tipco asphalt public company limited (tasco) · 2019-08-15 · tipco asphalt public company limited...
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15th August 2019
Tipco Asphalt Public Company Limited (TASCO)
3-2019 Analyst Meeting(Q2 2019 Operational Results)
Disclaimer
This presentation material has been prepared solely for informational purposes only. TASCO is furnishing it solelyfor use by prospective investors / analysts in the proposed event. TASCO makes no representations or warrantiesas to the accuracy or completeness of such information. By accepting this material each recipient agrees thatTASCO shall not have any liability for any representations (express or implied) contained in, or for any omissionsfrom this presentation.
The information contained herein does not purport to be all-inclusive or to contain all of the information that maybe material to the recipient’s decision. Each recipient of the information and data contained herein should performits own independent investigation and analysis of the transaction and the creditworthiness of TASCO. Reference inthis Disclaimer to this shall include references to the Appendices (if any) hereto.
Agenda
Q2 2019 Financial Performance
Q2 2019 Highlights
H2 2019 Outlook
Q&A
1
2
3
4
Sales & Services Revenue & Sales VolumeSales & Services RevenueUnit: Mil. THB
0.40 0.650.32 0.34 0.38 0.49
1.54
Q1 Q2 Q3 Q4 Year
2019 2018
7,091 10,784 5,263 5,766 7,032 9,571
27,632
Q1 Q2 Q3 Q4 Year
2019 2018
Sales VolumeUnit: Mil. Ton
• Sales and services stood at Baht 10,783.9 million, reflecting anincrease of 87.02% from the same period of last year and 52%increased from Q1 2019 attributed to significant increased in salevolume
• 91% increase in sales volume from the same period of last yearas a result of continuous and increased crude supply togetherwith high production reliability at our refinery in Q2 2019
Operating Gross Profit
1,168 916 607 518
808 431
2,364
Q1 Q2 Q3 Q4 Year
2019 2018
Operating Gross ProfitUnit: Mil. THB
Gross profit margin (%)
Q1 Q2 Q3 Q4 FY
2019 16.5% 8.5%
2018 11.5% 9.0% 11.5% 4.5% 8.6%
• Gross profit of Q2 2019 was satisfactory given that the marketprices fluctuated within range bound. In addition, the Companyhas charged out to the Profit and Loss a hedging loss of Baht35.6 million in this quarter which did not qualify for hedgeaccounting and also recorded a hedging gain of Baht 112.6million as Other Comprehensive Income (OCI).
• Cost of sales and services in Q2 2019 stood at Baht 9,822.4million or 91.08% (87.73% in corresponding quarter in 2018) ofsales and services before the allowance for diminution in valueof inventory and hedging
• The apparent reduction of gross margin was mainly due tohigher gross margin in the corresponding quarter of 2018therein the sales volume was low and in an uptrend marketcondition
474 1,195
162 588 538
1,169
2,457
Q1 Q2 Q3 Q4 Year
2019 2018
EBITDA & Net Profit
EBITDAUnit: Mil. THB
Net Profit After TaxUnit: Mil. THB
718 1,053
304 344 6 132 564
Q1 Q2 Q3 Q4 Year
2019 2018
• The Group’s cashflow generated from operations excluding fire insurance claim stood at Baht 744.7 million increased by 57% over Q1 2019
• The Group’s cashflow generated from operations including fire insurance claim stood at Baht 1,195 million increased by 103% over Q2 2018
• The Net Profit After Tax of Baht 1,052.9 million for the Q2 2019 represented 206% increased in corresponding quarter of 2018
0.68 1.00 1.13
0.02 0.01 0.004
Q2 2018 Q1 2019 Q2 2019
Total liabilities/Total equity LT debt/Total equity
Debt to Equity Ratio
Debt/Equity Ratio
• The Group’s consolidated debt to equity ratio (D/E ratio) reached 1.13 comparing to 0.68 in corresponding period of 2018 due to increase in working capital financing for higher crude inventory.
