Bangchak Corporation Public Company Ltd · SET:BCP
Bangchak Corporation Public — Q2 2024 Earnings Presentation
34 slides from Bangchak Corporation Public's earnings presentation, Aug 9, 2024
Slide 1: Analyst Meeting Q2/2024
Analyst Meeting Q2/2024 August 9, 2024
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: Top in Class in Oil & Gas
Top in Class in Oil & Gas Refinery and Marketing Company in Thailand’s Oil Industry. of Thai companies among 350 companies in Asia-Pacific 33
Slide 4: Return Optimization and Operational Highlights
Capital Return Operational Successful Successful Asset Harnessing Expertise Optimization Excellence Network Expansion Divestment from Organic Growth Achieved THB 3,000 mn • Shortest TAM’s Day at 27 Days Brand Conversion as of JUL24 • Capital Recycling & Enhance Annual EBITDA Synergies ahead of • Ext
Slide 5: 2H/2024 Outlook
01 Bangchak Group at a Glance 02 2H/2024 Outlook 5
Slide 6: Accounting EBITDA
Accounting EBITDA Breakdown by Business Unit 293,438 26,072 148,561 17,620 24% 1H/2023 1H/2024 1H/2023 1H/2024 26,072 MB 49% 1H/2024 15% 2% 9% 4,261 4,004 3,460 Refinery Marketing Clean Power 3,199 Bio-Based Natural Resources 1H/2023 1H/2024 1H/2023 1H/2024 6
Slide 7: Accounting EBITDA by Business
Accounting EBITDA (Unit : Million Baht) Clean Power Business 13,074 6,452 9,115 5,402 4,095 1,841 2,424 1,290 245 493 1H/2023 1H/2024 1H/2023 1H/2024 1H/2023 1H/2024 1H/2023 1H/2024 1H/2023 1H/2024 High record of Group’s crude >100% HoH jumped in sales volume Fully recognized performance Higher sale
Slide 8: Resilience
Resilience Data as of 30 Jun 2024 Cash(1) Asset Debt(2) EBITDA LTM(3) 45,284MB 353,122 MB 117,334 MB 50,133 MB Remark: (1)Including short-term investment (2)L/T loans and debentures (included current portion of L/T loans and debentures) (3)Last 12 Months Achievements Confirm Credit Rating from TRIS
Slide 9: Refinery and Trading Business: GRM and Crude Run
EBITDA (MB) Crude Run (KBD) Phra Khanong’s GRM ($/BBL) Sriracha’s GRM ($/BBL) 99% 101% 89% 86% 63% 4.50 7.39 6.33 5.17 3.25 272 230 0.74 150 1.85 Inventory Gain (Loss) 0.23 4,404 154 7.39 2.62 0.26 119 4.67 1.27 Hedging 5.03 0.28 2.44 2.71 2,048 (2.02) Operating GRM (0.08) 1,373 119 121 76 (0.84) Q2
Slide 10: Sriracha Crude Run and Synergy Benefits
Refinery Operations Logistics Sriracha Crude Run: Continued Breaking All Records Logistics Rezoning & Oil Pipeline Usage Pre-Integration: Phra Khanong Refinery: 3Y-AVG Crude Run at 130 KBD (Unit: KBD) supplies finished products to the Central and Northern 144 150 154 regions of Thailand 90 124 via o
Slide 11: Announced 10% SAF Blending by 2030
CAPEX SAF Blending Mandate Adoption Player to secure from no Hydrogen for 8 years & 50% tax Construction Progress feedstock Plant Construction deduction for the next as of JUL24 5 years 1% in 2026 ~10% in 2030 5% in 2030 SAF Projects SAF Feedstock ~10% in 2030 1% in 2027 1% in 2025 Investment Budget
Slide 12: Marketing Business
EBITDA (MB) RM Sales Volume (ML/MO) Sales Volume by Key Product (ML/MO) 698 719 693 Mogas JET Diesel 652 Bangchak's 1,069* 1,024* Group 415 423 403 BCP 59% 396 394 387 499 499 578 495 613 59% 283 296 291 414 265* BSRC 57% 57% 58% 60% 12% 60% 11% 57% 1,899 2,196 13% 13% 14% 9% 29% 13% 9% 30% 30% 30%
