Thai Oil Public Co. Ltd. · SET:TOP

Thai Oil Public — Investor Presentation (December 2014)

81 slides from Thai Oil Public's investor presentation, December 2014

  1. Slide 1: Thai Oil Public Company Limited Presentation to Investors

    Thai Oil Public Company Limited Presentation to Investors December 2014

  2. 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.

  3. 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

  4. Slide 4: Corporate Governance Policy

    -4- Corporate Governance Policy Roles and Responsibilities for Corporate Governance Policy Stakeholders The board of directors, management • Truthfully report company’s situation and and all staff shall commit to moral future trends to all stakeholders equally principles, equitable treatment to all

  5. Slide 5: Thaioil Group Sustainable Development

    -5- Thaioil Group Sustainable Development Member of DJSI Emerging Markets for 2 consecutive years • Highest Ranked Level in RobecoSAM Gold Class of Global Oil & Gas Companies • No.1 in ENERGY industry around the WORLD (Industry Group Leader) • No.1 in Oil & Gas Producers Worldwide (Industry Leader)

  6. Slide 6: Presentation Agenda

    -6- Presentation Agenda TOP GROUP BUSINESS OVERVIEW KEY FINANCIAL HIGHLIGHT STRATEGIC INVESTMENT PLAN MARKET OUTLOOK KEY TAKE AWAY MESSAGES APPENDIX  Q3 & 9M/14 PERFORMANCE ANALYSIS  GLOBAL REFINERY MARGINS / INVENTORY / THAILAND OIL DEMAND

  7. Slide 7: TOP Group Business Overview

    -7- TOP Group Business Overview

  8. Slide 8: Strategic Relationship and Operational Integration with PTT

    -8- Strategic Relationship and Operational Integration with PTT Thai Oil’s strong shareholder base 6.9% • Benefits from PTT’s dual 20.8% role as our major shareholder and key 49.1% business partner • All transactions take place at arm’s length 23.2% and in adherence with strong corporate PTT 49.1% g

  9. 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

  10. Slide 10: Key Milestones: 53 Years, A Long Track Record of Success

    -10- Key Milestones: 53 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

  11. 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% 100% Thai Paraxylene Thai Lube Base Thaioil Power Thaioil Marine Thaioil Ethanol Thaioil (TOP) (TPX) (TLB) (TP) (TM) (TET) Aromatics Capacity: Lube Base Oil Sells Electricity/Steam to • 4 Oil & Chemical Tankers Mitr P

  12. 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

  13. Slide 13: One of Region's Leading Refineries

    -13- One of Region’s Leading Refineries Total Thailand crude refining capacity 1,095 kbd 2013 Market shares for refined petroleum product3 32% Fang (3 kbpd) market shares Thai Oil (275 kbpd) PTT’s Principal Refiner BCP2 (120 kbpd) Esso (170 kbpd) Nelson Index - Regional Comparison 14.0 13.8 IRPC2 (2

  14. 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

  15. Slide 15: Optimized & Flexible Operations…Superior Performance

    -15- Optimized & Flexible Operations…Superior Performance Crude Assays based on Sources of Product Spread over Domestic demand for TOP configuration Crude output Dubai (US$/bbl) petroleum products* 1 % S = 1.54 % S = 2.13 % S = 0.79 Others 5% -44.0 LPG API = 31.2 API = 30.4 API = 39.7 14% Far East 1

  16. Slide 16: Strong Domestic Sales despite Flatten Local Demand

    -16- Strong Domestic Sales despite Flatten Local Demand Domestic Oil Demand / Domestic Refinery Intake Domestic Oil Demand *including TOP intake (Excluding TOP = 65%) KBD Q3/56 Q3/57 Utilization = 85% KBD 92%88% 93%89%92%92% 92% 1,200 85%89% 86% 85% 85% * 85% 100% 0.8% 1,000 1,000 80% 800 800 60% 60

