The Bangchak Petroleum PLC.

IR Newsletter No. 25

EDITOR’S TALK issue 25 | August 2013

IN THIS ISSUE

PERFORMANCE

OIL MARKET TRENDS

ENVIRONMENTAL MANAGEMENT ACCOUNTING PROJECT UPDATE

EXECUTIVE TALK

BCP NEWS

IR CALENDAR

VEGETABLE OIL BY POWER BUMB

Contact us ir@bangchak.co.th

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Greetings!

In order to celebrate the 25th issue of our IR Newsletter, we have a minor re-design so that you can enjoy the data with colorful arts.

In the second quarter of 2013, the consolidated revenue was Baht 45,105 million, with a Net Profit of Baht 407 million, which show on Page 5.

For those who are interested in Biodiesel, do not miss the column “Executive Talk” on Page12.

Have you ever heard of “Used vegetable Oil to Biodiesel Program”, find out more in Mr. Power Bump section

Enjoy the thrills of reading,

Editor

Oil Market Outlook

In the second quarter of 2013, the average Dubai crude oil price was $100.78, lower by $7.29 from an average of previous quarter. Oil prices were pressured by lower demand for crude oil after the end of winter season. Refineries maintenance, especially in the Americas and Asia, during the late of first quarter to the second quarter had slow down the oil demand. On the other side, supply had been rising from Tight Oil production in the U.S. The U.S.’s commercial stock of crude oil had risen to the highest level in the last several decades.

Crude oil prices had also been under pressure from global economic outlook after the International Monetary Fund (IMF) estimates that the global economy in 2013 will grow 3.3%, which was revised down from the previous level of 3.5% because of the ongoing economy slowdown in Europe.

Chinese economy grew by 7.7% in the first quarter compared to 7.9% in the fourth quarter 2012. All these factors had made IEA, OPEC and EIA lowered their oil demand forecast in 2013. Moreover, the dollar strength against all major currencies had created pressure on oil prices after The U.S. Federal Reserve (FED) had identified that they might lower the purchase of bonds (QE) by the end of this year and stop the purchase of bonds by mid-2014 if the U.S. economy recovers as expected. The U.S. economic data released during the second quarter had shown that the economy improved so.

Unit: USD/bbl

2Q 2013 2Q2012 Change 1Q2013 Change

Price MAX MIN AVG (A)

AVG (B) (A)-(B) YoY (%) AVG (C)

(A)-(C) QoQ (%)

DB 108.36 96.74 100.80 106.19 -5.39 -5.08 108.09 -7.29 -6.74 UNL95/DB

19.47 9.69 14.54 13.93 0.61 4.38 18.15 -3.61 -19.89

IK/DB 17.73 13.20 15.30 15.96 -0.66 -4.14 20.17 -4.87 -24.14 GO/DB 20.74 13.77 16.75 15.38 1.37 8.91 19.52 -2.77 -14.19

FO/DB -0.75 -7.11 -3.65 -1.26 -2.39 -189.68 -7.30 3.65 50.00

However, oil prices got some supports after the European Central Bank (ECB) cut interest rates to a record low at 0.50% which helped stimulate the purchase of commodities, including oil. In addition, the Bank of Japan (BOJ) also injected money into the system to stimulate the economy. Lastly, the return of refinery turnarounds, product stockpiling in third quarter, unrest in the Middle East and emergency stop of crude oil production in the North Sea Buzzard helped supporting the oil prices.

Oil and Crack Spread Movements Price and Product-Dubai spreads

Oil Market Outlook

0.30 THB per Share

1,496 EBITDA

THB Million

407 Net Profit

THB Million

EPS

PERFORMANCE (Consolidated)

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At the end of second quarter of 2013, the Consolidated Financial Statement recorded a total revenue of Baht 45,105 million, an increase of 11.75% compared to the same period last year. Average crude run was at 95.61 thousand barrel per day which increased 35.06% over 2Q2012. However revenue in this quarter decreased by 4.61% when compared to 1Q2013 from a slightly lower utilization rate. At the end of the second quarter of 2013, the Consolidated Statement of Income recorded a net profit of Baht 420 million. Non-controlling interests of Baht 13 million, the profit attributable to the owners of the company was Baht 407 million, or an earnings per share of Baht 0.30, which improved from a Net Loss of Baht 385 million in 2Q2012. However, in this quarter there were loss from inventory of Baht 919 million and gain from crude and product oil price hedging contract of Baht 197 million. The company had a loss from foreign currencies forward contract of Baht 1,068 million in the quarter.

