SET Announcements

-Translation- 1000 / 050 / 2005 February 28, 2005 The Stock Exchange of Thailand 62, Ratchadapisek Road, Klongtoey Bangkok 10110 Attention : President of The Stock Exchange of Thailand Subject : Filing the Audited Financial Statements for the year ended December 31, 2004, and the business operation's explanation Attachment : 1.Audited Financial Statements for the year ended 2004 (Thai 1 Copy) 2.Audited Financial Statements for the year ended 2004 (English 1 Copy) According to "The Stock Exchange of Thailand's regulations related to Preparation and Filing of Financial Statements and Reports concerning Financial Status and Results of Business Operations of Listed Companies", the listed company is required to file an audited Financial Statements within 60 days following the end of each accounting period (in case that the listed company does not submit financial statements for quarter 4). And the listed company shall give reasons for the variation to SET, where the results of business operations in accordance with the profit and loss account varies more than 20 percent from that of the same period of the preceding year. In compliance with this regulation, The Bangchak Petroleum Public Company Limited (BCP) would like to file herewith its audited Financial Statements and the Auditor's Report for the period ending December 31, 2004, as well as, the additional business operation's explanation since the profit and loss statement varied more than 20 percent from that of the same period of the last year. Regarding to the business operations in 2004, net profit of the Company and its subsidiary were Baht 2,636 million, which consisted of Baht 2,613 million of the Company's net profit and Baht 26 million of its subsidiary, The Bangchak Greennet, as well as, Baht 2 million of the inter-transactions. The Company's total revenues were Baht 79,207 million, EBITDA was Baht +4,089 million, net interest expense was Baht 768 million, and Depreciation and Amortization were Baht 741 million. Therefore, the Company posted Baht 2,613 million of net profit (net loss of the year 2003 was Baht 1,275 million). Such profit resulted from the following factors: 1. EBITDA of the Refinery business was Baht 3,456 million, increased from the same period of last year at Baht 906 million, since the Company had gross refining margin (excluding inventory gain/ loss) of 1.84 $/BBL, increased from the same period of last year 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 and reduce cost. Moreover, 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 had continuously increased throughout the year. Therefore, the Company's total gross refining margin was 3.50 $/BBL, and the Company also increased the refinery utilization rate up to 90 KBD, which was higher than the same period of last year at 74 KBD. 2. EBITDA of Marketing Business was Baht 633 million, decreased from the same period of last year at Baht 647 million, since marketing margin, excluding Jet fuel, was Baht 0.43 per Liter, higher than the same period of 2003 of Baht 0.39 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. However, 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 for the marketing business unit. However, the result will be in opposite way if Jet fuel price is in a down trend period. 3. The increase of EBITDA in 2004 was partly resulted from the lower of Selling and administrative expenses to Baht 1,367 million, decreased by Baht 175 million comparing to the same period of last year. Because the Company had incurred the extra reserve for doubtful debts of Baht 233 million in the year 2003 in accordance with the Business and financial restructuring plan. Therefore, the selling and administrative expenses in 2003 were in the abnormal high level. However, in case of excluding such extra reserve for doubtful debts, the selling and administrative expenses in 2004 were increased from the same period of last year by Baht 58 million, as the result of the higher of sale volumes, as well as, the lower of the advertising and promotion expenses by Baht 40 million. 4. 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, (Anusorn Sangnimnuan) President Corporate Planning and Investor Relation Office Tel : 0-2335-4583