Bangchak Corporation Public Company Ltd · SET:BCP
Bangchak Corporation Public — Bangchak — Q3 2018 Earnings Presentation
36 slides from Bangchak Corporation Public's earnings presentation, Nov 14, 2018
Slide 1: Opportunity Day Q3/2018
Bangchak Corporation Plc. Opportunity Day Q3/2018 November 14th, 2018 Bangchak Corporation Plc. 1
Slide 2: Q3/18 Performance Summary
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Slide 3: BCP Group Performance – Key Takeaways
BCP Group Performance – Key Takeaways EBITDA Performance Q3/18 Performance Snapshots Refinery & Trading • Crude Run at 118.82 KBD, the record high level throughout the quarter 4,160 MB • Total GRM 8.05 $/BBL, higher favorable crack spreads and crude cost • Inventory Gain 241 MB 3,366 MB 149 3,216 MB
Slide 4: EBITDA Performance - BCP Group
EBITDA Performance - BCP Group 9M2018 Performance Compare to Target by Business Unit Unit: THB Million 200% Refinery 5,349 Solar Power 2,999 150% Marketing Biofuel 51% 1,712 29% 624 Target 100% 100% 6% 4% 16% E&P 24 50% 0.2% 0% Accounting EBITDA 10,518 Million Baht 0.5 1.5 2.5 3.5 4.5 5.5 7,000 12,0
Slide 5: BCP Group Portfolios
BCP Group Portfolios Refinery Marketing Natural Resources & New Businesses Bio-based Products Green Power Plant Bangchak Corporation Plc. 5
Slide 6: Refinery Business – Record high crude run
Refinery Business – Record high crude run Product Yield Maximize high value product Historical record high quarterly crude run Q3/18: Lower FO - Higher UCO after resume operation following TAM completion 3% 3% 2% LPG 20% 17% 19% Gasoline 13% 12% 14% Jet Production Profile Actual Crude Run Unit: KBD
Slide 7: Refinery Business – Better & Stronger than ever
Refinery Business – Better & Stronger than ever Refinery EBITDA GRM Performance Unit: Unit: $/BBL Unit: THB THB Million Million 8.18 12.82 8.05 4.39 2,198 2,142 Inventory Gain / Loss 1,929 1,929 Oil Hedging 1.32 0.66 0.2 1,587 Market GRM Accounting 8.81 7.60 6.66 Operating 977 -0.39 -0.21 Q3/17 Q2/1
Slide 8: Distribution channel – Retail market sales continues to grow
Distribution channel – Retail market sales continues to grow Total Sales Volume Total Sales Volume 350 334 330 Unit: % Portion of total sales volume in 9M/18 Unit: Million Litre / Month Retail Market (monthly AVG in the quarter) 307 300 284 Marketing Business 259 250 Retail Market 54% 200 190 184 18
Slide 9: Marketing Performance – Retail market is the main priority
Marketing Performance – Retail market is the main priority Marketing EBITDA Net Marketing Margin Net Retail Margin Unit: THB Million Unit: Baht/Litre Net Industrial Margin 0.73 0.75 0.70 509 0.94 0.93 474 0.83 468 0.40 0.33 0.35 Q3/18 Q2/18 Q3/18 Q3/17 Q2/18 Q3/18 Q3/18 – Sales volume still on track
Slide 10: Marketing Network – Increasing Market Share & Thruput per station
Marketing Network – Increasing Market Share & Thruput per station 50.0% 20.0% Market Share Jan-Aug’17 Jan-Aug’18 ∆ Historical (Retail Channel) Market Share 41.7% 41.7% 45.0% 43.1% 19.0% (Retail Channel) 41.7% 15.3% 15.8% 40.0% Jul-Aug’18 18.0% 12.9% 12.7% Market Share 35.0% 17.0% 16% 12.5% 12.5% 15.
