SET Announcements

TRANSLATION 1000 / 264 / 2004 September 29, 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 3, 2004 Attachment : 1. Unreviewed Financial Statements for Quarter 3, 2004 (Thai 1 Copy) 2. Unreviewed Financial Statements for Quarter 3, 2004 (English 1 Copy) As the Bangchak Petroleum Public Company Limited (BCP) has filed unreviewed and unaudited financial statements following the StockExchange of Thailand's guidelines for filing unreviewed and unaudited financial statements; The Company would like to file unreviewed financial statements for the Quarter 3, 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 3, 2004, the Company's total revenues were Baht 20,816 million, EBITDA was Baht +1,542 million, net interest expense was Baht 180 million, and Depreciation and Amortization were Baht 183 million. Therefore, the Company posted Baht 1,186 million of net profit (net profit of Quarter 3, 2003 was Baht 120 million). Such profit resulted from the following factors: 1. In quarter 3, 2004, Gross Refining Margin (not included inventory gain/ loss) was 1.26 $/BBL, decreased from the same period of last year by 0.15 $/BBL, since the crude oil prices continuously increased in August 2004, especially the Tapis crude which accounted for 40% of the Company's total crude used. Therefore, the Company's raw material costs substantially increased. At the same time, the product selling prices did not consistently increased to such higher crude costs; therefore, the Company's gross refining margin in 3rd quarter was low. However, the increase in oil prices also caused to Baht 1,414 million of the inventory gains, comparing to Baht 229 million of oil inventory gains in the same period of last year. In quarter 3, 2004, the Company increased the refinery utilization rate up to 89 KBD, as equal as the target, or increased by 10 KBD comparing to the same period of last year. In addition, the 8 days of temporary shut down of Catalytic Reforming Unit for maintenance, it did not affected to the overall refinery utilization rate since the Company drew down oil product inventories for sales and build up stock to compensate such usage after the complete of installation of spare part. Since the price of Tapis crude still remains at high level, this may keep the gross refining margin at low level. Therefore, the Company is in the process of switching Tapis crude to other lower price crude oil, which has the equivalent quality, in order to enhance the gross refining margin in the 4th quarter. 2. In quarter 3, 2004, marketing margin excluding Jet fuel was Baht 0.37 per Litre, which closed to the same period of last year of Baht 0.31 per Litre, due to the low season period. Moreover, the Company still had to realize the effect from selling Jet fuel by Baht -109 million, since the Jet fuel price formula will be used the average Jet fuel price in the previous month as the selling price in the current month, while the cost of Jet fuel that the refinery business unit charged the marketing business unit will be used the price in the current month. Therefore, in case that the Jet fuel price tends to increase, the Company will incur the loss from selling Jet fuel and vice versa. 3. In quarter 3, 2004, Selling and administrative expenses amounted to Baht 358 million, increased by Baht 42 million comparing to the same period of last year, since delivery expense increased as the result of increasing of sale volumes 4. In quarter 3, 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 to hold a lot of cash on hand in order to pay the purchased crude oil. Please be informed accordingly. Yours sincerely, (Patiparn Sukorndhaman) Senior Executive Vice President Accounting and Finance Corporate Planning and Investor Relation Office Tel : 0-2335-4583