Bangchak Corporation Public Company Ltd · SET:BCP
Bangchak Corporation Public — Q3 2023 Earnings Presentation
36 slides from Bangchak Corporation Public's earnings presentation, Nov 28, 2023
Slide 1: Analyst Meeting 03/2023
Analyst Meeting 03/2023 Og bangchak Bangchak Corporation Plc Nov 28, 2023 usc! @ SET® S&P Global scene
Slide 2: 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 document does not
Slide 3: Agenda
Agenda 01 Bangchak Group at a Glance 02 Bangchak Group Performance 03 Q4/2023 Outlook 3
Slide 4: ESG International Rating and Award Recognition
ESG International Rating ESG Thailand Rating Guaranteed by International & Thailand Award Recognition Asia Excellence Award 2022 Bangkok Post The Stock Exchange of Thailand The Stock Exchange of Thailand The First Thai Organization from the Industrial Sector & The World’s First and Only Refinery to
Slide 5: EBITDA by business
35% 42% 9M/2023 31,433 MB 8% 1% 10% 4% Marketing Business EBITDA ~10,000 MB EBITDA ~7,400 MB 2021 2022 9M2023 5
Slide 6: Group structure and share capital
Register Capital and Paid – up Capital 1,376,923,157 Baht Ministry of Finance Vayupak Fund 1 Social Security Office Public (As of 7 September 23) Holds Holds 57.81% 57.81% • Integrated power generation Generation by Technologies • Complex refinery with capacity of company and service provider of • Y
Slide 7: Agenda: Bangchak Group Performance
Agenda 01 Bangchak Group at a Glance 02 Bangchak Group Performance 03 Q4/2023 Outlook 7
Slide 8: Refinery and Oil Trading Business
Refinery and Oil Trading Business EBITDA (MB) Crude Run (KBD) Product Yield (%) Total GRM ($/BBL) 2% 2% 2% Operating GRM Hedging Inventory Gain/Loss 103% LPG 99% 20% 19% 19% Gasoline 10.45 4.50 17.27 97% 4% 11% 12% Jet 3.29 4.07 6,306 123.2 52% 51% Diesel 1.85 14.67 52% 11.20 4,131 118.6 4.67 116.4
Slide 9: Sustainable aviation fuel project
Reduce Carbon Emission by 80% 1 Location: Bangkok Plant 1 4 Collecting Feedstock 2 Construction: 2023 - 2024 Bangchak Service Station initiates 3 Target COD: Q4/2024 • Used Cooking Oil (UCO) a campaign to be a part of SAF Selling in UCO collection 4 Production Capacity 1 ML/D Domestic & Export Marke
Slide 10: Marketing Business
Marketing Business EBITDA (MB) RM Sales Volume (ML/MO) Sales Volume by Customer (ML/MO) 462 526 524 Avg. 385 Avg. 392 97 132 137 Industrial 416 396 394 365 394 387 Retail Avg. 340 381 374 390 387 1,312 365 Q3/22 Q2/23 Q3/23 351 553 332 Sales Volume by Key Product (ML/MO) 203 300 436 499 499 Q3/22 Q2
Slide 11: Your Greenovative Destination for Intergeneration
Your Greenovative Destination for Intergeneration • • • Revolutionary Additives in Bangchak's 'Hi Premium 97' Achieve at Unmatched World-Class Standards 11
Slide 12: Bangchak Sriracha (BSRC) Business
EBITDA (MB) Crude Run (KBD) Product Yield (%) Sales Volume (ML/MO) 7% 28% LPG 441 37% Gasoline 176 Industrial 9% Jet 1,281 44% Diesel 48.2 265 Retail 0.1% Asphalt 3% FO Q3/23* Q3/23* Q3/23* Q3/23* Nameplate capacity of 174 KBD Total GRM ($/BBL) Operating GRM Inventory Gain/Loss o Successfully acquir
Slide 13: Clean Power Business
EBITDA (MB) Electricity Output (GWh) 320.5 223.8 112.8 145.5 300.5 208.4 182.9 Hydro – LA Hydro – LA Fully paused for 118.4 transition to EVN 1,209 1,330 75.6 81.6 84.5 83.8 76.7 Solar - TH 989 33.1 21.5 25.2 35.0 37.0 Solar - JP 3.4 3.1 24.5 4.0 Wind - TH 2.2 2.2 Q3/22 Q2/23 Q3/23 Q3/22 Q4/22 Q1/23
