SET Announcements

TRANSLATION 1000 / 029 / 2006 January 27, 2006 Subject : Filing Unaudited Financial Statements and Business Operations' Explanation for the year 2005 Attention : President of The Stock Exchange of Thailand Attachment :1.Unaudited Financial Statements for the year 2005 (Thai 1 Copy) 2.Unaudited Financial Statements for the year 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 unaudited financial statements for the year ending December 31, 2005 and also would like to explain reasons for the variation in business operations as follow: The Company's total revenues were Baht 85,035 million, EBITDA was Baht +4,572 million, net interest expense was Baht 620 million,Depreciation and Amortization were Baht 779 million, and corporate income tax was Baht 277 million.Therefore, the Company posted Baht 2,926 million of net profit (net profit of the year 2004 was Baht 2,613 million). Such profit resulted from the following factors: 1. Gross Refining Margin (not included inventory gain/ loss) was 3.59 $/BBL, higher than that of last year at the level of 1.84 $/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 during the 3rd quarter 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 2,313 million, higher than that of last year at the level of Baht 2,176 million, since oil prices had continuously increased throughout the year, Dubai crude price had increase averagely from 33.6 $/BBL in the year 2004 to 49.5 $/BBL in the year 2005, while some finished oil products prices reached the highest level in the history due to the effect of hurricane situation in US, such as gasoline and diesel prices were increased to 90 $/BBL and 80 $/BBL respectively. Therefore, the Company's total gross refining margin was 5.85 $/BBL, while the refinery utilization rate was 62 KBD, decreased from that the same period of last year at the level of 90 KBD. 2. Marketing Margin (not included jet fuel) was 15.4 Satang/ liter, lower than that of last year at the level of 43.0 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 118 million or 33.8 Satang/ liter. The Marketing Business's sale volumes were at 53 KBD, decreased from that of last year at 56 KBD since the Company needed to focus only on high profit markets during the low utilization rate of its refinery. 3. Selling and administrative expenses was Baht 1,623 million, increased from that of last year by Baht 256 million. The expenses that were significant increase are the following: the service station's maintenance expenses had increased due to the expansion of the Gasohol service stations and the service stations' image improvement project, the delivery expense had increased due to the increase in oil prices, as well as, the advertising and promotion expenses also had increased due to the Gasohol sales promotion. 4. Net interest expense was Baht 620 million, decreased from that of last year by 148 million, because the Depository Receipt of Convertible debenture (CDDR) amounting Baht 1,774 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. Please be informed accordingly. Yours sincerely, - Signed - (Anusorn Sangnimnuan) President Corporate Planning and Investor Relation Office Tel: 0-2335-4583