Thai Oil Public Co. Ltd. · SET:TOP
Thai Oil Public — Investor Presentation (April 2018)
82 slides from Thai Oil Public's investor presentation, April 2018
Slide 1: Thai Oil Public Company Limited Presentation to Investors
-1- Thai Oil Public Company Limited Presentation to Investors April 2018
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 5th Consecutive Year of leading positions: Oil & Gas Refining & Marketing
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 19.0% • Benefits from PTT’s dual role as our major shareholder and key 11.1% 49.1% business partner • All transactions take place at arm’s length and in adherence with 20.8% 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 Sells Electricity/Steam to • 4 Oil & Chemical Tankers 50.0% Parax
Slide 12: Process Linkage: Beauty of Integration
-12- 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 ULG95 85,000 CCR-2 CDU-1 50,000 ULG91 45,000 KMT-1 CDU-2 KMT-2 JET 50,000 CDU-3 165,000 KEROSENE HVU-1 Thai Lube Base HVU-2 FCCU HDS-2 HVU-3 HVU-3
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 30% 29% Fang (3 kbpd) market market shares shares Thai Oil (275 kbpd) PTT’s Principal Refiner FY/17 Q4/17 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 Access to Indochina markets through deep Close proximity to the key domestic markets water ports and trucks Our strategic location provide us with LAOS 1. Close proximity with the VIETNAM key domestic markets Bangkok and In
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** Thai Oil is able to diversify its type of crude intake and product outputs to maximize demand and margin %
Slide 16: Refinery: Recorded High Annual Utilization Rate
Refining -16- Refinery: Recorded High Annual Utilization Rate TOP/ Domestic Refinery Utilization Rate Domestic Oil Demand Unit: % Utilization Rate 2016 2017 111% 112% 114% 112% 112% KBD 110% 110% 107% 109% 107% 108% 108% 3.4% 800 600 2.9% 98% 98% 90% 95% 94% 94% 400 3.7% 91% 88% 89% 89% 90% 91% 4.4%
Slide 17: Competitive Performance Benchmarking
-17- Competitive Performance Benchmarking Solomon for GOC 3(1) Category 2016 : TOP 2014 : TOP Solomon Associates is the independent 3rd party who applies Comparative Performance Analysis methodology to industry peers in (2) the area of reliability, equipment, utilization, operating expense, gross ma
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: 2017 Key Market Drivers Highlights
Key Highlights -20- 2017 Key Market Drivers Highlights Refinery Implication Robust refining margins supported by higher middle distillate 1) spread due to improving regional demand, particularly China, and Mkt GRM at 6.7 $/bbl strong fuel oil spread backed by bunker demand. (2016 = 5.2 $/bbl) 1) I
Slide 21: 2017 Key Achievements
Key Highlights -21- 2017 Key Achievements Key Achievements 2017 TOP Group Net Profit Recorded high refinery annual utilization Unit : million THB (MB) Operational Stock gain/(loss) Net Operating Profit Excellence rate Reversal of NRV/(NRV) & Adjusted to cost Others i.e. Hedging gain/(loss) & Non-r
Slide 22: 2017 Profitability Improvement (VS Corporate Plan)
Key Highlights -22- 2017 Profitability Improvement (VS Corporate Plan) Cost Management General & Admin , Margin Improvement Procurement & warehouse , (Supply & Marketing / Operation & Maintenance , Hydrocarbon Management / Project & Manpower management Unit: million THB ) 37% LP Upgrading Model , 52
Slide 23: Integrated Margin & Competitive Cash Cost
Financial -23- Integrated Margin & Competitive Cash Cost Gross Refining Margin Refinery’s Cash Cost (Unit: US$/bbl) (Unit: US$/bbl) Market GRM Accounting GRM (Market GRM + Stock G/L) Operating Cost Interest Expense (net) (excl. one-time non- 9.6 operating item) 7.6 7.8 6.8 6.7 6.2 5.9 6.0 5.3 5.7 5.