Slide 13: Number of Oil Service Stations
from pre-integration Unit: Numbers of Service Stations of Oil Service Stations Note: Data as of 30 Jun 2024 13
Slide 14: Driving Sales Volume Growth: Marketing Campaigns
Driving Sales Volume Growth: Continuing Marketing Campaigns under the concept Love-Centric Experience Located in prime locations of (Branches) 20 10 FY2024 FY2027 14
Slide 15: Marketing Network and Rebranding
Marketing Network Rebranding Service Stations Premium Product & Non-Oil Offering Penetration 551 completed67% progress with the target to 332 (JUL24) be by 2024 (Q1/24) Lubricant Sales into 779 SS under BSRC Market Share Expansion Integrated Marketing Campaign 0.03 28.8% of Retail Sales Promotion
Slide 16: Synergy Ahead of Schedule in 1H/24
Ahead of Schedule in 1H/24 Refinery Operations Logistics Marketing Network Corporate Cost Saving 1H/24 Actual 1H/24 Actual 1H/24 Actual 1H/24 Actual (Target ~1,000 mn.THB/year) (Target ~200 mn.THB/year) (Target ~300 mn.THB/year) (Target ~1,500 mn.THB/year) Improved utilization from 130 KBD to Lo
Slide 17: Clean Power Business Q2/24
EBITDA (MB) Electricity Output (GWh) 145.5 300.6 250.9 176.9 200.4 182.9 Hydro – LA 142.7 Partially paused for transition to EVN 1,411 83.8 82.2 83.8 86.3 Solar - TH 76.7 66.2 77.8 Hydro – LA 989 1,013 35.0 37.0 23.3 23.7 34.1 Solar - JP 24.5 4.0 2.7 3.2 2.2 Wind - TH 2.2 Q2/23 Q1/24 Q2/24 Q2/23 Q3/
Slide 18: BCPG: Integrated Power Generation Company
An integrated power generation company and service provider of smart energy system focusing on renewable and clean power Remark: Information as of June 2024 and Unit is Contracted capacity or equity MWppa 18
Slide 19: Bio-Based Products Business
Bio-Based Products Business EBITDA (MB) Revenue (MB) Sales Volume (ML) B100 Ethanol 284 138 209 4,958 5,209 120 116 3,049 66 26 25 41 Q2/23 Q1/24 Q2/24 Q2/23 Q1/24 Q2/24 Q2/23 Q1/24 Q2/24 Avg. Market Price (Baht/Liter) experienced a decline in gross profit due to B100 • Rising raw material costs, wh
Slide 20: ASEAN 1st CDMO Producer
ASEAN 1st CDMO Producer Increase stake in (BBGI Biodiesel Company Limited) BBGI Fermbox Bio Company Limited To strengthen our leadership in biofuel business PROJECT INVESTMENT : < 444 MB (Proceeds from IPO) To support the expansion of the use of biofuels for PRODUCTION CAPACITY : 2,000 Tons/Ye
Slide 21: Natural Resources Business
Natural Resources Business EBITDA (MB) Revenues from Crude Oil & Gas Sales (MB) Natural Resources Business Group reported softened , pressured by Sale volume dropped by 29% QoQ, due to • 60-day scheduled maintenance shutdown at Statfjord 11,595 • Underlifting position from several field 7,404 8,337
Slide 22: Bangchak Group Performance
01 Bangchak Bangchak Group Performance Group at a Glance 02 22
Slide 23: 2H/2024 Outlook by Business
Marketing Business Crude Run (KBD) Increased Run Rate HOH, Total Sales Volume +2% Fully maximize utilization Unit: ML/MO 251 Anticipated higher sales growth 221 after Phra Khanong’s TAM from traveling season 102 152 1,153 Improved GRM HoH 900 122 119 due to market condition 532 99 1H/23 2H/23 1H/24
Slide 24: 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 25: Revenue and EBITDA by Business
