SET Announcements

THE BANGCHAK PETROLEUM PUBLIC COMPANY LIMITED NOTES TO FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31,2001 AND FOR THE YEAR ENDED DECEMBER 31,2000 1. The Preparation and Presentation of Financial Statements The financial statemen ts are prepared in accordance with the Accounting Standard No.41 , the interim financial statements, by indicating the items in the balance sheet , the statements of income , the statements of changes in shareholder's equity and the statements of cash flow, which are the same as the annual financial statements. As for the note of financial statements, only the significant ones are indicated. The interim financial statements are prepared as additional information to financial statements for the year ended December 31,2000. Therefore, they should be read in conjunction with the annual financial statements. 2. Summary of Significant Accounting Policies The financial statements are prepared in accordance with the generally accepted accounting principles. In preparation of the interim financial statements, the Company applies the accounting policies and the calculation methods which are similar to the annual financial statements ended December 31,2000. 3. Additional Information 3.1 Trade Accounts and Notes Receivable - Net Million Baht March 31,2001 December 31,2000 Notes receivable 22.92 12.42 Trade accounts receivable 2,140.22 2,309.34 Less Allowance for doubtful accounts 133.28 131.17 Trade accounts and notes receivable - net 2,029.86 2,190.59 As of March 31,2001, the Company has trade account receivables with problems in collection. The following is an age analysis of the outstanding amount of such debts. Million Baht over 3 - 6 months 1.88 over 6 - 12 months 11.78 over 12 months 193.80 Total 207.46 The Company has set up an allowance for doubtful accounts of Baht 133.28 Million. 3.2 Inventories - Net Million Baht March 31,2001 December 31,2000 Inventories - Cost 6,024.14 7,423.19 Less Allowance for write-down of inventories - 540.60 Inventories - Net 6,024.14 6,882.59 3.3 Materials and supplies - Net Million Baht March 31,2001 December 31,2000 Materials and supplies - Cost 450.23 456.78 Less Allowance for deterioration of materials and supplies 6.39 6.52 Materials and supplies - Net 443.84 450.26 3.4 Long Term Investments Million Baht March 31,2001 December 31,2000 3.4.1 General investment in equity securities Fuel Pipeline Transportation Ltd. 181.75 181.75 Auchan Chiang Mai Co.,Ltd. 30.00 30.00 Total 211.75 211.75 Less Loss from impairment of long term investment 181.75 181.75 30.00 30.00 3.4.2 Investment in debt securities held-to-maturity 4.98 5.00 Total 34.98 35.00 3.5 Investments in Associated Companies Company Type of Business Relationship Paid -up Share Investment Dividend share holding (Million Baht) capital Ratio (Million Baht) (%) Cost Method Equity Method Mar 31,01 Dec 31,00 Mar31,01 Dec 31,00 The Bangchak Retail Business Shareholding 1.00 49.00 0.49 0.49 17.50 21.23 - Green Net Co.,Ltd. and Service The Bangchak Transportation Shareholding 0.10 49.00 0.05 0.05 3.64 3.22 - Green Line Co.,Ltd. and Service Total 0.54 0.54 21.14 24.45 - As of March 31,2001, the Company realized earnings from The Bangchak Green Net and The Bangchak Green Line in the amounts of Baht (3.73) million and 0.42 million, respectively. 3.6 Transactions with related companies An advance payment of transportation cost (Tariff Prepayment) was made to the Fuel Pipeline Transportation Ltd. (FPT) as financial assistance in accordance with the Memorandum of Understanding of June 14,1996. Following this, the Company, together with the other FPT creditors resolved on March 3, 1999 to restructure the FPT loan. Prior to the loan restructure,the amount owed as Tariff Prepayment was Baht 245.80 million, of this , Baht 48.75 million was converted to capital stock (preferred stock) on April 30,1999. The balance of the debt after restructuring in the amount of Baht 197.05 million will be repaid through the monthly deductions of the oil transportation cost, commencing from March 2000. The Tariff Prepayment was not repaid in this period. The balance as of March 31,2001 is the balance of the prior period in the amount of Baht 188.71 million. 