SET Announcements

(Translation) 1600 / 042 / 2542 May 14, 1999 The Stock Exchange of Thailand. 62, Ratchadapisek Road, Klongtoey, Bangkok 10110. Attention : The President of The Stock Exchange of Thailand Subject : Filing of the Auditors Report and Reviewed Financial Statements for First Quarter as of March 31, 1999 Dear sir , According to the Stock Exchange of Thailands regulations related to rules, conditions and procedures for reporting of financial status and business operation results of listed companies; a listed company is required to prepare and file an Reviewed Financial Statement within 45 days following the end of that quarter. In compliance with this regulation, The Bangchak Petroleum Public Company Limited would like to file herewith its Financial Statements and Auditors Report for the period ending March 31, 1999. In the first quarter of 1999, the Company's operational results, especially marketing activities, have been in the normal term. However, refinery business has still been affected by the declining of the oil price in the world market from the level of 10 - 12 US/Barrel in the end of 1998 to the level of below 10 US/Barrel in January - February 1999. Consequently, in the first quarter of 1999, the Company has earned net loss of 270 million baht. Whatsoever, the recovering of the world's oil price starting from the end of March 1999 would generate positive effect to the Company's operation in the next period. Yours sincerely, (Mr. Rabil Pornpatkul) Senior Manager, Corporate Planning Office Attachment : The Auditors Report and Reviewed Financial Statements as of March 31, 1999 Corporate Planning Office Tel : 301-2842 TRANSLATION REPORT OF INDEPENDENT AUDITOR To the shareholders of The Bangchak Petroleum Public Company Limited The Office of the Auditor General has reviewed the accompanying balance sheets as of March 31,1999 and 1998, the related statements of income, statements of changes in shareholderss equity and cash flows for the first quarter then ended of The Bangchak Petroleum Public Company Limited, in accordance with standards established by the Institute of Certified Accountants and Auditors of Thailand. A review of such interim financial statements consists principally of obtaining an understanding, by enquiries, of the system for preparation of the financial statements, making an analytical review of pertinent financial data and making enquiries of certain officials of the Company who have responsibility for financial and accounting matters. Our review is substantially less in scope than an audit in accordance with generally accepted auditing standards , the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Thus, the Office of the Auditor General does not express such an opinion on the financial statements referred to above. The financial statements for the first quarter ended March 31,1998 which the Office of the Auditor General reviewed and presented the report on May 1,1998 , the company recorded the results of foreign exchange gains or losses on loan for construction project as projest cost, instead of recording as total income or expense in accordance with the generally accepted accounting principles. The financial statements for the first quarter ended March 31,1998 which were shown for comparison have already been adjusted in accordance with the generally accepted accounting principles. Based on our review, the Office of the Auditor General is not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the generally accepted accounting principles. The Office of the Auditor General requests the observation to Note 12 to the financial statements in regard to a remedy of year 2000 computer problem which is not a qualification and is not included in the opinion to the financial statements on this report. (Signed) Pradharn Darbphechra (Pradharn Darbphechra) Deputy Auditor General For Auditor General (Signed) Soontaree Chaichomloed (Soontaree Chaichomloed) Auditor-in-charge May 4, 1999 THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED BALANCE SHEETS AS OF MARCH 31,1999 AND 1998 1999 1998 Baht Baht ASSETS Current Assets Cash on hand and at banks 698,145,898 224,346,950 Short -term investments 175,798,716 116,301,263 Trade accounts and notes receivable - Net (Note 2) 2,053,804,057 2,339,545,745 Inventories (Note 3) 2,074,063,568 2,270,598,392 Other current assets Materials and supplies 425,151,561 468,769,655 Withholding tax receivable 130,444,010 184,796,348 Others 304,969,707 213,116,681 Total Current Assets 5,862,377,517 5,817,475,034 Investments and Loans to Related Parties (Note 4) 451,004,715 415,282,691 Property,Plant and Equipment-Net (Note 5) 18,753,524,742 18,853,757,619 Other Assets Deferred income tax (Note 6) 1,554,832,549 1,383,549,745 Deferred charges 193,651,755 183,664,924 Long term investment - service station 475,884,702 292,216,633 Others 19,736,509 16,352,294 TOTAL ASSETS 27,311,012,489 26,962,298,940 The accompanying notes are an integral part of these statements. (Signed) Chirayu Isarangkun Na Ayuthaya (Signed) Sophon Suphapong (Chirayu Isarangkun Na Ayuthay) (Sophon Suphapong) Director President LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Bank overdrafts and loans from financial institutions(Note 7) 5,772,242,576 3,389,964,920 Trade accounts payable 2,932,067,883 8,066,416,549 Current portion of long-term loan (Note 8) 1,321,227,750 332,185,950 Other current liabilities Accrued excise tax and oil stabilization fund 256,938,416 280,515,118 Accrued expenses 582,129,016 362,693,690 Other accounts payable 55,118,509 268,015,396 