Key Ratios and Historical Dividend
7.7
15.412.3 11.2
8.14.5
Q1 Q2 Q3 Q4
2019 2018
Return on Equity1/
Unit: %
6.610.39.1 8.5
6.2 4.5
Q1 Q2 Q3 Q4
2019 2018
Return on Asset2/
Unit: %
Historical DividendUnit: Baht per share
2/ Return is based on sum of last 12 months net profit Return is based on profit before interest and tax
0.13 0.00 0.10 0.20
0.90 0.901.20
0.30 0.40
2011 2012 2013 2014 2015 2016 2017 2018 2019
Payout ratio
1/ Return is based on sum of last 12 months net profit
Dividend PolicyThe Company has a policy to pay dividends of not less than 60% of its consolidated net profit of each fiscal year.
The Company is pleased to announce an interim dividend of 0.40 Baht/share for the year 2019
27% 45% 74% 84% 36%
Interim dividend
Expense relating to fire incident and insurance claim
Loss/(Gain) from the fire incident (Unit: Mil. THB)
2018 Q1 2019 Q2 2019
Damaged Assets 289.92/ - (378)3/
Related expenses to the incident1/ 68.2 143 (44.5)
Total 358.1 143 (422.5)
• During the six-month period ended 30 June 2019, The refinery incurred additional operating expense of Baht 170 million in operating expense for crude storage, logistic handling and other related expenses, attributable to the fire incident. Some of these expenses will be recurring until the damaged crude tanks are back in service
• In May 2019, the refinery received a partial payment of insurance claim in connection with damaged assets and related expenses to MYR 60 million or approximately Baht 450 million
1/ include cost of floating storage unit rental, demurrage, tanks repair and other expenses2/ carrying value of damaged assets-written off to Profit & Lost statement3/ partial insurance claim based on replacement cost of damaged assets
Status of crude storage of KBC refinery
2 repaired tanks 2 damaged tanks
Floating Storage Unit Refinery crude storage
• 2 repaired tanks are scheduled to be done in Q4 2019• 2 damaged tanks are scheduled to done in Q1 2020
• Rental period last during mid-February 2019 to February 2020
Q2 2019 - Highlights
• 4 crude cargos received during the Q2 2019• Total crude receiving of 8 cargos in first half of 2019 well exceeded target
Crude
• Refinery was processing at high utilization rate• New construction and repair of crude storage tanks are underway according to plan
Refinery
Q2 2019 - Highlights
Domestic Market
• Q2 2019 sale volume was benefiting from delay of budget disbursement in Q4 2018
• Entering into low working season
International Market
• Strong demand in China, Malaysia and Vietnam markets, especially in China market
Asphalt Selling Price vs. Ice Brent PriceUnit: USD/barrel
80.1
70.1
60.0 57.3
45.8
38.0 37.4 38.5
53.845.3 48.2
57.962.2 63.6
71.2
63.3
65.371.4
55.263.5
51.2
44.734.7
46.9 47.1 51.1 54.7 50.9 52.2
61.567.2
74.9 76.0
68.1
63.8 68.3
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Avg. asphalt selling price Avg. Ice Brent price
Highlights : Asphalt Volume & Asphalt Revenue Structure
Main International Markets
China
Vietnam
Australia
Asphalt sales volume by market Unit: %
Asphalt Revenue (Exc. Non asphalt & service income)Unit: %
32% 45% 20%
68% 55% 80%
Q2 2018 Q1 2019 Q2 2019
Domestic International
28% 35% 17%
72% 65% 83%
Q2 2018 Q1 2019 Q1 2019
Domestic International
Indonesia
Malaysia
0.400.34 0.65
Q2 2018 Q1 2019 Q2 2019
Million tons
4.61 5.97 9.21Billion Baht
Q2 2018 Q1 2019 Q2 2019
H2 2019 Outlook – Crude & Refinery
Refinery
Crude
• Existing inventory in-hand is adequate to maintain refinery production until Q1 2020
• Target receiving of 15 crude cargos in 2019
• 2 repaired tanks will be resumed operation in Q4 2019• Renewal of Floating Storage Unit until Feb 2020• 2 new tanks construction will be scheduled to be completed in Q1 2020
H2 2019 Outlook – Domestic & International market
Domestic Market
International Market
• Benefit from consistence crude supply
• Peak season in Indonesia and Vietnam
• 2020 fiscal government budget delay from Q4 2019 to Q1 2020
• Expected stimulus budget from new government to support GDP growth
www.tipcoasphalt.com
THANK YOU
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