Performance Summary

Performance Result Q3/2016
The consolidated financial statement recorded revenue from sale of goods and rendering of services of Baht 36,686 million and Net Gain of Baht 1,132 million which was the Net Profit attributable to owners of the Company of Baht 1,178 million, or earning per share of 0.86 Baht.

Total EBITDA (2,798 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 Petroleum 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’s Marketing Business Growth Story
Mr. Pongchai Chaichirawiwat, Senior Executive Vice President, Marketing Business Unit gave an interview for Money Talk radio program on August 18, 2016
Mr. Pongchai is currently taking care of the Bangchak Petroleum Plc.’s Marketing Business. In the second half of this year, what will we see as a growth of Bangchak’s Marketing Business?

It would be a long term plan. Currently, the number of Bangchak’s standard service stations are not large, we still lack the network. There might be a lot of Bangchak’s service station in Bangkok Metropolitan and Central region, but in the Northern, North-eastern and Southern region, it is quite hard to find our station. So this is one of our first missions to expand our service station networks. Now there are about 460 of Bangchak’s standard service stations, still less than our main competitors. One of our first priority strategies is to fix this problem and grow our networks to cover every parts of the country. We have been working on this since last year, and we target to have about 400 more standard service stations, almost doubling the existing number, within the next 5 years. More to the service station expansion, we do not aim to sell only oil products, but also other elements or known as the Non-Oil business too.

What is Bangchak’s Non-Oil business comprised of?

For example, one of our good business is the coffee shop. We have our own coffee shop brand called Inthanin Coffee, and right now we also have Inthanin Garden, which is a premium brand with a highlight of using 100% organic Arabica coffee beans. Our key story is that we purchase coffee beans from the hill tribe who grow coffee in the forest. Coffee likes the shady, humid area, so the people who grow coffee also need to preserve the forest too, because coffee need to live with the shades of big trees, and if they want to have a quality coffee beans, they have to look after the forest as well. Also, another condition from us is that the coffee grown in the forest need to be chemical-free.

How does Bangchak target in terms of image and the number of Inthanin and Inthanin Garden coffee shops from now on?

We try to open up both kinds of coffee shops for about 100 shops per year, which would be Inthanin Coffee around 70 shops and Inthanin Coffee around 30 shops. Currently there are about 380 – 390 shops, of which are Inthanin Garden around 30 shops and the rest are normal Inthanin Coffee. We are test running Inthanin Garden and get quite a good feedback. There are a few conditions for Inthanin Garden, such as to be in an appropriate location for the target customers. The target to open 100 new shops a year should be in the service stations around 60-70 shops, the rest 30 shops would be in the department stores and community areas. We will see this business growing.

Move on to the electric cars, or EV cars which is quite a new hot topic at the moment. There are also discussions on the charging station for these kinds of cars. In the near future, will we see Bangchak’s service stations providing charging stations for EV cars too?

This will be another topic that Bangchak interested in. We had just signed an MOU with an EV cars manufacturer in Japan, called FOMM. They are interested in manufacturing EV cars in Thailand, and looked for battery changing and charging stations for their cars. So we signed and MOU with FOMM that we will support the project. When they open their EV cars manufacturing, FOMM’s customers can change and charge their cars’ batteries at Bangchak service stations. What follow next is we would need to find the appropriate areas, with a big enough space for our service stations, we are studying for the charging station as well. However, we might not see this business coming very soon. In the next 4-5 years, the numbers of EV cars in Thailand might not be large, so we are just testing the business right now.

Lastly, do you have anything to say to Bangchak’s service station customers?

Yes, recently, we have just introduced new oil products, called the Green S Revolution family. We had introduced a new E20 S last year, and a new Hi Diesel S around the end of last year. So this year we developed every kind of our oil products, we call it the “S” family or “S Series”. It is a quality improvement of all our oil products, both for cleaning the related spark plugs, and for better lubricating. As such, the S Series oil products will help our customers to be able to efficiently and fully utilize the car’s energy, get more power, and achieve a better mileage too.

