Analyst Meeting 2Q13
21 August 2013
The future begins now creating shared value
2
Disclaimer
This presentation material has been prepared solely for informational purposes only.
IRPC is furnishing it solely for use by prospective investors / analysts in the proposed
event. IRPC makes no representations or warranties as to the accuracy or completeness
of such information. By accepting this material each recipient agrees that IRPC shall not
have any liability for any representations (express or implied) contained in, or for any
omissions from this presentation.
The information contained herein does not purport to be all-inclusive or to contain all of
the information that may be material to the recipient’s decision. Each recipient of the
information and data contained herein should perform its own independent investigation
and analysis of the transaction and the creditworthiness of IRPC . Reference in this Disclaimer to this shall include references to the Appendices (if any) hereto.
I. 2Q13 Highlights
II. Operation & Financial Performance
III. Project Update
IV. Industry Outlook
V. Appendix
3
Agenda
2Q13 Overview
4
Overview of Business
111 107 107
116
106 106 108 108
101
80 82
56
86
80 83
78
85 88
40
50
60
70
80
90
100
110
120
40
50
60
70
80
90
100
110
120
AVG Dubai (LHS)
Crude utilization rate (RHS)
$/bbl %
Dubai Price & Crude Utilization Rate
Net Sales & Net Profit Unit: MB
Net Sales Net Profit
(3,455) 153 (1,159) (2,481) (1,006)
1H12* 1H13
1. The oil price was under pressure because economic growth in US and China was
disappointing and the Euro-zone economic condition deteriorated. However, the
downward price pressure was alleviated by increased geopolitical tensions in the
Middle East.
2. Average Dubai price dropped from $108.2/bbl in 1Q13 to $100.8/bbl in 2Q13.
3. The crude utilization in 2Q13 rose to 189 KBD (88%) from 183 KBD (85%) in
1Q13. In 1H13, the crude utilization was 186 KBD (86%), increasing from 178
KBD (83%) in 1H12.
4. In 2Q13, there were two shutdowns: (i) total wide Rayong power outage, resulting
in expenses and opportunity losses of 356 MB and (ii) a scheduled shutdown in
the EBSM unit incurring opportunity losses of 132 MB.
5. Net sales were 67,150 MB in 2Q13, lower than net sales of 68,964 MB in 1Q13.
In 1H13, net sales declined to 136,114 MB from 146,261 MB in 1H12 due to a
decrease of 11% in the product prices despite an increase of 4% in sales
volume.
6. Market GIM in 2Q13 was $8.02/bbl rising from $7.40/bbl in 1Q13 because of
higher product spreads. Accounting GIM in 2Q13 was at $7.06/bbl, slightly lower
than $7.07/bbl reported in 1Q13. Market GIM in 1H13 was $7.71/bbl rising from
$5.09/bbl in 1H12. Accounting GIM in 1H13 was also higher at $7.06/bbl,
compared to $4.09/bbl in 1H12.
