Bangchak Corporation Public Company Ltd · SET:BCP
Bangchak Corporation Public — Q1 2024 Earnings Presentation
40 slides from Bangchak Corporation Public's earnings presentation, May 16, 2024
Slide 1: Analyst Meeting Q1/2024
Analyst Meeting Q1/2024 May 16, 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: Register Capital and Paid-up Capital 1,376,923,157 Baht
Register Capital and Paid – up Capital 1,376,923,157 Baht Ministry of Finance Vayupak Fund 1 Social Security Office Public (As of 7 March 2024) Sriracha Refinery Phra Khanong Holds 45.00% Refinery No.1 fully Integrated Biofuel Producer in Thailand with Distribution channels through in production cap
Slide 4: Business strategy: Return Optimization, Platform for Growth, Commitment to Net Zero
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 ensure stability and growth 4
Slide 5: Bangchak Group Performance at a Glance
01 BangchakGroup Bangchak GroupPerformance at a Glance 02 New Business Update 5
Slide 6: Accounting EBITDA Breakdown by Business Unit
Accounting EBITDA Breakdown by Business Unit 142,922 135,382 15,308 80,538 10,992 10,310 29% Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 15,308 MB 48% Q1/2024 12% 2% 9% 2,932 3,428 2,741 2,437 1,803 Refinery Marketing Clean Power (977) Bio-Based Natural Resources Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 6
Slide 7: Accounting EBITDA (Unit: Million Baht)
Accounting EBITDA (Unit : Million Baht) Clean Power Business 7,404 5,414 5,684 4,029 4,404 2,021 1,899 1,411 1,340 737 852 1,048 107 253 284 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Highest Record Run Rate of 272 Highest Total Sales Volume Higher Shar
Slide 8: Refinery GRM and Crude Run
EBITDA (MB) Crude Run (KBD) Phra Khanong’s GRM ($/BBL) Sriracha’s GRM ($/BBL) 104% 101% 101% 69% 86% 10.16 7.38 7.29 (1.30) 5.17 272 240 3.13 4,404 119 150 0.74 Inventory Gain (Loss) 4,029 125 11.44 7.27 7.39 Hedging 0.23 2.00 5.03 (4.41) (0.71) (0.84) Operating GRM (3.30) (0.08) 1,340 125 121 121 Q
Slide 9: Phra Khanong and Sriracha Refinery Crude Run, Yield and Sources
Q1/24 Q1/24 Q1/24 Phra Khanong Refinery Sriracha Refinery Bangchak Group Crude Run 121 KBD (101%) 150 KBD (86%) (Utilization Rate) 2% 6% 22% 13% 33% 6% Product Yield 48% 43% 8% 9% 2% 7% Q1/24 Q1/24 Crude Source 17% 57% 3% 8% 15% 47% 18% 16% 19% 10% 26% 10% 7% 27% 3% 16% Middle East Far East South Ea
Slide 10: Sriracha Refinery Niche Products Expansion
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 Planned shutdown scheduled for 27 days, May 7th - June 2nd 2024 Kerosene Treating Unit Jet Fuel 1 Solvent 2 Gas Oil Hydrodesulphurization Diesel Un
Slide 11: Refinery Operations Logistics
Refinery Operations Logistics Sriracha Crude Run Improvement (Unit: KBD) Logistics Rezoning & Oil Pipeline Usage Pre-Integration: +26% QoQ 3Y-AVG Crude Run at 130 KBD Phra Khanong Refinery: supplies finished products to 150 the Central and Northern 124 144 regions of Thailand 90 via our oil pipeline
Slide 12: Marketing Business
Marketing Business EBITDA (MB) RM Sales Volume (ML/MO) Sales Volume by Key Product (ML/MO) 698 719 Mogas JET Diesel 652 Bangchak's Group 1,063* 1,069* 396 394 387 415 423 BCP 62% 59% 509 509 553 514 578 265* 283 296 59% 65% 10% 495 58% 60% 12% BSRC 61% 61% 2,021 1,899 11% 11% 12% 7% 28% 14% 9% 29% 2
Slide 13: Number of Oil Service Stations
from pre-integration Unit: Numbers of Service Stations of Oil Service Stations Note: Data as of 31 March 2024 13
Slide 14: The Chlorophyll Projects