Non Current Liabilities

Current Liabilities

L/T Debt*

Total Equity

Cash & Equivalents

Other Current

Assets Other Non-

Current Assets

PP&E

Unit: THB Million

30 Jun 2013

72,246

31 Dec 2012

70,853

31,511

4,022

32,706

4,007

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

30-Jun-13

Cash & Equivalents

Other Current Assets

Other Non- Current Assets

PP&E

33,715

1,382

20,257

16,892

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

1

Current Liabilities

L/T Debt

Non Current Liabilities

Total Equity

32,323

1,290

19,023

18,218

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

1

Current Liabilities

L/T Debt

Non Current Liabilities

Total Equity

IBD*/E Ratio (Times)

0.62

0.59

0.55

0.60

0.50

0.55

0.60

0.65

Y2011 Y2012 1Q2013 2Q2013

Current Ratio (Times)

2.15

1.93 1.90

2.02

1.70

1.80

1.90

2.00

2.10

2.20

Y2011 Y2012 1Q2013 2Q2013

PERFORMANCE (Consolidated)

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Financial Position

Note: * Interest Bearing Debt to Equity (IBD) = (Current portion of short-term and long-term loans from financial institutions

+ Debentures) / Total equity attributable to owners of the Company

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Unit $/BBL 2Q2012 1Q2013 2Q2013

Market GRM 4.85 7.97 5.68

GRM Hedging 0.93 0.07 0.76

Inventory Gain/(Loss) (6.81) 2.08 (3.52)

Total (1.03) 10.13 2.92

588 EBITDA

THB Million

For the second quarter of 2013, Refinery’s average crude run capacity was at 95,610 barrel per day (an average utilization rate of 79.67%), an increase of 35.06% from the same period last year due to the annual planned shutdown in 2Q2012. However, in this year, there was an inspection in some units of refinery which affected the crude run capacity. Refinery’s Base Performance EBITDA was Baht 1,484.51 million (5.68 $/bbl)

There were gain from crude and product oil price hedging contract on GRM of Baht 197.31 million (0.76 $/bbl). Loss from inventory was Baht 919.10 million (3.52 $/bbl). Total GRM was Baht 762.72 million (2.92$/bbl)

In addition, Refinery business had recognized insurance compensation of Baht 1,518 million and recognized the loss from foreign currencies forward contract of Baht 1,068 million in the quarter. Therefore, the EBITDA in this quarter was Baht 588.15 million, increased from the same period last year which was at negative Baht 1,073 million.

Refinery Business

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Marketing Business

475 EBITDA

THB Million 0.59

MKM (Marketing Margin)

Baht/Litre

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An average sales volume through Marketing business was 1,237.32

million litre a or 10.17% growth compared to the same period of last year but

decreased 1.50% compared to the first quarter of 2013. Retail marketing

business was at 727.46 million litre which was 7.12% growth, mainly from the

increasing of sales volume of Gasohol E20 and Gasohol E85. Gasohol E20 and

Gasohol E85’s sales volume also increased by the expansion number of E20 and

E85 service stations. Industrial sales volume was increased to 509.86 million

litre or 14.83% increase compared to 2Q2012.

For the second quarter of 2013, Retail Margin was at 0.80 baht per

litre, a decrease of 29.20% compared to the same period last year. The main

reason was from the increase in raw material cost from using ethanol produced

from cassava. Industrial Margin was at 0.29 baht per litre, a decreased of

38.30% compared to the same period last year.

Total Marketing Margin was Baht 725.77 million and EBITDA of Baht

475.20 million, a decrease of Baht 226 million or 32.24% from the same period

last year but increase of Baht 89 million or 23.08% compared to 1Q2013

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Total EBITDA from Solar Power Plant Phase 1 (38 MW) at Bang Pa In District, Ayutthaya province and Solar Power Plant Phase 2 (32 MW) at Bamnet Narong District, Chaiyaphum province and Bang Pa-Han District, Ayutthaya province was Baht 392 million.

Solar Power Plant Business

PPA (MW)

Investment Cost (THB Million)

COD

Phase 1 38 4,200 July 16th, 2012

Phase 2A 16 3,800

March 6th, 2013

Phase 2B 16 April 5th, 2013

392 EBITDA

THB Million

(Unit : Million Baht) 2Q

∆ 2013 2012

Material Costs of Product Outputs : Consist of crude oil, ethanol, bio-diesel, chemical, energy and utilities in production

31,129.90 29,199.45 +1,930.45

Material Costs of Non-Product Outputs : Consist of slop and sludge oil, waste water, chemical surplus 15.13 54.06 -38.93

Waste and Emission Control Costs : Consist of maintenance cost of environmental control equipment and depreciation and other fees

42.90 38.40 +4.50

Prevention and Other Environmental Management Costs : Consist of monitoring and measurement cost, environmental management system expenses

1.84 1.32 +0.52

Unit: Million baht

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Environmental cost in the second quarter of 2013, in total, increased from the same period last year around Baht 1,896.54 million. More than 99% were Material Costs of Product Outputs. The average crude run were 95.61 KBD which was increased from 70.74 KBD in the same period last year. • Material costs of non-product outputs were increased by Baht 1,930.45

million or 6.61% • Waste and Emission Control Costs and Prevention and Other Environmental

Management Costs were increased 11.71% and 39.39%, respectively. • Material Costs of Non-Product Outputs was decreased Baht 38.93 million or

72.01% since there was no annual turnaround in this year therefore, the slop and sludge oil quantity for the reproduction decreased.

