Analyst Meeting 2012 - listed...
37
Petroleum Deep Seaport Analyst Meeting 2012 1 March 2013 Petrochemical Industrial Zone
Transcript of Analyst Meeting 2012 - listed...
Petroleum
Petrochemical
Deep Seaport
Industrial Zone
Analyst Meeting 2012 1 March 2013
Petrochemical
Industrial Zone
I. 2012 Highlights
II. Operation & Financial Performance
III. Economic & Industry Outlook
IV. Near-term Project Update
V. Appendix
2
Agenda
2012 Highlights
3
1. Average Dubai price rose to $109/bbl in 2012 from $106/bbl
in 2011. However, Dubai price remained volatile due to
concerns about US fiscal cliff.
2. The yearly average crude utilization in 2012 rose to 175 KBD
or 82% of total capacity from 160 KBD or 74% of total
capacity in 2011 in which there was a turnaround for 49
days.
3. Net sales were 283,668 MB rose by 20% from 2011 due to
increases in sales volume by 16% and product price by 4%.
4. Market GIM was $5.8/bbl in 2012 dropping from $9.6/bbl in
2011 and Accounting GIM dropped to $6.3/bbl in 2012 from
$11.0/bbl in 2011 because net stock gains and LCM
declined to $0.43/bbl in 2012 from $1.32/bbl in 2011.
Overview of Performance
101
111 107 107
116
106 106 108 106 109
79 80 82
56
86
80 83
78 74
82
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 %
2011 2012
236,519
283,668
Dubai Price & Crude Utilization Rate
Net Sales
20%
Unit: MB
4
2012 Highlights
5. Land sales of 132 rai in Eco Industrial Zone to Japanese investors: gains of 362 MB
6. Gains of 443 MB from reversal of asset impairment and disposal in 4Q12. The land revaluation is
undertaken every 3 years.
7. Gains of 215 MB from financial swap contracts in 4Q12, mainly from cross currency swap
contracts
8. Gains of 282 MB from revaluation of platinum & palladium in 2012
9. Total long-term fund raising of 13,700 MB and $175 million in 2012
10. Fitch Ratings affirmed our national long-term rating at A-(tha) with a stable outlook in Jan 2013.
11. 43% overall progress of Phoenix Projects
12. Diesel EURO IV (Multi-product pipe line): COD in Feb 13, expected EBIT of $8 million/year
13. EBSM Upgrading for ABS specialties: 64% progress, expected EBIT of $12 million/year
- ABS 60 KTA: MC in Jan 13 & COD in Apr 13
- EBSM upgrading 60 KTA: MC in July 13 & COD in Sep 13
14. Lube Blending Business Improvement: 80% progress, COD in May 13, expected EBIT of $3
million/year
15. Ethylene Specialty Development: 51% progress, COD in 4Q13, expected EBIT of $5 million/year
16. UHV: 40% progress, EHIA approved in Nov 12 & MC in 1Q15
Finance
Project
I. 2012 Highlights
II. Operation & Financial Performance
III. Economic & Industry Outlook
IV. Near-term Project Update
V. Appendix
5
Agenda
Movement of Oil Price & Product Crack Spread
6
Price $/bbl
Spread $/bbl
Source: Platts, IRPC Analysis Team
(0.2) (2.2) (3.0)
(9.8)
(3.3)
(8.5) (6.0) (3.9) -3.8
-5.4
12.6 14.3 17.3
9.8
14.3 14.0 15.9
13.4 13.5 14.4
18.2 19.5
17.6 17.8 16.4 15.4
19.3 17.5 18.3 17.1
(9.1) (8.6)
(3.2) (2.8) (0.5) (1.3) (2.4)
(9.0) -6.5
-3.3
100.5 110.7 107.1 106.5
116.1 106.4 106.3 107.5 106.2 109.1
-10
0
10
20
30
40
-40
0
40
80
120
160
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012
NP-DB(RHS)
ULG95-DB (RHS) GO-DB (RHS) FO-DB (RHS) Dubai (LHS)
• The average Dubai price in 4Q12 was slightly higher than that in 3Q12. Dubai price was rather volatile facing global
economic concerns and supply concerns in the ME along with supply disruption /resumption in UK , Buzzard oil filed.
