3Q 2016 Analyst Presentation

Transcription

1 3Q 2016 Analyst Presentation November 18, 2016 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 This material is not to be reproduced without the permission of Exxon Mobil Corporation.

2 Industry and Business Environment 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 Note: Industry domestic sale source : DOEB 2

3 Headline Results 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 3

4 Margins and Crude Intake Industry Gross Refining Margin ($/bbl) Crack Spread ($/bbl) Q15 2Q16 3Q16 Gross Refining Margin ($/bbl) 3Q15 2Q16 3Q16 UGP ADO Crude Intake (KBD) Q15 2Q16 3Q16 3Q15 2Q16 3Q16 4 Note: Industry GRM and Crack Spread Source : Reuters

5 Crude Source and Sales Channels Crude Intake by Source Sales Channels 11% 8% 2% 8% Caspian 9% 6% 54% 47% West African 38% 40% Export Retail Far East & South East Commercial 33% 37% Middle East 53% 54% 9M2015 9M2016 9M2015 9M2016 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 5

6 Refinery Yields Production by Type Product Yields 17.5% 17.4% 5% 5% 3% 3% 19% 20% LPG Naphtha Gasoline 26.7% 26.9% Feedstock Diesel Light 37% 36% Jet/Kerosene 45.4% 44.4% Middle Heavy 8% 8% 1% 2% 9% 9% Asphalt Fuel Oil 10.4% 11.3% 18% 17% Feedstock and other 9M2015 9M2016 9M2015 9M2016 Heavy product yields increased, driven by an increase in Asphalt sales Middle distillate and Feedstock product yields decreased, driven by lower product price spreads 6

7 Petrochemical Spreads and Production Operating Performance Px Spreads ($/Ton) Px Production (K Ton / quarter) Q15 1Q16 2Q16 3Q16 3Q15 FY2015 3Q16 9M2016 PX-UGP PX-MX 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 7

8 Marketing Business Update Service Stations Offering Premium ADO Service Stations Offering E YTD YTD2016 Number of New Service Stations Domestic Market Penetration* Caltex 7.1% Shell 9.3% Others 23.2% BCP 10.6% Esso 10.9% PTT 38.9% YTD2016 PTT Esso BCP Shell Caltex Others 8 * Source : DOEB YTD AUG 2016 (including all domestic sales to end-customers)

9 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 9

10 Financial Performance Sales Revenue Cash Flow From Operations (0.8) 2Q16 3Q16 9M2015 9M2016 EBITDA 2Q16 3Q16 9M2015 9M2016 Net Profit/Loss (0.1) 2Q16 3Q16 9M2015 9M2016 Note: All units are in Billion Baht 10 (0.4) 2Q16 3Q16 9M2015 9M2016

11 Financial Position YE2015 Inventory Other current Asset Balance Sheet Indicators QE2016 Receivables Non-current Assets D/E 2.1 D/E YE2015 Shareholder's Equity Payables QE2016 Debt Others 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 (0.8) (0.3) (4.3) (6.3) YE2015 QE2016 Note: All units are in Billion Baht Cash flow from operations Cash flow used in investing Cash flow used in financing 11 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

12 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 12