146,261
136,114
Net Sales & Net Profit Unit: MB
Net Sales Net Profit
* Restated
(2,481) (1,006)
1H12* 1H13
72,346 68,964 67,150
146,261 136,114
2Q13 2Q12* 1Q13
* Restated from effective TAS 12 Income Taxes
2Q13 Highlights
Projects
1. 51% overall progress of Phoenix Projects
2. EBSM Upgrading for ABS specialties: expected EBIT of $12
million/year
- ABS 60 KTA: MC on 10 May 13
- EBSM upgrading 60 KTA: MC on 23 July 13
3. Lube Blending Business Improvement: 93% progress; COD
expected in September 13; expected EBIT of $3 million/year
4. Ethylene Specialty Development: 62% progress; COD expected in
1Q14; expected EBIT of $5 million/year
5. UHV: 45% progress ; Construction phase has started; MC expected
in 1Q15
ABS6
SAN3
Completed
Completed
New Subsidiary
IRPC Clean Power Company Limited
High Value Product HDPE
Registered Capital: 50 MB
Objective: To commercially provide power and steam, and
other industrial utilities
Shareholding: IRPC holds 99.99% 5
As of July 13
I. 2Q13 Highlights
II. Operation & Financial Performance
III. Project Update
IV. Industry Outlook
V. Appendix
Agenda
6
-3.3
-8.5 -6.0
-3.9 -1.7
-7.1 -5.9 -4.4
14.3 14.0 15.9
13.4
18.4 14.6 14.1
16.5 18.1 17.6
21.2 19.4 19.6
16.8 17.8 18.2
-0.5 -1.3 -2.4
-9.0 -7.3 -3.6
-0.9
-5.5
116.1 106.4 106.3 107.5 108.2
100.8 111.2
104.5
-10
0
10
20
30
40
-40
0
40
80
120
160
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 1H12 1H13
NP-DB (RHS) ULG95-DB (RHS) GO-DB (RHS) FO-DB (RHS) Dubai (LHS)
Price $/bbl
Spread $/bbl
Softening Petroleum Prices
Source: Platts, IRPC Analysis Team
• Despite political tension in the Middle East (e.g. Syria), the average oil price declined in 2Q13 predominantly due to a
downward revision in the pace of global economic recovery.
• ULG spread decreased because of the resumption of supply from refineries’ unplanned outage in Asia.
• Gas oil spread softened due to an off peak seasonality effect and weaker demand from Vietnam, Indonesia and
India.
• HSFO spread continued to strengthen because of ongoing demand for fuel oil in Korean power generation industry
combined with limited supply from Saudi Arabia.
** Starting Jan-13 onward Gas oil 0.05%s is used instead of Gas oil 0.5%s,. For comparison purpose, historical data is re-stated based on Gas oil 0.05%
**
7
697 767
647
556 483 571
732
527 500
621 497 460
421 494
560
458
(99) (32) (40)
15
(19) (7) (65)
(13)
734 667 660
625 640 617 701
629
-200
0
200
400
600
800
1,000
1,200
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 1H12 1H13
150BS-FO 500SN-FO Asphalt-FO FO$/Ton
Improving Lube Base Oil Spreads
Source: Platts, ICIS, IRPC Analysis Team
• Improvement in the lube base oil spread was primarily
attributed to turnarounds in North East Asia despite
ongoing sluggish marine logistic demand.
• Asphalt spread improved due to seasonal regional
demand combined with a substantial drop in the price of
feedstocks. 1Q12 2Q 3Q 4Q 1Q13 2Q 1H12 1H13-0.3
0.2 1.2 0.7 1.0 2.0
-0.1 1.5 1.4
2.4 2.1
2.0 1.4
1.5
1.9
1.4 1.1
2.6 3.2
2.7 2.4
3.5
1.8
3.0
Lube Base RefinedMarket GRM
$/bbl
8
230 291 285
341 434 405
261
420
145 203 143
107
87 179
174
133 374
494 428
449
521
585
434
553
261
391 342 303 345
439 326
392
147
161 187
216 236
175
154
206 408
551 529 519
581 614
480
597
1,021
893 915 944 961
858
957 910
0
200
400
600
800
1,000
1,200
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 1H12 1H13
PP-Propylene Propylene-NP HDPE-ETH ETH-NP Naphtha$/Ton
Continuation of Olefin Spread Improvement
Source: Platts, ICIS, IRPC Analysis Team
• Despite a substantial drop in the naphtha price, olefin prices slightly declined because the demand
for olefins were relatively stable. As result, there was an improvement in the olefin spread.
9
Modest Drop in Aromatic Spreads
Source: Platts, ICIS, IRPC Analysis Team
178 219 217
335 305 260
198
283
161
222 269
420 426 428
192
427
316 261
326 385 366 334
289 350
1,021
893 915 944 961
858
957 910
0
200
400
600
800
1,000
1,200
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 1H12 1H13
Tol-NP BZ-NP MX-NP Naphtha
$/Ton
• Aromatic spreads came down from the level in the previous quarter, which was relatively high.