• ULG spread decreased due to the end of US travel season and the peak global refinery run in Q4, contributed from such
factors as the start up of CPC refinery, Talin RFCC (80 KBD) and the resumption of Vietnamese refineries’ operation.
• A decline in the gas oil spread in 4Q12 was attributed to weak demand and a rise in supply in China, reflecting in a sharp rise
in China’s diesel export.
• HSFO spread in 4Q12 worsened quarter-on-quarter due to continued weak demand from both bunker grade and boiler
grade combined with western supply flowing into Asia.
836
988 1,021
858
697 767
647
556
926
667 629
781 786
632
500
621
497 460
707
(97) (84) (95) (70) (99) (32) (40)
15
(86) (39)
597 664 660 674
734 667
660 625 649
672
-200
-
200
400
600
800
1,000
1,200
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012
150BS-FO 500SN-FO Asphalt-FO FO
519
Movement of Lube Base Price
7
$/Ton
Source: Platts, IRPC Analysis Team
Refined & Lube Base Oil
1Q11 2Q 3Q 4Q 1Q12 2Q 3Q 4Q Y11 Y12
6.0 6.0 7.4 5.0 1.1
2.6 3.2 2.7 6.1
2.5
Market GRM $/BBL • Lube base oil spread dropped due to a decline in the
demand from regional marine logistic sector and ample
supply of Group II and III from Korea.
• Asphalt spread turned positive because of high demand from
road construction in Australia following flooding.
317 298 204 172
230 291 285
341 249 287
135 99 239 258 145
203 143
107 180 149
451 397
443 431 374
494
428 449
429 436
459 495 438 394
261 391 342 303
448 324
254 196 212
142
147
161 187 216
198
178
712 691 651
536
408
551 529 519
646
502
921
993 956
890
1,021
893 915 944 940 943
-
200
400
600
800
1,000
1,200
1,400
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012
PP-Propylene Propylene-NP HDPE-ETH ETH-NP Naphtha
Movement of Olefin Price
8 Source: Platts, IRPC Analysis Team
$/Ton
• Naphtha price received a boost from solid demand from Asian ethylene plants, which had limited planned
maintenance, and re-stocking demand ahead of Chinese New Year.
• The sentiment in polyolefin market was in a cautious mode. Despite better HDPE spread, PP spread deteriorated.
Polypropylene continued to be adversely affected by a slowdown in Chinese exports.
498 434 531
450 428 516 541
692
479 544
138 144
73 216 115
121 122
79
213 109
636 577 604
666
543 636 664
771 692
653
1,403
1,247 1,219
1,011 1,058 1,081 1,039
995
1,220
1,043
921 993
956 890
1,021
893 915 944 940 943
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012
ABS-NP PS-SM SM-NP Naphtha
Movement of Styrenic Product Price
9 Source: Platts, IRPC Analysis Team
$/Ton
• Changes in styrenic spread were mixed. ABS spread dropped whereas PS spread rose.
• ABS price continued to be adversely affected by poor demand, particularly in durable goods, in the region.
• PS price rose on buoyant SM price. PS price was also supported by relatively low operating rates and solid and from the construction industry in China. Dem
10
Movement of Aromatic Price
$/Ton
• Strong regional demand combined with relatively low inventory led to sizable jump in the price of toluene.
• Mixed xylene price was supported by high season for polyester.