Others 388,708,387 353,197,950 Total Current Liabilities 11,308,432,537 13,052,989,573 Long - Term Loan (Note 8) 6,205,652,192 2,960,384,983 Other Liabilities Deferred Revenue 81,868,251 85,360,860 Others 45,265,461 28,312,623 Total Liabilities 17,641,218,441 16,127,048,039 Shareholders' Equity Share capital Authorized share capital Common stock 522,040,940 shares par value at Baht 10 per share5,220,409,400 5,220,409,400 Issued and paid-up share capital Common stock 522,040,940 shares par value at Baht 10 per share5,220,409,400 5,220,409,400 Paid - in capital Premium on share capital 2,007,950,671 2,007,950,671 Surplus on fixed assets revaluation 4,565,129,231 5,033,771,099 Retained earnings Appropriated Legal reserve 547,594,555 547,594,555 Unappropriated (2,645,919,789) (1,927,359,072) Deferred losses from foreign exchange fluctuations prior to year 1996 (25,370,020) (47,115,752) Total Shareholders' Equity 9,669,794,048 10,835,250,901 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 27,311,012,489 26,962,298,940 The accompanying notes are an integral part of these statements. THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED STATEMENTS OF INCOME FOR THE FIRST QUARTER ENDED MARCH 31, 1999 AND 1998 1999 1998 Baht Baht Operating Revenues Sales 7,719,747,662 9,944,652,391 Other income Interest income 40,328,746 64,252,259 Earnings from associated companies 1,638,241 (6,177,745) Others 29,963,233 24,041,921 Total Revenues 7,791,677,882 10,026,768,826 Operating Expenses Cost of sales 7,358,429,201 8,783,214,586 Administrative and selling expenses 328,164,457 267,968,617 Directors' remuneration 133,200 131,400 Losses (Gains) from foreign exchange fluctuations 96,491,987 45,411,680 Total Expenses 7,783,218,845 9,096,726,283 Profit before Interest Expense and Income Tax 8,459,037 930,042,543 Interest Expenses (Note 9) 278,530,508 225,683,249 Income Tax - 211,492,662 Net Profit (Loss) (270,071,471) 492,866,632 Earnings Per Share Net Profit (Loss) (0.52) 0.94 The accompanying notes are an integral part of these statements. THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY AS OF MARCH 31,1999 Unit : Baht Share capital Premium on Surplus on Deferred losses from Retained Total share capital fixed assets foreign exchange earning revaluation prior to year 1996 Balance at Dec 31,1997 5,220,409,400 2,007,950,671 5,164,565,549 -52,552,184 -1,872,631,149 10,467,742,287 Accumulated adjustment - - - - -14,960,157 -14,960,157 Ending balance after adjustment 5,220,409,400 2,007,950,671 5,164,565,549 -52,552,184 -1,887,591,306 10,452,782,130 Surplus on fixed assets revaluation - - Deferred losses from foreign exchange prior to year 1996 - - Items not recognised in the income statement -482,355,133 21,745,731 -460,609,402 Net Profit for the period 59,337,543 59,337,543 Dividend paid - - Issued share capital - common stock - - - Balance at Dec 31,1998 5,220,409,400 2,007,950,671 4,682,210,416 -30,806,453 -1,828,253,763 10,051,510,271 Surplus on fixed assets revaluation - - Deferred losses from foreign exchange prior to year 1996 - - Items not recognised in the income statement -117,081,185 5,436,433 -111,644,752 Net Profit for the period -270,071,471 -270,071,471 Dividend paid - - Issued share capital - common stock - - - Balance at Mar 31,1999 5,220,409,400 2,007,950,671 4,565,129,231 -25,370,020 -2,098,325,234 9,669,794,048 The accompanying notes are an integral part of these statements. THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED STATEMENTS OF CASH FLOWS FOR THE FIRST QUARTER ENDED MARCH 31, 1999 AND 1998 1999 1998 Baht Baht Cash Flows from Operating Activities : Net Profit (Loss) (270,071,471) 492,866,632 Adjustment to reconcile net profit(loss) to net cash provided by operating activities : Depreciation 220,294,868 154,775,879 Doubtful debts 785,222 - Amortization 84,691,251 100,328,614 Unrealized losses(gains) from foreign exchange fluctuations 78,077,733 (519,724,234) Deferred Income tax - 211,492,662 Losses from fixed assets disposal 132,314 352,180 Pension fund 690,549 1,000,000 Deferred revenue (3,595,774) (4,515,484) Income from related company (28,802,082) - Earnings from associated companies (1,638,241) 6,177,745 Trade accounts and notes receivable,( increase ) decrease (358,940,890) 235,292,151 Inventories decrease 191,786,361 1,740,894,528 Other current assets (increase) decrease 49,427,961 (14,835,784) Trade accounts payable, increase ( decrease ) 148,565,492 (243,238,718) Other current liabilities, increase ( decrease ) (219,091,144) 331,789,420 Net Cash Provided by (Used in) Operating Activities (107,687,851) 2,492,655,591 Cash Flows from Investing Activities : Short-term investments, ( increase ) decrease (2,412,516) (1,794,963) Long-term investments,( increase ) 6,633,900 - Purchase of Property, plant and equipment, ( increase ) (127,249,592) (348,267,910) Other assets,( increase ) decrease (31,884,772) (4,298,513) Net Cash Used in Investing Activities (154,912,980) (354,361,386) The accompanying notes are an integral part of these statements. Cash Flows from Financing Activities : Bank overdrafts and loans from financial institution, increase (decrease) (574,023,677) (1,633,953,832) Long-term loan, increase (decrease) 762,679,064 (2,460,405,616) Cash dividends - - Net Cash Provided by (Used in) Financing Activities 188,655,387 (4,094,359,448) Increase ( Decrease ) in Cash and Cash Equivalents (73,945,444) (1,956,065,243) Cash and Cash Equivalents as of 1 January 772,091,342 2,180,412,193 Cash and Cash Equivalents as of 31 March 698,145,898 224,346,950 (More)