Bangchak Corporation Public Company Ltd · SET:BCP
Bangchak Corporation Public — FY2023 Earnings Presentation
44 slides from Bangchak Corporation Public's earnings presentation, Mar 6, 2024
Slide 1: Analyst Meeting Q4/2023 & FY2023
Analyst Meeting Q4/2023 & FY2023 Mar 6, 2024 1
Slide 2: Disclaimer
Disclaimer The information contained herein is being furnished on a confidential basis for discussion purposes only and only for the use of the recipient, and may be subject to completion or amendment through the delivery of additional documentation. Except as otherwise provided herein, this documen
Slide 3: Agenda
Agenda 01 Bangchak Bangchak Group Group at at aa Glance Glance 02 Bangchak Group Performance 03 Q1/2024 & FY2024 Outlook 3
Slide 4: Unwavering Pursuit of Excellence
Unwavering Pursuit of Excellence “WORLD CLASS” Best Investor Relations Global Performance Award 2023 Excellence Award 2023 Sustainability Awards of Honor CEO of the Year 2023 Greenovation Leadership ESG International Rating Award Internationally & Domestically Top 2 ESG Thailand • Her Royal Highness
Slide 5: Leading the Way in the Eco-Revolution
Always Ahead of The Game! Leading the Way in the Eco-Revolution ASEAN CDMO Producer 2023 & only SAF Producer in Thailand 2023 Player Invested in Lithium Business in Thailand 2017 Solar Power Plant In Thailand 2016 Player in Biofuel 2009 5
Slide 6: Exponential Growth Journey
Exponential Growth Journey Strong Market Fundamentals, Optimization, Diversification Accounting EBITDA New Growth Accounting EBITDA Unit : Million Baht (% breakdown by business unit) Chapter 100 Bn. Refinery and Oil 20% Trading Business 6% Marketing Business 10% 8% 4% Clean Power Business Bio-Based
Slide 7: Strong Foundation for Value Creation
Strong Foundation for Value Creation E&P Business Return Platform Commitment Optimization for Growth to Net Zero Providing Energy • Synergy Realization • To Run Multi-Refineries In 2050 Security • Shareholder Return • Shared Services Financial Discipline Strong financial management practices to ensu
Slide 8: Bangchak Business Portfolio
Bangchak Business Portfolio Register Capital and Paid – up Capital 1,376,923,157 Baht 4.76% 19.84% 14.27% 61.13% Ministry of Finance Vayupak Fund 1 Social Security Office Public (As of 7 September 23) Sriracha Refinery Phra Khanong Holds 44.99% Refinery Bio-based Products No.1 fully Integrated Biofu
Slide 9: Agenda
Agenda 01 Bangchak Group at a Glance 02 Bangchak Bangchak Group Group Performance Performance 03 Q1/2024 Q1/2024 & & FY2024 FY2024 Outlook Outlook 9
Slide 10: Refinery and Oil Trading Business
Refinery and Oil Trading Business EBITDA (MB) Crude Run (KBD) Product Yield (%) Total GRM ($/BBL) 102% 101% 102% 2% 2% 2% 2% 2% Inventory Gain (Loss) Hedging Operating GRM 100% 97% LPG 19% 19% 19% 20% 19% Gasoline 6.64 17.27 7.38 11.87 9.81 7% 12% 11% 5% 11% Jet 1.22 3.29 1.03 0.83 1.28 17,864 122.6
Slide 11: Bangchak Sriracha (BSRC) Business
Business (Acquisition of Bangchak Sriracha (BSRC) since September 2023) EBITDA (MB) Crude Run (KBD) Product Yield (%) Sales Volume (ML/MO) 69% 7% 6% 441 715 647 28% 20% LPG 36 37% 33% 27 Gasoline Export 1,281 9% 6% Jet 399 997 344 Industrial 1,281 119.3 43% 176 44% Diesel 48.2 35 0.1% 2% Asphalt 265
Slide 12: Complementary Refining Portfolio
Complementary Refining Portfolio 2023 Full Year 2023 Four-Months 2023 Phra Khanong Refinery Sriracha Refinery Bangchak Group Crude Run 120 KBD (100%) 35 KBD (20%) 155 KBD (53%) (Utilization Rate) The highest crude run in DEC23 at 144 KBD Product Yield Crude Source 14% 56% 28% 2% 29% 44% 27% 7% 44% 3