• Spreads for toluene and mixed-xylene dropped because of a decline in their demand for ULG
blending.
10
1Q12 2Q 3Q 4Q 1Q13 2Q 1H12 1H13
11 122 88 124 133 168
66 149 51
115 108 122 151 141
83
146 31
138 110
138 158 176
85
166
Aromatic&Styrenics Olefins
428 516 541
692 773
851
472
812
115
121 122
79
186 164
118
175
543
636 664
771
922 976
590
949 1,058 1,081
1,039 995
1,051 1,057 1,069 1,054 1,021
893 915 944 961
858
957
910
0
200
400
600
800
1,000
1,200
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 1H12 1H13
ABS-NP PS-SM SM-NP Naphtha$/Ton
Upturn in Styrenic Spreads
Source: Platts, ICIS, IRPC Analysis Team
PTF $/Ton • Relatively high PS price was sustained due to cost-push
effect from SM price.
• The price of ABS was pressured by weak downstream
demand which was in turn due to stubborn growth in the
global economy.
11
Increase Domestic Crude Intake
Crude Intake
80% 83% 78% 85% 88% 83% 86%
93% 97% 92% 88% 83% 91% 86%
2Q12 3Q 4Q 1Q13 2Q 1H12 1H13
Refinery Lube
72% 66% 70% 66% 63% 73%
65%
28% 34% 30% 33% 33% 27%
32%
1% 4% 3% 171 178 168 189 186
2Q12 3Q 4Q 1Q13 2Q 1H12 1H13
Domestic Crude
Sweet Crude
Sour Crude
183 178
Petroleum Production Petrochemical Production
88% 97% 102% 107%
100% 95% 104%
63% 85% 89% 85% 89% 74%
88% 89% 88% 93% 92%
78% 94%
85%
2Q12 3Q 4Q 1Q13 2Q 1H12 1H13
Olefin Aromatic Styrenic
6% 8% 8% 5% 5% 4% 5%
6% 6% 6% 6% 5% 5% 5%
18% 15% 14% 14% 13% 16% 13%
41% 41% 41% 41% 41% 42% 41%
7% 7% 8% 8% 8% 8% 8%
19% 19% 20% 21% 22% 21% 21%
3% 4% 4% 5% 6% 5% 6%
2Q12 3Q 4Q 1Q13 2Q 1H12 1H13
LPG
Naphtha
Gasoline
Diesel
Fuel Oil
Lube Base
Asphalt22% 22% 21% 19% 21% 22% 20%
42% 42% 39% 34%
40% 40% 37%
18% 17% 20% 25%
18% 18% 22%
18% 20% 20% 22% 20% 19% 21%
2Q12 3Q 4Q 1Q13 2Q 1H12 1H13
Aromatic
Olefin
Polyolefin
Polystyrenic
KTon
Unit : KBD
Pe
tro
ch
em
ica
l P
etr
ole
um
Mbbl 273 309 306 324 294 594 619 15.6 16.4 15.5 16.4 17.2 32.4 33.6
12
186
57% 59% 54% 65%
58% 59% 61%
43% 41% 46% 35%
42% 41% 39%
15.1 13.7 14.2 15.3 29.4 29.5
2Q 3Q 4Q 1Q13 2Q 1H12 1H13
Sales Qty
Export
Domestic
14.5
65% 64% 64% 60% 63% 64% 62%
35% 36% 36% 40% 37% 36% 38%
298 337 323 345 311 623 656
2Q 3Q 4Q 1Q13 2Q 1H12 1H13
Sales Qty
Export
Domestic
88% 87% 86% 84% 86% 87% 85%
12% 13% 14% 16% 14% 13% 15%
17.0 16.8 15.8 17.1 17.7 32.5 34.8
2Q12 3Q 4Q 1Q13 2Q 1H12 1H13
Total Mbbl
Petrochem
