SET Announcements

-TRANSLATION- 1000 / 202 / 2006 August 15, 2006 Subject : Filing Reviewed Financial Statements and Business Operations' Explanation for 2nd Quarter, 2006 Attention : President of The Stock Exchange of Thailand Attachment : 1. Reviewed Financial Statements for 2nd Quarter, 2006 (Thai 1 Copy) 2. Reviewed Financial Statements for 2nd Quarter, 2006 (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 2nd Quarter ending June 30, 2006, and also would like to explain reasons for the variation in business operations as follow: Regarding to the business operations in 2nd quarter, 2006, the Company's total revenues were Baht 24,948 million, EBITDA was Baht 827 million, net interest expense was Baht 161 million, Depreciation and Amortization were Baht 204 million, and the corporate income tax of Baht 150 million; therefore, the Company posted Baht 296 million of net profit, comparing with net profit of 2nd Quarter, last year which was Baht 1,317 million. Major differences came from level of inventory gain which recorded at very high level of Baht 967 million in 2005 while it was only Baht 227 million this year. In addition, in 2nd Quarter 2005 the company didn't have corporate income tax since it had utilized tax loss carry forward. The loss carry forward was used up by the end of 2005. Details of which are as follow: 1. Gross Refining Margin (GRM) (not including inventory effects) was 4.53 USD/BBL, higher than that of the same period of last year which was at 3.28 USD/BBL. Base GRM increase from 2.85 USD/BBL to 3.45 USD/BBL amidst situation occurred to major oil producing country especially the conflict between Iran and Western countries and the demand increased in driving season, as well as speculation from hedge fund. These encourage the oil price to be on an upward trend. The Company also recognized gain from oil price hedging at Baht 197 million or 0.82 USD/BBL. In addition, the Company also recorded inventory gain of 0.95 USD/BBL or Baht 227 million which was lower than that of the same period of last year at 3.70 USD/BBL or Baht 967 million. In summary, the total Gross Refinery Margin was 5.48 USD/BBL, and the crude run was 54 KBD lower than that of the same period of last year which was at 65 KBD, since the level of fuel oil co-cracking with Thai Oil Plc. was limited and the company; therefore, had to lowering crude run level to maintain its optimization. 2. Marketing Margin (not including lubricant) was -12 satang per liter lower than that of the same period of last year which was at the level 47 satang per liter since the retail oil prices were adjusted slower than its cost which was increased continuously and sharply both gasoline and diesel following the oil prices in Singapore market, this situation depressed retail margin to -37 satang per liter. However, the industrial marketing margin was maintained at a satisfactory level of 50 satang per liter. Table: Details of breakdown EBITDA (unit : Million Baht) 2nd Quarter,06 2nd Quarter,05 Changing + / - (A) (B) (A) - (B) (Reviewed) (Reviewed) * EBITDA +827 +1,647 -820 - Refinery +1,059 +1,561 -502 - Marketing -232 +86 -318 * Less Inventory Gain +227 +967 -740 * Adjusted EBITDA +600 +680 -80 - Refinery +832 +594 +238 - Marketing -232 +86 -318 3. Selling and administrative expenses was Baht 390 million, increased by Baht 14 million since oil delivery cost and transshipment cost was increased as a result of raising of diesel price. 4. Net interest expense was Baht 161 million, increased from that of the same period of last year by Baht 4 million, of which Baht 25 million was increased from interest expense since the loan interest rate increased by approximately 1.0%. However, the interest income also increased by Baht 21 million from additional financial investment of Baht 3,700 million, as a part of Product Quality Improvement Project (PQI) proceeds from share capital issuance. 5. Financial position and ratios; June 30, 2006 Dec 31, 2005 (Million Baht) (Reviewed) (Audited) * Total Assets 41,841 34,164 * Total Liabilities 22,349 21,294 * Shareholder's Equity 19,492 12,870 * Debt to Equity Ratio (time) 1/ 0.72 1.05 * Book Value per Share (Baht) 17.42 18.72 Remark 1/ Calculation from Interest Bearing Debt Please be informed accordingly. Yours sincerely, - Signed - (Anusorn Sangnimnuan) President Corporate Planning and Investor Relation Office Tel : 0-2335-4583