Source: Platts, IRPC Analysis Team
81 97
178
237
178 219 217
335
165 237 226
151 165
102 161
222
269
420
161
268
160
227
334 333 316
261
326 385
244
322
921 993
956 890
1,021
893 915 944 940 943
-
200
400
600
800
1,000
-
200
400
600
800
1,000
1,200
1,400
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012
Tol-NP(RHS)
BZ-NP(RHS)
MX-NP(RHS)
Naphtha(LHS)
Unit : MB 4Q12 4Q11 3Q12 (%) 2012 2011 (%)
Net Sales 66,418 50,117 70,989 33 283,668 236,519 20
EBITDA before stock G/(L)&LCM 738 477 1,349 55 3,280 7,829 (58)
EBITDA 888 152 3,061 484 4,125 10,189 (60)
Net Profit before stock G/(L)&LCM (134) (1,198) 430 89 (1,804) 1,581 (214)
Net Profit 16 (1,523) 2,141 101 (959) 3,941 (124)
Crude Run: Mbbl 15.50 11.10 16.36 40 64.22 58.25 10
Sales Volume: Mbbl 15.80 12.05 16.75 31 66.09 56.65 17
4Q12 vs. 4Q11
4Q12 & 2012 Financial Highlights
11
2012 vs. 2011
EBITDA increased by 736 MB:
1. Sales revenue by 33%: Quantity 31%, Price 2%.
2. Market GIM from $ 9.39/bbl to $6.70/bbl.
3. Net stock gain & LCM was 150 MB, while net stock loss &
LCM in 4Q11 was 325 MB.
4. Gain from real estate (EIZ) 362 MB.
Net Profit increased by 1,539 MB
5. Unrealized FX gain from USD loan by 197 MB
6. Gain from reversal of asset impairment and disposal & write
off of asset 443 MB, 4Q11 write off turnaround 375 MB
7. Unrealized gain from Thai Oil shares by 84 MB.
8. Finance cost by 166 MB (increase in gain mainly from CCS 217 MB)
9. Depreciation by 269 MB.
EBITDA decreased by 6,064 MB:
1. Sales revenue by 20%: Quantity 16%, Price 4%.
2. Market GIM from $ 9.64/bbl to $ 5.83/bbl.
3. Net stock gain & LCM was 845 MB , Y2011 was 2,360 MB.
4. Gain from real estate (EIZ) 362 MB.
5. Gain from MTM platinum & palladium 282 MB
Net Profit decreased by 4,900 MB:
6. Unrealized FX gain from USD loan by 759 MB.
7. Gain from reversal of asset impairment and disposal & write off
of asset by 1,053 MB.
8. Unrealized gain from Thai Oil shares by 510 MB.
9. Finance cost by 79 MB (increase in gain mainly from CCS 217 MB)
10. Depreciation by 892 MB.
Current Production
Crude Intake
56% 86% 80% 83% 78% 74%
82%
46%
87% 93% 97% 92% 80%
93%
4Q11 1Q12 2Q 3Q 4Q 2011 2012
Refinery Lube
74% 66% 70% 76% 70%
26% 34% 30% 24% 30%
121 168 175
4Q11 3Q12 4Q12 2011 2012
Total
Sweet Crude
Sour Crude
Petroleum Production
Petrochemical Production
55%
101%
88%
97% 102%
85% 97%
43%
83%
63%
85% 89%
70% 80%
59% 98%
89% 88% 93%
79%
92%
Q411 1Q12 2Q 3Q 4Q 2011 2012
Olefin Aromatic Styrenic
58.3 64.2
6% 8% 8% 7% 7% 4% 6% 6% 6% 6%
18% 15% 14% 16% 16%
44% 41% 41% 44% 41%
7% 7% 8% 7% 7%
17% 19% 20% 17% 19%