Slide 13: Niche Product Upside in 2024
Niche Product Upside in 2024 LPG Treating LPG Double Portion of Niche Products: Unit 120 KBD Naphtha Pretreating Unit Gasoline 100+ ML/MO (from 50 ML/MO) right after TAM in May 2024 Kerosene Treating Unit Jet Fuel 1 Solvent 2 Gas Oil Hydrodesulphuriz Diesel ation Unit Vacuum Hydrocracking 3 Distilla
Slide 14: 1st & Only SAF Producer in Thailand
1st & Only in Sustainable Aviation Fuel (SAF) Producer in Thailand COMMISSIONING PLAN Q1/2025 SAF CONSTRUCTION EU Aviation sets the share of SAF mandate: 1 ML/D Secured SAF Feedstocks Production Capacity 7 KBD or 1 ML/D under International Sustainability and Carbon Certification (ISCC EU Certificate
Slide 15: Marketing Business
Marketing Business EBITDA (MB) RM Sales Volume (ML/MO) Sales Volume by Customer (ML/MO) Avg. 398 571 524 576 498 541 Avg. 385 415 155 137 161 143 Industrial 416 112 396 394 387 Retail Avg. 340 381 374 390 416 387 415 386 398 203 365 351 Q4/22 Q3/23 Q4/23 2022 2023 2,909 3,157 556 332 120 1,312 Sales
Slide 16: Strengthening Marketing Portfolio
Strengthening Marketing Portfolio 2023 Full Year 2023 Four-Months 2023 Bangchak Service Stations Bangchak Service Station under BSRC Operation Bangchak Group No. of SS 1,389 830 268 SS converted 2,219 2,219(876KBD SS. YoY) Total Sales Volume 6,490 ML (9% YoY) 2,124 ML 8,614 ML (SEP-DEC23, excluding
Slide 17: Marketing Business: Project Highlights
Marketing Business: Project Highlights Market Share Expansion Driving Sales Volume Growth: Continuing Marketing Campaigns Retail Market Share (%) 28.8% (+12.4% YoY) 2023 Key growth driver: Boosting up throughput per stations 28.8 2023 2024E Lube Market Share (%) 2023 10.9% (+0.8% YoY) Key growth dri
Slide 18: The Chlorophyll Projects – Flagship Service Station in Hua-Hin
The Chlorophyll Projects – The Flagship Service Station in Hua-Hin The Convergence of Green Living and Retail Innovation Regenerative brand Flagship location Strategic Retail Space New Lifestyle mall Retail + Green The Great EV Pavilion 18
Slide 19: Keep realizing EBITDA Synergies >3,000 mn. THB/Year
Keep realizing EBITDA Synergies >3,000 mn. THB/Year Refinery Operations Logistics & Crude Supply Marketing Network Corporate Cost Saving ~฿1,000 mn. THB ~฿200 mn. THB ~฿300 mn. THB ~฿1,500 mn. THB ✓ Improved utilization from 130 KBD to ✓ Crude co-loading ✓ BSRC's throughput enhancement ✓ Economies o
Slide 20: Synergy: Project Highlights
Synergy: Project Highlights Refinery Operations Logistics & Crude Supply Marketing Network Corporate Cost Saving Sriracha Crude Run Improvement Crude Co-Loading: Received the Increase “Hi-premium product” (Unit: KBD) Suezmax vessel in Dec23 sales by offering in 620 SS (~ 950,000 barrels), procured b
Slide 21: Bio-Based Products Business
Bio-Based Products Business EBITDA (MB) Revenue (MB) Sales Volume (ML) B100 Ethanol 617 667 277 13,373 13,757 209 253 141 145 146 169 3,269 3,526 4,240 64 38 67 41 78 50 Q4/22 Q3/23 Q4/23 2022 2023 Q4/22 Q3/23 Q4/23 2022 2023 Q4/22 Q3/23 Q4/23 2022 2023 2022 Vs. 2023 Performance Avg. Market Price (B
Slide 22: ASEAN 1st CDMO Producer
ASEAN 1st CDMO Producer Strategic JV with Fermbox Bio to establish the first CDMO Plant Expertise in synthetic biology and manufacturing processes Experience in large-scale Capacity: 2,000 project execution Tons/Year ▪ PROJECT INVESTMENT : < 444 MB (Proceeds from IPO) ▪ % OF BBGI SHARE : > 75% ▪ PRO
Slide 23: Clean Power Business