Petroleum
Focus on Domestic Market & High Value Products
Petr
ole
um
68% 68% 67% 65% 65% 68% 65%
32% 32% 33% 35% 35% 32% 35%
2Q12 3Q 4Q 1Q13 2Q 1H12 1H13
High Value
Commodity
Polymer Marketing Mix Towards High Value Product
Petr
och
em
ical
Singapore, 60%
Malaysia, 18%
Laos, 7%
Myanmar, 6%
China, 6%
Europe, 2%
Asia, 2% America,
1%
China, 46%
Singapore, 9%
Japan, 4%
Asia, 11%
Turkey, 8%
Europe,10% (German3% France3%, Others4%)
Australia, 4%
Middle East, 2%
America, 2%
Africa, 3%
Y2011
Unit: Mbbl
Unit: KTon
China, 39%
Singapore, 22%
Japan, 6%
Asia, 12%
Turkey, 4%
Europe,10% Middle
East, 4%
Others, 7%
Petroleum Petrochemical
Petroleum Petrochemical 9M12
Unit: Mbbl
1H13: Lower domestic sales proportion QoQ due to PTTGC‟s
shutdown but high proportion of domestic expected to recover in
2H13
13
41% 44% 46% 46% 50%
44% 44% 40% 41% 37%
15% 13% 14% 13%
13% 7.1 7.1 6.9
7.3 7.8
2Q12 3Q 4Q 1Q13 2Q
36% 40% 40% 39% 44%
39% 39% 36% 37% 33%
25% 21% 24% 24% 24%
27,375 28,487 27,764 28,497 29,476
2Q12 3Q 4Q 1Q13 2Q
QoQ 7%
YoY 10%
QoQ 3%
YoY 8%
43
37 38 35
40
2Q12 3Q 4Q 1Q13 2Q
Inventory Day (Days)
98 113 111 109
102
115 115 117 120
105
223 221 227
242
220
126 127 130 131 118
2Q12 3Q 4Q 1Q13 2Q
Unit Price ($/bbl)
Maintain Efficient Inventory Turnover in 2Q13
Value (MB)
Volume (Mbbl)
Petrochem
Petroleum
Crude
Petrochem
Petroleum
Crude
Total
*End-month unit price
*
14
Improving Market GIM in 2Q13
2Q12 3Q12 4Q12 1Q13 2Q13
2.97 3.08 3.12 3.88
3.09 3.09 2.77 2.93
1.03 0.88 0.97 1.02
7.09 7.05 6.86 7.83
30 Jun 12 30 Sep 12 31-Dec-12 31-Mar-13 30-Jun-13
98.3 112.7 111.2 101.8
115.0 114.8 116.7 105.0
223.9 220.7 226.7 220.6
126.1 127.4 129.8 118.4
7.2 6.5 6.7 7.4 8.0 5.1
7.7
(7.0)
3.3 0.3
(0.3) (1.0) (1.0) (0.6)
0.2 9.8
7.0 7.1 7.1
4.1
7.1
2Q12 3Q 4Q 1Q13 2Q 1H12 1H13
Market GIM Stock G/(L) net LCM + Hedging
Accounting GIM
8.5 9.8
7.0
11.0
6.3
0
5
10
15
A/C GIM
2.6 3.2 2.7 2.4 3.5 1.8 3.0
2.9 2.4 3.3 4.0
3.8
1.8
3.8 1.8 0.8 0.6 1.0
0.8
1.5
0.9 7.2
6.5 6.7 7.4 8.0
5.1
7.7
80% 83% 78% 85% 88% 83% 86%
2Q12 3Q 4Q 1Q13 2Q 1H12 1H13
Power & Utility Petrochemical Petroleum
Market GIM
Utilization rate
Unit: $/bbl
Unit: $/bbl • 2Q13 VS 1Q13
- An increase in the
Market GRM was
primarily driven by
better spreads of
petroleum products.
- However,
petrochemical
product spreads
were dragged down
by aromatic spread.