3% 4% 4% 3% 3%
4Q11 3Q12 4Q12 2011 2012
LPG
Naphtha
Gasoline
Diesel
Fuel Oil
Lube Base
Asphalt
16.4 11.1
1,209 1,077 187 309
22% 22% 21% 21% 22%
38% 42% 39% 40% 40%
21% 17% 20% 19% 18%
19% 20% 20% 20% 20%
4Q11 3Q12 4Q12 2011 2012
Aromatic
Olefin
Polyolefin
Polystyrenic
Unit : Mbbl
Unit : KTon
Unit : KBD
306
15.5
12
11.1 16.4 15.5 58.3 64.2 Mbbl
Utilization
Petrochemical Petroleum
178 160
88% 87% 86%
87% 87%
12% 13% 14%
13%
13%
4Q11 3Q12 4Q12 2011 2012
Petrochem
Petroleum
Revenue Structure
Petr
ole
um
84% 78% 70% 67%
16% 22% 30% 33%
2009 2010 2011 2012
Commodity
High Value
55% 59% 54% 58% 59%
45% 41% 46% 42% 41%
4Q11 3Q12 4Q12 2011 2012
Export
Domestic
Polymer Marketing Mix Towards High Value Product
Export
38%
Domestic
62%
Singapore, 53%
Asia, 46%
Others, 1%
China, 36%
Asia, 50%
Europe, 7%
America, 2%
Australia, 3%
Others, 2%
Petroleum Petrochemical
Petr
och
em
ical
2012 Net Sales
Export by
Destination
13.66 10.56 57.59 49.37
63% 64% 64% 64% 64%
37% 36% 36% 36% 36%
4Q11 3Q12 4Q12 2011 2012
Export
Domestic
323 224 1,283 1,143 337
14.51
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
50,117 66,418 70,989
236,519 283,668 Net Sales (MB)
13
Unit:Mbbl
Unit: KTon
Singapore, 51%
Malaysia, 17%
Laos, 6%
China, 6%
Asia, 19% America,
1%
China, 39%
Singapore, 22%
Japan, 6%
Asia, 12%
Turkey, 4%
Europe,10% Middle
East, 4%
Others, 7%
Petroleum Petrochemical
Petroleum Petrochemical 9M12
Gross Integrated Margin (GIM)
Ending
Inventory (Mbbl)
4Q11 2Q12 3Q12 4Q12
Crude 4.27 2.97 3.08 3.12
Petroleum 3.79 3.09 3.09 2.77
Petrochemical 0.88 1.03 0.88 0.97
Total 8.95 7.09 7.05 6.86
Cost (USD/BBL) 31 Dec 11 30 Jun 12 30 Sep 12 31-Dec-12
Crude 109.5 98.3 112.7 111.2
Petroleum 114.4 115.0 114.8 116.7
Petrochemical 224.0 223.9 220.7 226.7
Total 125.6 126.1 127.4 129.8
14
9.4
3.1 7.2 6.5 6.7
9.6 5.8
(0.9)
4.6
(7.0)
3.3 0.3
1.3
0.4
8.5 7.7 0.2
9.8
7.0
11.0
6.3
4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012
Market GIM Stock G/(L) net LCM + Hedging
Accounting GIM
4Q12 Vs. 4Q11
• Market GIM was at $ 6.70/bbl or 3,202 MB, decreasing by
$2.69/bbl or 45 MB.
• Market GRM was at $ 2.71/bbl or decreasing by $ 2.31/bbl
due to the volatility of crude oil and product prices.
• Net stock gain & LCM was at $ 32/bbl or 150 MB,
increasing $1.26/bbl and hedging gain 309 MB.
Y2012 Vs. Y2011
• Market GIM was at $ 5.83/bbl or 11,699 MB, decreasing
3.81 $/BBL or 5,494 MB.
• Market GRM was at $ 2.48/bbl , decreasing $ 3.64/bbl due
to spread over Dubai price decreasing.
• Net stock gain & LCM was at $ 0.43/bbl or 845 MB,
decreasing $ 0.89/bbl.