The Chlorophyll Projects "Phase 1 of the Chlorophyll Project Soft Opens in April 2024" 14
Slide 15: Greenovative Destination for Intergeneration
Greenovative Destination for Intergeneration: Expansion Target 50 (Branches) 20 FY2027 FY2024 Earning Scheme Rental Space & Profit Sharing Focus Area Residential Area & Major Cities Bangchak Service stations Shop Covering Pet’s Products Wellness Hospitals Retails 15
Slide 16: Marketing Network Rebranding and Market Share
Marketing Network Rebranding Service Stations Market Share Expansion 829 45% SS rebranding Target to be completed by 2024 28.8% 29.2% (Q1/24) of Retail Market Share As of APR24 (FY2023) Avg. Sales Volume via SS from pre-integration 10.9% 12.1% (Q1/24) of Lube Market Share (FY2023) Premium Product Pe
Slide 17: Synergy Realization On Track
Refinery Operations Logistics Marketing Network Corporate Cost Saving Improved utilization from 130 KBD to Logistic re-zoning BSRC's throughput enhancement Economies of scale on back-office 174 KBD Expanded logistics reach with Increase sales volume of premium operations Product yield
Slide 18: Capital Recycling from Japan Divestment
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 4 Operating Assets TOTAL 469 MWe and Operation & Maintenance unit Gradually commercialize Transaction
Slide 19: OKEA Production Volume
With investment in upstream petroleum exploration and production (E&P) business through OKEA ASA in Norway since 2018, Bangchak Group has planned to extend our presence in E&P to other regions in the world. OKEA ASA Holds 45.44% Draugen Hasselmus 100 OKEA’s Unit of Production: KBOEPD Operator: OKEA
Slide 20: OKEA Production and 2P Reserves
2P Reserves (MBOE) Thanks to M&A and Lifetime extension from 2027 to 2040+ Organic Growth Taking operatorship in December 2018 Becoming operator in November 2022 FY2022 Q1/24 Increased production efficiency to 90% Draugen (including Bestla) Improved production efficiency to 96% in Q1/2024 (from 88%
Slide 21: Bangchak Group Performance New Business Update
01 Bangchak Group Performance 02 New Business Update 21
Slide 22: Fuel generations: fossil, 1st and 2nd gen biofuel
2nd GEN BIO FUEL 1st GEN BIO FUEL FOSSIL FUEL Ethanol LPG Mogas Jet Fuel Bio Diesel Diesel Fuel Oil 22
Slide 23: SAF ICAO Certified Technology
SAF ICAO Certified Technology Sustainable Aviation Fuel (SAF) are defined as renewable or waste-derived aviation fuels that meets sustainability HEFA: Synthesized paraffinic kerosene from Hydrotreated Esters and Fatty Acids criteria, that has similar properties to conventional jet fuel but with a sm
Slide 24: SAF Shareholding Structure, Feedstock and Customers
Shareholding Structure SAF Feedstock SAF Customers Investment Budget: 8.5 bn. THB Locked in Sales Volume of total production Production Capacity 1 ML/D (7 KBD) To purchase UCO at Target COD: Q2/2025 Service Stations nationwide Strategic Partnership Agreement Strategic partnership & being a sharehold
Slide 25: Strategic JV with Fermbox Bio: first CDMO Plant
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% PRODUCTION CAPACITY : 2,000
Slide 26: Crafting a Sustainable World with Evolving Greenovation
Crafting a Sustainable World with Evolving Greenovation http://www.bangchak.co.th Bangchak @Bangchak.WOW
Slide 27: 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 28: 2024E Total CAPEX 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: Resilience
