3q 2016 analyst presentation - listed...
TRANSCRIPT
This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ materially due to changes in technology,
the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in Item 1A of ExxonMobil’s latest report on Form 10-K or information set forth
under "factors affecting future results" on the "investors" page of our website at www.exxonmobil.com). This material is not to be reproduced without the permission of Exxon Mobil Corporation.
3Q 2016Analyst Presentation
November 18, 2016
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■ Average September Dubai crude oil price was $43.3/bbl, $3 lower
than the average price in June
■ Industry gross refining margins increased slightly from 2Q16 by
$0.1/bbl to $5.1/bbl
■ Paraxylene prices decreased slightly from the previous quarter
■ Industry demand for fuel products remained strong with year to date
diesel and gasoline growth at 4% and 11%, respectively
■Government expenditure and tourism continue to play important
roles in driving moderate growth in Thailand
Industry and Business Environment
Note: Industry domestic sale source : DOEB
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■ Completed 37 days of scheduled refinery maintenance on plan and
within budget
■ Achieved year-to-date earnings of 4.2 billion baht including 3Q16 loss
of 0.4 billion baht, reflecting refinery maintainance activities and a stock
loss impact
■ Reached year-to-date cash generated from operations of 4.5 billion
■ Signed up more than 650,000 members for the Esso SMILES loyalty
card as of September
Headline Results
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Margins and Crude Intake
6.3
5.0 5.1
3Q15 2Q16 3Q16
Industry Gross Refining Margin ($/bbl) Crack Spread ($/bbl)
Gross Refining Margin ($/bbl) Crude Intake (KBD)
-0.9
9.4
2.0
3Q15 2Q16 3Q16
135143
108
3Q15 2Q16 3Q16
Note: Industry GRM and Crack Spread Source : Reuters
19.3
14.5
11.613.1
11.6 11.5
3Q15 2Q16 3Q16UGP ADO
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Crude Intake by Source Sales Channels
■ Processed higher levels of Middle East and West African crudes reflecting streamlined operations and an increase in asphalt production
■ Continued crude diversification efforts with 10 new challenged crudes introduced this year
■ Achieved greater proportion of domestic retail and commercial sales with a reduction in exports
Crude Source and Sales Channels
9M2015 9M2016
33% 37%
54% 47%
2% 8%11% 8%
Caspian
West African
Far East & SouthEast
Middle East
9M2015 9M2016
53% 54%
38% 40%
9% 6%
Export
Retail
Commercial
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Product YieldsProduction by Type
■ Heavy product yields increased, driven by an increase in Asphalt sales
■ Middle distillate and Feedstock product yields decreased, driven by lower product price spreads
Refinery Yields
9M2015 9M2016
18% 17%
9% 9%1% 2%8% 8%
37% 36%
19% 20%
3% 3%5% 5%
LPG
Naphtha
Gasoline
Diesel
Jet/Kerosene
Asphalt
Fuel Oil
Feedstock andother
9M2015 9M2016
10.4% 11.3%
45.4% 44.4%
26.7% 26.9%
17.5% 17.4%
Feedstock
Light
Middle
Heavy
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Operating PerformancePx Spreads ($/Ton) Px Production (K Ton / quarter)
■ Paraxylene spreads improved slightly compared to the second quarter and the same period as last year
■ 3Q16 Paraxylene Production was 44 Kton, a decrease of 19 Kton versus 3Q15 as a result of scheduled maintenance
Petrochemical Spreads and Production
220
298 299310
116 118 117 122
3Q15 1Q16 2Q16 3Q16
PX-UGP PX-MX
63
244
44
162
3Q15 FY2015 3Q16 9M2016
8
16
2423
8
2013 2014 2015 YTD2016
Marketing Business Update
Service Stations Offering Premium ADO Service Stations Offering E20
Number of New Service Stations Domestic Market Penetration*
* Source : DOEB YTD AUG 2016 (including all domestic sales to end-customers)
67
151
240271
2013 2014 2015 YTD2016
35
327
400420
2013 2014 2015 YTD2016
PTT38.9%
Esso10.9%
BCP10.6%
Shell9.3%
Caltex7.1%
Others23.2%
PTT Esso BCP Shell Caltex Others
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Operations Update
■ Implemented energy improvement and margin enhancement projects
during planned refinery shut-down
■Completed image upgrade for 39 service stations
■Finished terminal facility upgrades to support role-out of new fuels
formula
■ Implemented Asphalt heating tank capability to facilitate incremental
Asphalt sales volumes
■Enhanced Terminal Automation system (TAS) to improve efficiency of
product distribution and terminal blending
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3.9
(0.1)
3.4
6.7
2Q16 3Q16 9M2015 9M2016
Financial Performance
Sales Revenue
EBITDA
4034
130
110
2Q16 3Q16 9M2015 9M2016
Cash Flow From Operations
2.8
(0.4)
1.2
4.2
2Q16 3Q16 9M2015 9M2016
Net Profit/Loss
Note: All units are in Billion Baht
2.8
(0.8)
2.7
4.5
2Q16 3Q16 9M2015 9M2016
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Financial PositionBalance Sheet Indicators
37 35
1 14 3
14 16
YE2015 QE2016
Inventory Receivables
Other current Asset Non-current Assets
14 18
29 25
11 10
3 3
YE2015 QE2016
Shareholder's Equity Debt
Payables Others
Cash Flow
D/E 2.1 D/E 1.4
6.9
4.5
(0.8) (0.3)
(6.3)
(4.3)
YE2015 QE2016
Cash flow from operations
Cash flow used in investing
Cash flow used in financing
Note: All units are in Billion Baht
■ Assets increased slightly with higher inventory
values offset by utilization of the tax loss carry
forward
■ Debt declined by 4 billion baht, with the
repayment of short-term and long-term loans
■ Debt to equity improved with lower debt levels
and current year profit
■ Cash flow from operations reached 4.5 billion
baht with proceeds mainly used to reduce debt
■ Cash flow used in investing reflects capital
investments for maintenance and improvement
projects offset by dividends from an associate
■ Cash flow used in financing reflects repayment
of debt
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Summary
■Continue to focus on safety, reliability, and operational excellence
■ Investing in energy efficiency and margin enhancement projects
■Optimizing the retail network and premium product offerings with focus
on fuel quality, reliable supply, and competitive pricing
■Leveraging strong financial rating while maintaining capital and cost
discipline