  17. Slide 17: Competitive Performance Benchmarking

    -17- Competitive Performance Benchmarking Solomon (Bi-Annually) Shell Global Solutions International (SGSi) 2012 2010 Operational Performance Review Hydrocarbon Management Review Operational Troubleshooting Staff Competency Development Knowledge Management & Research

  18. 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

  19. Slide 19: Key Financial Highlights

    -19- Key Financial Highlights

  20. Slide 20: Q3/14 Key Highlights

    Financial -20- Q3/14 Key Highlights Macro-economies / Industry Highlights  $11.5/bbl drop in Dubai crude price pressured by oversupply from 5.2 $/bbl inventory loss Middle East & US, while soften demand Improve market GRM  Seasonally weak demand pressured margins BUT offset by (from 4.4 to 4.6 $/b

  21. Slide 21: Q3 & 9M/14: Inventory Loss… Amid Supportive Operating Profit

    Financial -21- Q3 & 9M/14: Inventory Loss… Amid Supportive Operating Profit TOP Group Net Profit Gross Refining Margin - GRM Unit : million THB NP w/o Stock G/L Stock G/(L) LCM Before tax $/bbl Q2/14 Q3/14 9M/14 Q2/14 Q3/14 9M/14 Marketing GRM 4.4 4.6 4.7 2,094* MB (2,175* MB) 2,453* MB Stock Gain/(

  22. Slide 22: Integrated Margin & Competitive Cash Cost

    Financial -22- Integrated Margin & Competitive Cash Cost Gross Refining Margin TOP’s Cash Cost (Unit: US$/bbl) (Unit: US$/bbl) Operating Cost Interest Expense (Net) Marketing GRM Accounting GRM (Marketing GRM + Stock G/L) Including MTA cost($/bbl) 0.2* 0.4* 0.2* * 2.7 * 6.4 6.2 5.3 2.1 2.4 2.2 * 4.5

  23. Slide 23: Financial Performance

    Financial -23- Financial Performance Sales Revenue EBITDA Unit: Million THB Unit: Million THB 447,432 EBITDA (excl stk G/L) EBITDA (incl stk G/L) 446,241 414,575 399,125 28,760 22,897 22,808 22,337 318,391 301,545 21,393 23,868 284,123 20,350 17,381 19,713 12,846 14,585 12,661 112,228 7,949 5,534 4,

  24. Slide 24: Strong Balance Sheet & Financial Ratio

    Financial -24- Strong Balance Sheet & Financial Ratio Statements of Financial Position Consolidated Long-Term Debt as at 30 Sep 14 1) (Unit: million THB) Total Long-Term Debt Net Debt 208,662 208,414 77,449 million THB 40,665 million THB Trade Payable Cash & ST 43,815 39,482 37,273 37,563 / Others (

  25. Slide 25: Dividend Payment

    Financial -25- Dividend Payment Dividend Policy : Not less than 25% of consolidated net profit after deducting reserves, subject to cash flow and investment plan THB/Share EPS Total dividend n.a. Interim dividend 9.19 9.40 Dividend payout 7.82 8.13 7.28 5.91 6.04 5.09 48% 45% 43% 45% 45% 45% 45% 40%

  26. Slide 26: Strategic Investment Plans

    -26- Strategic Investment Plans

  27. Slide 27: Broadening Growth, Capturing Step Out, Pursuing Sustainability

    Project Update -27- Broadening Growth, Capturing Step Out ,Pursuing Sustainability Operational Excellence Growth (Core & Step Out) Core Business Quick win Value Chain Enhancement Adjacent Logistics New Business AEC countries Geography

  28. Slide 28: Strategic Investment Plan

    Project Update -28- Strategic Investment Plan CAPEX Plan (Unit US$ million) Remaining capital investment Projects COD Total Project Cost 2017- 2014 2015 2016 2019 Refinery upgrading 2014 137 29 Our CAPEX investments Reliability, efficiency and flexibility - 353 91 56 13 34 will cover improvements im