Clean Power Business EBITDA (MB) Electricity Output (GWh) 223.8 112.8 145.5 300.5 250.9 182.9 Hydro – LA 142.7 Hydro – LA Fully paused for 118.4 transition to EVN 6,400 81.6 84.5 83.8 82.2 Solar - TH 76.7 4,219 21.5 25.2 35.0 37.0 23.3 Solar - JP 1,004 1,330 1,048 3.1 24.5 4.0 2.7 Wind - TH 2.2 2.2
Slide 24: Business footprints in 7 countries globally
Business footprints in 7 countries globally Listed in SET since September 2016 BCP holds 57.81% An integrated power generation company and service provider of smart energy system focusing on renewable and clean power Remark: information as of Dec 2023 and Unit is Contracted capacity or equity MWppa
Slide 25: Clean Power Business: 2024 Project Highlights
CleanClean PowerPower Business: 2024 Project Highlights Business Capital Recycling from Thailand Taiwan Japan Divestment 13 MWe Solar Farm 469 MWe Solar Farm additional acquisition in operating assets under construction as planned 9 solar farms & Asset Management and 4 Operating Assets TOTAL 469 MWe
Slide 26: Natural Resources Business
Natural Resources Business EBITDA (MB) Revenues from Crude Oil and Gas Sales (MB) 2022 Vs. 2023 Performance OKEA Sustains Ongoing Expansion in Operating Income and EBITDA, supported by Sales volume of OKEA saw a remarkable increase by 74% YoY, mainly driven by higher sales volume from the Brage 28,8
Slide 27: Strong Foothold in E&P Business
Strong Foothold in E&P Business With investment in upstream petroleum exploration and production (E&P) business through OKEA ASA in Norway since 2018, Bangchak Group has plans to extend our presence in E&P to other regions in the world. OKEA ASA Holds 45.44% Draugen Hasselmus 44.56% 100 OKEA’s Unit
Slide 28: 39 Years Highest-Record Net Profit
39 Years Highest-Record Net Profit -17% YoY, Operating GRM dropped to US$9.50/BBL, pressured by diminished crack Accounting EBITDA Accounting EBITDA Refinery and Oil spreads observed across all product. This decline is in harmony with the global downturn in oil Unit : Million Baht 44,724 breakdown b
Slide 29: CAPEX 2024-2030
Investment Plan CAPEX 2024-2030 Refinery & Natural Marketing, Resources, 150 30% 30% Bn. THB Bio-Based & New Business, 10% Green Power, 30% (Unit: MB) Refinery and Marketing Green Power Bio-Based Products Natural Resources Oil Trading New Business 2024E 9,000 1,700 1,700 14,000 800 17,800 5,000 Tota
Slide 30: Strong Financial Status Going Forward
Strong Financial Status Going Forward Resilience Data as of 30 SEP 2023 Cash(1) Asset Debt EBITDA LTM(2) 36,795 MB 340,429 MB 128,268 MB 41,680 MB (2)Last 12 Month Remark: (1)Including short-term investment Confirm Credit Rating from TRIS RATING: A ‘Stable’ Outlook as of 31 AUG 23 Ratios (Times) Net
Slide 31: Agenda
Agenda 01 Bangchak Bangchak Group Group at at aa Glance Glance 02 Bangchak Bangchak Group Group Performance Performance 03 Q1/2024 Q1/2024 & & FY2024 FY2024 Outlook Outlook 31
Slide 32: Building a Legacy of Growth, Maximizing Returns, Creating a Better World
Building a Legacy of Growth Driving growth from key business units Optimize synergy among Bangchak Group Continued searching for future investment opportunities Maximizing Returns Deliver high level of Total Shareholding Returns (TSR) Disciplined new investment Capital recycling for portfolio optimi
Slide 33: Q1/2024 Outlook
Q1/2024 Outlook Refinery and Oil Trading Business Phra Khanong Sri Racha Increase crude run rate QoQ Crude Run (KBD) +2% +30% Middle-distillates spread remains at upper twenties Higher GRM QoQ Marketing Business BSRC Business Higher growth from retail & commercial Bangchak Total Sales Volume (ML/MO)
