BCP 25.00 THB - (-%)

FY2020

  • The Refinery and Oil Trading Business saw its performance severely affected by the volatility of oil price, and Gross Refinery Margin was at low levels; coinciding with demand for fuel consumption across the globe that declined with significance. During this year Operating GRM was 3.20 $/BBL which declined from the previous year by 2.21 $/BBL. This can mainly be attributed to every crack spread declining. Due to the domestic demand for oil consumption declining, which caused the refinery to lower its production to an optimal level. Average production rate was 97.2 KBD or 81% utilization rate. Furthermore, as crude oil price declined sharply this year, the refinery recorded an Inventory Loss of THB 4,379 million. The company postponed turnaround maintenance plan from Q3/2020 to Q1/2021. Moreover, the company has upgraded refinery in order to produce niche products i.e. the solvent product group under the name BCP White Spirit 3040 and has branched into becoming the sole producer of UCO (Unconverted Oil) in Thailand, which served to improve Gross Refinery Margin. As for the Oil Trading business under BCPT Pte. Ltd., it is still expanding, recording increase in trade transaction by 20% YoY. Gross profit increased from the previous year, due to the Low Sulphur Fuel Oil product that had been further treated to add more value to the product under the IMO measures. Furthermore, new products were traded i.e. Unconverted Oil (UCO) and Solvent (White Spirit) to name a few, and its traded market extends to Pakistan.

Refinery Crude Run

Unit : KBD

FY2020 $/BBL
Operating GRM 3.20
Oil Hedging 0.03
Inventory Gain / Loss* -3.91
Total GRM -0.68
* 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.

FY2020

  • recorded total sales volume declining by 17% YoY, due to the COVID-19 outbreak, both the first wave and the new emerging phase. Which caused the domestic demand for consumption of fuel to decline. Especially, the tourism industry and airlines were severely affected. Thus, fuel volume sold through the industrial channel being detrimentally affected, lowering by 51% YoY from the decline in the sales volume of Jet Fuel which lowered by 72% YoY. Whereas, the company has focused on retail channel sales, and therefore was not so severely affected. However, net marketing margin increased 11% YoY attributed to the company’s ability manage sales to coincide with market demand by focusing on sales through the retail channel. The proportion of sales through the retail market increased, of which the retail market has higher marketing margin than the industrial market. In this year, the Marketing Business recorded Inventory Loss (including reversal on losses of inventories devaluation (NRV)) THB 365 million. The company still maintains its service station expansion strategy, despite easing on portions of the investment due to the contracting aggregate economy. The total number of service stations as of the end of 2020 was 1,233 stations with cumulative retail sales volume market shares in 2020 at 15.6%

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 1,233 Service Station Nationwide Under brand “Bangchak”

BCPG FY2020 :

  • recorded growth in performance, mainly from the investment expansion in the Hydro Power Plant project Nam San 3A and Nam San 3B (total PPA of the 2 projects is 114 MW) in Lao PDR, and the acquisition of the Solar Power Plant project in Thailand, “RPV” comprising of 4 projects (PPA 20 MW) – leading to an increase in 2020 total electricity sales by 100% YoY. At present, the total PPA is 473.7 MW, and realized shares of profit from associate companies in the amount of THB 270 million, which declined from the previous year. Mainly from the Geothermal Power Plant business in Indonesia recorded an expense related to the refinancing THB 172 million. The refinancing has led BCPG Plc. (“BCPG”) to receive share payment form the capital reduction in its associate company, Star Energy Group Holding Pte. Ltd., in the amount of THB 842 million (proportionate to shares held by BCPG at 33.33%). Furthermore, at BCPG’s extraordinary general shareholder meeting, approvals were given to the plans to increase registered capital through the offering of 1.3 billion ordinary shares. The company expects to receive an additional THB 10.2 billion in capital, with goals for expand the investment in accordance to its 5-year strategic plan, and parts of the capital will be used for loan repayment; strengthening the company’s financial structure.

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.

FY2020
Biodiesel Production and Distribution Business

  • Biodiesel Production and Distribution Business recorded increase in gross profit by 201% QoQ and 177% compared with 2019 from its ability to better manage raw material cost, and revenue from sales increase from the average price of B100 rising significantly. A result of the various measures issued by the government sector to promote the consumption of crude palm oil. The sales volume of B100 rose by 14% QoQ from the COVID-19 outbreak subsiding. This caused demand for Diesel fuel consumption in the transport sector, agriculture sector, also including travel to increase, but declined 16% compared with the previous year due to the business was impacted by the COVID-19 outbreak in 2020.

FY2020
The Ethanol Production and Distribution Business

  • The Ethanol Production and Distribution Business, saw the selling price of Ethanol increasing in relation to its raw material cost. Despite demand for Ethanol consumption in the energy sector declining, but was able increase sales of industrial grade ethanol, which was to be used to produce alcohol gel and disinfectant products during Q2/2020 when the COVID-19 outbreak was occurring. Thus, leading to an increase in gross profit by 26% from 2019 but declining 46% QoQ. This is due to Q3/2020, there were amendments to the cost of the molasses raw material, in accordance to the announced average molasses domestic selling price declining. This caused the price of raw material to increase when compared to the previous quarter. Furthermore, BBGI Plc. expanded its business to high value bio-based product business via its investment in Manus Bio Inc., which is famous across the world as a leading manufacturer of high-value bio-based products. Its production has deployed advanced bio-fermentation.

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.

FY2020 :

  • The Natural Resources Business Group saw its performance declining significantly, due to realization of share of loss from invested capital in its associate company, OKEA. Whereas, the previous year the company realized share of profit. The price of crude oil and natural gas adjusted downward sharply in 2020, due to the effects of the COVID-19 outbreak. This resulted in OKEA to record a decline in revenue. Also, incremental records in impairments was Technical Goodwill, Ordinary Goodwill of the Draugen and Gjøa fields. Additionally, an impairment related to the Yme asset under development was recorded due to the delay in its production plan and an increase in capital expenditure. However, realized gains from foreign exchange due to the appreciation of the Norwegian Krone (NOK) against the US Dollar. Finance cost decline when compared to the previous year, due to the partial of interest expenses was capitalized as a part of the project cost, and realized deferred income tax which assisted lower net loss for this year. As such, in 2020 OKEA invested in the Calypso and Aurora petroleum fields which are situated near the Draugen and Gjøa fields, respectively. This will help lower the cost of development and production from joint synergy. Moreover, invested in the Vette fields and awarded 6 new production licenses, which served to help strengthen OKEA investment portfolio. As of the end of 2020, the book value of invested capital in OKEA is valued at a level close to its market value. Furthermore, late in the year, BCP Innovation Pte. Ltd. (“BCPI”) reduced its shareholding in Lithium Americas Corp. (“LAC”). The total value from divestment was approximately USD 136 million, which has been reserved for future business expansion opportunities.

Average Production (Net to OKEA)

Unit : KBD

Bangchak holds 46.32% shareholding in OKEA AS, a norwegian Petroleum E&P company, as an associated company, and realize a profit sharing from OKEA.