  29. Slide 29: Margin Contribution from completed projects in Q3/14

    Project Update -29- Margin Contribution from completed projects in Q3/14 Project Project Details Actual Benefit Realization HVU Revamp: • Modify HVU-2 • Phase I: • Capable to produce more diesel/jet at Benefit Realization Benefit PSA-3 the expense of fuel oil (1-2%) ($/bbl) • Phase II: • Capable to

  30. Slide 30: Key Project Progress Update: LAB

    Project Update -30- Key Project Progress Update : LAB Project Detail Progress • TPX JV with Mitsui (75% : 25%) 69% • Upgrade existing Benzene and Kerosene into higher (On Plan) Linear Alkyl valued product; LAB which is an intermediate feedstock Benzene in production of surfactant (detergent) (LAB) •

  31. Slide 31: Key Project Progress Update: 2 SPPs

    Project Update -31- Key Project Progress Update : 2 SPPs Project Detail Progress • Low risk power business enhance income stability 41% • Support reliability of electricity & steam supply for TOP (On Plan) Group TOP SPP • Develop 2 new SPP power plants; (2 blocks of SPP) • Total power capacity 239 M

  32. Slide 32: Progress on Myanmar Project

    Project Update -32- Progress on Myanmar Project Study Project Detail Progress • On mid-July, 2014, Myanmar Petrochemical  PTT/TOP had Enterprise (MPE) issued Invitation to Tender, submitted proposal on specifying the proposal deadline by mid-Oct, 2014 Oct 13, 2014 Refinery Upgrading Project • Plann

  33. Slide 33: New Project Approval in Q3/14: Lorry Expansion Project

    New Project -33- New Project Approval in Q3/14 : Lorry Expansion Project Project Project Detail Lorry • Expand lorry loading capacity Expansion Existing Capacity Lorry Expansion Project Project Designed Capacity : 10 mml/day Planned Additional Capacity : +5 mml/day (10 gantries) (+ 5 gantries) • CAP

  34. Slide 34: Q4/14 & 2015 Market Outlook

    -34- Q4/14 & 2015 MARKET OUTLOOK • Macroeconomics and Crude Price • Refinery • Aromatics • Base Oil & Bitumen

  35. Slide 35: Macroeconomics and Crude Price

    -35- Macroeconomics and Crude Price

  36. Slide 36: 2015 Global GDP Growth by IMF

    Macroeconomics & Crude Prices -36- 2015 Global GDP Growth by IMF IMF revised down Global GDP growth 2014 2015 2013 Jul-14(2) Oct-14(3) Jul-14(2) Oct-14(3) USA 2.2% 1.7% 2.2% 3.0% 3.1% EU -0.4% 1.1% 0.8% 1.5% 1.3% China 7.7% 7.4% 7.4% 7.1% 7.1% Japan 1.5% 1.6% 0.9% 1.1% 0.8% India 5.0% 5.4% 5.6% 6.4%

  37. Slide 37: 2015 Global Oil Demand Growth

    Macroeconomics & Crude Prices -37- 2015 Global Oil Demand Growth IEA forecasted 2015 world oil demand increases around 1.13 mbd FSU Unit: KBD North America Europe 120 50 70 480 70 -170 -40 -150 -10 Middle East 220 Asia 150 190 340 330 540 Africa Latin America 100 170 60 200 150 130 2013/2014/2015 So

  38. Slide 38: 2015 Non-OPEC Supply Growth

    Macroeconomics & Crude Prices -38- 2015 Non-OPEC Supply Growth IEA forecasted 2015 Non-OPEC oil supply increases around 1.26 mbd mainly from North America FSU Unit: KBD North America Europe 260 1490 1260 0 -10 1020 -90 -50 -100 Middle East Asia -110 -30 -40 110 Africa Latin America -50 30 -230 20 10