Mr. Pongchai Chaichirawiwat

Senior Executive Vice President, Marketing Business Unit

Oil Market Outlook

Oil Balance seen tighten in 2017
  • In the fourth quarter of 2016, winter supply/demand fundamentals together with new OPEC policy should push price into a $50-$55 /BBL by the end of this year.
  • Supply creation will become the market’s focus in 2017 and this will require higher oil prices.
Crude Oil Prices Outlook

Q4-16

    • New OPEC’s policy to cut oil production.
    • Higher oil demand during winter.
    • Refineries return from maintenance.
    • Fed rate hike Expectation in Dec.
  • Chinese economic slowdown.

2017

  • Stronger world Economic.
  • China buying for SPR filling.
  • Weak Chinese economy.
  • Some U.S. shale production return.
  • Higher non-OPEC supplies.

Effects from Trump win on oil industry

  • Opposed Iran sanctions oil supply issue.
  • Support U.S. upstream and open federal land and water for fossil exploration.
  • Support to coal industry return.
  • Emerge from international trade leads to U.S. oil demand growth.
Higher Refinery Product Margins in Q4-16 on Middle Distillate cracks Supports

Market Highlights in Q4-16:

  • Seasonally softer gasoline demand in Q4 but the Colonial pipeline shutdown, refinery maintenance in Asia (Oct) and ME (Nov) support gasoline cracks.
  • Improving gasoil cracks due to seasonally stronger demand.
  • Higher demand and tight supply remain support fuel oil cracks.

Factors to watch 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.
  • Bunker demand slowdown following oil prices rise although fuel oil supply decrease on export tax hike and refinery upgrade in Russia.
Refinery Product Margins lower in this year and will stay on the softer side

Market Highlights:

  • Weaken gasoline cracks after end of peak summer, high inventories and yield shifted upward.
  • Gasoil/diesel cracks will gradually recover in Q4 on winter season.
  • Soften fuel oil cracks due to slower demand and higher supply.

Factors to watch:

  • High Chinese product exports remain in place.
  • Export-oriented refinery run cut and upcoming refinery maintenance will support market.

IR Activities

29 Nov 2016

BCP Site Visit With Thai VI

The Bangchak Petroleum Plc. by Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance and Ms. Saowapap Sumeksri, Vice president Finance had welcome , to meet and update BCP information to Thai VI at Bangchak Refinery on Nov 29, 2016

22-23 Nov 2016

NDR With Phatra

The Bangchak Petroleum Plc. By Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance and Ms. Saowapap Sumeksri, Vice president Finance had joined NDR With Phatra event to meet and update BCP information to international institutional and investment communities in Singapore on Nov 22-23, 2016

15 Nov 2016

Opportunities Day (Q3/16 Performance Result)

The Bangchak Petroleum Plc. by Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance and Mr. Ekaphong Govitgoongrai, Active Vice President Oil Trading Business had announced and walk through the operation and financial results of Q3/16 with investors at Stock Exchange of Thailand on Nov 15, 2016

14 Nov 2016

Analyst Meeting (Q3/16 Performance Result)

The Bangchak Petroleum Plc. by Mr. Chaiwat Kovavisarach, President, and Mr. Viboon Wongsakul, Executive Vice President, Retail Business and Marketing Support had announced and walk through the operation and financial results of Q3/16 with investment communities at Bangchak Ratchapruek Service Station, Bangkok on Nov 14, 2016

18-19 Oct 2016

SET & Nomura Thailand Corporate Day

The Bangchak Petroleum Plc. By Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance and Ms. Saowapap Sumeksri, Vice president Finance had joined SET & Nomura Thailand Corperate Day event to meet and update BCP information to international institutional and investment communities in Japan on Oct 18-19, 2016

2 Sep 2016

Bualuang Securities Thai Corporate Day (Thailand)

The Bangchak Petroleum Plc. By Mr. Chaiwat Kovavisarach, President had joined Thai Corporate Day hosted by Bualuang Securities to meet and update BCP information to investment communities on Sep 2, 2016

1 Sep 2016

Thailand Focus 2016

The Bangchak Petroleum Plc. By Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance and Ms. Saowapap Sumeksri, Vice president Finance had joined Thailand Focus 2016 event hosted by Stock Exchange of Thailand to meet and update BCP information to institutional investors on Sep 1, 2016

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