8.5 9.8
7.0
11.0
6.3
0
5
10
15
A/C GIM
Unit: $/bbl
5.0 3.2 2.7
6.1
2.5
1.5 2.4 3.3
2.8
2.3
2.9
0.8 0.6
0.7
1.0
9.4
6.5 6.7
9.6
5.8
4Q11 3Q12 4Q12 2011 2012
Power & Utility Petrochemical Petroleum
Market GIM
Utilization rate 56% 83% 78% 74% 82%
Unit: $/bbl
48% 44% 46%
42%
44% 40%
10%
13% 14%
8.95
7.07 6.86
4Q11 3Q12 4Q12
44% 40% 40%
39%
39% 36%
17%
21% 24%
35,751
28,487 27,764
4Q11 3Q12 4Q12
QoQ 3%
YoY 23%
QoQ 3%
YoY 29%
72
37 38
4Q11 3Q12 4Q12
Inventory Day (Days)
Petrochem
Petroleum
Crude
110 113 111
115 115 117
222 221 227
125 127 130
4Q11 3Q12 4Q12
Unit Price ($/bbl)
Petrochem
Petroleum
Crude
Total
Inventory Balance
Value (MB)
Volume (Mbbl)
15
Statements of Financial Position
Change
(% )
Assets 141,977 132,119 7%
Cash and Mkt. Sec. 6,524 3,994 63%
AR 14,140 9,924 42%
Inventory 31,253 38,810 (19)%
PPE & IP 75,021 71,711 5%
Other assets 15,039 7,679 96%
Liabilities & Equity 141,977 132,119 7%
AP 15,515 17,408 (11)%
IBD 44,207 28,531 55%
Other liabilities 8,093 10,258 (21)%
Equity 74,162 75,922 (2)%
31-Dec-11Unit : MB 31-Dec-12
Inventory
• 19% : Quantity of Inventory 23% due to Crude 1.15 Mbbl,
FG 0.94 Mbbl, although Prices 4%
(Inventory Cost 4Q12 = $130/bbl, 4Q11 = $125/bbl)
Account Payable
• 11%: quantity of crude purchasing in Dec 12 0.69 Mbbl
compared with end of year 11 while Dec 12 purchasing crude price= 110$/bbl which price same as the previous year
PPE & IP
• Asset Purchase (PRP, ABS6) 7,232 MB
• Depreciation (4,284) MB
• Losses from Impairment 362 MB
Account Receivable
• 42%: Sales Volume 27% (Dec’12=0.75 MT, Dec’11=0.59 MT)
while Product Prices 12% (Dec’12= $985/Ton, Dec’11=$876/Ton)
Cash and ST Investments
• Operation 2,401 MB
• Investment (13,429) MB
• Financing 13,558 MB
2,530 MB
IBD
• 55% : Due to Loan Drawdown & 10,000 MB Bond Issue despite
Loan Repayment of 3,102 MB
Other Assets
• Purchase Shares of UCHA, 25% = 5,300 MB
16
27,190
45,044 43,969
1,340
262 238
28,531
3,994 10,258
6,524
24,537
35,048 37,683
-
20,000
40,000
60,000
4Q11 3Q12 4Q12
Cash & S/T investment Short term
Long term Net Debt
Debt Portfolio
ST
Loan
1%
LT
Loan
39%
Bond
(USD)
16%
Bond
(THB)
44%
ST Loan 238
LT Loan 17,038
Bond (USD) 7,305
Bond (THB) 19,626
Total 44,207
Debt (MB)
Net Debt/Equity
Debt Profile
Float 30 THB 44
Fixed 70 USD 56
Currency (%) Interest Rate (%)
MB
4Q11 3Q12 4Q12
Cost of Debt 5.43% p.a. 5.25% p.a. 4.20% p.a.
Debt Structure
0.32
0.47 0.51
4Q11 3Q12 4Q12
< 1.0x
“Baa3” Stable outlook
Credit Ratings
“BBB-” Stable outlook
“A- (tha)” Stable outlook
Fx : USD/THB = 30.78
17
Net Debt = 37,683 MB
As of Dec 31, 2012 As of Dec 31, 2012
As of Dec 31, 2012
I. 2012 Highlights
II. Operation & Financial Performance
III. Economic & Industry Outlook
IV. Near-term Project Update
V. Appendix
18
Agenda
Thailand’s Business Outlook
Economic Outlook
Overview
19
Global Economy
, February 2013
• Moving into 2013, we saw evidence of a positive
transition in the global economy. The U.S. has moved
beyond the immediate threat of the fiscal cliff, financial
distress in the Eurozone has eased, and China has
moved off the hard-landing watch list.