  39. Slide 39: 2015 Crude Outlook

    Macroeconomics & Crude Prices -39- 2015 Crude Outlook $/BBL $/BBL 120 2014 Dubai 99 $/BBL 120 $109 110 $106 $105 $106 110 $104 $101 100 100 $92 90 90 $82-86 80 80 70 70 2011 2012 2013 1Q14 2Q14 3Q14 4Q14 2015 Latest Forecast Actual Estimate as of 6 Nov’14 Factor to watch + Improved crude demand in Q

  40. Slide 40: Why Crude Price Slumped in Q3 and Oct'14?

    Macroeconomics & Crude Prices -40- Why Crude Price Slumped in Q3 and Oct’14? Crude Supply/Demand Dubai Price MBD 95 $/BBL 120 94 Supply 93 110 106.2 101.7 Demand 92 96.5 100 91 Jul'14 Aug'14 Sep'14 90 Avg. Oct’14 86.6 OPEC Supply Sep/Aug : +0.46 MBD 4 80 Iraq Jul’14 Aug’14 Sep’14 3 +0.20 Aug- Sep-14

  41. Slide 41: Production Costs Set Crude Price

    Macroeconomics & Crude Prices -41- Production Costs Set Crude Price Fiscal Breakeven Price Cost of Oil Production $/BBL 2015 Demand is 93.5 MBD Cumulative Production (MMBD) Source: IEA Oil Market Report  Saudi can stay in comfort zone at $80-90/BBL  Lower floor price should cause delay for high pr

  42. Slide 42: Petroleum Products

    & ~ Group PETROLEUM PRODUCTS -42-

  43. Slide 43: Overview 2014-20 Refinery Status (Effective Additional Capacity)

    Refinery -43- Overview 2014-20 Refinery Status (Effective Additional Capacity) New barrel from AP/ME’s additional refinery is likely to flood oil product market CDU Addition VS Additional Demand – AP & ME AP Additional Demand ME Additional Demand Addition Nameplate Country Company ME Addition China

  44. Slide 44: High Supply Pressures GRM

    Refinery -44- High Supply Pressures GRM ($/bbl) 2013 Q3-14 Q4’14TD1 Q4-142 20143 20154 ULG95-DB 13.5 13.2 14.3 JET-DB 17.4 14.5 17.5 GO-DB 17.8 14.4 15.6 HSFO-DB (8.0) (8.3) (6.0) SG Reuters Cracking GRM 6.2 4.7 7.7 Remark : 1 as at 2 Dec 14 2 Compared to Q3-14 3 Compared to 2013 4 Compared to 2014

  45. Slide 45: Thailand Oil Demand Outlook

    Refinery -45- Thailand Oil Demand Outlook Year on Year 2013 2014E 2015F LPG +2% +2% +3% Mogas1 +7% +2% +2% Jet/Kero +9% +1% +4% Diesel1 +2% +1% +2% Fuel Oil -8% -18% -4% Total +3.0% +0.6% +2.2% GDP Growth +2.9% +1.5%2 +4.8%2 Remarks : 1. Mogas and diesel have included ethanol and biodiesel, respecti

  46. Slide 46: Aromatics

    & ~ Group AROMATICS -46-

  47. Slide 47: Has PX Spread Hit the Bottom?

    Aromatics -47- Has PX Spread Hit the Bottom?