Slide 24: Financial Performance
Financial -24- Financial Performance Sales Revenue EBITDA Unit: Million THB Unit: Million THB 446,241 447,432 EBITDA (excl stk G/L & NRV) EBITDA (incl stk G/L & NRV) 414,575 390,090 36,925 337,388 31,099 33,448 318,391 28,760 284,123 293,569 274,739 32,675 23,868 22,808 25,492 21,393 22,337 20,350 1
Slide 25: 2017 TOP Group Strong Financial Position & Financial Ratios
Financial -25- 2017 TOP Group Strong Financial Position & Financial Ratios Statements of Financial Position Consolidated Long-Term Debt as at 31 Dec 17 (Unit: million THB) Total Long-Term Debt Net Cash 217,731 208,051 228,108 65,499 million THB 1,474 million THB 35,461 Trade Payable 30,700 24,572 (U
Slide 26: 2017 Dividend Payment
Financial -26- 2017 Dividend Payment Dividend Policy : Not less than 25% of consolidated net profit after deducting reserves, subject to cash flow and investment plan Unit : THB/Share EPSR 2H dividend 1H dividend Year Dividend 12.18 10.40 9.19 9.40 8.66 7.82 7.28 5.91 6.04 5.97 4.39 4.57 2.75 3.75 3
Slide 27: Strategic Investment Plans
-27- STRATEGIC INVESTMENT PLANS
Slide 28: TOP Galaxy: Strategic Direction 2017-2022
-28- TOP Galaxy: Strategic Direction 2017-2022 Vision: A Leading fully integrated refining and petrochemical company in Asia Pacific Vision Top quartile TOP ROIC & Measurement NP Growth Diversified business DJSI 2022 performer OpEx Competitive Long Term High Improvement Growth Performance - Clean Fu
Slide 29: Strategic Investment Plan Approved by Board of Directors
Updated CAPEX plan -29- Strategic Investment Plan Approved by Board of Directors CAPEX Plan (Unit US$ million) Project Planned capital investment 2017 2018 2019 Reliability, Efficiency and Flexibility Improvement 40 26 6 Benzene Derivatives – LAB 1 2 5 Power – 2 SPPs 2 Infrastructure Improvement - L
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 g
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: 1H-18 Market Outlook
-33- 1H-18 MARKET OUTLOOK • Crude Oil • Petroleum Products • Aromatics • Base Oil & Bitumen • Linear Alkyl Benzene (LAB)
Slide 34: Crude Oil
CRUDE OIL -34- Sanaon
Slide 35: Firm Economic Outlook
-35- Economy Global Economic Outlook Firm Economic Outlook with GDP to grow by 3.7 percent in 2017 and 3.9 percent in 2018 Growth China India Thailand (%YoY) US EU World 2017 2018 2019-22 ASEAN-5 Column1 Jan-18(1) Jan-18(1) Oct-17(1) 12% US 2.3% 2.7% 1.8% 8% EU 2.4% 2.2% 1.6% 4% China 6.8% 6.6% 6.1%
Slide 36: Global Oil Demand Growth Projection
-36- Crude Oil Global Oil Demand Growth Projection IEA forecasted global oil demand to grow by 1.3 MBD in 2018 North America Europe FSU Unit: KBD 230 290 190 170 200 2016 80 30 70 50 2017 2018 Middle East 200 Asia Latin America 0 1070 80 890 20 -100 660 Africa 80 -150 30 50 Demand Growth IEA (MBD) (
Slide 37: Non-OPEC Supply Growth Projection
-37- Crude Oil Non-OPEC Supply Growth Projection IEA estimated Non-OPEC supply growth to grow by 1.7 MBD in 2018 North America Europe FSU 1500 80 40 Unit: KBD 240 720 2016 130 2017 -60 40 2018 Middle East -450 30 Latin America Asia -20 -10 500 140 70 Africa 50 50 -110 -280 -200 Non OPEC Growth Remar
