SET Announcements

1000 / 092 / 2005 April 27, 2005 Subject : Filing Unreviewed Financial Statements and Business Operations' Explanation for Quarter 1, 2005 Attention : President of The Stock Exchange of Thailand Attachment : 1. Unreviewed Financial Statements for Quarter 1, 2005 (Thai 1 Copy) 2. Unreviewed Financial Statements for Quarter 1, 2005 (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 unreviewed financial statements for the Quarter 1, 2005 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 2004 as follow : Regarding to the business operations in Quarter 1, 2005, the Company's total revenues were Baht 17,867 million, EBITDA was Baht +780 million, net interest expense was Baht 154 million, and Depreciation and amortization was Baht 190 million. Therefore, the Company posted Baht 438 million of net profit (net profit of Quarter 1, 2004 was Baht 646 million). Such profit resulted from the following factors: 1. Gross Refining Margin (not included inventory gain/ loss) was 1.89 $/BBL, slightly lower than the same period of last year at the level of 1.93 $/BBL, due to the increase in oil demand corresponding to the economic recovery, which affected to the gasoline and diesel oil prices to increase at the higher rate comparing to those of crude oil prices, as well as, the Company has continuously performed the operation synergies with the other oil companies in order to enhance revenues and reduce costs. The refinery utilization rate was 69 KBD, decreased from that the same period of last year at the level of 96 KBD, due to the annual plant turnaround for maintenance of 30 days, which was lower the refinery utilization than the normal level. 2. Marketing Margin (not included jet fuel) was 0.22 Baht/liter, lower than the same period of last year at the level of 0.47 Baht/liter, due to the intense competition together with the reduction of Gasohol selling price lowering than the normal unleaded gasoline octane 95 by 1.50 Baht/liter. (However, such reduction of Gasohol price boosted up the Gasohol sale volumes more than 3.8 times). Moreover, the Company had recorded loss from selling Jet fuel by Baht 131 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 stable or down trend period. 3. Selling and administrative expenses was Baht 373 million, increased from that the same period of last year by Baht 84 million, due to the increases of the following expenses : the early retirement expenses, Advertising and promotion expenses, and service station maintenance expense. 4. Interest expense was Baht 160 million, decreased from that the same period of last year by 83 million, since the Company made on refinancing almost high interest rate bonds with the new capital from financial restructuring. Moreover, the company also recorded interest income of Baht 6 million which was decreased from that the same period of last year by Baht 2 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, - Sign - (Anusorn Sangnimnuan) President Corporate Planning Office Tel:0-2335-4583