Resilience Data as of 31 Mar 2024 Cash(1) Asset Debt EBITDA LTM(2) 34,091MB 352,406 MB 128,769 MB 45,997 MB (2)Last 12 Months Remark: (1)Including short-term investment Confirm Credit Rating from TRIS RATING: ‘Stable’ Outlook as of 31 AUG 23 (Times) (%) Net IBD/ EBITDA Net IBD/E ROA ROE* 14.9 14.4 0
Slide 30: Clean Power Business
EBITDA (MB) Electricity Output (GWh) 112.8 145.5 300.5 250.9 176.9 182.9 Hydro – LA 142.7 Hydro – LA Fully paused for transition to EVN 1,411 84.5 83.8 82.2 83.8 Solar - TH 1,048 76.7 66.2 852 25.2 35.0 37.0 23.3 Solar - JP 24.5 23.7 3.1 2.2 4.0 2.7 3.2 Wind - TH Q1/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23
Slide 31: Integrated power generation and smart energy service provider
An integrated power generation company and service provider of smart energy system focusing on renewable and clean power Remark: Information as of Mar 2024 and Unit is Contracted capacity or equity MWppa 31
Slide 32: Bio-Based Products Business
Bio-Based Products Business EBITDA (MB) Revenue (MB) Sales Volume (ML) B100 Ethanol 284 4,240 4,958 120 253 2,942 67 78 107 28 50 25 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 Avg. Market Price (Baht/Liter) Biodiesel business witnessed an increase in gross profit, due to rising biodiesel
Slide 33: Natural Resources Business
Natural Resources Business EBITDA (MB) Revenues from Crude Oil & Gas Sales (MB) Natural Resources Business Group has once again reported another , supported by Sale volume grew by over 82% QoQ, due to • Full-quarter recognition from the recently acquired 11,595 Statfjord field area 7,404 9,707 • Add
Slide 34: Revenue and EBITDA Summary by Business
Unit: THB Million Q1/2023 Q4/2023 Q1/2024 QoQ YoY Total Revenue 80,538 142,922 135,382 -5% 68% Refinery and Trading Business 1/ 66,132 213,913 202,628 -5% >100% Marketing Business 2/ 49,220 97,240 99,592 2% >100% Clean Power Business 3/ 1,057 1,318 1,194 -9% 13% Bio-Based Products Business 4/ 2,942
Slide 35: Consolidated Statement of Income
Consolidated Statement of Income (THB Million) Q1/2023 Q4/2023 Q1/2024 QoQ YoY Revenue from sale of goods and rendering of services 80,538 142,922 135,382 -5% 68% Cost of sale of goods and rendering of services (72,228) (135,236) (123,393) -9% -71% Gross Profit 8,309 7,686 11,989 56% 44% Other incom
Slide 36: Financial Ratios
Q1/2023 Q4/2023 Q1/2024 Profitability Ratios (%) Gross Profit Margin 10.34% 5.61% 9.37% EBITDA Margin 13.69% 7.44% 11.97% Net Profit Margin 4.19% -2.46% 2.18% Return of Equity (ROE) 17.76% 19.63% 18.39% Efficiency Ratio (%) Return on Assets (ROA) 12.39% 8.80% 9.02% 31 Mar 23 31 Dec 23 31 Mar 24 Liqu
Slide 37: Crude price outlook
Crude price move around 80-90 $/BBL in 2H24, Price will be pressured by global economic slowdown weighing on oil demand particular in US and China. However, OPEC continues stabilizing the market by keep reducing supply further into 2024 and uncertainty over geopolitical tensions Dated Brent, Dubai C
Slide 38: Refined product cracks outlook
Summer driving season in the U.S. will drive up gasoline cracks amid low inventory and the limited China’s gasoline export. Stable Gasoil crack as global economic slowdown and supply continued to outstrip demand. However, the geopolitical tensions in the Middle East could limit the downside. Higher
Slide 39: Target Carbon Neutrality and Net Zero
Target Carbon Neutrality by Target Net Zero by 39
Slide 40: Growth Balanced Portfolio Strategy
Growth Balanced Portfolio Strategy Economic Dimension Environment Dimension Social Dimension Sustainability Report 40
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