Slide 11: Bangchak Service Station – Expansion Progression
Bangchak Service Station – Expansion Progression +48 New Service Stations 1,154 service stations as of Sep 2018 Sep’18 492 branches Standard Type 543 sites (≈75% of Retail Sales Volume) COOP Type 611 sites (≈25% of Retail Sales Volume) Sep’18 38 stores *COOP Type is small sized service station owned
Slide 12: Bangchak Greenmiles
Bangchak New Loyalty card and Mobile Application New Loyalty Card Bangchak Greenmiles Can be used to collect points from every products under Bangchak Brand Loyalty points can be used at outlets under Bangchak brand and leading alliance brands via Bangchak Mobile Application Bangchak Corporation Plc
Slide 13: BCP Group Portfolios
BCP Group Portfolios Refinery Marketing Natural Resources & New Businesses Bio-based Products Green Power Plant Bangchak Corporation Plc. 13
Slide 14: Power Plant Business – BCPG
Power Plant Business – BCPG Green Power Plant EBITDA Electricity Sales 78.24 81.58 78.12 Unit: THB Million Unit: Million kWh 12.85 14.89 13.87 1,542 JP 65.38 66.70 64.24 793 TH 417 Q3/17 Q2/18 Q3/18 3Q/17 2Q/18 3Q/18 Operating Capacity (MWac) Solar Electricity Sales : unchanged YoY: lower irradiat
Slide 15: Bio-Based Product Business – BBGI
Bio-Based Product Business – BBGI Bio-Based Product EBITDA Biodiesel Production Volume Unit: THB Million Unit: K.Litre / day B7 B7 171 159 B7 149 750 718 689 682 681 675 Production Sales Q3/17 Q2/18 Q3/18 Q3/18 – Better as a group 3Q/17 2Q/18 3Q/18 Biodiesel Performance Ethanol Production Volume Y
Slide 16: Natural Resource Business - Nido Petroleum
Natural Resource Business - Nido Petroleum Nido Petroleum EBITDA 3Q/18 – Galoc divestment completed Unit: THB Million Nido Sales Revenue & Volume was lower after the divestment of Galoc 194 oil field Nido EBITDA higher due to profit from Galoc oil field share divestment (no effect in BCP consolidate
Slide 17: Q3/18 Financial Performance
Q3/18 Financial Performance
Slide 18: Q3/2018 Highlights
Q3/2018 Highlights • NPAT 2,216 MB, EPS 1.35 THB/Share (+96% YoY) • Paid dividend of 1,170 MB (0.85 THB/Share) • Bond Issuance 4,000 MB with 2-7 years maturity and coupon of 2.13 – 3.42% p.a. • Paid dividend of 320 MB (0.16 THB/Share), paid to BCP 224 MB • Q3/17 FS restatement after PPA for geotherm
Slide 19: Q3/2018 Highlights
Q3/2018 Highlights • Realized partial gain from provision of working capital settlement on Galoc oil Field divestment BCP Consolidated: Other Income increased 42 MB • Established subsidiary: BCPR Co., Ltd. (in Thailand) (registered capital 1 MB) and indirect subsidiary: BCPR Pte. Ltd. (in Singapore)
Slide 20: Statement of Income - Consolidated
Statement of Income - Consolidated Statement of Income Unit: MB Q3/17 Q2/18 Q3/18 Remark: Revenue 39,009 45,558 53,461 Revenue +37% YoY and +17% QoQ Cost of goods sold (35,450) (41,699) (49,640) - Refinery: Higher total oil products sales volume (+5% YoY and +14% QoQ) Gross Profit 3,559 3,858 3,821
Slide 21: Statement of Income - Consolidated
Statement of Income - Consolidated Statement of Income Unit: MB Q3/17 Q2/18 Q3/18 Remark: Revenue 39,009 45,558 53,461 Share of profit of associate and JV Cost of goods sold (35,450) (41,699) (49,640) - Star Energy Group Holdings Pte. Ltd 93 MB Gross Profit 3,559 3,858 3,821 - Petrowind Energy Inc.