  48. Slide 48: Heavy PX Capacity Addition Causing Supply Surplus

    Aromatics -48- Heavy PX Capacity Addition Causing Supply Surplus MTA Feedstock Uncertainty Sinopec Hinan 3.5 HC Petrochem 3.0 Tenglong2 Tenglong1 TPPI 2.5 2.0 1.5 1.0 0.5 0.0 Jan Sep Oct Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 2013 2014 2014 Country Plan KTA Company Early plan of PX

  49. Slide 49: 2015 PX and PTA Capacity Update

    Aromatics -49- 2015 PX and PTA Capacity Update Global Nameplate PX Additional/Closure Capacity Country Plan KTA Company MTA 3.0 Korea Q1’15 -200 Lotte Chemical1 2.0 Kazakhstan Q2’15 469 JSC KazMunaiGas 1.0 India Q3’15 2,250 Reliance Industries 4 0.0 Thailand Q3’15 120 PTTGC -1.0 Q1 Q2 Q3 Q4 Total 2,

  50. Slide 50: PX Demand/Supply Outlook

    Aromatics -50- PX Demand/Supply Outlook AP/ME PX Capacity* and Demand Chinese GDP Growth (%YOY) Forecast Forecast Growth (%YoY) MTA 2010-2013 2014 2015-2019 Dem: 8.1% Dem: 5.7% Dem: 5.9% 12 60 Cap: 6.8% Cap: 14.8% Cap: 6.3% 50 10 10.4 48 51 40 46 9.2 9.3 41 44 42 8 30 38 37 40 33 35 7.7 7.7 20 29 27

  51. Slide 51: Paradigm Shift of BZ Spread

    Aromatics -51- Paradigm Shift of BZ Spread (from 100 to 300 $/ton) $/t BZ FOB-ULG95 US import from Asia Pacific 500 400 Financial Crisis 300 200 100 0 -100 May Nov May Nov May Nov May Nov May Nov May Nov May Sep Sep Sep Sep Sep Sep Sep Jul Jul Jul Jul Jul Jul Jul Jan Jan Jan Jan Jan Jan Jan Mar Mar

  52. Slide 52: BZ Demand/Supply Outlook

    Aromatics -52- BZ Demand/Supply Outlook AP/ME BZ Capacity* and Demand “BZ Imports by North America” Forecast Forecast MTA 2010-2013 2014 2015-2019 MT Dem: 5.4% Dem: 5.5% Dem: 4.7% 50 3.0 Cap: 5.3% Cap: 7.5% Cap: 4.3% 45 40 46 44 39 41 2.0 35 37 39 2.1 2.0 2.0 1.9 2.0 1.9 1.9 30 33 33 35 1.7 31 30 32

  53. Slide 53: Bearish PX Market due to Weak Downstream Demand

    Aromatics -53- Bearish PX Market due to Weak Downstream Demand ($/t) 2013 Q3-14 Q4’14TD1 Q4-142 20143 20154 PX-ULG95 485 371 245 BZ-ULG95 289 327 248 Note: PX = Paraxylene, BZ = Benzene Remark : 1 as at 2 Dec 14 2 Compared to Q3-14 3 Compared to 2013 4 Compared to 2014 Overall Market in Q4-14 Factor

  54. Slide 54: Base Oil & Bitumen

    & ~ Group BASE OIL & BITUMEN -54-

  55. Slide 55: Depressed Base Oil Price on Thin Demand

    Base Oil & Bitumen -55- Depressed Base Oil Price on Thin Demand Stronger Gr.I margin mainly driven by soft FO price $/t 2013 YTD-14 Key Factors 500SN-HSFO 485 499 • Rise of 150SN and 500SN spread due to weak fuel oil price especially in Q3-14 150SN-HSFO 402 478 • Depressed absolute Gr.I prices since

  56. Slide 56: Bitumen Outlook

    Base Oil & Bitumen -56- Bitumen Outlook Weak bitumen margin mainly driven by weak Chinese $/t 2013 YTD-14 Key Factors Bit-HSFO (13) (60) • Depressed spread in first half of the year due to weak Chinese • Improved spread since Q3 as a result of healthy regional demand and sharp drop in fuel oil price

