SET Announcements

1600 / 027 / 2003 February 28 , 2003 The Stock Exchange of Thailand 62, Ratchadapisek Road, Klongtoey Bangkok 10110 Attention : President of The Stock Exchange of Thailand Subject : Filing of the Audited Auditors' Report and the Financial Statements for the period ending December 31, 2002, together with Reasons for the Variation in Business Operations in accordance with the Profit and Loss Account more than 20 percent from That of the Same Period of 2001 : Attachment : The Audited Auditors' Report and the Financial Statements for the period ending December 31, 2002 two copies (Thai 1 Copy and English 1 Copy) According to " the Stock Exchange of Thailand's regulations related to Preparation and Filing of Financial Statements and Reports concerning Financial Status and Results of Business Operations of Listed Companies ", the listed company is required to file an audited Financial Statements within 60 days following the end of each accounting period (in case that the listed company does not submit financial statements for quarter 4). And the listed company shall give reasons for the variation to SET, where the results of business operations in accordance with the profit and loss account varies more than 20 percent from that of the same period of the preceding year. In compliance with this regulation, The Bangchak Petroleum Public Company Limited (BCP) would like to file herewith its audited Financial Statements and the Auditors' Report for the period ending December 31, 2002 Regarding the operating results for 2002, the Company posted a total revenue of BHT. 51,936 million with a net profit of BHT. 534 million, which is higher than the previous year by BHT. 3,521 million. (The 2001 net loss was BHT. 2,987 million). In 2002, the Company had an extraordinary interest expense amounting BHT. 92 million stemming from the premium paid to International Bank for Reconstruction and Development (IBRD) for having prepaid its foreign loan before maturity aiming to refinance with long- term Baht loans for lessening the interest burden and risk from foreign exchange fluctuations. This improvement in profit was due mainly to the followings : 1. Sales The Company's sales both in retail and industrial markets for this year increased 5.7 percent compared with last year. This has been resulted from the followings - The upgrading of the image of the Company's service stations and convenience stores and improving the services to achieve optimum customers' satisfaction through "Bright Bangchak Project". Furthermore, the Company has expanded its community store called "Bai Chak" reaching 26 stores. - As to enhance the confidence in product and service over the customers, the Company has joined " The Project on fuel qualification control system approvement" belonging to Thai Registration Department, the Ministry of Commerce and the Company could achieve the certificate over 900 stores. - The development and launching new product, for instance; 1) The Fuel Oil: Low Concarbon which, compared to the other ordinary fuel oil, is cleaner and has lower level of emissions which reduces the maintenance costs for the factories that use it, and also lessens the problem of air pollution 2) Diesel oil "Power D" which, compared to the other ordinary diesel oil, has extra qualification since sulfur is as low as 0.02 percent- below the standard for the ordinary diesel oil 1.5 times. This shall reduce dust from an exhaust pipe and sulfur dioxide gas. Besides, an additive is added aiming to enhance the efficiency including to lessen emission and soot. 3) 100% synthetic Bangchak's lube "GE Gold" which firstly receives the highest standard "API SL SAE 5W-40" among the country etc. 2. Production The Company has improved refinery efficiency in both an increase in production yield and an energy cost saving in production processes. Additionally, the Company has cooperated with other refineries as to reduce import crude transportation cost to the refinery, to create more value-added products and to decrease production cost based on mutual benefit. 3. Refining Margin Improvement This was caused by the continual increase in World oil price since the beginning of the year arising from Opec implementation on production control and strike in Venezuela together with news over US-Iraqi tension. Also, demand growth both in domestic and Asia-Pacific market was another factor. Please be informed accordingly. Yours sincerely (Mr.Kiatchai Maitriwong) Assistant Vice President, Corporate Planning Office Corporate Planning Office Tel: 0-2335-4583