastructure Im
Slide 30: Key Projects Update: Successfully COD of LAB & TOP SPP
Key Projects Update -30- Key Projects Update : Successfully COD of LAB & TOP SPP Project : LAB Project : TOP SPP TPX 75% & Mitsui 25% , CAPEX 400 M$ TOP owns 100% , CAPEX 380 M$ Feedstock : Kerosene 532 KTA, Benzene 33 KTA Power capacity : 239 MW (20% TOP Group & 80% EGAT) Product : LAB 120 KTA, By
Slide 31: Key Project Progress Update: Lorry Expansion Project
New Project -31- Key Project Progress Update : Lorry Expansion Project Project Project Detail Progress Lorry • Expand lorry loading capacity 100%* Expansion Existing Capacity Lorry Expansion Project Project Designed Capacity : 10 mml/day Planned Additional Capacity : +5 mml/day (10 gantries) (+ 5 ga
Slide 32: Study Project: Clean Fuel Project (CFP)
Project Update -32- Study Project : Clean Fuel Project (CFP) Main objectives of CFP Enhance competitive advantage of the refinery and maintain 1st quartile performer Enhance capability to upgrade lower value product into higher value product and ability to process heavier (cheaper) crude oil CFP
Slide 33: Q4-17 Market Outlook
-33- Q4-17 MARKET OUTLOOK • Crude Oil • Petroleum Products • Aromatics • Base Oil & Bitumen • Linear Alkyl Benzene (LAB)
Slide 34: Crude Oil
-34- CRUDE OIL
Slide 35: World Economic Outlook
Crude Oil -35- World Economic Outlook Firm economy outlook, with GDP to grow by 3.5 percent in 2017 and 3.6 percent in 2018 Growth China India Thailand (%YoY) 2016 2017 2018 US EU World Jul-17(1) Jul-17(1) Jul-17(1) 12% US 1.6% 2.1% 2.1% 8% EU 1.8% 1.9% 1.7% China 6.7% 6.7% 6.4% 4% India 7.1% 7.2% 7
Slide 36: Global Oil Demand Growth Projection
Crude Oil -36- Global Oil Demand Growth Projection IEA forecasted global oil demand to grow by 1.4 MBD in 2017 and 2018 Europe North America FSU Unit: KBD 237 137 137 152 150 2016 2017 134 87 92 2018 -40 Middle East 87 149 Asia Latin America 1086 -33 814 850 84 4 Africa 126 137 -124 98 Demand Growth
Slide 37: Non-OPEC Supply Growth Projection
Crude Oil -37- Non-OPEC Supply Growth Projection IEA estimated Non-OPEC supply growth to grow by 0.7 MBD in 2017 and 1.4 MBD in 2018 North America Europe FSU 33 Unit: KBD 13 179 103 1103 18 2016 681 2017 -5 2018 Middle East -526 19 Latin America Asia -10 -34 228 103 Africa 126 -235 -225 -96 37 -299
Slide 38: Stable-to-Firm Crude Oil Price from Growing Demand amid Rising Supply
Crude Oil -38- Stable-to-Firm Crude Oil Price from Growing Demand amid Rising Supply Dubai Price Movement $/BBL China’s stock OPEC failed to No consensus on 80 market crash agree on an output freeze OPEC agreed to cut OPEC extended supply cut deal 60 output ceiling BREXIT output to 32.5 MBD Base Cas
Slide 39: Strong Global Oil Demand Growth to be Mostly Offset by Rising Oil Supply
Crude Oil -39- Strong Global Oil Demand Growth to be Mostly Offset 1 by Rising Oil Supply A Growing Oil Demand Continues to Support B Limited Supply with High Compliance MBD Global Demand Growth by Region (QoQ) % Compliance Level with Supply Cuts 1.5 1.28 120 0.99 1.0 100 0.48 80 0.5 60 0.0 40 -0.5
Slide 40: Risks over Surging U.S. Oil Outputs
