ข่าวแจ้งตลาดหลักทรัพย์

of which Baht 3,983 million were received from operating activities, while Baht 3,458 million were used in investing activities and Baht 711 million were used in financing activities. Hence, cash and cash equivalent as shown in the consolidated financial statements at the end of 2009 were Baht 2,136 million, which consisted of Baht 1,711 million of the Company and Baht 380 million of BGN as well as Baht 45 million of BBF. 3.2 The Company's beginning cash of the period was Baht 2,095 million, consisted of Baht 187 million for PQI project and Baht 1,908 million for normal operation. During this year, the Company's net cash was decreased by Baht 384 million to the following activities; 1) Net cash received from operating activities was Baht 3,849 million; - Cash from operating profit before changes in operating assets and liabilities worth Baht 11,535 million. - Cash utilized in operating assets of Baht 7,552 million consisting of Baht 6,939 million for increase of inventory, Baht 1,041 million for increase of account receivable but Baht 428 million from decrease in other assets - Baht 2,178 million of cash received from operating liabilities consisting of Baht 1,571 million from increase in trade account payable and Baht 607 million from other liabilities. - Interest and corporate income tax the Company paid by cash amounting to Baht 2,312 million 2) Net cash used for investing activities was Baht 2,940 million; - Baht 118 million for fund raising of share capital of Bangchak Biofuel Company Limited (BBF). - Baht 2,745 million of cash payment for investment in fixed asset-equipment, of which Baht 1,398 million paid for the PQI project. - Cash decreased from investment in other assets, amounting to Baht 77 million. 3) Net cash used in financing activities was Baht 1,293 million; - Baht 470 million for short-term loan repayment. - Baht 1,510 million from long-term loan drawdown for the PQI project. - Baht 603.50 million for scheduled long-term loan repayment. - Baht 1,729 million for annual and interim dividend payments to the shareholders. At the end of 2009, cash and cash equivalents outstanding was Baht 1,711 million which consisted of Baht 299 million appropriated for PQI project and Baht 1,412 million for normal operation usage. 4. Financial ratios analysis and the explanation for the year 2009 compared with 2008 Unit 2009 2008 Liquidity Ratios Current Ratio Time 1.8 1.8 Quick Ratio Time 0.7 1.1 ReceivableTurnover Time 24.2 27.2 Average Collection Period Day 15.1 13.5 Inventory Turnover Time 10.1 14.8 Inventory Turnover Period Day 36.1 24.7 Account Payable Turnover Time 19.1 18.5 Average Payment Period Day 19.1 19.7 Cash Cycle Day 32.1 18.5 Profitability Ratios Net Profit Margin % 6.9 -0.6 Net Profit Margin % 4.8 2.2 (excluded inventory effect) 1/ Return on Equity % 33.0 -3.7 Return on Equity % 20.3 14.4 (excluded inventory effect) 1/ Efficiency Ratios Return on Total Assets % 15.6 -1.7 Return on Total Assets % 9.8 6.7 (excluded inventory effect) 1/ Assets Turnover Time 2.2 2.9 Financial Policy Ratios Debt to Equity 2/ Time 0.6 0.8 Debt to Equity Time 0.5 0.6 (included convertible debenture)3/ Remark: Calculation from consolidated financial statements 1/ Excluding impact from inventory gain or loss and apply tax rate at 30% for calculation only 2/ Calculating from Interest Bearing Debt 3/ Including convertible debenture in equity portion 5. Factors and major influences that may affect the Company's performance or financial status in the future 5.1 Product Quality Improvement Project (PQI) The main factors, which have affects on the operating results of the Company, as it is in the oil business, are the marketing margin and the refining margin. In terms of the marketing margin, it is affected by the fluctuation of oil prices which influences the adjustment of retail prices. It is because the adjustment is usually lagging the actual cost. For the refining margin, at present, the Company has installed the cracking unit and related units with world class technology. As a result, the Company's refinery has become a complex refinery which can reduce fuel oil production capacity to be at the same level with other local and oversea refineries. In addition,the Company's refinery can increase its refining utilization rate. However, the selection of crude oil type and refining mode depends mainly upon refining margin and the oil prices at certain period. The PQI project has an investment value, including contingency reserve, amounting for Baht 15,369 million, or around USD 378 million. The Company appointed CTCI Overseas Corporation Limited and CTCI (Thailand) Company Limited to be contractors of the PQI under fixed price, date certain, and performance guaranteed arrangement. Presently, the construction has reached its completion and the test-run performance of the machines and the three main units - Vacuum