Performance Summary

Performance Result Q1/2019
Q1/2019 performance, Bangchak Corporation Plc. and its subsidiaries earned revenue from rendering of goods and services THB 45,535 million, an increase of 3% YoY and a decline of 7% QoQ, net profit THB 395 million; of which net profit attributable to the owners of the parent THB 214 million, an earnings per share of THB 0.16

Total EBITDA (1,959 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

In this quarter’s issue of IR Newsletter
we are honored by Mr. Yodphot Wongrukmit, Senior Executive Vice President, Corporate Management and Sustainability Development of Bangchak Corporation Plc.,

In this quarter’s issue of IR Newsletter, we are honored by Mr. Yodphot Wongrukmit, Senior Executive Vice President, Corporate Management and Sustainability Development of Bangchak Corporation Plc., here to discuss the use of technology to enhance the screening and recruitment of personnel for Bangchak Corporation Plc. through the application of blockchain technology; aiding in the authentication of submitted applicant’s education degree, ensuring the immediacy and accuracy of the process.


Q: What kind of emphasis has Bangchak given to its human resources; being the organizational force driving the organization towards its vision, and what goals have you set for managing the human resources?

A: I would have to say that Bangchak is an energy company that really emphasize human capital development, and believes that future organization growths will hardly be fruitful, if our personnel lacked skills and capabilities, or various competencies. Bangchak has set a 2021 goal for its human resource department to become the Best Employer, and in order to fulfill the said goal, we have laid out strategies or roadmap regarding human resources which has been gestating for the past 3 years as employee-related developments.



Q: Can you tell us what kind of technology Bangchak has adopted to increase the efficiency of the employee recruitment process?

A: Bangchak has utilized Blockchain technology to give a facelift of the process to authenticate the education degree of its applicants. This is a project done in collaboration with Digital Ventures, which is technologically cutting-edge. It is called the B-Ver project, it utilizes Blockchain technology as a solution for problems that are considered detrimental and is yet to have been resolved, and has nothing to take its place, which in marketing terminology is known as “Pain Points”; the verification of applicant documents i.e. education degree. Originally, employers like Bangchak have to designate a human resource personnel to verify the applicant’s qualifications, and would have to wait for the degree verification documents from each applicant’s education institution, while the verification may or may not be sent to us. Furthermore, there are some documents that must be received from applicants, this work process consumes time and resources, however after joining the Digital Venture program, it has enable us to look up applicants’ information and documents online, the Blockchain will send us the information to check for fidelity, saving major time and resources, as well as lowering the chance of us receiving false information.


Q: How has the result of this project been, and how much has it benefited the organization?

A: As for the B-Ver project, we deemed it to be satisfactory, it has improved the efficiency, speed, and accuracy in the work process of our Recruitment department substantially. Moreover, now that we do not need to commit our human resources to the search and verification of documents through traditional means, which is time consuming, we are able to put those personnel to work on various other things. The company itself, is confident in the information received and has improved the reliability of the Bangchak’s personnel recruitment system considerably.


Q: From the story mentioned, Bangchak seems to have been successful and benefited from the B-Ver project in a satisfactory manner. Do you [Mr. Yodphot] think this project can be further applied to benefit an even larger scale of companies?

A:In the future, I believe that not only Bangchak will benefit from this project, but the vast majority of the Thai corporate landscape will also be receivership of the inherent rewards as well. In any given year, there are hundreds of thousands of applicants in Thailand, thus if the system is able to reliably validate, and not generate falsities, work can be completed faster and with higher efficiency. If speaking for the entire industry, we would be able to save expenses and resources, both in temporal terms and manpower quite immensely for every company. Bangchak is but one example that has decided to adopt this technology for our own benefit, thus we have significantly endorsed the B-Ver project.

Mr. Yodphot Wongrukmit

Senior Executive Vice President, Corporate Management and Sustainability Development

Bangchak Corporation Public Company Limited

Oil Market Outlook

Crude Oil Price Outlook : Crude price has rallied as OPEC+ remain continuous to cut oil output in Q2 ; but, Permian’s new pipeline in US coming in mid-year caused oil price to drop again

Focus on Q2’19:

  • OPEC+ agree to cut output continuously lead by Saudi Arabia
  • Supply disruption in Iran & Venezuela as U.S. Sanction and economic crisis
  • Horizontal Shale oil rigs were declined continually since the beginning of this year.
  • Lower oil demand’s as worldwide refinery turnaround.
  • Trade tension between US & China impacting to world economic and oil demand

Market Highlights in 2019:

  • Supply disruption in Venezuela & Iran (U.S. sanction)
  • Will OPEC+ remain to agree cut oil output in second half of 2019?
  • Higher sweet crude oil’s demand before implementing IMO2020
  • U.S. production spike to 12-14 MBD if debottlenecking Permian’s pipeline facility will be completed
  • IMF declines world economic growth forecasts in 2019 by 0.2% to 3.5% due to US & China trade tension
  • China revised the lower economic growth target from 6.0-6.5%to 6.0 in 2019 compared with last year’s target of “around” 6.5 percent
Strong gasoline crack spread in Q2 as lower China export quota; while middle distillate crack remain be pressured by higher China export quota and Heavy crack was pressured by lower bunker’s demand

Focus on Q2’19:

  • Lower China’s gasoline export quota as swapped instead of diesel and jet export quota
  • Asia’s refineries into spring turnaround
  • Gasoline crack will be supported by lower China’s export
  • Strong gasoil crack will be pressured by higher China’s export; but, supported by Asia’s refineries turnaround
  • Lower fuel oil arbitrage from West to Asia due to decreased OPEC+ heavy output and declined heavy crude export of Venezuela as U.S. sanction

Market Highlights in 2019:

  • Strong middle distillates on healthy demand growth and additional marine gas oil volumes ahead of IMO2020
  • The fuel oil’s supply in the worldwide will be continued to fall over 2019 on the back of continued refinery modernization and implementing 0.5%S bunker
  • Demand growth for gasoline in China and India will be slightly increased, however, outstrip supplies from their new refineries.

IR Activities

1 March 2019

Opportunity Day FY2018

Bangchak Corporation Plc. by Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance had announced the company’s 2019 performance to investors at at Stock Exchange of Thailand on March 1, 2019

3 March 2019

dbTISCO Thailand Energy & Utilities Sector Corporate Day

Bangchak Corporation Plc. by Mr. Surachai Kositsareewong, Senior Executive Vice President, Accounting and Finance joined FSSIA’s Investment Conference 2019 event hosted by Tisco Securities to meet and update BCP information to local insititutional investors at Tisco bank Headquarter Bangkok, Thailand on March 3, 2019

13 May 2019

Analyst Meeting Q1/2019

Bangchak Corporation Plc. by Mr. Chaiwat Kovavisarach, President and Chief Executive Officer Director and Mr. Surachai Kositsareewong, Senior Executive Vice President Accounting and Finance had announced the company’s Q1/2019 performance to to analysts and investment communities at Bangchak Corporation HQ, M Tower Building on May 13, 2019

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