Unit: THB Million Q2/2023 Q1/2024 Q2/2024 QoQ YoY 1H/2023 1H/2024 YoY Total Revenue 68,023 135,382 158,057 17% >100% 148,561 293,438 98% Refinery and Trading Business 1/ 58,329 109,187 135,377 24% >100% 124,462 244,564 96% Marketing Business 2/ 45,434 100,385 100,151 0% >100% 94,654 200,536 >100% Cl
Slide 26: Consolidated Statement of Income
Consolidated Statement of Income (THB Million) Q2/2023 Q1/2024 Q2/2024 QoQ YoY 1H/2023 1H/2024 YoY Revenue from sale of goods and rendering of services 68,023 135,382 158,057 17% >100% 148,561 293,438 98% Cost of sale of goods and rendering of services (62,631) (123,393) (149,754) 21% >100% (134,859
Slide 27: Profitability, Efficiency and Liquidity Ratios
Q2/2023 Q1/2024 Q2/2024 1H/2023 1H/2024 Profitability Ratios (%) Gross Profit Margin 7.93% 9.37% 5.42% 9.23% 7.22% EBITDA Margin 9.74% 11.97% 7.03% 11.87% 9.27% Net Profit Margin 1.04% 2.18% 1.82% 2.75% 1.99% Return of Equity (ROE) 9.70% 18.39% 20.42% 9.70% 20.42% Efficiency Ratio (%) Return on Asse
Slide 28: Total CAPEX in 2024: 50,000 mn THB
Refinery & Natural Marketing, Resources, 30% 30% Bio-Based & New Business, 10% Green Power, 30% (Unit: MB) Green Power 2024E 1,700 14,000 800 17,800 5,000 (Including SAF plant) Total CAPEX in 2024: 50,000 mn.THB 28
Slide 29: Accounting EBITDA Q2/24
Accounting EBITDA Breakdown by Business Unit 158,057 15,308 135,382 10,764 18% 68,023 6,628 Q2/23 Q1/24 Q2/24 Q2/23 Q1/24 Q2/24 10,764 MB 51% Q2/2024 20% 9% 2% 3,428 2,437 Refinery Marketing Clean Power 1,824 1,072 32 Bio-Based Natural Resources 458 Q2/23 Q1/24 Q2/24 Q2/23 Q1/24 Q2/24 29
Slide 30: Core PAT to PAT Bridge
Unit : Million Baht Impairments Loss on Assets 100% After Tax Net to BCP BCPG (589) (340) Gain on Japan Divestment OKEA 9281/ (56) Impact on • Gain (loss) FX • Fair value on Derivatives USA Refinancing Expenses • Fair Value of Investment and Others • Reversal of Impairment Loss (TFRS9) • Reversal of
Slide 31: Accounting EBITDA by Business (Quarterly)
Accounting EBITDA (Unit : Million Baht) Clean Power Business 7,404 4,404 5,671 3,701 1,373 2,048 1,899 2,196 989 1,411 1,013 553 138 284 209 Q2/23 Q1/24 Q2/24 Q2/23 Q1/24 Q2/24 Q2/23 Q1/24 Q2/24 Q2/23 Q1/24 Q2/24 Q2/23 Q1/24 Q2/24 Lower crude run at Phra Khanong Improved MKM +9% QoQ Lower share of p
Slide 32: Refinery Operations 1H/24
1H/24 1H/24 1H/24 Phra Khanong Refinery Sriracha Refinery Bangchak Group Crude Run 99 KBD (82%) 152 KBD (87%) (Utilization Rate) 27-Day TAM in Q2/24 2% 6% 18% 14% 32% 8% Product Yield 47% 41% 7% 10% 10% 2% 1H/24 1H/24 Crude Source 18% 60% 3% 7% 10% 47% 25% 10% 19% 12% 24% 15% 7% 30% 3%10% 1% Middle
Slide 33: Crude Price Outlook 2H/24
Crude price move around 80-85 $/BBL in 2H’24, Price will be pressured by global economic slowdown weighing on oil demand particular in US and China while OPEC+ announced to gradually increase production from 4Q/2024 onwards. However, uncertainty over geopolitical risks continue to support oil price.
Slide 34: Product Crack Spread Outlook
Gasoline crack steady as U.S. demand rise following seasonal, but high refinery runs in U.S. could cap the uplift amid refinery turnaround weigh on Asian supply. Slightly higher Gasoil crack as supply easing, but the global economic slowdown weigh on demand growth and limit the upside. Higher Low Su
Bangchak Corporation Public Company — Q2 2024 Earnings Presentation on 6ix