Slide 38: Sustaining Crude Prices with Downward Trend amid Surging U.S. Supply
Crude Oil -38- Sustaining Crude Prices with Downward Trend amid Surging U.S. Supply Dubai Price Movement $/BBL OPEC and Non- Output cuts Robust demand and OPEC agreed to cut 1st OPEC-led supplyextended to lower U.S. output 80 cut deal extension end of 2018 from winter storm 1.8 MBD oil output 60 BRE
Slide 39: Oil Market Turning to Surplus in 1H-18 Pressured by Massive U.S. Oil Production
Crude Oil -39- 1 Oil Market Turning to Surplus in 1H-18 Pressured by Massive U.S. Oil Production A Rising U.S. Production to Above 10 MBD B Higher Price Heightens Shale Oil Production U.S. Crude Oil Production 2018 Annual Shale Oil Growth vs. WTI Price MBD MBD MBD, YoY 11.0 2.5 1.2 10.0 1.5 0.8 9.0
Slide 40: Supply Cut Deal to be a Double-edged Sword for OPEC
Crude Oil -40- 2 Supply Cut Deal to be a Double-edged Sword for OPEC A High Compliance from both Producers C OECD Oil Stocks Approaching 5-yr Average Compliance Rates of Output Cut OECD Oil Inventories % MBBL 160 3,200 140 120 3,100 100 80 3,000 60 40 2,900 20 0 2,800 Jan-17 Mar-17 May-17 Jul-17 Sep
Slide 41: Petroleum Products
-41- PETROLEUM PRODUCTS Sanaon
Slide 42: Firm Petroleum Product Market from Robust Demand Growth and Limited Supply
Refinery -42- Firm Petroleum Product Market from Robust Demand Growth and Limited Supply Singapore Cracking GRM ($/BBL) 8.5 8.0 8.2 7.9 7.6 7.7 6.7 7.2 7.1 7.0 7.1 6.1 6.2 6.5 6.4 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 Q4-17 Y2017 Q1-18 Q2TD- 18* Q2TD-
Slide 43: Firm Gasoline Margin Due to Healthy Demand Despite Higher Chinese Exports
Refinery -43- Firm Gasoline Margin Due to Healthy Demand Despite Higher 1 Chinese Exports A Tighter Market on Firm Demand & Refinery MTA B Steady U.S. Demand Despite Higher Crude Price Asia Pacific Gasoline Demand MBD U.S. Gasoline Demand MBD 10.2 7.4 1H-18: 9.2 MBD (+0 MBD YoY) 1H-18: 7.1 MBD (+0.2
Slide 44: Steady Middle Distillate Cracks from Robust Demand and Limited Saudi Supply
Refinery -44- Steady Middle Distillate Cracks from Robust Demand and 2 Limited Saudi Arabian Supply A Rising Asia Demand from Recovered Economy B Lower Surplus in H1-18 During Refinery MTA Period MBD Asia Pacific Gasoil Demand Asia Pacific Gasoil Balance 10.5 MBD 2.0 10.0 1H-18: 9.3 MBD (+0.21 MBD Y
Slide 45: Lower-than-expected Supply Addition from Nghi Son Delay and Jeddah Closure
Refinery -45- Lower-than-expected Supply Addition from the Start-up 3 Delay in Nghi Son and Jeddah’s Closure Asia Pacific and Middle East Effective CDU Addition VS Additional Demand Middle East China Other AP Japan India Vietnam Teapot Net Addition AP & ME Demand Growth KBD Demand growth > New Capac
Slide 46: Thailand Oil Demand Growth
Domestic -46- Thailand Oil Demand Growth Thailand Oil Demand Growth Average Year on Year Y2016(B) Y2017(B) Y2018F(C) 2015-2016(B) Mogas (A) +11.5% +9.8% +3.7% +3.1% Jet/Kero +8.2% +6.8% +4.4% +2.5% Diesel (A) +3.5% +3.1% +2.9% +1.9% Total +6.3% +5.4% +3.4% +2.3% GDP +3.1% +3.2% +3.9%(D) +3.9%(E) Tha