3.7 Property, Plant and Equipment - Net Million Baht Dec 31,00 Increase Decrease Mar 31,01 Accumulated Net Book Depreciation Value Land 1,344.78 - - 1,344.78 - 1,344.78 Buildings 487.60 0.12 - 487.72 220.89 266.83 Machinery, equipment and 20,751.99 33.60 - 20,785.59 9,889.32 10,896.27 refinery plants Marketing and office 3,217.65 38.24 1.52 3,254.37 814.15 2,440.22 equipments Platinum Catalyst 213.75 - - 213.75 - 213.75 Vehicles 371.90 0.85 1.05 371.70 217.80 153.90 Construction work in progress 174.70 56.90 72.10 159.50 - 159.50 Total 26,562.37 129.71 74.67 26,617.41 11,142.16 15,475.25 The total depreciation for this period is Baht 218.16 million , of which Baht 146.84 million is booked as cost of product , and Baht 71.32 million as administrative expenses. 3.8 Intangible Assets Million Baht First cost Accumulated Net Book Value Amortization Dec31,00 Mar 31,01 Dec31,00 Mar 31,01 Dec31,00 Mar 31,01 Leasehold 1,539.93 1,540.98 373.00 391.32 1,166.93 1,149.66 License and development costs of computer software 63.28 63.70 37.98 38.11 25.30 25.59 Total 1,603.21 1,604.68 410.98 429.43 1,192.23 1,175.25 3.9 Bank overdrafts and loans from financial institutions Bank overdrafts and loans from financial institutions are Baht 474.99 million , of this, Baht 400 million are the loan from financial institutions with interest rates of 3.25 % per annum. 3.10 Short - Term Loans The company issued guaranteed registered debentures with the holders' names and trustee totaling 1,000,000 units with face value of Baht 1,000 per unit, for a total of Baht 1,000 million.The debenture guaranteed by the Ministry of Finance with maturity on June 14,2001. 3.11 Long - Term Loans Million Baht 2001 2000 Foreign loans International Bank for Reconstruction and Development 1,687.12 1,660.46 Domestic loans Government Saving Bank 2,000.00 2,250.00 Debentures 12,885.00 12,385.00 Promissory Note 2,000.00 - Total long term loans 18,572.12 16,295.46 Less Current portion of long-term loans 2,330.04 1,798.06 Balance 16,242.08 14,497.40 Foreign loans Foreign loans were USD 37.56 million. The repayment period of this loan is 12 years with the first repayment on February 1,2001. The settlement of both the principal and interest will be semi-annually with interests rates ranging from 5.87 to 8.61 % per annum. Domestic Loans Domestic loans are loans from the Government Saving Bank , with repayment period of 3-5 years and with interest rates ranging from 7.00 to 7.50 % per annum. Debentures As of March 31,2001, the Company has the debentures as follow; Unsecured , unsubordinated registered debentures with the holders' names totaling 9,285,000 units with face value of Baht 1,000 per unit, for a total of Baht 9,285 million. The interest rates vary from 5.75 to 11.50 % per annum. Maturity Date Interest Due No. 1/2542 Dec. 1, 2001 Jun 1 and Dec 1 of each year No. 3/2542 Jan. 21, 2002 Jan 21 and Jul 21 of each year No. 4/2542 Mar. 17, 2002 Mar 17 and Sep 17 of each year Maturity Date Interest Due No. 5/2542 Apr. 1, 2002 Apr 1 and Oct 1 of each year No. 6/2543 Feb. 2 , 2003 Feb 2 and Aug 2 of each year No. 7/2543 Feb. 2 , 2005 Feb 2 and Aug 2 of each year No. 8/2543 Mar. 31, 2004 Mar 31 and Sep 30 of each year No. 9/2543 Mar. 31 ,2004 Mar 31 and Sep 30 of each year No. 10/2543 Mar. 31 ,2006 Mar 31 and Sep 30 of each year No. 13/2543 May. 3 ,2006 May 3 and Nov 3 of each year No. 16/2543 Nov. 30 ,2002 May 30 and Nov 30 of each year No. 17/2543 Nov. 2,2002 May 2 and Nov 2 of each year No. 18/2543 Nov. 28,2004 May 28 and Nov 28 of each year No. 19/2543 Nov. 30,2004 May 30 and Nov 30 of each year No. 20/2544 Mar. 29,2005 Mar 29 and Sep 29 of each year Guaranteed registered debentures with the holders' names and trustee totaling 3,600,000 units with face value of Baht 1,000 per unit, for a total of Baht 3,600 million. The debenture guaranteed by the Ministry of Finance . The interest rate is 4.525 % per annum. Maturity Date Interest Due No. 15/2543 Jun. 14 , 2003 Jun 14 and Dec 14 of each year Promissory Note In this period, the company issued promissory note in amount of Baht 2,000 million. The repayment period of the promissory note is 4 years with the interest rate of 5.75 % per annum. 