2Q2020 Analyst Presentation - August 17, 2020 - Esso (Thailand) Public ...
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2Q2020 Analyst Presentation August 17, 2020
Disclaimer
The information contained in this presentation is provided by Esso (Thailand) Public Company Limited (the "Company") and is
subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the
Company. None of the Company, or any of their respective members, directors, officers, employees or affiliates nor any other
person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or
otherwise arising in connection therewith.
This presentation contains statements that constitute forward-looking statements. These statements include descriptions
regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of
operations and financial condition, and future events and plans of the Company. These statements can be recognized by the use
of words such as "expects," "plans," "will," "estimates," "projects," or words of similar meaning. Such forward-looking statements
are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the
forward-looking statements as a result of various factors and assumptions. Forward-looking statements are based on
management’s knowledge and reasonable expectations on the date hereof, and the Company assumes no duty to update these
statements as of any future date.
This presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to
buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or
commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information set forth in this
presentation or on its completeness.
2
Industry and Business Environment
• COVID-19 significantly impacted 2Q20 economic including fuel demand and margins
• 2020 GDP growth further revised down to contract 8.5%
• Average Dubai prices in June was $40.8/Bbl
• 2Q20 Industry gross refining margin was -$0.9/Bbl
• June 2020 YTD Thailand fuel demand decreased 13.4% Y-Y
Source : Reuters: Oil prices, Industry GRM, GDP forecast : Fiscal Policy office:, DOEB : Industry demand growth
3
Headline Results
• Safely managed staff and facilities during
Covid-19 pandamic
• Refinery crude intake at 111 KBD
• Gross Refining Margin of -$5.5/Bbl
• Esso retail network totaling of 654 sites
• Esso Smiles Drivers Rewards 4th Year xxx
Anniversary
• Second quarter net loss of Baht 2,503 million
4
Margins and Crude Intake
Industry Gross Refining Margin ($/Bbl) Crack Spread ($/Bbl)
3.5 3.3 UGP
12.8 13.1
ADO
11.7
9.4
1.2 7.5
6.7 7.1
0.2 5.6
4.6
2.6
-0.9
2Q19 1Q20 2Q20 1H19 1H20 2Q19 1Q20 2Q20 1H19 1H20
Gross Refining Margin ($/Bbl) Crude Intake (KBD)
135 140
2.9 122
1.3 117
111
-5.5
-12.7
-19.3
2Q19 1Q20 2Q20 1H19 1H20
2Q19 1Q20 2Q20 1H19 1H20
Source : Industry GRM and Crack Spread from Reuters 5
Crude Source and Sales Channels
Crude Intake by Source Sales Channel
31% 36%
Middle East 55% 53% Commercial
Far East & South East Asia
Retail
34% Others
44% Export
40% 41%
24% 30%
5% 6%
1H19 1H20 1H19 1H20
• Continued to seek advantaged crudes to improve refining economics
• Maintained focus on high margin sales through Retail, Commercial business
6
Refinery Yields
Production by Type Product Yields
5% 4%
4% 3% LPG
Light
28% 29% 22% Naphtha
Middle 19%
Heavy Gasoline
Feedstock Diesel
35% 38%
44% 44% Jet/Kerosene
9% Asphalt
6%
2% 2%
11% 10% 9% 8% Fuel Oil
17% 17% Feedstock and others
17% 17%
1H19 1H20 1H19 1H20
• Adjusted crude run and production plan in response to market environment change
• Reduced Jet production till achieve zero rundown in June’20
7
Petrochemical Spreads and Production
Px Spread ($/Ton) Px Production (kTon/quarter)
95
PX-UGP 90
372
PX-MX
287
270
53
219 214 217
201 46
39
118 111
103
2Q19 1Q20 2Q20 1H19 1H20 2Q19 1Q20 2Q20 1H19 Avg 1H20 Avg
• Margins still weak from demand – supply imbalance
• Production runs to meet sales obligation
8
Marketing Business Update
Number
Number of Service of Newoffering
Stations ServiceSupreme
Stations Plus Diesel Number of Service Stations offering Premium Products
425 443
73 382
337
275
254
41 205
27 141
17
2017 2018 2019 1H20 2017 2018 2019 1H20
Number of Service Stations offering B10 Number of Outlets with Mobil Signage
Total Service Stations B10
654 1,641 1,645
608 638
553
541 1,221
779
125
0
2017 2018 2019 1H20 2017 2018 2019 1H20
9
Financial Performance
Sales Revenue (Billion Baht) Cash Flow from Operations (Billion Baht)
91.8
0.0
63.8
45.7 (0.5)
24.4 (1.1)
(1.9)
2Q19 2Q20 1H19 1H20 2Q19 2Q20 1H19 1H20
EBITDA (Billion Baht) Net Profit (Billion Baht)
0.9
0.1
(0.8) (0.9)
(2.5) (2.5)
(9.8) (8.8)
2Q19 2Q20 1H19 1H20 2Q19 2Q20 1H19 1H20
10Financial Position
Balance Sheet Indicators (Billion Baht)
D/E = 1.2
• Decrease in assets driven by lower inventory
6.4
D/E = 2.1 balances and trade receivables, and utilization
4.2
6.5 4.0 26.9 of prepaid excise tax.
19.1 12.7
27.7
34.3 38.8 22.1
• Debt increased to Baht 27.7 billion
13.1
YE2019 QE20 YE2019 QE20 • Debt-to-equity ratio 2.1
Non-current assets Inventory
Trade receivables Other current assets Shareholders’ equity Debt
Cash Flows (Billion Baht)
• Cash flow used in investing activities mainly for
Marketing network expansion and Refinery
0.0
1.0 projects
0.5 Cash flow from (used in) operating activities
Cash flow from (used in) financing activities
(0.3)
(0.5) Cash flow from (used in) investing activities • Cash flow from financing activities reflected net
(0.5)
proceeds from borrowings
1H19 1H20
11Summary
• Global pandemic significantly impacted 2Q20
financial results with lower prices, margins and sales
volume
• Safe operations with reduced crude run in response
to change in demand
• Successfully achieved zero jet production in June’20
• Continued to expand retail network to exceed the
targeted 670 services stations in 2020
• Kept on a focus on cost saving and effective
spending
12IR contact details: • Email: essoir@exxonmobil.com • Numbers: +662-407-4788 • Websites: http://esso.listedcompany.com/home.html
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