Performance Summary

Performance Result FY2016
The consolidated financial statement recorded revenue from sale of goods and rendering of services of Baht 144,705 million and Net Gain of Baht 4,729 million which was the Net Profit attributable to owners of the Company of Baht 4,773 million, or earning per share of 3.47 Baht.

Total EBITDA (11,363 MB.)

Unit: THB Million

Key Financial

Business 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 in Thailand 4.0
Mr. Chaiwat Kovavisarach, President and CEO of Bangchak Corporation Public Company Limited, was interviewed in Smart Energy program in Thairath TV (channel 32) on March 7, 2017

Regarding Thailand 4.0 policy, many companies in many sectors adapt for their growth by using innovation. Bangchak focuses on expanding businesses by adding value on research studies, and also has set up BIIC which is an internal innovative center. Now, we are going to talk about it with Mr. Chaiwat Kovavisarach, President and CEO of Bangchak.


Q: What is a BIIC? What does BIIC do?

A: BIIC (Bangchak Initiative and Innovation Center) is an innovation center. Bangchak has its own laboratory and product research center. Bangchak has set up investment budget for startup or incubation stage two years ago. As we all know, Bangchak has invested in Lithium business thanks to our innovation center. In this year, we think about grouping them together and consolidate them to be under the same department which is BIIC which takes responsibility for researches. Bangchak researches currently focus on Bio products, and we try to continue developing value added products from palm. We think that Bio products will be an important matter in the future, as Thai government gives high importance for Bio products as one of the five new S Curve for Thailand. As such, Bangchak will be responding to this idea, by giving attention to our bio-products business. Finally, we may change our bio-products business structure, and see how we can continue on it. Primarily, we plan to research on specialty products which is scarce and has a higher value added.

Q: BIIC’s researches focus not only Bio product but also other products with high value added. What will we expect from BIIC in 2017?

A: There are 2 obvious results which are bio products and retail business. For retail business, we have also learn something from Plug and Play (a start up in Silicon Valley). Currently, Bangchak oil station has its own convenience store named SPAR which is brand from overseas.


Q: How does Bangchak plan to expand SPAR shops?

A: Bangchak recently opened 6 SPAR shops in 2016. First shop was located in our service station on Ratchapruek road. Actually that service station was already opened for 6 months, but after we incorporate SPAR in it, we saw an increase in oil sales volume in that location by nearly 20%. Customers who come for foods and shopping also refuel their cars. This year, we plan to open around 100 service stations and 55 SPAR shops in our service stations. We focus on opening new service stations in large, has a high potential and locate around residential areas.


Q: What is Bangchak’s plan considering innovation and overseas business revenue, such as Lithium business and green power plant business?

A: For power plant business, Bangchak focuses only on investment in green power plant which will be operated and invested under BCPG. As we all know, currently BCPG has an installed capacity of 220 MW. This year, we plan to expand its capacity to around 400 MW.


At the beginning of this year, Bangchak invested in Lithium business, which has a good future prospect. Lithium price in world market rose quite high and Lithium is in high demand. We expect that we can start Lithium production in 2019, and have a production capacity of 25,000 ton. Nowadays, people consume Lithium around 160,000 ton. If the business expand according to plan, we will have Lithium production capacity of 50,000 ton, which will account for 20% of total market share, and will be one of the largest Lithium source in the world. Bangchak expects to recognize revenue from Lithium business in next 2 years.



Today, we see outlook of Bangchak which will be different from the past. Now, Bangchak grows up with innovation to face with Thailand 4.0.

Mr. Chaiwat Kovavisarach

President and CEO

Oil Market Outlook

Crude Oil Market Outlook: Production cut would rebalance crude oil market in 2017
  • OPEC and non-OPEC cut compliance helps oil market rebalance.
  • Some doubt OPEC will lower production as much as promised thought 1H’17.
  • Rising non-OPEC supplies could temper the effectiveness of OPEC production cuts.
  • If no extended OPEC output cuts in 2H’17, inventories would be slightly built again.
Crude Oil Price Outlook: Surplus will decrease and oil prices will move higher

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.
  • U.S. border tax would create a renewed large oil surplus into 2018. [If implemented]

Focus on Q1-17:

  • New OPEC’s and non-OPEC co-operation to cut oil production would bring the market in deficit
  • Higher oil demand during winter.

  • Strong USD prospect on Trump’s tax cut package and interest rate hike.
  • Chinese economic slowdown.
Higher Refinery Product Margins in Q1-17 on Light Distillate cracks supports

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.
  • Bunker demand slowdown following oil prices rise although fuel oil supply decrease on export tax hike and refinery upgrade in Russia.

Focus on Q1-17:

  • Seasonally softer gasoline demand in Q1 but remain support by car sales in China and refineries turnaround.
  • Lower seasonal demand as warmer temperature but production shift to China V standard and Asian refineries maintenance will support gasoil crack.
  • Lower demand but tight supply remain support fuel oil cracks.

IR Activities

21 Feb 2017

Analyst Meeting (FY2016 Performance Result)

Bangchak Corporation Public Company Limited 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 Grand Hyatt Erawan Bangkok on Feb 21, 2017

23 Feb 2017

Opportunities Day (FY2016 Performance Result)

Bangchak Corporation Public Company Limited by Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance and Ms. Kittima Wongsan Vice President Strategic and Supply Planning has announced the company’s FY2016 performance to investors at the Stock Exchange of Thailand on Feb 23, 2017

10 Feb 2017

J.P. Morgan's Thailand CEO -CFO conference

Bangchak Corporation Public Company Limited by Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance and Ms. Saowapap Sumeksri, Vice President Finance had joined J.P. Morgan's Thailand CEO - CFO conference event hosted by J.P. Morgan to meet and update BCP information to international insititutional on Feb 10, 2017

17 Jan 2017

SET Thai Corporate Day

Bangchak Corporation Public Company Limited by Ms. Saowapap Sumeksri, Vice President Finance had joined SET Thai Corporate Day event hosted by SET and CIMB to meet and update BCP information to international insititutional on Jan 17, 2017

Credit Suisse 8th Annual ASEAN conference

Bangchak Corporation Public Company Limited by Mr. Chaiwat Kovavisarach, President and Ms. Saowapap Sumeksri, Vice President Finance had joined Credit Suisse 8th Annual ASEAN conference event hosted by Credit Suisse to meet and update BCP information to international insititutional in Singapore on Jan 11 - 12, 2017

Archive IR-Newsletter