Crude Oil -40- 2 Risks over Surging U.S. Oil Outputs A High Prices Could Resume Outputs from DUCs* B Libyan & Nigerian Could Reach Its Capacity DUCs* Counts in the U.S. Libya and Nigeria Oil Production MBD No. of DUCs* $/BBL 2.0 7000 120 6000 100 1.5 5000 80 4000 1.0 60 3000 40 0.5 2000 1000 20 0.0
Slide 41: Petroleum Products
-41- PETROLEUM PRODUCTS
Slide 42: Still-High Margins from Demand Outpacing Supply Addition
Refinery -42- Still-High Margins from Demand Outpacing Supply Addition Singapore Cracking GRM ($/BBL) 8.5 8.0 8.22 7.9 7.6 7.7 6.7 6.2 6.42 6.39 6.1 5.0 5.2 Q1-15 Q2-15 Q3-15 Q4-15 Y2015 Q1-16 Q2-16 Q3-16 Q4-16 Y2016 Q1-17 Q2-17 Q3-17 ($/BBL) Q2-16 Q3-16 Q4-16 2016 Q1-17 Q2-17 Q3-17 Key Highlights i
Slide 43: Steadily High Middle Distillate Cracks from Strong Demand and Less Chinese Supply
Refinery -43- Steadily High Middle Distillate Cracks from Strong 1 Demand and Less Chinese Supply A Tight Market on Firm Demand and Limited Supply B Steady U.S. Demand on Strong Economy Asia Pacific Middle Distillate Demand U.S. Middle Distillate Demand MBD MBD Q4’17 : 12.0 MBD (+0.82 QoQ) Q4’17 : 5
Slide 44: Slightly Soft Gasoline Cracks from Weak Demand, But Remain Supported by Asian Market
Refinery -44- Slightly Soft Gasoline Cracks from Weak Demand, 2 But Remain Supported by Asian Market A Ample U.S. Inventories from Weak Demand B Firm Asian Demand Driven by China and India U.S. Gasoline Demand MBD Asia Pacific Gasoline Demand MBD Q4’17 : 9.3 MBD (-0.3 MBD QoQ) 7.5 10.0 9.6 7.0 9.2 6
Slide 45: Still-High Refinery Margins in 2017 as Demand Outpaces Refinery Addition
Refinery -45- Still-High Refinery Margins in 2017 as Demand Outpaces Refinery Addition Lower refinery addition in 2017 due to regulatory restrictions in Japan and delayed startup of refineries in China and Vietnam CDU Addition VS Additional Demand – AP & ME Middle East China Other AP Japan India T
Slide 46: Thailand Oil Demand Growth
Domestic -46- Thailand Oil Demand Growth Thailand Oil Demand Growth Average (B) YTD 6M/2017(B) Year on Year Y 2016 Y2017F(C) 2011-2015(B) (vs 6M/2016) Mogas (A) +7.1% +9.8% +3.8% +2.7% Jet/Kero +4.4% +6.8% +4.4% +3.6% Diesel (A) +3.4% +3.1% +2.3% +1.4% Total +4.4% +5.4% +3.0% +2.1% GDP +3.4% +3.2% N
Slide 47: Aromatics
-47- AROMATICS
Slide 48: Stable-to-Firm Aromatics Market on Lower Capacity Addition
Aromatics -48- Stable-to-Firm Aromatics Market on Lower Capacity Addition Aromatics Market PX CFR Taiwan-ULG95 ($/TON) BZ FOB Korea-ULG95 ($/TON) 332 315 341 346 317 312 288 280 273 259 255 246 256 233 226 196 156 138 174 185 163 98 115 101 97 74 Y2016 Y2015 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16
Slide 49: Improved PX Market on Lower Capacity Addition amid New Downstream Plant
Aromatics -49- Improved PX Market on Lower Capacity Addition 1 amid New Downstream Plant A Lower Capacity Addition in Q4-17 to Support Market B Supply Pressure due to Low Plant Maintenance in Q4-17 AP & ME Effective PX Capacity Addition AP PX Plant Maintenance Mil TON Mil TON PetroRabigh (1.34Mil TO
Slide 50: AP/ME PX Balance
Aromatics -50- AP/ME PX Balance AP/ME PX Supply Demand Balance 2010-2016 (CAGR) 2017-2021 (CAGR) Mil TON Dem: 6.1% Dem: 3.6% Operating Rate Cap: 6.1% Cap: 5.7% 60 90% 50 53.6 48.6 50.3 80% 40 47.2 40.6 41.1 42.9 40.8 42.0 37.8 37.6 38.9 30 33.3 33.3 34.8 36.4 70% 28.8 30.3 30.6 29.6 31.2 20 24.4 26.