Slide 14: New investment in Solar Power Plant Project 12.95 MW
Udonthani Petchabun Nakornsrithammarat Songkhla BS Solar Location Wichianburi PPA MW 5 MW 1.75 MW 1.2 MW 5 MW COD Dec 2018 Holding 100% Tariff FiT 4.12 THB/kWh Kathun PPA Period 25 years (20 years remaining) CAPEX Not exceeding of THB 477 MB Krasaesin Target deal close Q1/2024 14
Slide 15: Bio-Based Products Business
Bio-Based Products Business EBITDA (MB) Revenue (MB) Sales Volume (ML) B100 Ethanol 3,526 169 66 67 138 3,049 47 40 41 2,951 26 35 Q3/22 Q2/23 Q3/23 Q3/22 Q2/23 Q3/23 Q3/22 Q2/23 Q3/23 Avg. Market Price (Baht/Liter) o Ethanol business gross profit experienced an improvement, attributed to an increas
Slide 16: Strategic JV with Fermbox Bio to establish CDMO Plant
Strategic JV with Fermbox Bio to establish the first CDMO Plant in Thailand and SEA Company Name: BBGI Fermbox Bio Co., Ltd. Expertise in synthetic biology and Registered Capital: < 444 MB manufacturing processes Capacity: ~0.2 Million Percentage of Shareholding: > 75% Litres in 1st phase Source
Slide 17: Natural Resources Business
Natural Resources Business EBITDA (MB) Revenues from Crude Oil and Gas Sales (MB) OKEA has highlighted notable improvements in Operating Income and EBITDA, supported by o Sales volume of OKEA rose by 17% QoQ, mainly driven by higher sales volume from the Brage and Nova fields. There was no lifting f
Slide 18: OKEA upstream investment
Entering into Bangchak invests in upstream petroleum exploration and production (E&P) business through OKEA ASA since 2018 and plan to expand into E&P in South East Asia/ Oceania OKEA ASA Holds 45.44% Draugen Brage OKEA’s Unit of Production: KBOEPD Operator: OKEA Operator: OKEA 40.0+ 37.5* Ivar Aase
Slide 19: Accounting EBITDA 13,813 MB
due to broader Accounting EBITDA Accounting EBITDA crack spreads in major products amidst a tightening global oil supply from unplanned refinery maintenance in the US and Asia, coupled with low regional inventories of middle distillate Unit : Million Baht breakdown by business unit products. This wa
Slide 20: Acquisition accounting: assets, liabilities and bargain purchase gain
Unit : Million Baht ASSETS LIABILITIES Provision 900 Rai & Deferred Tax 9,679 10.35% From Tender Offer +15,256 43,943 7,389 65.99% From Exxonmobil 28,687 34,264 Net Equity Fair Value Net Equity Purchase Gain on Gain on before FV adj. Adj. after FV adj. Price bargain bargain 20
Slide 21: Profit after tax and core profit
Unit : Million Baht Gain on One-time Bargain Purchase expenses (1,858) Impact on 7,389 • Inventory Gain (Loss) • Gain (loss) Foreign Exchange • Fair value on Derivatives • Fair Value of Investment 11,011 1,976 5,480 3,504 458 937 PAT Core PAT* Core PAT* Recurring PAT PAT Q2/23 Q2/23 Q3/23 Q3/23 Q3/2
Slide 22: Ratios
Data as of 30 SEP 2022 Cash(1) Asset Debt EBITDA LTM(2) 31,798 MB 328,857 MB 115,708 MB 38,383 MB (2)Last 12 Month Remark: (1)Including short-term investment Ratios (Times) (%) Net IBD/E Net IBD/ EBITDA ROA ROE 4.2 13.3* 10.7 2.0 5.6 0.8 1.1 2.4 0.7 0.4 2018-2019 Pre- Q2/2023 Q3/2023 2018-2019 Pre-
Slide 23: BSRC synergies
