BCP IR Newsletter

Q1/2017


Bangchak Corporation PLC. set corporate culture goals to develop businesses side by side with the environment and society for corporate sustainability. Run CSR/CSV businesses complementary to business growth and extend from them. This social enterprise is aimed at creating jobs, generating income, and promoting community members’ joint stewardship of their habitats.

Performance Summary

Performance Result Q1/2017
The consolidated financial statement recorded revenue from sale of goods and rendering of services of Baht 43,995 million and Net Gain of Baht 2,198 million which was the Net Profit attributable to owners of the Company of Baht 2,084 million, or earning per share of 1.51 Baht.

Total EBITDA (4,075 MB.)

Unit: THB Million

Key Financial

Business Unit Performance

Bangchak boasts a complex refinery with a capacity of 120,000 barrel per day based on sophisticated hydrocracking technology. The Company took assorted measures to raise its outputs and manage its refining margins.

Stock Snapshot

Bangchak Corporation Public Company Limited

is a Thailand based company engaged in the operation of oil refinery and marketing the finished products through its service stations. The Company’s oil market includes consumers in various sectors, such as transportation, aviation, shipping, construction, industrial and agriculture. Other businesses are renewables and Exploration & Production.


Fundamentals

Executive Talk

Bangchak develops “Hi Premium Diesel S” with highest cetane number of 70.
Mr. Chaiwat Kovavisarach, president and CEO of Bangchak Corporation Public Company Limited, held a press conference launching a new high quality diesel fuel “Hi Premium Diesel S”

Mr. Chaiwat Kovavisarach, president and CEO of Bangchak Corporation Public Company Limited, held a press conference launching a new high quality diesel fuel “Hi Premium Diesel S” an innovation for car owners who would like to use premium quality diesel fuel.


Q: What is the background of “Hi Premium Diesel S” product?

A: Bangchak has been continuously developing fuel products such as Gasohol with Green S Revolution technology and Hi Diesel S for the past years and has got well response from our customers. Sales volume still increases continuously. Therefore, Bangchak launches a new product called “Hi Premium Diesel S” which is developed with “The Next Generation Green Cetane” innovation. This product is designed to respond to the premium quality diesel demand and support the new engine technology.

Q: what is the strength of Hi Premium Diesel S product?

A: Hi Premium diesel S consists of oil from the best part of a single refining unit which has high cetane number as well as eco friendly. Together with premium additives, its performance is superior to normal diesel by the following strengths.

  • High cetane number of 70 leads to high power for engine acceleration in both flat and steep ways and saves 4.3% of fuel. (The minimum standard cetane number from energy department is 50)
  • Hi Active Cleansing agent helps clean up the nozzles 70% and make the ignition stage work effectively, protect and extend the lifespan of engine.
  • Euro 5 standard, which contains lower sulfur content than fuel with Euro 4 standard, and is better for the environment.
Q: When will Hi Premium Diesel S be available in the market? How many gas stations will sell Hi Premium Diesel S? What is the sale volume target?

A: Bangchak has already sold Hi Premium Diesel S since May 9, 2017 in its 70 branches in Bangkok metropolitan area and large cities. By the end of this year, we will expand the sales to 200 branches country wide. We believe that Hi Premium Diesel S will be accepted by consumers. We expect sales volume to be not less than 4 million liters per month.


Q: Does Bangchak have any promotions for Hi Premium Diesel S?

A: Customers who are the member of Bangchak Diesel Club can buy Hi Premium Diesel S and get 6 times more points from May 9, 2017 to August 31, 2017.


Mr. Chaiwat Kovavisarach

President and CEO

Oil Market Outlook

Extension of OPEC-led cuts could further reduce oil glut by end-2017
Crude Oil Price Outlook: Surplus will decrease but oil prices capped by rising of U.S. production

Market Highlights in 2017:

  • Surplus inventory will decrease and oil prices will have to move higher to hasten supply creation
  • China buying for SPR filling.

  • Fed seen raising rates 2-3 times in 2017.
  • Some U.S. shale production return.
  • Political uncertainty in Europe and Middle East

Focus on Q2-17:

  • OPEC’s and non-OPEC extension cut would lower excess crude inventories.
  • Stronger crude demand in late of 2Q after refinery return from maintenance

  • Higher supply from Libya, U.S. and Canada
Stable Refinery Product Margins in Q2-17 on refinery maintenance and stronger gasoline demand in summer

Market Highlights in 2017:

  • Asian CDU capacity additions will rebound in 2017 but some delay is likely.
  • Continuation of relative light end support compared to middle distillates on still strong demand.
  • Fuel oil supply decrease on export tax hike, refinery upgrade in Russia, some closure in Japan and Kuwait.

Focus on Q2-17:

  • Chinese mixed aromatics implementation could cut its gasoline export.
  • Early summer and Ramadan support gasoline cracks.
  • The end of spring turnarounds pressure gas oil cracks although expectations of higher demand growth.
  • Tighten fuel oil balance over Q2 as ME demand picks up seasonally, heavy refinery maintenance in Russia and topping capacity closure in Japan.

IR Activities

10 May 2017

Thailand Corporate Day in London

Bangchak Corporation Plc. by Mr. Chaiwat Kovavisarach, President had joined Thailand Corporate Day in London event hosted by SET and MayBank Kimeng to meet and update BCP information to international insititutional in London on May 10, 2017

10 Apr 2017

Analyst Meeting (Q1/2017 Performance Result)

Bangchak Corporation Plc. by Mr. Chaiwat Kovavisarach, President and Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance has announced the company’s FY2016 performance to analysts and investment communities at Bangchak Corporation HQ, M Tower Building on April 10, 2017

23 - 26 Mar 2017

Set in the city 2017

Bangchak Corporation Plc. by Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance and Ms. Saowapap Sumeksri, Vice President Finance had joined Set in the city 2017 event hosted by SET to meet and update BCP information to investment communities at Royal Paragon Hall Bangkok on March 23 - 26, 2017

15 - 16 Mar 2017

UBS – Thailand Corporate Day 2017

Bangchak Corporation Plc. by Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance and Ms. Saowapap Sumeksri, Vice President Finance had joined UBS – Thailand Corporate Day 2017 event hosted by UBS to meet and update BCP information to international insititutional in Hongkong on March 15 - 16, 2017

27 Feb 2017

db TISCO : Thailand Energy Corp Day

Bangchak Corporation Plc. by Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance and Ms. Saowapap Sumeksri, Vice President Finance had joined db Tisco - Thailand Energy Day event hosted by Deutsche TISCO to meet and update BCP information to insititution investors on Feb 27, 2017