Slide 22: Statement of Income - Consolidated
Statement of Income - Consolidated Statement of Income (Unit: MB) 9M2017 9M2018 9M Net Profit Revenue 125,832 143,244 9M/18 operation was superior YoY but NPAT appears to be lower than 9M/17, mainly due to 671 MB income tax Cost of goods sold (115,884) (132,237) returns in 2017 Gross Profit 9,948 11
Slide 23: Financial Position - Consolidated
Financial Position - Consolidated Unit: THB Million Assets Liabilities & Equity 115,324 115,324 113,869 113,869 Cash and Equivalents & 5,743 Short term loan 7,128 4,046 Short term Investment 10,325 10,123 10,016 11,702 Account Payable Account Receivable 7,511 7,589 3,901 Current Liabilities Inventor
Slide 24: Financial Position - Consolidated
Financial Position - Consolidated Current Assets Current Liabilities 39,604 36,291 Cash and Equivalents & 7,128 Short term Investment 10,325 21,651 21,346 10,123 Account Receivable 7,511 4,046 Short term loan 5,743 10,016 Inventory 19,320 11,702 Account Payable 15,720 Other Current Assets 7,589 3,03
Slide 25: Financial Position - Consolidated
Financial Position - Consolidated Non-Current Assets Non-Current Liabilities 77,578 75,719 40,327 42,007 PP&E 48,049 48,099 Long Term Debt (Including current 36,857 38,978 portion of L/T debt) Other Non 29,528 27,620 Current Assets 3,470 3,029 Other Non Current Liabilities 31 Dec 17 30 Sep 18 331 De
Slide 26: Financial Position - Consolidated
Financial Position - Consolidated Equity 51,890 51,970 685 Other Components 2,411 Equities increased 0.2% mainly from Paid up capital, 15,273 15,254 Share premium Retained Earnings +1,331 MB from and capital surplus 9M2018 Net Profit of 4,009 MB • Dividend paid 2,685 MB Retained Earnings 27,81
Slide 27: Cash Flow - Consolidated
Cash Flow - Consolidated 9M2018 Sources and Uses of Cash Unit: THB Million 24,363 Beginning Cash 934 Others 10,106 MB 21,104 1,122 Tax Paid Selling of PPE, Selling of 2,971 Dividend Paid investments and others 3,755 6,134 Investment in PPE Change in Cash (3,260 MB) Funding 7,395 FX adjustment 4,719
Slide 28: Going Forward
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Slide 29: Resume full year normal crude run
Refinery – 2019 Full year normal operation & 3E project updates Expected 3E Project Updates Status Completion 2019 Continuous Catalyst Regeneration Unit (CCR) Detailed Engineering and Design Phase 2020 (CCR: Higher Capacity & maintenance cycle extension) Start Construction : Piling Work Resume f
Slide 30: BCP Trading to grow further
BCP Trading to grow further Trading Highlights Going Forward Market Coverage in 9 Countries Expand coverage to offer Thailand, Malaysia, Singapore, China, more product varieties Indonesia, Cambodia, Qatar, Vietnam, Korea Derivatives Trading Oil Trading Volume Unit: MBBL 35 10.8 6.1 2017 9M2018 2019
Slide 31: Marketing Business – Strengthen Core businesses & Expand Related businesses
Marketing Business – Strengthen Core businesses & Expand Related businesses Continue to increase market share in Retail Sales Matching Non-Oil with Customer Lifestyles 2019 Network Expansion +90 New Stations Loyalty Program for Mostly Standard size Personalized Offerings Dealer 80 sites Continue to
Slide 32: Bio-Based products – Expansion & Listing plan still on track
Bio-Based products – Expansion & Listing plan still on track Biofuel Production Capacity: 1,830,000 LPD (1) Listing Plan in progress To Expand to 2,200,000 LPD but will also consider market condition To expand to Products Products Biodiesel Biodiesel To expand to Ethanol 1,200,000 LPD Fuel-Grade Gly
Slide 33: Investment in OKEA updates
Investment in OKEA updates Shareholding Structure • Share acquisition expected to be completed in Nov’2018, performance expected to be realized from Dec’18 onwards BCP • BCPR will hold 49% shareholding in OKEA with transaction 100% amount not exceeding 939 million NOK (or approx. 3,760 MB) BCPR Thai
Slide 34: Lithium Mining business updates
Lithium Mining business updates LAC 2nd Largest Shareholder Cauchari-Olaroz project (Argentina) Shareholding Structure • H2 2018 Begin filling ponds & Detailed engineering for the processing plant after the transaction completed • Expected COD : 2020 (1st Phase Capacity 25,000 TPA) *Expected to comp
Slide 35: BIIC - CVC investment
BIIC - CVC investment CVC Objectives CVC Investment Portfolio Equity Investment Technology Rising 10% Commercialization Technology Peripheral 30% Support Core 60% Bangchak Corporation Plc. 35
Slide 36: THANK YOU
THANK YOU ir@bangchak.co.th Tel. +662 335 8663, 4390, 8518 www.bangchak.co.th click Investor Relations 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 amen