• Despite higher Market
GIM in 2Q13,
Accounting GIM in
2Q13 was relatively the
same as the one in
1Q13 due to higher
stock losses.
15
Consolidated Financial Performance
MB
2Q13 2Q12* 1Q13YoY
%
QoQ
%1H13 1H12*
Net Sales 67,150 72,346 68,964 -7% -3% 136,114 146,261
Market GIM 4,141 3,545 3,642 17% 14% 7,783 5,156
Net Stock Gain/(Loss) (496) (3,438) (160) 86% -210% (656) (1,017)
Accounting GIM 3,645 107 3,482 3,307% 5% 7,127 4,139
Other Income 298 551 254 -46% 17% 552 819
OPEX (2,452) (2,201) (2,176) 11% 13% (4,628) (4,257)
EBITDA 1,180 (1,798) 1,265 166% -7% 2,445 175
Net Financing Cost (434) (426) (456) 2% -5% (890) (810)
Gain/(Loss) from Fx (760) (312) 560 -144% -236% (200) (87)
Net Profit (1,159) (3,454) 153 66% -858% (1,006) (2,481)
Crude Run: Mbbl 17.2 15.6 16.4 10% 5% 33.6 32.4
Sales Volume: Mbbl 17.7 17.0 17.0 4% 4% 34.8 33.5
Avg. Fx 30.0 31.4 29.9 -4% 0.3% 30.0 31.3
Change MB
* Restated from effective TAS 12 Income Taxes
16
ST Loan 0.2% LT
Loan 37%
Bond (USD) 17%
Bond (THB) 45%
75,021 76,481 81,937 73,771
62,751
23,608
64,439
34,767
6,524
44,207
5,408
43,246
Balance Sheet with Diversified Debt Portfolio
144,296 151,784
Cash & ST Investment
PP&E
Other Assets
IBD
Other Liabilities
Equities
Unit: MB
Float 29 THB 43
Fixed 71 USD 57
Currency (%) Interest Rate (%)
Net Debt = 37,838 MB
USD/THB = 31.27
Debt Structure
“Ba1” Negative outlook
Credit Ratings
“BB+” Stable outlook
“A- (tha)” Stable outlook
Financial Position As of June 30, 2013
2Q12 1Q13 2Q13
Cost of Debt 5.37% p.a. 4.16% p.a. 4.04% p.a.
Net Debt/Equity
2Q12* 3Q 4Q* 1Q13 2Q
0.46 0.47 0.51 0.52 0.51
< 1.0x
2012* 2Q13
ST Loan 66
LT Loan 16,128
Bond (USD) 7,424
Bond (THB) 19,628
Total 43,246
Debt (MB)
Change
(% )
Assets 145,898 141,977 3%
Cash and Mkt. Sec. 4,109 6,524 (37)%
AR 17,106 14,140 21%
Inventory 32,090 31,253 3%
PPE & IP 76,194 75,021 2%
Other assets 16,399 15,039 9%
Liabilities & Equity 145,898 141,977 3%
AP 18,713 15,515 21%
IBD 43,820 44,207 (1)%
Other liabilities 6,746 8,093 (17)%
Equity 76,619 74,162 3%
Unit : MB 31-Dec-1231-Mar-13
*Restated net D/E ratio 2Q12 = 0.44, 4Q12 = 0.49
As of June 30, 2013
17 *Restated from effective TAS 12 Income Taxes
Recent Credit Rating Actions
• On 18 June, S&P downgraded IRPC's rating to „BB+‟ (Stable Outlook) from „BBB-‟ (Stable Outlook).
• On 2 July, Moody's downgraded IRPC's rating to „Ba1‟ (Negative Outlook) from „Baa3‟ (Stable Outlook).