Distillation Unit (VDU), Hydrogen Plant Unit (HPU), Hydro-cracking Unit (HCU), has already accomplished. The final performance test run as stated in the construction contract has already conducted and started its commercial operation date since December 7, 2009. Furthermore, as the Company shut down Hydro-cracking Unit for repairing its automatic control valves which were damaged during final test run process on May 21, 2009, the damage was under the insurance coverage of Construction All Risks and Delay in Start-Up, of which are in the process of negotiation with the insurance companies and the contractor 5.2 Foreign Exchange Another factor which may have impact on the Company's performance is the foreign exchange volatility (mostly Baht/USD). The Company pays for the feedstock in US dollar term and sells its product on US dollar-linked basis, and subsequently records transactions as trade payable and trade receivable respectively. Since the Company's assets are greater than liabilities', the appreciation of Thai Baht will cause the shrink in net assets value, Baht margin value, and vise versa. However, being aware of that risk, the Company has been managing to mitigate the risk by utilizing some market financial instrument. In addition, as completion of the loan refinancing on July 2, 2008, the Company has performed Cross Currency Swap (CCS) from Thai baht loan to Dollar link amounted USD 200 million following the policy to leverage the differences of US dollar liabilities balancing with revenue (natural Hedge) to protect the business from impact of the exchange rate fluctuations. Therefore, when the Baht depreciates, the Company will record loss from exchange rate and realize the increase revenue in the term of baht. But in the other hand, when the Baht appreciates, the revenue in the term of baht will be reduced however the Company will realize gain from the exchange rate. The referred CCS contracts affected from January 5, 2009 to September 30, 2013. 5.3 Gross Refining Margin from Hedging (GRM Hedging) Although the Company has fully adopted PQI project to add long term business value, the oil price is likely to continually fluctuate according to fundamental factors both demand and supply as well as speculating, which directly affects gross refining margin. Being realized such risk, the Price Risk Management Committee (PRMC) consisted of high-level executives and related divisions was set up in 2006. PRMC is responsible in officiate prescribed hedging policy and objective as well as closely monitor the oil price market situation to minimize impact on business operations by utilizing some hedging instruments to determine the appropriate and level satisfied margin between product and crude in advance and/or inventory price management. 6. Environmental Management Accounting (EMA) Having the environmental concerns and social responsibilities, since 2005, the Company has prepared the environmental management accounting report (production line) and also published in the Sustainability Report. The environmental cost accounting helps the Company to keep track the related information, which is useful for enhancing the environmental management effectiveness, and resource utilization. The EMA report for the year is summarized hereunder; (Unit : Million Baht) 2009 2008 Change +/- Material Costs of Product Outputs 64,141 91,564 -27,423 : Consist of crude oil, ethanol, bio-diesel, chemical, energy and utilities in production Material Costs of Non-Product Outputs 96 19 +77 : Consist of slop and sludge oil, waste water, chemical surplus Waste and Emission Control Costs 79 87 -8 : Consist of maintenance cost of environmental control equipments and depreciation and other fees Prevention and Other Environmental Management Costs 5 4 +1 : Consist of monitoring and measurement cost, environmental management system expenses Benefit from by-product and waste recycling -3 -3 - : The revenue realization from liquid sulfur, glycerin, waste paper The above table shows that total expense in the year 2009 was lower than that of last year caused by the material costs of product outputs. Despite the increase of refining production in this year was higher than that of last year by 5.0 KBD, the average crude mix price for intake of this period was lower than last year by Baht 7.57 per litre. The material costs of non-product outputs increased by Baht 77 million or 4 times, mainly came from higher volume of the slop oil which had to rerun into the refining process on PQI commissioning period. Waste and emission control costs decreased by Baht 8 million or by 9.2% from last year since the refinery had the plant turnaround in 2008. For the prevention and other environmental management costs increased by Baht 1 million or 25.0% since the Company has placed an emphasis upon precaution by increasing frequency on the inspection of environmental quality.