SET Announcements

TRANSLATION 1000 / 231 / 2005 November 10, 2005 Subject : Filing Reviewed Financial Statements and Business Operations' Explanation for Quarter 3, 2005 Attention : President of The Stock Exchange of Thailand Attachment:1. Reviewed Financial Statements for Quarter 3,2005 (Thai 1 Copy) 2. Reviewed Financial Statements for Quarter 3,2005 (English 1 Copy) According to the SET's Regulation Re: Preparation and Submission of Financial Statements, Financial Reports and Operating Results of Listed Companies, 2001, a listed company shall prepare and submit quarterly financial statements reviewed by the Auditor within 45 days since the last day of each quarter. The Bangchak Petroleum Public Company Limited (BCP) would like to file reviewed financial statements by the Auditor for quarter 3 ending September 30, 2005, and also would like to explain reasons for the variation in business operations as follow : Regarding to the business operations in Quarter 3, 2005, the Company's total revenues were Baht 21,254 million, EBITDA was Baht +1,882 million, net interest expense was Baht 155 million, Depreciation and Amortization were Baht 195 million, and corporate income tax was Baht 302 million. Therefore, the Company posted Baht 1,250 million of net profit (net profit of Quarter 3, 2004 was Baht 1,186 million). Such profit resulted from the following factors: 1. Gross Refining Margin (not included inventory gain/ loss) was 5.36 $/BBL, higher than the same period of last year at the level of 1.26 $/BBL, due to the substantial increases in oil demand comparing to the small addition of the refining capacity in the region. These diminished the surplus of oil supply, which resulted to the continuous improving of the gross refining margin. Moreover, many refineries in the US also had to shut down as the result of the hurricane situation, these resulted to the increases in gasoline and diesel oil prices in the world market, as well as, the Singapore markets, which consequently increased the gross refining margin as well. However, the fuel oil price increased at the lower rate comparing to the other refined oil products and crude, it limited the capacity utilization of the Company's refinery so as to reduce the fuel oil production at the optimum level, as well as, maintain the gross refining margin at high level. Due to such low capacity utilization, the Company had to focus only on the high profit markets and maximized the fuel oil volumes sending to Thaioil refinery for upgrading. In addition, the Company had the inventory gains of Baht 1,100 million, since oil prices had continuously increased throughout the year, but lower than that of Baht 1,414 million in the same period of last year, since the Tapis crude which accounted for 40% of the Company's total crude used had sharply increased in quarter 3 of last year, therefore, the Company posted a lot of inventory gains during that time. The refinery utilization rate was 58 KBD, it decreased from that the same period of last year at the level of 89 KBD. 2. Marketing Margin (not included jet fuel) was -22.6 Satang/ liter, lower than that of the same period of last year at the level of 37 Satang/ liter, since the Company could adjust the retail oil prices at the lower rate to its costs that sharply increases following the oil prices in the world market. However, the Company had gained from selling Jet fuel by Baht 32 million or 0.38 Baht/liter. 3. Selling and administrative expenses was Baht 358 million, equal to that of the same period of last year. The expenses that were significant change are the following: the personnel related expense had decreased since there was the early retirement expense in the quarter 2 of last year. On the other hand, the delivery expense had increased due to the increase in oil prices, as well as, the service station's maintenance expenses had increased due to the image improvement project of the Company. 4. Net interest expense was Baht 155 million, decreased from that of the same period of last year by 24 million, because the Depository Receipt of Convertible debenture (CDDR) amounting Baht 1,626 million were gradually converted to the ordinary shares since the quarter 2 last year, and the Company gradually refinanced the high interest rate bonds with the low interest rate loan from the Krungthai Bank. 5. The Company posted Baht 302 million of corporate income taxes, since the Company could generate the accumulated profit exceeding the loss carry forward; therefore, the Company had to start to pay income taxes for the performance of this year. Please be informed accordingly. Yours sincerely, - Sign - (Anusorn Sangnimnuan) President Corporate Planning and Investor Relation Office Tel : 0-2335-4583