• Benefit from by-product and waste recycling was decreased as a result from liquid sulfur price reduced 1.68 Baht/Litre. However, glycerin was increased 0.06 Baht/Litre compared to the same period last year.

Environmental Management Accounting

Project Update

Tail Gas Treating Unit The project helps decrease emission of Sulfur Dioxide from the Sulfur Recovery Unit. Its structural work was finished and at present the work stage is the installation of equipment, piping and electrical systems which are on schedule. Project completion is expected to be around the end of 2013.

BigC Mini At the end of the 2Q2013, there were 29 branches of BigC Mini in Bangchak service station. Company planned to expand branches of BigC Mini to 70 branches within this year.

Gasohol Promotion The project aims to promote and expand the use of gasohol through increasing numbers of E20 and E85 service stations, including sales promotion through gasohol club card. At the end of the 2Q2013, the number of E20 service stations and E85 service stations to be 655 and 68 stations, respectively.

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Electricity Generation from Solar Energy – Solar Power Plant Phase 3 The project is during the earth leveling process and expected to start construction in September 2013. Target project completion date is expected to be in May, 2014

In this issue, we are honored by our BCP top management Mr. Pongchai Chaichirawiwat, Executive Vice President, to share with us the pro and con has a large of bio-fuel business. Q: Biodiesel Business Overview A: Thailand consumption of Renewable Energy such as Biodiesel and ethanol which we can say that we are the leader in producing and using the Renewable Energy when compare to the region. Next year, 2014, the government plans to launch the policy of using Diesel B7 (Diesel which mixed with a portion of B100 at 7%) instead of Diesel B5 (Diesel which mixed with portion of B100 at 5%) The reasons for changing from B5 to B7 are mainly based on 2 factors. • The production of Crude Palm Oil – In early

2013, Thailand had a stock of Crude Palm Oil (CPO) at around 400,000 tons per year which was higher than the demand at around 130,000 tons per month. This had an impact in CPO price reduction. That put a call to the government to help supporting crude palm oil producer by pushing the use of Crude Palm Oil by the mean of changing the Biodiesel from 5% to 7%

• Production Capacity of Biodiesel plant – Thailand’s nameplate capacity of biodiesel is around 4 million litre/day

Q:The risk price volatility of crude palm oil (CPO) and B100 in the future A: In general, the crude palm oil price should continue to be in the low price territory for a while as there is an oversupply in the market. As for the B100, the over production may cause a fierce price war which used to happen before, around 2 years back. During that time, factories lacks competition advantage had to close down. Now, considering the possibility that the government will implement the B7 in the future, it would cause some short terms price tightening dues to the limited production capabilities. As such, we plan to expand addition production capacity of 450,000 litre per day to the existing 360,000 litre per day which would totaling up to 810,000 litre per day. Additionally, to better prepare BBF for the demand growth, the company is now contracting with other biodiesel producers whom have a surplus production capacity to solve BBF’s short term short of biodiesel supply until its new factory is opened.

but the real utilization rate was expected at around 80% of total capacity. At the moment, the demand for biodiesel B5 is approximately 2.6 million litre/day, and once the government increase to B7, the demand of biodiesel will increase to 3.6 million litre/day which lead to a question of a possibility in shortage on supply of biodiesel. Nevertheless, the government will continue to support and promote the use of Biodiesel B7 in the near future, but they have to take into consideration about the market environment and industry readiness. Q: The expansion plan of Biofuel plant phase 2 of Bangchak Biofuel Co., Ltd A: At present, Bangchak Biofuel Co., Ltd (BBF) has a production capacity around 360,000 litre/day which is not enough to serve Bangchak and other major oil companies’ demands. As such, BBF plans to expand the capacity to response to the increasing demand. At first, we have planned to expand biodiesel plant phase 2 with a capacity of 300,000 litre/day. But after the government was clearly stated about shifting from B5 to B7, we have decided to revise the plan to increase to 450,000 litre/day. The location of the plant will be at the current location, which possesses an advantage over other provinces in eastern part of Thailand, as it is the center of oil products distribution to nearby oil depot.