  57. Slide 57: Soft Demand & Abundant Supply Pressure Base Oil Prices

    Base Oil & Bitumen -57- Soft Demand & Abundant Supply Pressure Base Oil Prices ($/t) 2013 Q3-14 Q4’14TD1 Q4-142 20143 20154 500SN-HSFO 485 500 502 Bitumen-HSFO (14) (66) 56 Remark : 1 as at 2 Dec 14 1Compared to Q3-14 2Compared to 2013 3Compared to 2014 Overall Market in Q4-14 Factor to Watch for 20

  58. Slide 58: Conclusion

    & ~ Group CONCLUSION -58-

  59. Slide 59: 2015 Market Conclusion

    Conclusion -59- 2015 Market Conclusion Refinery • Soft crude price due to ample supply • New additional supply to pressure next-year margin Aromatics • Weak PX spread due to supply surplus • Firm BZ spread supported by US import Base Oil & Bitumen • Weak base oil spread due to Gr.II supply surplus •

  60. Slide 60: Key Take Away Messages

    by Tht Group Key Take Away Messages -60-

  61. Slide 61: Key Take Away Messages

    -61- Key Take Away Messages Paradigm Shift in Oil Prices to below $100/bbl Era Implementation of Short-term Mitigation  Minimum crude oil / product stocks  Company-Wide Benefit Recovery Program Source : www.mining.com  Fully run after maintenance & utilize completed margin improvement projects to

  62. Slide 62: Appendix

    by Tht Group Appendix -62-

  63. Slide 63: Q3 & 9M/14 Performance Analysis

    -63- Q3 & 9M/14 Performance Analysis

  64. Slide 64: Q3/14 Stable Refinery Margins…While Huge Inventory Loss

    Refining -64- Q3/14 Stable Refinery Margins…While Huge Inventory Loss Dubai Crude Price & Key Petroleum Product Spreads Refinery Utilization Q2/14* Q3/14* 9M/14 2013 2014 94% 85% 95% $/bbl Q1 Q2 Q3 Q4 Q1 Q2 Q3 9M Q4TD* *CDU-3 MTA mid Jun to end Jul 14 DUBAI (DB) 108.1 100.8 106.3 106.8 104.4 106.1 1

  65. Slide 65: Q3/14: Recovered PX Spread…Regained Aromatics Margins

    Aromatics -65- Q3/14: Recovered PX Spread…Regained Aromatics Margins Aromatics Spreads and Margins Aromatics Production 2013 2014 Q2/14* Q3/14* 9M/14 79% 64% 79% $/ton Q1 Q2 Q3 Q4 Q1 Q2 Q3 9M *Aromatics unit MTA mid Jun to end Jul 14 PX*-ULG95 559 462 476 445 273 220 371 288 BZ-ULG95 303 305 249 297

  66. Slide 66: Q3/14: Soften Feedstock Cost…Maintained Lube Margins

    Lube Base Oil -66- Q3/14: Soften Feedstock Cost…Maintained Lube Margins Base Oil & Bitumen Spreads & Margins Base oil Production 2013 2014 Q2/14* Q3/14* 9M/14 $/ton Q1 Q2 Q3 Q4 Q1 Q2 Q3 9M 99% 88% 96% *Base oil unit T/A in end-Sep 14 500SN-HSFO 419 494 519 509 486 501 500 496 BITUMEN- Lube Base Oil

  67. Slide 67: Beauty of Integration…Sustainable GIM

    Performance Breakdown -67- Beauty of Integration…Sustainable GIM (Unit: US$/bbl) 21.6 20.3 16.5 18.6 18.5 8.2 4.8 8.7 7.2 Product to Feed Q1/13 Q2 Q3 Q4 Q1/14 Q2 Q3 9M/13 9M/14 6.6 5.0 5.1 5.1 4.7 3.6 4.4 4.6 Crude 1.9 Marketing GRM (excluded stock gain / loss) Q1/13 Q2 Q3 Q4 Q1/14 Q2 Q3 9M/13 9M/14