Slide 51: Stable BZ Market due to Lower Capacity Addition amid Thin Plant Maintenance
Aromatics -51- Stable BZ Market due to Lower Capacity Addition 2 amid Thin Plant Maintenance A Lower Capacity Addition in Q4-17 to Support Market B Supply Pressure due to Low Plant Maintenance in Q4-17 AP & ME Effective BZ Capacity Addition AP BZ Plant Maintenance Mil TON PetroRabigh (0.42Mil TON) M
Slide 52: AP/ME BZ Balance
Aromatics -52- AP/ME BZ Balance AP/ME BZ Supply Demand Balance 2010-2016 (CAGR) 2017-2021 (CAGR) Dem: 3.4% Dem: 3.8% Mil TON Cap: 3.2% Cap: 2.5% Operating Rate 50 90% 40 43.1 40.7 41.0 41.8 80% 37.2 37.7 39.1 36.8 30 32.9 32.8 34.5 32.3 31.2 30.2 31.3 70% 27.9 29.1 25.8 26.9 20 22.0 22.6 23.2 24.1 2
Slide 53: Base Oil & Bitumen
-53- BASE OIL & BITUMEN
Slide 54: Softer Base Oil Market due to Lower Plant Maintenance
Base Oil & Bitumen -54- Softer Base Oil Market due to Lower Plant Maintenance 500SN – HSFO ($/TON) A AP Plant Maintenance (Effective Capacity) 556 529 Mil TON Group 1 Group 2 Group 3 Net Capacity 506 1.4 450 431 427 409 443 451 369 399 367 412 1.5 1.0 1.0 0.7 0.4 0.5 0.2 0.0 0.0 Y2015 Y2016 Q1-15 Q2
Slide 55: Stable Bitumen Market on Firm Demand
Base Oil & Bitumen -55- Stable Bitumen Market on Firm Demand Bitumen-HSFO ($/TON) A Bitumen Import of Major Asian Players KTON/MONTH China KTON/MONTH India 82 98 2,000 400 56 23 20 1,000 200 -7 -13 -38 -28 0 0 -48 -61 -49 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 -80 Y2
Slide 56: Addition Base Oil Capacity
Base Oil & Bitumen -56- Addition Base Oil Capacity Mil TON Global Capacity Addition Period Country Company Nameplate Capacity (KTA) Group Type 7.0 Q1-17 South Korea S-Oil 190 2 Expansion 6.0 Q1-17 Germany Paralube -50 2 Convert 5.0 from Gr. 2 4.0 4.9 Q1-17 Germany Paralube 50 3 to Gr.3 3.0 2.6 Q2-17
Slide 57: Linear Alkyl Benzene (LAB)
-57- Linear Alkyl Benzene (LAB)
Slide 58: Steady LAB Market on Stable Maintenance and Better Demand after Rainy Season
LAB -58- Steady LAB Market on Stable Maintenance and Better Demand after Rainy Season LAB Market LAB Spread** ($/TON) AP/ME Effective Maintenance/Closure* KTA 150 654 666 675 627 656 635 627 619 606 603 543 539 534 100 50 0 Y2015 Y2016 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-1
Slide 59: Conclusion
-59- CONCLUSION
Slide 60: Q4-17 Market Outlook Conclusion
Conclusion -60- Q4-17 Market Outlook Conclusion (vs. Q3-17) Crude Oil Stable-to-Firm Crude Oil Price from Growing Demand amid Rising Supply Refinery Still-High Margins from Demand Outpacing Supply Addition Aromatics Stable-to-Firm Aromatics Market on Lower Capacity Addition Softer Base Oil Market du
Slide 61: Appendix
-61- APPENDIX • Q2/17 Performance analysis • CDU Addition VS Additional Demand – AP & ME • World GRM / Inventories • Thailand petroleum demand by products
Slide 62: Q2/17: Slightly Soften Mkt GRM as Lower Product Spread partially offset by Lower Crude Premium
Refining -62- Q2/17: Slightly Soften Mkt GRM as Lower Product Spread partially offset by Lower Crude Premium Dubai Crude Price & Key Petroleum Product Spreads Refinery Utilization 2016 2017 2016 Q1/17 Q2/17 1H/17 $/bbl Q1 Q2 Q3 Q4 Q1 Q2 1H Q3 FY16 111% 112% 112% DUBAI (DB) 30.4 43.2 43.2 48.3 53.1 4
