SET Announcements

1600 / 056 / 2004 April 30, 2004 The Stock Exchange of Thailand 62, Ratchadapisek Road, Klongtoey Bangkok 10110 Attention : President of The Stock Exchange of Thailand Subject : Filing Unreviewed Financial Statements and Business Operations' Explanation for Quarter 1, 2004 Attachment : 1. Unreviewed Financial Statements for Quarter 1, 2004 (Thai 1 Copy) 2. Unreviewed Financial Statements for Quarter 1, 2004 (English 1 Copy) As the Bangchak Petroleum Public Company Limited (BCP) has filed unreviewed and unaudited financial statements following the Stock Exchange of Thailand's guidelines for filing unreviewed and unaudited financial statements; The Company would like to file unreviewed financial statements for the Quarter 1, 2004 and also would like to explain 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 2003 as follow : Regarding to the business operations in Quarter 1, 2004, the Company's total revenues were Baht 18,469 million, EBITDA was Baht +1,065 million, interest expense was Baht 243 million, and Depreciation and amortization was Baht 183 million. Therefore, the Company posted Baht 646 million of net profit (net profit of Quarter 1, 2003 was Baht 422 million). Such profit resulted from the following factors: 1. In quarter 1, 2004, Gross Refining Margin (not included inventory gain/ loss) increased to 1.93 $/BBL, resulted from the increase in oil demand corresponding to the economic recovery and the sharply increase in oil consumption in the petrochemical industry, which affected to the gasoline and diesel oil prices to increase at the higher rate comparing to crude oil prices, as well as, the Company has continuously performed the operation synergies with the other oil companies in order to enhance revenues and reduce costs. Moreover, the Company also increased the refinery utilization rate up to 96 KBD, increased by 39 KBD comparing to the same period of last year, since there was temporarily shut down for the major turnaround of plant no. 2 (production capacity of 80 KBD) for 30 days in quarter 1, 2003. For the same period of 2003, Gross Refining Margin (not included inventory gain/ loss) was 2.18 $/BBL, which resulted from the rapidly increase in finished oil product prices corresponding to the oil prices in the future market as a consequence of the intense situation of US- Iraq relationship. 2. In quarter 1, 2004, the Company had gains from the changes of oil price and foreign exchange rate on crude and finished oil product inventories (Inventory gains) by Baht 397 million, comparing to that of Baht 518 million in the same period of 2003. (Unit : Million Baht) Q1' 2004 (A) Q1' 2003 (B) + / - (unreviewed) (reviewed) (A) - (B) - EBITDA +1,065 +940 +125 - Minus- Inventory Gains (+397) (+518) (-121) - Adjusted EBITDA +668 +422 +246 3. In quarter 1, 2004, Sales volumes of finished oil products increased in all markets comparing to that of the same period of last year. Sales through service stations increased by approximately 16%, which resulted from the continuous implementing of the marketing activities and campaigns. Fuel oil sales volumes also increased by approximately 10%, which resulted from the increase in capacity utilization of the industrial factories as a consequence of economic recovery. For the marketing margins, it decreased by 0.08 Baht/ liter, which resulted from the competitive situation during the period of increasing of oil prices before the government implemented oil funds mechanism to fix the retail oil prices. 4. In quarter 1, 2004, Selling and administrative expenses amounting Baht 290 million, decreased by Baht 11 million, since there incurred the irregular expenses in quarter 1, 2003 such as Business and Financial Restructured consulting fees and computer software license expense. 5. In quarter 1, 2004, Interest expense amounting Baht 243 million, decreased by 32 million, since the Company made on refinancing a part of high interest rate bonds with the new capital from financial restructuring. Such financial restructuring will take a full effects on the Company's performance since quarter 2 of this year onwards. Please be informed accordingly. Yours sincerely, (Watcharapong Saisuk) Assistant Vice President, Corporate Planning Office Corporate Planning Office Tel: 0-2335-4583