• China gathering strength, with GDP climbing from 7.4%
in Q3 to 7.9% in Q4, the rebound in manufacturing
continued in Dec, with both the official and HSBC PMIs
indicating expansion for the second consecutive month.
• The Thai economy expanded more than expected in
4Q12 and is predicted to expand further in Q1/13.
• Private consumption expenditure robustly surged
12.2% YoY (2.6% QoQ), the highest YoY growth since
the current GDP data series was published.
• Exports of goods and services rose 19.0%YoY (3.1%
QoQ), after a decline in previous quarter (-2.8% YoY).
• MPC hold rate constant at 2.75% as market expected,
a bit more hawkish tone of statement.
Overview
2.4 1.8 2.2 2 3 2 1.4
-0.6 -0.3
1.4
10.4 9.3
7.8 8.2 8.5 7.8
0.1
6.4 5 4.5 5.1
3.9 3.3 3.5 4.1
-2
0
2
4
6
8
10
12
2010 2011 2012 2013f 2014f
% YoY Global GDP
US Euro Zone China Thailand World
Source: IMF, Jan 2013; NESDB ,Feb 2013; Bloomberg; and FPO , 2013
Global Oil Demand/Supply
• In 2013 world oil demand is expected to rise to 91.36
mbd, due to evidence of economic recover gaining
some momentum in developing countries.
• Demand growth from Asia remains a key component
of global year-on-year oil demand growth.
• Supply is expected to grow in the same pace at 1.11
mbd to 91.65 mbd, largely from Canadian oil sands,
US shale oil, Iraq and Libya
• Taking demand/supply factors into account combined
with possible further turmoil in ME, it appears that oil
price is expected to be well-supported.
Brent/WTI/Dubai
85
90
95
100
105
110
115
120
125
130
Jan
-11
Mar
-11
May
-11
Jul-
11
Se
p-1
1
No
v-11
Jan
-12
Mar
-12
May
-12
Jul-
12
Se
p-1
2
No
v-12
Jan
-13
Mar
-13
May
-13
Jul-
13
Se
p-1
3
No
v-13
Brent Duai WTI
Forecasting by Pira
$/bbl
Source : PIRA, 2013
20
-15
-10
-5
0
5
10
15
20
25
Jan
-11
Ap
r-1
1
Jul-
11
Oct
-11
Jan
-12
Ap
r-1
2
Jul-
12
Oct
-12
Jan
-13
Ap
r-1
3
Jul-
13
Oct
-13
Gasoil
ULG95
Naphtha
Fuel Oil
Petroleum Product Market
Cold weather supports global petroleum product demand
in Feb-Mar 2013.
Stock draws, especially gasoil and gasoline, are
expected for the next several months as Atlantic Basin
turnarounds gear up.
Resurgent in petrochemical margin have boosted
demand for Naphtha.
Overall, healthy global petroleum product demand
especially in Diesel product in 2013 caused by improving
industrial activities in developing countries.
Forecasting by PTT Group
Product Spread Over Dubai $/bbl
Source : PIRA, 2013
21
Polypropylene & Propylene
• Potential demand growth rates come from developing
countries, such as China, India and Middle East
Countries.
• China will continue importing Propylene & PP even
increasing its internal supply.
• PP can be used in various applications up from luxury
to commodity, now PP price is more competitive
comparing with PS and PET.
• The adjacent of Shale gas in US and other places
around the world will suppress propylene supply in the
near future.
Source : IHS Annual report 2013
22
Naphtha
ABS & PS
• ABS market is forecasted to grow above GDP, at
4.1% per year over the next 5 years.
• The most dynamic growth sectors will be the
Electronics, Electrical, Appliance and Transportation
market.
• PS demand is forecast to grow slightly faster than
increase in capacity.
