SET Announcements

TRANSLATION REPORT OF INDEPENDENT AUDITOR To the shareholders of The Bangchak Petroleum Public Company Limited The Office of the State Audit has reviewed the balance sheets as at June 30,2000 and 1999, the statements of income for the three months and the six months ,the statements of changes in shareholders equity and cash flows for the six months ended June 30,2000 and 1999 of The Bangchak Petroleum Public Company Limited. These financial statements are the responsibility of the Companys management as to their fair presentation and completeness of the information. The responsibility of the Office of the State Audit is to report on these financial statements based on the results of its review. The Office of the State Audit conducted the review in accordance with the auditing standards applicable to review engagements. Those standards require that the Office of the State Audit plans and performs the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of the company personnel and analytical comparison of financial data. This, therefore, provides less assurance than an audit in accordance with the generally accepted auditing standards. Due to this , the Office of the State Audit is unable to express an opinion on the financial statements referred to above. Based on our review, nothing has come to attention that causes the Office of the State Audit to believe that the financial statements are not presented fairly , in all material respects , the conformity with the generally accepted accounting principles. The Office of the State Audit audited the financial statements as at December 31,1999 of The Bangchak Petroleum Public Company Limited in accordance with the generally accepted auditing standards and expressed an unqualification opinion as per the independent auditor report dated February 18, 2000. The balance sheets as at December 31,1999 as presented herein for comparison, formed partly the financial statements which the Office of the State Audit previously audited and reported. The Office of the State Audit has not performed any other audits since the date of that report . (Signed) Pradharn Darbphechra (Pradharn Darbphechra) Deputy Auditor General For Auditor General (Signed) Soontaree Chaichomloed (Soontaree Chaichomloed) Auditor-in-charge Office of the State Audit August 10, 2000 THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED BALANCE SHEETS AS OF JUNE 30 ,2000 AND DECEMBER 31 ,1999 ADDITIONAL JUNE 30,2000 DECEMBER 31,1999 INFORMATION (REVIEWED) (AUDITED) Baht Baht ASSETS Current Assets Cash on hand and at banks 197,024,601 690,095,663 Short -term investments 182,425,335 180,599,916 Trade accounts and notes receivable - Net 3.1 2,661,978,177 2,728,398,985 Inventories 5,563,450,488 4,985,356,039 Other current assets Materials and supplies 436,446,406 437,048,830 Crude prepayment 567,735,750 - Others 626,948,361 647,515,749 Total Current Assets 10,236,009,118 9,669,015,182 Long Term Investments 3.2 36,037,196 31,000,000 Investments in Associated Companies 3.3 41,379,875 42,090,551 Tariff Prepayment 3.4 196,337,071 197,047,846 Property,Plant and Equipment-Net 3.6 16,302,547,092 16,759,019,547 Intangible Assets 3.7 1,235,015,829 1,271,290,328 Other Assets Long term investment - service station 701,157,721 669,209,444 Others 273,855,731 321,391,981 TOTAL ASSETS 29,022,339,633 28,960,064,879 The accompanying notes are an integral part of these statements. (Signed) Somchai Richupan (Signed) Sirichai Sakornratanakul (Somchai Richupan) (Sirichai Sakornratanakul) Chairman President THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED BALANCE SHEETS AS OF JUNE 30 ,2000 AND DECEMBER 31 ,1999 ADDITIONAL JUNE 30,2000 DECEMBER 31,1999 INFORMATION (REVIEWED) (AUDITED) Baht Baht LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Bank overdrafts and loans from financial institutions 3.8 1,574,282,581 7,839,118,511 Short term loan 3.9 1,000,000,000 - Trade accounts payable 2,950,294,434 4,589,294,615 Current portion of long term loan 2,826,036,515 2,467,348,427 Other current liabilities Accrued excise tax and oil stabilization fund 193,283,577 358,484,053 Accrued expenses 515,280,742 439,120,860 Others 188,415,056 616,697,248 Total Current Liabilities 9,247,592,905 16,310,063,714 Long Term Loans 3.10 11,936,745,264 4,551,631,722 Other Liabilities Long term liabiltiies for service station lease rights 207,512,872 216,433,358 Others 101,026,634 98,925,128 Total Liabilities 21,492,877,675 21,177,053,922 Shareholders' Equity Share capital Authorized share capital Common stock 522,040,940 shares par value at Baht 10 per share 5,220,409,400 5,220,409,400 Issued and paid-up share capital Common stock 522,040,940 shares par value at Baht 10 per share 5,220,409,400 5,220,409,400 Paid - in capital Premium on share capital 2,007,950,671 2,007,950,671 Surplus on fixed assets revaluation 4,077,944,437 4,261,568,827 Retained earnings (Accumulated Deficit) Appropriated Legal reserve 547,594,555 547,594,555 Unappropriated (4,324,437,105) (4,254,512,496) Total Shareholders' Equity 7,529,461,958 7,783,010,957 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 29,022,339,633 28,960,064,879 The accompanying notes are an integral part of these statements. REVIEWED THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED STATEMENTS OF INCOME FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999 FOR THD SECOND QUARTER FOR SIX MONTHS ENDED 30 JUN 2000 1999 2000 1999 Baht Baht Baht Baht Revenues Sales 13,750,244,635 8,411,473,097 25,725,023,694 16,047,892,407 Other income Interest income 4,064,163 18,492,338 12,215,847 58,821,084 Earnings from associated companies (939,729) 59,040 (710,676) 1,697,281 Gain from crude oil and product oil price hedging contract - - 8,392,322 63,347,505 Others 151,383,576 29,891,289 158,999,721 59,425,056 Total Revenues 13,904,752,645 8,459,915,764 25,903,920,908 16,231,183,333 Expenses Cost of sales 13,284,578,325 7,593,610,469 24,620,714,915 14,932,058,824 Administrative and selling expenses 242,249,623 233,964,685 481,651,297 475,926,435 Interest Expenses 328,987,356 286,697,434 627,595,841 565,227,943 Directors' remuneration 128,400 74,400 242,400 207,600 Other Expense Depreciation 69,190,800 82,007,734 138,879,335 167,780,974 Loss (gain) from foreign exchange fluctuations88,166,966 (129,521,371) 109,435,854 (33,029,385) Total Expenses 14,013,301,470 8,066,833,351 25,978,519,642 16,108,172,391 Profit (Loss) before Income Tax (108,548,825) 393,082,413 (74,598,734) 123,010,942 Income Tax 4,674,125 (41,022,112) 4,674,125 (41,022,112) Net Profit (Loss) (103,874,700) 352,060,301 (69,924,609) 81,988,830 Earnings Per Share (0.20) 0.67 (0.13) 0.16 The accompanying notes are an integral part of these statements. REVIEWED THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY FOR SIX MONTHS ENDED JUNE 30, 2000 AND JUNE 30, 1999 2000 1999 Share capital Common stock Beginning Balance 5,220,409,400 5,220,409,400 Increase (decrease) - - Ending Balance 5,220,409,400 5,220,409,400 Paid - in capital Premium on share capital Beginning Balance 2,007,950,671 2,007,950,671 Increase (decrease) - - Ending Balance 2,007,950,671 2,007,950,671 Surplus on fixed assets revaluation Beginning Balance 4,261,568,827 4,682,210,416 Increase (decrease) (183,624,390) (230,193,298) Ending Balance 4,077,944,437 4,452,017,118 Deferred losses from foreign exchange fluctuations prior to year 1996 Beginning Balance - (30,806,453) Decrease - 10,872,866 Ending Balance - (19,933,587) Retained earnings (Accumulated Deficit) Appropriated Legal reserve Beginning Balance 547,594,555 547,594,555 Increase (decrease) - - Ending Balance 547,594,555 547,594,555 Unappropriated Beginning Balance (4,198,934,602) (2,375,848,318) Accumulated adjustment (55,577,894) - Increase (decrease) (69,924,609) 81,988,830 Ending Balance (4,324,437,105) (2,293,859,488) Total