Slide 34: Driving Forces for Sustainable Growth
Anticipating the Evolution of Success in 2024 Driving Forces for sustainable Growth 266 KBD 2,259 S/S 72% +60% 155 KBD 2,219 +40 717 BCP+BSRC Crude Run BCP+BSRC BCP+BSRC Service Station BCP+BSRC Total Sales Volume (ML/MO) BCP+BSRC 7,400 kWh 550 ML 35-40 Kboepd ~100% 3,770 kWh >30% >50% 422 23 Kboepd
Slide 35: Bangchak’s Historical Dividend
Bangchak’s Historical Dividend Dividend Policy: ≥ 30 percent of net profit after deduction of allocation of legal reserve However, this is subject to the economic situation, the Company’s cash flow and investment plans of the Company and its subsidiaries according to the necessary, appropriation and
Slide 36: Bangchak’s Total Stock Return (TSR)
Bangchak’s Total Stock Return (TSR) TSR* 1Y 3Y 5Y BCP 42.9% 136.2% 57.3% “BCP +>40%” “BCP’s TSR +40%” BCP Share price (THB/Share) SET50 SET100 -11.2% -12.3% 4.6% 3.9% -3.5% -2.1% Best Performing Share Price & Surpassed SET ENERGY 50 among SET100 YTD2023 and all peer’s returns! SET ENERGY -13.9% 1.4%
Slide 37: Crafting a Sustainable World with Evolving Greenovation
Crafting a Sustainable World with Evolving Greenovation http://www.bangchak.co.th Bangchak @Bangchak.WOW
Slide 38: EBITDA Structure (Consolidated)
EBITDA Structure (Consolidated) Unit: THB Million Q4/2023 Q3/2023 QoQ Q4/2022 YoY 2023 2022 YoY Total Revenue 142,922 94,528 51% 85,900 66% 385,853 328,017 18% Refinery and Trading Business 1/ 95,907 69,274 38% 75,981 26% 289,484 286,083 1% Marketing Business 2/ 49,353 46,718 6% 53,892 -8% 190,725 1
Slide 39: Profit and Loss (Consolidated)
Profit and Loss (Consolidated) Consolidated Statement of Income (THB Million) Q4/2023 Q3/2023 QoQ Q4/2022 YoY 2023 2022 YoY Revenue from sale of goods and rendering of services 142,922 94,528 51% 84,584 69% 385,853 328,017 18% Cost of sale of goods and rendering of services (135,236) (82,177) -65% (
Slide 40: Financial Ratio (Consolidated)
Financial Ratio (Consolidated) Q4/2023 Q3/2023 Q4/2022 2023 2022 Profitability Ratios (%) Gross Profit Margin 5.61% 13.84% 7.71% 9.01% 14.82% EBITDA Margin 7.44% 15.48% 8.22% 11.13% 14.33% Net Profit Margin -2.46% 12.55% 1.48% 3.18% 4.85% Return of Equity (ROE) 19.63% 21.28% 21.65% 19.63% 21.65% Eff
Slide 41: Crude Oil Price Outlook
Crude Oil Price Outlook : Crude price move around 75-85 $/BBL in Q2’24, Price will be pressured by global economic slowdown weighing on oil demand while heating oil demand fades as winter end amid heavy spring refinery maintenance in Asia. However, OPEC continues stabilizing the market by keep reduc
Slide 42: Oil Outlook
Oil Outlook Stable Gasoil crack as global economic slowdown weigh on gasoil demand. However, the geopolitical tensions uncertainty in the Red Sea and Middle East remain support the market. China’s gasoline export after the Lunar New Year could pressure the gasoline crack, but downside limited by reg
Slide 43: Target Net Zero by 2050
Bangchak Pathway to Net Zero 2050 2030 Target Carbon Neutrality by Target Net Zero by 2050 43
Slide 44: Business and Sustainability Strategies
Business and Sustainability Strategies 4G Sustainability Growth Balanced Portfolio Strategy 4S Business Strategies Strategies Sustainability Performances Economic Dimension Environment Dimension Social Dimension Sustainability Report 44
Bangchak Corporation Public Company — FY2023 Earnings Presentation on 6ix