S&P Rating Action
Standalone Credit Profile
Previous Now
Uplift from Parental Support
Previous Now
BB+ BB-
+1 Notch +2 Notches
Final IRPC Credit Rating
Previous Now
BBB- BB+
Moodys‟ Rating Action
Standalone Credit Profile
Previous Now
Uplift from Parental Support
Previous Now
Ba1 Ba3
+1 Notch +2 Notches
Final IRPC Credit Rating
Previous Now
Baa3 Ba1
Rationales
To reflect expected IRPC
relatively weaker operating
performance for a couple of
years.
To reflect
(i) Synergy from operating
integration with PTT
group
(ii) Increased support from
PTT on working capital
and other funding
requirements
18
Mitigation for Recent Credit Rating Downgrade
Reduce cash cycle & improve liquidity Sufficiently free up W/C credit lines PTT Group liquidity management collaboration
Discipline on financial metrics Maintain access to domestic capital markets Proactive refinancing plan
Ensure Sufficient Corporate Funding
Long-term
Funding
Liquidity
Management
19
I. 2Q13 Highlights
II. Operation & Financial Performance
III. Project Update
IV. Industry Outlook
V. Appendix
Agenda
20
Phoenix Project: #4 EBSM Upgrading for ABS specialties
• To expand EBSM to support ABS specialties production and to produce NANO additive for own use and reduce production costs
Progress : 100%
1. EHIA approval in Jul 11 2. DIW approval in Aug 12 3. EBSM: MC on 23 July 13 4. ABS6: MC on 10 May 13
EBSM 200 KTA EBSM 260 KTA
Project Description: Increase EBSM feed stock for ABS product.
Capacity Expansion: Increase EBSM from 200 KTA to 260 KTA.
Expected EBIT: USD 12 million/year
EBSM Completion 3Q13
SAN3
ABS6
Completed
Completed
21
As of July 13
Phoenix Project: #16 Lube Blending Business Improvement
Project Description: Increase lube blending capacity 60 ML per year
CAPEX: USD 7.0 million
Expected EBIT: USD 3 million/year
Progress: 93%
1. Filling Machine: Completed
2. MC: End of July 13
3. COD: Expected in Sep 13
12 m.Ltrs./year
(1 m.Ltrs./month)
72 m.Ltrs./year
(6 m.Ltrs./month)
22
As of July 13
Phoenix Project: #2 Upstream Project for Hygiene & Value Added Product (UHV)
Project Description: Upgrading bottom refinery product to high value added for Petrochem feedstock
Capacity Expansion: Increase propylene from 412 KTA to 732 KTA.
Progress : 45%, now Under construction, piling and foundation. 1. EIA approved in Jan 13 2. MC: 1Q15 3. COD: 3Q15
412 KTA
Existing Propylene
320
KTA
UHV 732
KTA
Total Propylene
23 As of July 13
After completion of UHV
• Running at full capacity of 215 KBD
• Propylene 320 KTA
• Light Distillate yield
• Crude Selection Flexibility
Sweet : Sour = 30:70 20:80
24
Benefits of UHV Project
Production Yield
0%
20%
40%
60%
80%
100%
Current Run +40 KBD Crude Run with UHV
20%
43%
8%
11%
10%
35%
35%
38%
11%
10%
19% 20%
21%
4% 2%
5% 6% 2% Ethylene
Propylene
LPG
Naphtha
Gasoline
Diesel/Jet
Lube Base
FO
09 10 11 12 13 14 15 16
Other Projects
Phoenix
BAU
Market GIM
GIM up 50%
Other projects consist of CHP, PRP and ABS6/SAN3
Currently running at full capacity is not optimal.
at 175 KBD
I. 2Q13 Highlights
II. Operation & Financial Performance
III. Project Update
IV. Industry Outlook
V. Appendix
Agenda
25
26
Global Oil Demand/Supply
Demand
Strong demand growth, especially from Asian
countries, is expected to rebound in 2H13. As
such, the total demand increase from the lowest
to the highest of 2013 is 4.15 MMB/D.
Middle distillate cracks are expected to
strengthen for the next few months as demand
picks up seasonally.
Import requirements into Latin America are
expected to increase because of lower
inventory coverage.