  68. Slide 68: Q3/14: Performance Breakdown

    Performance Breakdown -68- Q3/14: Performance Breakdown ** 32.39% ***74% holding holding Key Points • TOP/ TPX/ TLB: lower intake due to CDU-3 and aromatics complex planned MTA (15 Jun-end July 14) Sriracha and Lube plant planned S/D end Sep Refinery Aromatic Lube Base Power TP Plant Ship SAKC Ethan

  69. Slide 69: Consolidated Financial Performance

    Financial -69- Consolidated Financial Performance (US$/bbl) Q3/14 Q2/14 Q3/13R QoQ+/(-) 9M/14 9M/13R YoY+/(-) Marketing GRM 4.6 4.4 5.0 0.2 4.7 5.1 (0.4) Marketing GIM 5.5 5.1 7.9 0.4 5.6 7.4 (1.8) Accounting GIM 0.5 6.4 11.7 (5.9) 3.9 8.0 (4.1) (million THB) Sales Revenue 88,254 101,063 108,500 (12

  70. Slide 70: Global Refinery Margins/Inventory Thailand Oil Demand

    -70- Global Refinery Margins/Inventory Thailand Oil Demand

  71. Slide 71: Asian Margin Vs. US-EU margin

    -71- Asian Margin Vs. US-EU margin $/bbl SINGAPORE GRM 91.1% 58.5% 61.6% Total Capacity: 17.0 MBD Total Capacity: 4.9 MBD Total Capacity: 17.5 MBD Source: EIA, Norwegian Energy, Thai Oil

  72. Slide 72: Crude Inventory

    -72- Crude Inventory Source: Norwegian Energy

  73. Slide 73: Global Distillate Inventory

    -73- Global Distillate Inventory Source: Norwegian Energy

  74. Slide 74: Fuel Oil Inventory

    -74- Fuel Oil Inventory Source: Norwegian Energy

  75. Slide 75: China's Product Export

    -75- China’s Product Export Source: Norwegian Energy

  76. Slide 76: Domestic LPG Demand

    -76- Domestic LPG Demand Thailand LPG Demand LPG Demand Highlight • LPG demand in Q3/14 slightly rose by 1.0% YoY thanks to higher consumption in petrochemical and auto sectors. Demand expansion was supported by new registered car and increase of LPG availability after GSP#5 resumed normal operation

  77. Slide 77: Domestic Gasoline Demand

    -77- Domestic Gasoline Demand Thailand Gasoline Demand GASOLINE Demand Highlight • Mogas demand in Q3-14 significantly increased by 5.8% YoY to 23.57 mml/day. This was mainly due to new registered car. Recorded gasohol portion at 94.4% of total gasoline was thanks to higher usages of E20 and E85 whi

  78. Slide 78: Domestic Jet Demand

    -78- Domestic Jet Demand Thailand JET-A1 Demand JET Demand Highlight • In Q3-14 Jet consumption considerably dropped by 6.0% YoY mainly due to low international aircraft movement. Declining international arrivals resulted from softening economic condition in EU, China and Russia. Moreover, more than

  79. Slide 79: Domestic Gasoil Demand

    -79- Domestic Gasoil Demand Thailand Gasoil Demand Diesel Demand Highlight • Diesel consumption in Q3-14 rose by 2.1% YoY supported by more transportation activities. Moreover, the strong consumption in diesel was also supported by capped retail price no more than 30 baht per liter. • In Sep-14 Gaso

  80. Slide 80: Domestic Fuel Oil Demand

    -80- Domestic Fuel Oil Demand Thailand Fuel Oil Demand FUEL OIL Demand Highlight • In Q3-14 Fuel Oil consumption intensely fell by 10.7% YoY, due to lower usages in transportation and industrial sectors. The lack of demand was impacted by lower shipping activities and price attractiveness of NG over

  81. Slide 81: Thank You

    -81- 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 (December 2014) on 6ix