SET Announcements

Date : 16/05/2003 17:48 BCP : REVIEWED F/S AND BUSINESS OPERATIONS EXPLANATION Q1/2003 1600 / 078 / 2003 May 16, 2003 The Stock Exchange of Thailand 62, Ratchadapisek Road, Klongtoey Bangkok 10110 Attention : President of The Stock Exchange of Thailand Subject : Filing Reviewed Financial Statements and Business Operations Explanation for Quarter 1, 2003 Attachment:1.Reviewed Financial Statements for Quarter 1(Thai 1 Copy) 2.Reviewed Financial Statements for Quarter 1 (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 audited by the Auditor within 45 days following the last day of each quarter. The Bangchak Petroleum Public Company Limited (BCP) would like to file its financial statements which have been reviewed by the Auditor for the quarter 1 ending March 31, 2003 and also wish to provide explanation for the profit and loss account results which have exceeded that of the previous year's same period by over 20 percent as follows : Regarding the operating results for the quarter 1, 2003, the Company posted a total revenue of BHT. 14,474 million with Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) of BHT. +952 million and the operating profit (excluding the gain/loss from foreign exchange fluctuations) of BHT. 398 million. If taken into account the foreign exchange gain of BHT. 25 million, the Company incurred a net profit of BHT. 422 million, which is higher than the previous year's same period by BHT.116 million. (The 2002 first quarter net profit was BHT. 307 million). This improvement was due mainly to the followings : 1. Refining Margin In the first quarter, refining margin had improved, which partly caused by the continual rising oil prices in the world market as a consequence of the prolonged strike in Venezuela together with the US-Iraq war. 2. Sales The Company's service station sales for this quarter had increased 17 percent compared with the same quarter last year. This resulted from the introduction of special grade diesel oil "Power D" which received good response from the customers. In addition, the Company has revamped the image of its service stations and convenience stores and improved its services to achieve optimum customers' satisfaction. 3. Production The Company's refinery was temporarily shut down for the major turnaround since mid of February until early of March, which resulted to the reduction of the refinery run in this quarter. However, the Company had provided the products for sales by drawing down its oil inventory in order to reduce risk from oil price fluctuation and additional supplied from the other sources in order to maintain its market share. In addition, the Company continues its endeavor to expand the cooperation with the other refineries so as to reduce cost and increase the income. The feedstock volumes sent to upgrading value had increased by 143 percent compared to the previous year's same period. 4. Finance Since the Company made on refinancing of its domestic loans due, while the market interest rate reduced, it resulted to the reduction of the Company's interest rate by 0.3 percent. Moreover, the Ministry of Finance has agreed to allow the Company to extend the short- term loan under the Euro Commercial Paper Programme (ECP) for another six months, with maturity on July 31, 2003 and with interest rate of 1.5 percent per annum. This has enabled the Company to reduce its interest expenses of about BHT. 85 million per annum. Please be informed accordingly. Yours sincerely (Mr.Kiatchai Maitriwong) Assistant Vice President Corporate Planning Office Corporate Planning Office Tel:0-2335-4583