Supply
In addition to political turmoil, particularly in
Libya, Iraq, Syria and Nigeria, potential supply
outages from North Sea maintenance and
hurricane are expected.
Anticipated solid demand growth and potential
supply losses result in expectation of strong
crude stock draws in July and August 2013.
Data Source: PIRA, Asia-Pacific Oil Market Forecast (July 18, 2013)
Data Source: PIRA, World Oil Market Forecast (June 25, 2013) , IEA report (July 11,2013)
PE Huge Demand Growth Opportunities in Asia
27
Global PE demand growth continues to increase at
4.6% which is higher than the GDP growth
60% of the incremental demand is from Asia, mainly
from China and India.
Expect high cost producers in Europe will shut down
some plants over the next five years.
Reducing operating rate, moving away from
commodity grade production and focusing on
specialty grade are the key challenges.
Source : IHS APIC Conference2013 Source : IHS APIC Conference2013
Spread
Asia – The Driving The Global PP Demand
28
Asia will be the global PP demand growth
driver.
Rising economic activity and increasing
purchasing power of the population is
expected to boost the demand for packaging
and appliances.
PP dynamic will continue to change but the
versatility of PP is still expected to support its
demand.
Source : IHS APIC Conference2013
Forecasted Demand Growth Between 2012-2017
Versatility of PP: Inter-Polymer & Inter-Material Shift….
More Promising prospects of EPS &PS
29
EPS end-uses is expected to grow strongly
because of strong public housing markets in
North East Asia.
The growth of PS capacity in Asia is expected
to be relatively flat and thus over-supply
condition is unlikely.
A gradual improvement in the ABS market will
come back to growth momentum in line with
GDP.
Source : IHS Petrochemical Price forecast June 2013
30
Lube Base Oil Gradually Recover
Maintenance shutdown schedule is expected in North East Asia
- Declining spot supply
- Stockpiling demand for tem commitment during turnaround
Singapore major refiner increased their term prices of base oil GI & GII to maintain spread from the
rising feedstocks prices. This upward price pressure should positively affect the market sentiment.
The demand for Bright Stock and heavy grade is expected to be relatively solid in China during the
summer season.
But, sluggish demand in finished lubricant market still put pressure on the lube base oil market.
I. 2Q13 Highlights
II. Operation & Financial Performance
III. Project Update
IV. Industry Outlook
V. Appendix
31
Agenda
Phoenix Initiatives & Roadmap
Capacity & Products
Expansion
Capacity & Product
Expansion
Operational Efficiency
Improvement Asset Utilization
Enhancement
Product & Services
Improvement
Petrochem Petroleum Port & Tank Real Estate & Services
6. Supply Chain Optimization
(Griffin and Trading)
3. Ethylene Specialty
Development
7. Lube Group 1 Specialty
Products Focus
12. I'M ACE: IRPC Service
Solutions
1. Petrochem Operation &
Energy Efficiency
5. Petroleum Operation &
Energy Efficiency
9 . New Value Added for Port
and Tank Business 2. Capacity Development for
Propylene Growth
11. Build and sustain land for
green industrial
complex
4. EBSM Upgrading for ABS
Specialty
14. Performance Chemical
Business Development
Project
8. Petroleum quality
improvement to clean fuel
and green growth
development
13. Petrochem Catalyst
Commercialization
15. Utilities for
Sustainability
16: Oil Depot and Lube
Blending Business
Improvement
17: Analytical Lab
19: Hydrocarbon Management
20: Intellectual Property
Stewardship
32
33
Additional Capacity in Phoenix Projects
Nov.
+14 KTA +49 KTA +23 KTA
Sep.
+60 KTA
-
2012
-
2013
-
2014
-
2015
-
2016
-
2017
Sep. TDAE 28 KTA 150BS 25 KTA
Feb.
GHU 15 KBD
Mar.