3.12 Share capital As of March 31,2001, the Company's registered common share capital is 772.04 million shares with par value of Baht 10, totaling Baht 7,720.40 million. Of this amount, 522.04 million shares with par value of Baht 10, totaling Baht 5,220.40 million, has been paid-up. 3.13 Sales Revenue Million Baht March 31,2001 March 31,2000 Sales - Fuel Products 11,341.72 11,913.83 Investment Charge 53.77 60.50 Total 11,395.49 11,974.33 3.14 Interest Expense The total interest for this period is Baht 315.27 million ,of which Baht 1.36 million is recorded as cost of work in progress and Baht 313.91 million as expense. 3.15 Gain (Loss) from foreign exchange fluctuations Million Baht March 31,2001 March 31,2000 Realized gain (loss) from foreign (35.91) 9.71 exchange fluctuations Unrealized gain (loss) from foreign (85.46) (24.11) exchange fluctuations Total (121.37) (14.40) 3.16 Transactions with related companies The Company has significant business transactions with related companies for for the three months ended March 31,2001 and 2000 and for the year ended December 31,2000 (related in terms of shareholding and as member of the board ) as follows; Million Baht March 31,2001 December 31,2000 Account receivable with related companies 126.30 128.68 Account payable with related companies 13.17 14.96 For the three months March 31,2001 March 31,2000 Income from sales of oil 330.68 296.26 Transportation management fee 19.82 17.79 Pipeline throughput fee 23.85 22.72 Interest expense 3.44 3.05 Franchise fee - Lemon Green ( Minimart ) 1.48 1.83 The condition of the above transactions are similar to those in normal trading transaction. 3.17 Risk Management To minimize foreign exchange risk exposure, the Company has a forward foreign exchange contract outstanding of USD 0.85 million as of March 31,2001.The premium or discount related with this will be amortized over the period of the contract. 3.18 Cash and cash equivalence Cash and cash equivalence in statements of cash flow as of March 31, 2001 and 2000 is comprised of : Million Baht March 31,2001 March 31,2000 Cash on hand and at banks 1,385.64 1,077.65 Short-term investments (fixed deposit at bank 50.00 50.00 due within 3 months) Total 1,435.64 1,127.65 3.19 Contingent Liabilities The Company's contingent liabilities consisted of : 3.19.1 Obligations Bank guarantees issued by the banks on behalf of the Company as of March 31,2001 were of Baht 141.39 million, which mainly consisted of guarantees for the payment of import tax on crude oil to the Customs Department , the payment of ship rental ,and the payment of electricity and telephone charges. 3.19.2 Allegation The Ministry of Finance(the first defendant) was alleged in a land right transgression case (The claim for damages,which was filed with the civil court, amounts to Baht 1,055 million). The land in question ,which is located at the pier of the Refinery,was leased from the Ministry of Finance. The Company,as the lessee of land owned by the Ministry of Finance,was alleged as the fifth defendant along with the Ministry of Finance. According to the Company's Legal Office opinion,regardless as to the outcome of the case, the Company would not be liable for any losses associated with the above mentioned claim as it is protected under a lease agreement. The case is being appealed with the civil court.