BCP 19.50 THB +0.40 (2.09%)

Q1/2020

  • Recorded Gross Refinery Margin of 2.87 $/BBL, the refining margin still remains on the low side due to the crack spread of finished product and reference crude oil price declining significantly. A result of severe drop in demand for fuel consumption across the world, attributed to the COVID-19 outbreak. Furthermore, domestic demand for fuel consumption declined leading the refinery to lower its production level to an optimal levels, average production rate was 104.3 KBD or 87% utilization rate of the total refinery production capacity. Also, due to significant declines in crude oil price during this quarter, the refinery business was led to record Inventory Loss of THB 2,774 million [including losses on inventories devaluation (NRV)] causing significant decline in the Refinery Business’s performance. As for the oil trading business conducted by BCPT Trading Pte., Ltd., it recorded increase in the amount of trade and transaction of crude oil and finished product from moving forward in increasing transactions with its trade partners and introducing new products, under the company’s strategic plan to expand the business.

Refinery Crude Run

Unit : KBD

Q1/2020 THB Million $/BBL
Operating GRM 858 2.87
Oil Hedging 78 0.26
Inventory Gain / Loss* -2,774 -9.29
Total GRM -1,838 -6.16
* Including NRV

GRM Performance

Unit : $/BBL

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

Q1/2020

  • Total sales volume declined 6% YoY and 13% QoQ, mainly from the decline in sales of fuel through the industrial market. This is in respect to the fairly high degree of competition in the industrial market, and the 4th quarter was a High Season for fuel consumption. As well as, late in the quarter, the COVID-19 outbreak. Cumulative market share between January – February 2020 was at 15.9% (data from Department of Energy Business, Ministry of Energy). Total number of service stations as of the end of Q1/2020 was a total of 1,204 locations across the country.

Marketing Sales Volume

Unit : Million Litre

Total Marketing Margin

Unit : Baht/Litre

Market Share (Retail Channel)

Most of finished products from Bangchak’s refining processes were sold through the retail network of over 1,204 Service Station Nationwide Under brand “Bangchak”

BCPG Q1/2020 :

  • recorded increase in total electricity sales 48% YoY due to investments into the hydro power plant in Laos PDR the “Nam San 3B” project in February 2020. , the total quantity of electricity sold declined 23% QoQ, mainly attributed to the sales of the hydro power plant in Laos PDR declining, due to having to endure a state of drought more than usually severe. and a reduction of electric power purchased (curtailment) from Japan Electric Power Company.

Total Electricity Sale

Unit : Million kWh

Diversified source of earnings to a stable visibility earnings businesses. In so doing, The establishment of BCPG Co., Ltd. (BCPG), to run and invest in power plants fueled by renewable energy.

Q1/2020
Biodiesel business

  • Biodiesel Production and Distribution Business performed better in both YoY and QoQ from the B100 product price that adjusted upward quite significantly from various measures from the government sector to promote the use of Biodiesel fuel (B100). Despite, sales volume of B100 product declining from seasonality, and the COVID-19 outbreak, the increase of the B100 products price combined with the ability to efficiently manage raw material, thus improving gross profit.

Q1/2020
Ethanol Business

  • Ethanol business, revenue declined in relation to lower sales volume in YoY and QoQ. Mainly, attributed to the intense competition within the Ethanol business from the total national production of Ethanol increased, combined with the COVID-19 outbreak. Whereas, the average selling price of Ethanol product increasing in relation to cost of the raw material, due to droughts. However, with the ability to efficiently manage raw material, thus improving gross profit. Moreover, revenue increased from the sales of Ethanol used for production alcohol gel, and disinfectant products permitted by the Excise Department in this quarter.

Biodiesel business: Production and Sales Volume

Unit : Million Litre

Ethanol business: Production and Sales Volume

Unit : Million Litre

Bangchak promotes ethanol and biodiesel for blending in gasoline and diesel. Its products in this category include Gasohol 91, Gasohol 95, Gasohol E20, Gasohol E85, and Hi-diesel for national energy security by reducing trade deficits from oil imports.

Q1/2020 :

  • was affected by the situation of crude oil price in the global market that declined significantly from the state of excess supplies within the market and declining demand from the COVID-19 outbreak. The company realized loss from invested capital in associate company, OKEA, and loss on impairment of assets owned by Nido Petroleum Pty. Ltd. THB 1,366 million.

Average Production (Net to OKEA)

Unit : KBD

Bangchak holds holds 46.5% shareholding in OKEA AS, a norwegian Petroleum E&P company, as an associated company, and realize a profit sharing from OKEA.