SET Announcements

TRANSLATION 1000 /168 / 2004 July 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 2, 2004 Attachment : 1.Unreviewed Financial Statements for Quarter 2, 2004 (Thai 1 Copy) 2.Unreviewed Financial Statements for Quarter 2, 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 2, 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 2, 2004, the Company's total revenues were Baht 18,297 million, EBITDA was Baht +1,003 million, net interest expense was Baht 180 million, and Depreciation and Amortization were Baht 184 million. Therefore, the Company posted Baht 647 million of net profit (net profit of Quarter 2, 2003 was Baht 913 million). Such profit resulted from the following factors: 1.In quarter 2, 2004, Gross Refining Margin (not included inventory gain/ loss) was 1.99 $/BBL, resulted from the increase in oil demand corresponding to the economic recovery. Moreover, the Company has continuously performed the operation synergies with the other oil companies in order to enhance revenues and reduce costs. The Company also increased the refinery utilization rate up to 85 KBD, increased by 13 KBD comparing to the same period of last year, but decreased from Quarter 1 because of the shut down for the major turnaround of plant no. 2 (production capacity of 40 KBD) for 25 days. For the same period of 2003, Gross Refining Margin (excluding inventory gain/ loss) was 1.85 $/BBL, which resulted from the highly increase in fuel oil prices corresponding to high fuel oil demand from Japan for electricity production instead of Nuclear plant that shut down for maintenance. Together with the situation in Iraq which hasn't been improved. 2.In quarter 2, 2004, the Company had gains from the changes of oil price and foreign exchange rate on crude and finished oil product inventories (Inventory gains) of Baht 577 million, comparing to the loss of Baht 770 million from the decrease of crude price of $7/BBL in the same period of 2003. (Unit : Million Baht) Q2'2004(A) Q2'2003(B) +/- (unreviewed) (reviewed) (A)-(B) EBITDA +1,003 -391 +1,394 Minus- Inventory Gains +577 -770 +1,347 Adjusted EBITDA +426 +379 +47 3.In quarter 2, 2004, marketing margin excluding Jet fuel was Baht 0.44/Litre which closed to the same period of last year which was Baht 0.40/Litre due to the government implemented oil funds mechanism to fix the retail oil prices. The 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 6.4%. Fuel oil sales volumes also increased by approximately 2.8%. 4.In quarter 2, 2004, Selling and administrative expenses amounted to Baht 304 million, decreased by Baht 24 million comparing to the same period in 2003. The decrease in expense resulted from the decrease in service stations maintenance expense of Baht 7 million, advertising expense of Baht 5 million, tax and insurance expense of Baht 5 million, and other expenses of Baht 7 million. 5.In quarter 2, 2004, Interest expense amounted to Baht 183 million, decreased by Baht 94 million, resulted from refinancing a major part of existing bonds with the new capital from financial restructuring. Moreover, the company had interest income of Baht 3 million decreased by Baht 5 million as the company received the bank loan for working capital complying with financial restructuring plan. Therefore, the company did not have a lot of cash on hand in order to pay for purchased crude. Please be informed accordingly. Yours sincerely, (Wattana Opanonamata) Acting Senior Executive Vice President Corporate Planning and Investor Relation Office Tel: 0-2335-4583