• China, SE Asia and S. America is forecast to grow
significantly, especially in the Electronics/ Appliances
market.
Source : IHS Annual report 2013 23
Lube Base Oil
• Asia-Pacific base oil prices fell in 2012 to their lowest
levels in at least two years, squeezed by rising
supplies and weaken demand.
• Base oil margins fell even further, and prompting
widespread standalone plant run cuts throughout the
NEA region.
• Market stabilizes and margin may improve when
approaching turnaround season in March.
• Demand shows promising sign due to improving in
shipping activities and manufacturing production in
China.
Source : IHS Annual report 2013
24
I. 2012 Highlights
II. Operation & Financial Performance
III. Economic & Industry Outlook
IV. Near-term Project Update
V. Appendix
25
Agenda
Diesel Euro IV: Progress 100% Completion
Phoenix Project: #8 EURO IV Project Progress
Project Description: Petroleum quality improvement to clean fuel and green growth development
Scope: Upgrading Diesel to be EURO IV specification
EBIT: USD 8 million/year (Euro IV Diesel & Kerosene)
1. EIA approval in Oct 2011 2. Completed construction & pipe line installation
and internal facility (Salt Dryer) 3. COD: Feb 2013 4. First batch sent on Feb 6, 2013
Multi-Product pipe line
Diesel Euro IV (Multi-product pipe line)
Volume: 25 KBD
26
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 : 64.13% 1. EHIA approval in Jul 11 2. DIW approval in Aug 12 3. EBSM COD: Sep 2013 4. ABS6/SAN3 COD: Apr 2013
EBSM 200 KTA EBSM 260 KTA
Project Progress : 64.13%
Project Description: Increase EBSM feed stock for ABS product.
Capacity Expansion: Increase EBSM from 200 KTA to 260 KTA.
EBIT: USD 12 million/year
ABS6
SAN3
EBSM Completion 3Q13
Completion 2Q13
Completion 2Q13
27
Phoenix Project: #16 Lube blending business improvement
Project Description: Increase lube blending capacity 60 ML per year
CAPEX: USD 7.0 million
EBIT: USD 3 million/year
Progress: 80.36%
1. Filling Machine: Completed
2. COD: May 2013
Project Progress : 80.36%
12 m.Ltrs./year
(1 m.Ltrs./month)
72 m.Ltrs./year
(6 m.Ltrs./month)
28
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
EBIT: USD 5 million/year
Progress: 51%
1. HDU I: Completed
2. HDU II & Convert Plant: Completion in 4Q13
29
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 : 40% Under engineering design preparation and LLI procurement
1. EHIA approved in Nov 12 2. MC: 1Q15 3. COD: 3Q15
30
Specialty
Products
UHV C3
AA/ SAP
PP Compound
412 KTA
Existing Propylene
320
KTA
UHV 732
KTA
Total Propylene
I. 2012 Highlights
II. Operation & Financial Performance
III. Economic & Industry Outlook
IV. Near-term Project Update
V. Appendix
31
Agenda
32
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
9.1 Maximize Tank efficiency
with LCT 2. Capacity Development for
Propylene Growth
9.2 Dry Port
Commercialization
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
Under Studying
2010 2011 2013 2015 2012
Gasoline
EURO4
15 KBD
Power (&
Steam) 220
MW
Under
Implementation
In1,5,6,9,12 BS 25 KTA
TDAE 28 KTA Diesel EURO4
25 KBD ABS
60 KTA PP Compound
100 KTA
Propylene
(C3) 100
KTA
UHV(C3)
320 KTA AA 80 KTA
SAP 80 KTA
Refinery & Lube
ADU
Lube Base
Asphalt
Products 2011 2012 2013 2014 2015 2016
ADU 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
33
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
34
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 for support ABS specialties production and to
produce Nano additive .
Phoenix by Business Unit (Con’t)
Aromatics
35
Initiative
4
36
Q&A
37
Thank You
Investor Relations Contact: [email protected]
Tel. 02-649-7380, Fax. 02-649-7379
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