Slide 47: Aromatics
AROMATICS -47- Sanaon
Slide 48: PX and BZ Market Still Supported by Firm Market Fundamentals
Aromatics -48- PX and BZ Market Still Supported by Firm Market Fundamentals Aromatics Market PX CFR Taiwan-ULG95 ($/TON) BZ FOB Korea-ULG95 ($/TON) 332315341 317 343 313 304 288 280 273258260276 272 255246 256 245 233 225 212 231 185 195 156138174 163 151 98 115 101 97 74 Y2015 Y2016 Y2017 Q2TD-18*
Slide 49: Firm PX Market supported by Summer Demand and New PTA Plants
Aromatics -49- Firm PX Market supported by Summer Demand and 1 New PTA Plants A Firm Polyester Demand to Support Market B High PTA Plants to Support PX Consumption in 2018 AP/ME Effective PX Capacity vs Demand Addition AP/ME Effective PTA Capacity Addition Operating Rate Mil TON PTA Mil TON PetroRab
Slide 50: AP/ME PX Balance
Aromatics -50- AP/ME PX Balance AP/ME PX Supply Demand Balance 2010-2017 (CAGR) 2018 (CAGR) 2019-2022 (CAGR) Mil TON Cap: 5.9% Cap: 4.2% Cap: 8.5% Operating Rate Dem: 5.9% Dem: 8.5% Dem: 4.2% 70 90% 60 50 55.3 57.9 80% 40 49.3 43.0 44.8 45.3 43.4 45.8 37.8 40.6 41.2 39.5 40.5 42.1 70% 30 33.3 33.3 3
Slide 51: Stable BZ Market on Firm Chinese Import Interest
Aromatics -51- Stable BZ Market on Firm Chinese Import Interest amid 2 Slightly Lower Demand Growth A Slightly Lower BZ Addition in 2018 to Support Market B Slightly Higher SM Capacity Addition in 2018 AP/ME Effective BZ Capacity vs Demand Addition AP/ME Effective SM Capacity Addition Mil TON Operat
Slide 52: AP/ME BZ Balance
Aromatics -52- AP/ME BZ Balance AP/ME BZ Supply Demand Balance 2010-2017 (CAGR) 2018 2019-2022 (CAGR) Cap: 3.2% Cap: 2.7% Cap: 5.% Mil TON Dem: 3.6% Dem: 3.9% Dem: 3.3% Operating Rate 50 90% 45.7 47.1 40 40.0 40.4 42.2 80% 37.2 37.7 39.0 36.8 30 32.9 32.8 34.5 32.6 33.6 31.2 30.4 31.5 27.0 28.1 29.2
Slide 53: Base Oil & Bitumen
BASE OIL & BITUMEN -53- Sanaon
Slide 54: Softer Base Oil Market due to Higher Plant Addition
Base Oil & Bitumen -54- Softer Base Oil Market due to Higher Plant Addition 500SN – HSFO ($/TON) A AP Base Oil Nameplate Capacity Addition Mil TON 556528 512523 1.8 506 450431 427409443 412 451 458498 2.0 1.2 369399 367 1.0 0.5 0.2 0.0 -1.0 2015 2016 2017 2018 Group 1 Group 2 Group 3 Net Capacity Y2
Slide 55: Stable Bitumen Market on Firm Demand
Base Oil & Bitumen -55- Stable Bitumen Market on Firm Demand Bitumen-HSFO ($/TON) A Higher Import Demand from China and India Import Volume of Major Asian Players Mil TON 82 98 56 10.0 7.9 8.2 7.6 8.0 23 20 8.0 6.0 -7 -13 -38 -29 4.0 -48 -61 -49 -45 -31 -56 -73 -80 2.0 0.0 Y2015 Y2016 Y2017 Q2TD-18*
Slide 56: Linear Alkyl Benzene (LAB)
-56- Linear Alkyl Benzene (LAB)
Slide 57: Stable LAB Market due to Higher Demand amid Lower Plant Maintenance
LAB -57- Stable LAB Market due to Higher Demand amid Lower Plant Maintenance LAB Market LAB Spread** ($/TON) KTA AP/ME Effective Maintenance/Closure* 250 200 654666675627656 635627619 606 603 543 539 534522550 529 546 150 100 50 0 1H-17 2H-17 1H-18 2H-18 2017 2018 Y2015 Y2016 Y2017 Q2TD-18* Q1-15 Q2
Slide 58: Conclusion
CONCLUSION -58- Sanaon
Slide 59: 1H-18 Market Outlook Conclusion