Q: What is your view on future government policy regarding biodiesel and the readiness of BBF to response. A: The government will continuously support the use of biodiesel. In the next 4-5 years, we might see B10 in Thai market. There is a concern on vehicle’s specification to support usage of B10. It is believed that next year the government will announce B7 as a new standard to the market in which the automakers have already accepted and acknowledged such fact. Another interesting topic discussed by the government is the “Hydrogenated Biodiesel”. It is still during an early stage of development, very cost intensive and the direction from the government is still not clear, but this is one of the area that are under our interest. We have been in biofuel business for almost 5 years; as such we are quite familiar with the industry. Our recorded performances are quite strong, therefore, we are quite confident that we will be able to compete in any given business climates.

Trusted Brands Gold Awards 2013

BCP was awarded the Trusted Brands Gold Awards 2013 in service station. BCD had received this award for 3 years consecutively from the Reader Digest Magazine

Bangchak News

Linfox selected BCP as exclusive fuel provider

Bangchak Petroleum Plc. was selected as the long-term exclusive fuel provider by Linfox Transport (Thailand) Ltd., affiliates of Linfox Logistic – Asian leaders in logistic.

Bangchak received 2 awards as the best of Asia

Bangchak Petroleum Plc. received the Asian Corporate Director Recognition Award 2013 and Corporate Governance Asia Recognition Award 2013 from the Corporate Governance Asia Magazine.

Bangchak News

Bangchak as one of the sevens companies in promoting sufficient economy

Bangchak Petroleum Plc. had signed an agreement together other six leading public companies in supporting and promoting the sufficient economy for a sustainable future

1st Army Area and Bangchak for a better environment

Bangchak Petroleum Plc. in cooperative with The 1st Army area to promote the use of solar energy in the 1st army area.

Bangchak – Chulalongkorn Collaboration

Bangchak Petroleum teamed up Chulalongkorn University, a top tier university, to promote the campaign of “No – Reused Cooked Oil” which instead should be used for Biodiesel for a better health quality and cleaner environment.

BCP – OBEC Thailand Go Green 7th

BCP and OBEC, Office of the Basic Education Commission, are co-organizing the Thailand Go Green Campaign under the theme of “Eat smart, live smart, and energy smart”

IR Calendar

AUGUST

2 2Q2013

Result Release

6 29 14 2Q2013

Analyst Meeting Opportunity

Day Road Show

Thailand Focus By Phatra

SEPTEMBER

JULY

9 2Q2013

Analyst Briefing

17 PTT Group

Home Show

14

14

Did you know that reusing your cooking oil could lead to cancer? Worse than that are those who throw away their used vegetable oil to sewer. Bangchak, then has launched project “Used Vegetable Oil to Biodiesel program” as one of our initiatives for a better standard of living and harmonizing the environment. We have started the project Used Vegetable Oil to Biodiesel Program since 2007. At the present, 812,400 Kilograms of Used Vegetable Oil were bought which could produce 784,700 litre of B100 and could decrease 550 tons of Carbon Dioxide. Also, we could save 22.6 million litre from imported crude oil. (1 kilogram of Used Vegetable Oil to Biodiesel Program could decrease 1 litre of imported crude oil and decrease 0.7 kilogram of Carbon Dioxcide)

Used Vegetable Oil

to Biodiesel Program

So next time, if you have a bottle of used vegetable oil, sell to us at our selective service stations.

Bumpy Story

Power Bump

Please check the location of service station joining the program via Bangchak Call Center 02-145-2444

The information contained herein is being furnished on a confidential basis for discussion purposes only and only for

the use of the recipient, and may be subject to completion or amendment through the delivery of additional

documentation. Except as otherwise provided herein, this document does not constitute an offer to sell or purchase

any security or engage in any transaction. The information contained herein has been obtained from sources that The

Bangchak Petroleum Public Company Limited (“BCP”) considers to be reliable; however, BCP makes no representation

as to, and accepts no responsibility or liability for, the accuracy or completeness of the information contained herein.

Any projections, valuations and statistical analyses contained herein have been provided to assist the recipient in the

evaluation of the matters described herein; such projections, valuations and analyses may be based on subjective

assessments and assumptions and may utilize one among alternative methodologies that produce differing results;

accordingly, such projections, valuations and statistical analyses are not to be viewed as facts and should not be relied

upon as an accurate representation of future events. The recipient should make an independent evaluation and

judgment with respect to the matters contained herein.

Disclaimer

Investor Relations ir@bangchak.co.th Tel. ++662 335 4580, +662 335 4583 www.bangchak.co.th Click Investor Relations

The Bangchak Petroleum Public Company Limited Head Office : 10th Fl., Building A Energy Complex, 555/1 Vibhavadi Rangsit Rd., Chatuchak, Bangkok 10900 Thailand

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