Co-Invest Diesel 10KBD Kerosene 15KBD
Ethylene
Special
Development
EBSM
Upgrading for
ABS
Lube Group1
Petroleum
Quality
Improvement
HDPE
140/140 KTA
SM
200/260 KTA
TDAE 22/50 KTA
150BS 95/120 KTA
EURO IV
Gasoline 15KBD
Diesel 10KBD
Kerosene 15KBD
Project Total Capacity
Old/New
Oct.
Propylene 100 KTA
Sep.
Propylene
320 KTA
PRP+ Propylene
Growth (UHV) Propylene
312/732 KTA
SAN3/ABS6 Apr.
+60 KTA
ABS/SAN
117/177 KTA
UHMW-PE Sep.
+4 KTA +12 KTA
Phoenix Project: #3 Ethylene Specialty Development
Commodity Product
HDPE
High Value Product
HDPE
Project Description: High Value Added Product of HDPE Specialty & PE Wax
CAPEX: USD 9 million
Expected EBIT: USD 5 million/year
Progress: 62% Under Construction
1. HDU I: Completed
2. HDU II & Convert Plant: Completion in 1Q14
34 As of July 13
Refinery & Lube
ADU
Lube Base
Asphalt
Products 2011 2012 2013 2014 2015 2016
CDU 215 KBD 215 KBD
150BS 95 KTA 120 KTA
TDAE 22 KTA 50 KTA
Lube Group 1 Specialty Products:
Increase high value added lube specialty products: TDAE & Bright Stock
+28 KTA
Petroleum Quality Improvement to Clean Fuel & Green Growth Development:
Upgrading HSD / Gasoline to be EURO IV standard
Products 2011 2012 2013 2014 2015 2016
Gasoline 75 M.Ltrs 75 M.Ltrs
Diesel 180 M.Ltrs 180 M.Ltrs
50 KTA
Phoenix by Business Unit
120 KTA +25 KTA
35
Initiative
7
Initiative
8
Olefins Products 2011 2012 2013 2014 2015 2016
Ethylene 360 KTA 433 KTA
Propylene 312 KTA 732 KTA
Butadiene 56 KTA 56 KTA
Acetylene 4 KTA 4 KTA
Upstream Project for Hygiene & Value Added Products (UHV):
Upgrading low value product (HS-ATB) to be high value added product for petrochemical feedstock:
Propylene 320 KTA, Ethylene 73 KTA, and Heavy Aromatic Naphtha 250 KTA, etc.
+320 KTA +100 KTA
+73 KTA
412 KTA 732 KTA
433 KTA
Products 2011 2012 2013 2014 2015 2016
PP 475 KTA 475 KTA
PP Specialties 100 KTA
HDPE 140 KTA 140 KTA
Performance Chemical Business Development Project:
PP Compound & PP Specialty
To create value added of propylene from UHV by initiating new products shifting from commodity
market to specialty market.
Phoenix by Business Unit (Con‟t)
Polyolefins
36
Initiative
2
Initiative
14 +100 KTA
Products 2011 2012 2013 2014 2015 2016
Benzene 114 KTA 114 KTA
Toluene 132 KTA 132 KTA
Mixed Xylene 121 KTA 121 KTA
Products 2011 2012 2013 2014 2015 2016
SM 200 KTA 260 KTA
ABS/SAN 117 KTA 177 KTA
PS 100 KTA 100 KTA
EPS 30 KTA 30 KTA
+60 KTA
Performance Chemical Business Development Project:
Increase 60 KTA EBSM for feeding ABS specialty.
To satisfy local demand for ABS/SAN expansion and to produce Nano additive.
260 KTA
Styrene
+60 KTA 177 KTA
ABS/SAN Expansion 6
Increase ABS/SAN from 117 KTA to 177 KTA to support ABS specialties production and Nano
additive production.
Phoenix by Business Unit (Con‟t)
Aromatics
37
Initiative
4
38
Thank You
Investor Relations Contact: [email protected]
Tel. 02-649-7380, Fax. 02-649-7379
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