Estimated Annual Run-Rate Refinery Operations Logistics & Crude Supply Marketing Network Corporate Cost Saving Improved utilization from 130 KBD to Crude co-loading BSRC's throughput enhancement Economies of scale on back-office 174 KBD Expanded logistics reach with Increase sales volume
Slide 24: Agenda: Q4/2023 Outlook
Agenda 01 Bangchak Group at a Glance 02 Bangchak Group Performance 03 Q4/2023 Outlook 24
Slide 25: Q4/2023 outlook: Refinery and Marketing
Increase crude run rate QoQ Middle-distillates spread Crude Run (KBD) remains at upper twenties Lower GRM QoQ – due to market condition Marketing Business Total Sales Volume Higher growth from high season of travelling Improved margin 25
Slide 26: Q4/2023 outlook: BSRC and Clean Power
Crude Run (KBD) *1 month-recognition of BSRC Full-quarter recognition of BSRC Return to normal operation mode after TAM (16 Oct 23 onwards) E Clean Power Business Start increasing sales volume to BSRC since Anticipated positive momentum in both Unveiling Q4/2023 full Cogen profit 4Q/2023 onwards cru
Slide 27: Thank You
THANK YOU ir@bangchak.co.th Tel. +66 2335 8663/ 8518 / 8662 www.bangchak.co.th
Slide 28: Dividend Payment
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 other concerning as the Board of Directors’ consideration. Dividend Payment EPS 1st Half 2nd Half Unit: THB per Share 8.8
Slide 29: Revenue and EBITDA by business
Unit: THB Million Q3/2023 Q2/2023 QoQ Q3/2022 YoY 9M/2023 9M/2022 YoY Total Revenue 94,528 68,023 39% 74,767 26% 242,931 227,619 7% Refinery and Trading Business 1/ 69,274 58,329 19% 62,137 11% 193,577 195,604 -1% Marketing Business 2/ 46,718 45,434 3% 44,694 5% 141,372 131,046 8% BSRC Business 3/ 1
Slide 30: Consolidated Statement of Income
Consolidated Statement of Income (THB Million) Q3/2023 Q2/2023 QoQ Q3/2022 YoY 9M/2023 9M/2022 YoY Revenue from sale of goods and rendering of services 94,528 68,023 39% 74,767 26% 242,931 227,618 7% Cost of sale of goods and rendering of services (82,177) (62,631) 31% (65,491) 25% (216,879) (187,87
Slide 31: Profitability, liquidity and leverage ratios
Q3/2023 Q2/2023 Q3/2022 9M/2023 9M/2022 Profitability Ratios (%) Gross Profit Margin 13.84% 7.93% 12.41% 10.96% 17.46% EBITDA Margin 15.48% 9.74% 15.36% 13.23% 16.59% Net Profit Margin 12.55% 1.04% 3.89% 6.43% 6.11% Return of Equity (ROE) 21.28% 9.70% 24.11% 21.28% 24.11% Efficiency Ratio (%) Return
Slide 32: Carbon neutrality and net zero targets
Target Carbon Neutrality by Target Net Zero by 32
Slide 33: Growth Balanced Portfolio Strategy
Growth Balanced Portfolio Strategy Economic Dimension Environment Dimension Social Dimension Sustainability Report 33
Slide 34: Crude price outlook
Crude price move around 80-90 $/BBL in Q4’23, Price will be supported by OPEC continues stabilizing the market and uncertainty over geopolitical issues. Also, seasonally high refinery run in winter will support oil demand. However, market still concerned on economic slowdown. Dated Brent Forecast Du
Slide 35: Product crack spread outlook
Softer Gasoil crack as global economic slowdown continue to weigh on gasoil demand. However, seasonal winter demand from heating oil remain support the fundamental. Low seasonal Gasoline demand in winter could pressure the gasoline crack amid supply increasing from refineries return from maintenance
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Bangchak Corporation Public Company — Q3 2023 Earnings Presentation on 6ix