Conclusion -59- 1H-18 Market Outlook Conclusion (vs. 2H-17) Crude Oil Sustaining Crude Prices with Downward Trend amid Surging U.S. Supply Firm Petroleum Product Market from Robust Demand Growth Refinery and Limited Supply Stable-to-Firm Aromatics on Demand Growth and Aromatics Downstream Plant Addi
Slide 60: Thank You
-60- Thank You Any queries, please contact: at email: ir@thaioilgroup.com Tel: 662-797-2999 / 662-797-2961 Fax: 662-797-2976
Slide 61: Appendix
-61- APPENDIX • Q4 & FY/17 Performance analysis • CDU Addition VS Additional Demand – AP & ME • World GRM / Inventories • Thailand petroleum demand by products
Slide 62: Q4/17: Softer Market GRM Pressured by Increased Supply
Refining -62- Q4/17: Soften Mkt GRM pressured by Increased Supply after Resumption from Unplanned Shutdown in U.S. and Higher Crude Premium Dubai Crude Price & Key Petroleum Product Spreads Refinery Utilization Q3/17 Q4/17 2017 2016 2016 2017 2016 114% 112% 112% 108% $/bbl Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY
Slide 63: Q4/17: Improved Contribution supported by strong downstream demand
Aromatics/LAB -63- Q4/17: Improved Contribution supported by strong downstream demand Aromatics Spreads and Margins Aromatics Production 2016 2017 2016 Q3/17 Q4/17 2017 2016 $/ton Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY17 FY16 81% 82% 83% 81% PX**-ULG95 332 315 341 280 312 273 258 260 276 317 Q1’18 PX-ULG95 = 30
Slide 64: Q4/17: Slightly Lower Contribution Pressured by Lower Demand
Lube Base Oil -64- Q4/17: Slightly Lower Contribution Pressured by Lower Demand and Increased Lube Supply after Resumption from Maintenance Base Oil & Bitumen Spreads & Margins Base oil Production 2016 2017 2016 Q3/17 Q4/17 2017 2016 $/ton Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY17 FY16 88% 88% 88% 81% 500SN-HSFO
Slide 65: Q4/17 Power Sector Performance…Growing Contribution to the Group
Power -65- Q4/17 Power Sector Performance…Growing Contribution to the Group Power Business Sector Equity holding in SPP GPSC **** Power & Steam Sales ***TOP shareholding 24.29% (8.91% via TOP and 20.79% via TP) GPSC is an associate company of TOP. Electricity(1) 2,055 2,504 Equity method is applied
Slide 66: Beauty of Integration…Sustainable GIM
Performance Breakdown -66- Beauty of Integration…Sustainable GIM (Unit: US$/bbl) 9.9 12.2 12.8 13.0 14.3 12.4 16.4 11.9 11.0 12.2 7.1 1.4 Product to Feed Q1/15 Q2 Q3 Q4 Q1/16 Q2 Q3 Q4 Q1/17 Q2 Q3 Q4 8.8 7.4 6.6 8.5 6.1 5.7 6.5 6.1 8.1 6.0 4.4 4.3 Crude Marketing GRM (excluded stock gain / loss) Q1/1
Slide 67: 2017: Performance Breakdown by Business Unit
Performance Breakdown -67- 2017: Performance Breakdown by Business Unit Utilization/Production (%) & Net Profit (million THB) Key Points • Refinery: higher utilization to capture decent margin and strong demand (local + Indochina) • Aromatic/LAB: despite stable margins, net profit contribution decli
Slide 68: 2017 TOP Group Consolidated P&L
Financial -68- 2017 TOP Group Consolidated P&L (million THB) Q4/17 Q3/17 QoQ+/(-) Q4/16 YoY+/(-) 2017 2016 YoY+/(-) YoY analysis Sales Revenue 89,443 80,296 9,147 77,104 12,339 337,388 274,739 62,649 A) A Mainly from overall sale Hedging Gain / (Loss) (63) (20) (43) (330) 267 (133) (243) 110 B) volu