Shareholders' Equity 7,529,461,958 9,914,178,669 The accompanying notes are an integral part of these statements. REVIEWED THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED STATEMENTS OF CASH FLOWS FOR SIX MONTHS ENDED JUNE 30, 2000 AND 1999 2000 1999 Baht Baht Cash Flows from Operating Activities : Net Profit (Loss) (69,924,609) 81,988,830 Adjustment to reconcile net profit(loss) to net cash provided by operating activities : Depreciation 454,937,729 437,090,478 Bad debts and doubtful debts 238,830 10,461,933 Amortization 76,506,143 163,324,420 Unrealized loss from foreign exchange fluctuations 54,385,370 2,392,956 Income tax (4,674,125) 41,022,112 Loss from fixed assets disposal 1,954,180 676,130 Pension fund 746,374 1,381,098 Deferred revenue (6,547,046) (8,215,576) Income from related company - (28,802,082) Earnings from associated companies 710,676 (1,697,281) Trade accounts and notes receivable,( increase ) decrease66,181,978 (232,709,141) Inventories ,increase (578,094,449) (1,057,124,166) Other current assets,increase (569,192,168) (82,790,127) Trade accounts payable, increase ( decrease ) (1,644,010,946) 33,395,668 Other current liabilities, decrease (508,894,823) (361,274,488) Net Cash Used in Operating Activities (2,725,676,886) (1,000,879,236) Cash Flows from Investing Activities : Long term investments,decrease (increase) (4,326,421) 8,397,060 Purchase of property, plant and equipment (182,144,270) (162,327,532) Intangible Assets (8,247,365) (75,038,882) Other assets,decrease (increase) 1,333,656 (32,195,100) Net Cash Used in Investing Activities (193,384,400) (261,164,454) The accompanying notes are an integral part of these statements. Cash Flows from Financing Activities : Bank overdrafts and loans from financial institutions (6,264,835,930) (523,230,299) Short term loans 1,000,000,000 - Long term loans 7,692,651,573 1,158,133,083 Net Cash Provided by Financing Activities 2,427,815,643 634,902,784 Increase ( Decrease ) in Cash and Cash Equivalents (491,245,643) (627,140,906) Cash and Cash Equivalents as of 1 January 870,695,579 945,477,542 Cash and Cash Equivalents as of 30 June 379,449,936 318,336,636 Supplemental Cash Flow Information : Cash paid during the quarter for : Interest expenses 545,225,474 617,789,219 Income tax 61,154,853 42,129,196 The accompanying notes are an integral part of these statements. THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED NOTES TO FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND FOR THE YEAR ENDED DECEMBER 1999 1. The Preparation and Presentation of Financial Statements The financial statements are prepared in accordance with the generally accepted accounting principles and the rules of The Stock Exchange of Thailand. 2. Summary of Significant Accounting Policies The financial statements are prepared in accordance with the generally accepted accounting principles. In preparation of the interim financial statements, the Company applies the accounting policies and the calculation methods which are similar to the annual financial statements end December 31,1999. 3. Additional Information 3.1 Trade Accounts and Notes Receivable - Net ( Accounting Policy 2.2 ) Million Baht 2000 1999 Notes receivable 214.45 268.75 Trade accounts receivable 2,555.31 2,568.52 Less Allowance for doubtful accounts 107.78 108.87 Trade accounts and notes receivable - net 2,661.98 2,728.40 As of June 30,2000, the Company has trade account receivables with problems in collection. The following is an age analysis of the outstanding amount of such debts. Million Baht over 3 - 6 months 0.42 over 6 - 12 months 7.61 over 12 months 156.68 Total 164.71 The Company has set up an allowance for doubtful accounts of Baht 107.78 Million. 