Slide 63: Q2/17: Lower Contribution pressured by New PX/BZ Supplies
Aromatics/LAB -63- Q2/17: Lower Contribution pressured by New PX/BZ Supplies Aromatics Spreads and Margins Aromatics Production 2016 2017 2016 Q1/17 Q2/17 1H/17 $/ton Q1 Q2 Q3 Q4 Q1 Q2 1H Q3 FY16 90% 78% 84% PX**-ULG95 332 315 341 280 312 273 292 259 317 Q2/17 Market BZ**-ULG95 156 138 174 185 346 2
Slide 64: Q2/17: Stable Contribution supported by Strong Base Oil Spread
Lube Base Oil -64- Q2/17: Stable Contribution supported by Strong Base Oil Spread Base Oil & Bitumen Spreads & Margins Base oil Production 2016 2017 2016 Q1/17 Q2/17 1H/17 $/ton Q1 Q2 Q3 Q4 Q1 Q2 1H Q3TD FY16 88% 90% 89% 500SN-HSFO 427 409 443 367 451 556 503 529 412 % Base Oil & Specialty Sales Vol
Slide 65: Q2/17 Power Sector Performance…Growing Contribution to the Group
Power -65- Q2/17 Power Sector Performance…Growing Contribution to the Group Power Business Sector Equity holding in SPP GPSC **** Power & Steam Sales ***TOP shareholding 24.29% (8.91% via TOP and 20.79% via TP) GPSC is an associate company of TOP. Electricity(1) 809 1,242 Equity method is applied to
Slide 66: Beauty of Integration…Sustainable GIM
Performance Breakdown -66- Beauty of Integration…Sustainable GIM (Unit: US$/bbl) 12.2 12.8 13.0 14.3 12.4 16.4 11.9 9.9 7.1 1.4 Product to Feed Q1/15 Q2 Q3 Q4 Q1/16 Q2 Q3 Q4 Q1/17 Q2/17 8.8 7.4 6.6 8.5 6.1 5.7 6.5 6.1 4.4 4.3 Crude Marketing GRM (excluded stock gain / loss) Q1/15 Q2 Q3 Q4 Q1/16 Q2 Q
Slide 67: Q2/17: Performance Breakdown by Business Unit
Performance Breakdown -67- Q2/17: Performance Breakdown by Business Unit Utilization/Production (%) & Net Profit (million THB) Key Points • Refinery: maximize utilization rate to capture decent margins and strong demand • Aromatic/LAB: lower contribution mainly from weaker product spread due to new
Slide 68: Q2/17 Key Highlight TOP Group Consolidated P&L
Financial -68- Q2/17 Key Highlight TOP Group Consolidated P&L (million USD) Q2/17 Q1/17 QoQ+/(-) Q2/16 YoY+/(-) 1H/17 1H/16 YoY+/(-) QoQ analysis Sales Revenue 80,053 87,596 (7,543) A) 72,368 7,685 167,649 129,158 38,491 A Decrease overall sale volume and product Hedging Gain / (Loss) 36 (86) 122 B)
Slide 69: 1H/17 TOP Group Consolidated Cash Flow
Financial -69- 1H/17 TOP Group Consolidated Cash Flow (Unit: Million THB) (Unit: Million THB) Investments Operating Cash Flow 6M/17 6M/16 6M/17 6M/16 Investments (12,664) (20,383) Operating Cash Flow 15,895 12,791 ST investments (8,301) (16,595) Net income & non-cash adj. 16,309 16,891 + Available f
Slide 70: Asia Pacific and Middle East Refinery Addition
Refinery -70- Asia Pacific and Middle East Refinery Addition CDU Addition VS Additional Demand – AP & ME Start-up Nameplate Country Company Middle East Other AP period) (KBD) China Japan Q1-17 Iran 120 Bandar Abbas - PGSOC/1 India Teapot Vietnam Net Addition Q2-17 Oman 109 Sohar Bitumen/Orpic AP & M
Slide 71: Asian Margin Vs. US-EU margin
World GRM -71- Asian Margin Vs. US-EU margin U.S. Crude Refinery Input EU 16 Crude Refinery Input Japan Crude Refinery Input MBD MBD MBD 19 Source : EIA 12 Source : Euroil 4.5 Source : METI Total Capacity: 18.1 MBD 89.36% Total Capacity: 15.8 MBD 66.54% Total Capacity: 3.5 MBD 91.51% 18 17 11 4.0 16
