SET Announcements

TRANSLATION 1000 / 026 / 2005 January 28, 2005 The Stock Exchange of Thailand 62, Ratchadapisek Road, Klongtoey Bangkok 10110 Attention : President of The Stock Exchange of Thailand Subject : Filing Unaudited Financial Statements and Business Operations' Explanation for the year 2004 Attachment : 1. Unaudited Financial Statements for the year 2004 (Thai 1 Copy) 2. Unaudited Financial Statements for the year 2004 (English 1 Copy) As the Bangchak Petroleum Public Company Limited (BCP) has filed unreviewed and unaudited financial statements following the Stock Exchange of Thailand's guidelines for filing unreviewed and unaudited financial statements; The Company would like to file unaudited financial statements for the year 2004 and also would like to explain reasons for the variation in business operations in accordance with the profit and loss account more than 20 percent from that of the same period of 2003 as follow : Regarding to the business operations in the year 2004, the Company's total revenues were Baht 79,206 million, EBITDA was Baht +4,113 million, net interest expense was Baht 768 million, and Depreciation and Amortization were Baht 741 million. Therefore, the Company posted Baht 2,594 million of net profit (net loss of the year 2003 was Baht 1,275 million). Such profit resulted from the following factors: 1. Gross Refining Margin (not included inventory gain/ loss) was 1.75 $/BBL,increased from the same period of last year which was at 1.41 $/BBL, resulted from the increase in oil demand corresponding to the economic recovery and the sharply increase in refined products consumption of the petrochemical industry, which affected to the gasoline and diesel oil prices to increase at the higher rate comparing to crude oil prices. In addition, the Company has continuously performed the operation synergies with the other refineries in order to increase value addition of products as well as reduce cost. The Company also increased the refinery utilization rate up to 90 KBD, increased by 16 KBD comparing to the same period of last year, which was higher than the target of 88 KBD 2. In the year 2004, the Company had gains from the changes of oil price and foreign exchange rate on crude and finished oil product inventories (Inventory gains) by Baht 2,176 million, comparing to that of Baht 52 million in the same period of 2003, since oil prices continuously increased (Dubai crude increased by approximately 7.5 $/BBL). 3. In the year 2004, marketing margin, excluding Jet fuel, was Baht 0.46 per Liter, which closed to the same period of 2003 of Baht 0.41 per Liter. This resulted from the Government's implementation of price capped mechanism to fix the retail oil prices and therefore there were lower price competition in the market. In addition, there were lagged effect between gasoline price (which was floated by the government in the 4th quarter) and Ex-refining price which added extra marketing margin to the retail sales for short period of time. The Marketing business unit had recorded loss from selling Jet fuel by Baht 37 million since the Jet fuel selling price formula is based on the average price of previous month which the transferred price from Refining business unit to Marketing business unit is based on the current month. Therefore, during price up trend period; there always be a loss incurred fro the marketing business unit. However, the result will be in opposite way if Jet fuel price is in a down trend period. 4. In the year 2004, Selling and administrative expenses amounted to Baht 1,367 million, decreased by Baht 175 million comparing to the same period of last year, because the Company had incurred business and financial restructuring expenses of Baht 233 million in the year 2003. 5. In the 2004, Interest expense amounted to Baht 787 million, decreased by Baht 241 million, resulted from financial restructuring program. Moreover, the company also recorded interest income of Baht 18 million which was decreased by Baht 17 million as the company received a working capital line from financial restructuring plan. Therefore, the company did not have to reserve a lot of cash on hand for working capital purpose. Please be informed accordingly. Yours sincerely, (Patiparn Sukorndhaman) Senior Executive Vice President Accounting and Finance Corporate Planning and Investor Relation Office Tel : 0-2335-4583