Slide 69: 2017 TOP Group Consolidated Cash Flow
Financial -69- 2017 TOP Group Consolidated Cash Flow (Unit: Million THB) (Unit: Million THB) Investments Operating Cash Flow FY/17 FY/16 FY/17 FY/16 Investments (30,092) (18,352) Operating Cash Flow 34,417 23,182 ST investments (23,423) (12,057) Net income & non-cash adj. 38,568 32,832 + Available f
Slide 70: Asia Pacific and Middle East Refinery Addition
Refinery -70- Asia Pacific and Middle East Refinery Addition Teapot India Start-up Nameplate Country Company Japan Other AP period) (KBD) China ME Close Q3-17 42 India HPCL Bhatinda Middle East Net Addition AP & ME Demand Growth China (Oct’16 > Jul’17) 260 CNPC/SA Anning KBD China (Feb’17 > Sep’17)
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 Source : EIA Source : EurOil Source : METI 19 12 3.9 Total Capacity: 18.1 MBD 93.64% Total Capacity: 15.8 MBD 63.76% Total Capacity: 3.5 MBD 93.71% 18 3.7 17 11 3.
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 2018 2017 avg 13-16
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 2018 2017 avg 12-16 5yr-range 2018 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 2018 2017 avg 13-17 5yr-range 2018
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 2018 2017 avg 13-17 5yr-range 2018 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 400 600 350 500 300 250 400 200 300 150 200 100 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
Slide 77: Domestic LPG Demand
Thailand petroleum demand by products -77- Domestic LPG Demand Thailand LPG Demand LPG Demand Highlight • In 2017, LPG demand increased slightly by 0.9%YoY on account of 6.9%YoY higher demand from petrochemical sector, as a result of PTTGC major shutdown in May16-Jun16. Moreover, LPG demand was also
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 2017, Mogas demand rose moderately by 3.7%YoY to an average 30.0 ML/day. Although, the retail price of Mogas is higher, Mogas demand was still supported
Slide 79: Domestic Jet Demand
Thailand petroleum demand by products -79- Domestic Jet Demand Thailand JET-A1 Demand JET Demand Highlight • In 2017, Jet consumption increased significantly by 4.4% over the corresponding period last year mainly owning to booming tourism industry, leading to 5.4%YoY higher aircraft movement. The ex
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 2017, Diesel demand rose moderately by 2.9% YoY as a result of Thai economic recovery. However, Diesel demand was still pressured by flooding situation in Southern part of Th
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 2017, Fuel Oil consumption fell sharply by 6.6%YoY, as a result of sharply falling by 55.0%YoY of electricity sector demand which pressured by fewer day of Myanmar gas field ma
Slide 82: Thank You
-82- Thank You Any queries, please contact: at email: ir@thaioilgroup.com Tel: 662-797-2999 / 662-797-2961 Fax: 662-797-2976
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