Slide 72: Global Crude Oil Inventories
Inventories -72- Global Crude Oil Inventories U.S. Crude Stocks (excl. SPR) Crude Oil, Cushing, Oklahoma MBBL MBBL Source : EIA Source : EIA 600 80 550 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 2016 2017 avg 12-16
Slide 73: Global Gasoline Inventories
Inventories -73- Global Gasoline Inventories U.S. Gasoline Stocks Singapore Gasoline Stocks MBBL MBBL Source : EIA Source : IE Singapore 280 20 260 240 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 2016 2017 avg 12-16 5yr-range 2016 2017 avg 12-16
Slide 74: Global Middle Distillate Inventories
Inventories -74- Global Middle Distillate Inventories U.S. Diesel Stocks Singapore Middle Distillate Stocks MBBL MBBL Source : EIA Source : IE Singapore 180 20 160 140 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 2016 2017 avg 12-16 5yr-range 2016
Slide 75: Global Fuel Oil Inventories
Inventories -75- Global Fuel Oil Inventories U.S. Residual Fuel Oil Stocks Singapore Residual Fuel Oil Stocks MBBL MBBL Source : EIA Source : IE Singapore 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 2016 2017 avg 12-16 5yr-range 2016 20
Slide 76: China's Refined Product Exports
China Export -76- China’s Refined Product Exports KBD China’s Gasoline Exports KBD China’s Gasoil Exports Source : China Custom Source : China Custom 350 600 300 500 250 400 200 300 150 200 100 50 100 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 77: Domestic LPG Demand
Thailand petroleum demand by products -77- Domestic LPG Demand Thailand LPG Demand LPG Demand Highlight • In 7M/17, LPG demand increased moderately by 2.2%YoY on account of 10.3%YoY higher demand from petrochemical sector, as a result of PTTGC major shutdown in May16-Jun16. Moreover, LPG demand was
Slide 78: Domestic Gasoline/Gasohol Demand
Thailand petroleum demand by products -78- Domestic Gasoline/Gasohol Demand Thailand Gasoline/Gasohol Demand GASOLINE/Gasohol Demand Highlight • In 7M/17, Mogas demand rose significantly by 4.3%YoY to an average 29.9 ML/day. Although, the retail price of Mogas is higher, Mogas demand was still suppo
Slide 79: Domestic Jet Demand
Thailand petroleum demand by products -79- Domestic Jet Demand Thailand JET-A1 Demand JET Demand Highlight • In 7M/17, Jet consumption increased significantly by 3.9% over the corresponding period last year mainly owning to booming tourism industry, leading to 6.1%YoY higher aircraft movement. The e
Slide 80: Domestic Gasoil and NGV Demand
Thailand petroleum demand by products -80- Domestic Gasoil and NGV Demand Thailand Gasoil Demand Diesel Demand Highlight • In 7M/17, Diesel demand rose moderately by 2.6% YoY as a result of Thai economic recovery. However, Diesel demand was still pressured by flooding situation in Southern part of T
Slide 81: Domestic Fuel Oil Demand
Thailand petroleum demand by products -81- Domestic Fuel Oil Demand Thailand Fuel Oil Demand Fuel Oil Demand Highlight • In 7M/17, Fuel Oil consumption fell sharply by 9.0%YoY, as a result of sharply falling by 52.9%YoY of electricity sector demand which pressured by fewer day of Myanmar gas field m
Slide 82: Thank You
-82- 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 (October 2017) on 6ix