3.2 Long Term Investments ( Accounting policy 2.5 ) Million Baht 2000 1999 3.2.1 General investment in equity securities Fuel Pipeline Transportation Ltd. 181.75 181.75 Auchan Chiang Mai Co.,Ltd. 30.00 30.00 Total 211.75 211.75 Less Loss from impairment of assets 181.75 181.75 30.00 30.00 3.2.2 Investment in debt securities held-to-maturity 6.04 1.00 Total 36.04 31.00 3.3 Investments in Associated Companies ( Accounting Policy 2.6 ) Company Type of Business elationship Paidup shareholding investment dividend Share capital Ratio (Million Baht) (Million Baht)(%) Cost Method Equity Method Jun30,00 Dec3199 Jun30,00 Dec31,99 The Bangchak GreenNet Retail Business Shareholding 1.00 49.00 0.49 0.49 22.05 22.78 - Co.,ltd and service The Bangchak GreenLine Transportation Shareholding 0.10 49.00 0.05 0.05 3.15 3.12 - Co.,ltd and service The Bangchak Power Power Generation Shareholding 40.00 39.99 16.00 16.00 16.18 16.19 - Co.,ltd and Steam Production Total 16.54 16.54 41.38 42.09 - In this period ,the Company realized earnings from The Bangchak Green Net and The Bangchak Green Line in the amounts of Baht (0.73) million and 0.02 million, respectively. 3.4 Transactions with related companies An advance payment of transportation cost (Tariff Prepayment) was made to the Fuel Pipeline Transportation Ltd. (FPT) as financial assistance in accordance with the Memorandum of Understanding of June 14,1996. Following this, the Company, together with the other FPT creditors resolved on March 3, 1999 to restructure the FPT loan. Prior to the loan restructure,the amount owed as Tariff Prepayment was Baht 245.80 million, of this , Baht 48.75 million was converted to capital stock (preferred stock) on April 30,1999. The balance of the debt will be repaid through the monthly deductions of the oil transportation cost, commencing from March 2000. 3.5 Transactions with related companies The Company has significant business transactions with related companies for the six months ended June 30,2000 and for the year ended December 31,1999 ( related in terms of shareholding and as member of the board ) as follows; Million Baht 2000 1999 Account receivable with related companies 107.12 111.82 Account payable with related companie 13.04 14.29 Income from sales of oil 581.91 1,007.41 Transportation management fee 37.17 59.44 Pipeline throughput fee 44.50 83.66 Franchise fee - Lemon Green ( Minimart ) 3.09 6.00 3.6 Property, Plant and Equipment - Net ( Accounting Policies 2.7 and 2.8 ) Million Baht Dec 31,99 Increase Decrease Jun 30,00 Accumulated Net Book Value Depreciation Land 1,344.78 - - 1,344.78 - 1,344.78 Buildings 486.32 0.69 0.25 486.76 202.47 284.29 Piers, Dykes, Fences 240.76 0.09 - 240.85 129.55 111.30 Machineries, equipments18,773.54 1,584.86 0.87 20,357.53 9,015.70 11,341.83 and refinery plants Marketing and office 2,942.11 28.50 6.15 2,964.46 666.53 2,297.93 equipments Platinum Catalyst 213.75 - - 213.75 - 213.75 Vehicles 355.85 1.89 0.32 357.42 193.63 163.79 Construction work 1,977.30 183.59 1,616.01 544.88 - 544.88 in progress Total 26,334.41 1,799.62 1,623.60 26,510.43 10,207.88 16,302.55 The total depreciation for this period is Baht 454.94 million , of which Baht 316.06 million is booked as cost of product , and Baht 138.88 million as administrative expenses. 3.7 Intangible Assets Million Baht First cost Accumulated Amortization Net Book Value Jun 30,00 Dec 31,99 Jun 30,00 Dec 31,99 Jun 30,00 Dec 31,99 Leasehold 1,538.45 1,532.03 336.52 300.10 1,201.93 1,231.93 License and development 62.97 61.15 29.88 21.79 33.09 39.36 costs of computer software Total 1,601.42 1,593.18 366.40 321.89 1,235.02 1,271.29 3.8 Bank overdrafts and loans from financial institutions Bank overdrafts and loans from financial institutions were Baht 1,574.28 million with interest rates of 3.25 - 3.50 % per annum. 3.9 Short - Term Loans ( Accounting Policy 2.11 ) The company issued guaranteed registered debentures with the holders names totaling 1,000,000 units with face value of Baht 1,000 per unit, for a total of Baht 1,000 million. The debenture guaranteed by the Ministry of Finance with maturity on June 14,2001. (more)