may 19, 2016 1q 2016 analyst presentationesso.listedcompany.com/misc/presentation/...1q2016.pdf ·...
TRANSCRIPT
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 www.exxonmobil.com). This material is not to be reproduced without the permission of Exxon Mobil Corporation.
1Q 2016Analyst Presentation
May 19, 2016
2
■Global economic weakness and deflationary environment remained in the first quarter of 2016
Weaker-than-expected performance in the United States, Europe, China, and Japan
Japan and Europe further implemented negative rates following low inflation and anemic growth
The Thai economy in the first quarter of 2016 expanded by 3.2%, the highest rate in 12 quarters, supported by high growth in government spending and investment, exports of services, and growth in private consumption
Oil prices remained weak but rebounded from January lows (avg Dubai oil prices: Jan = $26.8/bbl, Feb = $29.3/bbl, Mar = $35.1/bbl)
Business Environment
3
■Achieved a record high crude run of 146 KBD; industry refining margins remained strong at $7.8/bbl
■Earned profit of 1.9 billion baht, reflecting strong operating performance
■Generated 2.6 billion baht of cash flow from operating activities; debt to equity ratio decreased to 1.7
■Expanded retail network, premium product offering, and alliance partnerships
■Prepared Esso SMILES loyalty card program for launch on May 1st
Headline Results
Headline Results
4
15.4
19.8 19.3 18.7 18.817.415.4
13.115.1
10.9
1Q 15 2Q 15 3Q 15 4Q 15 1Q 16
UGP
ADO
139 141 135 142 146
1Q 15 2Q 15 3Q 15 4Q 15 1Q 16
8.5 8.0
6.3
8.0 7.8
1Q 15 2Q 15 3Q 15 4Q 15 1Q 16
Industry Gross Refining Margin ($/bbl) Crack Spread ($/bbl)
Crude Intake (KBD) Gross Refining Margin ($/bbl)
Industry GRM and Crack Spread Source: Reuters
Dubai ($/bbl)at quarter-end 54.7 61.8 45.4 34.6 35.1
Operating Performance
2.7
13.1
-0.9
4.2
7.5
1Q 15 2Q 15 3Q 15 4Q 15 1Q 16
5
YTD2015 1Q2016
32% 33%
55%43%
2% 17%10% 7%
Caspian
West African &Others
Far East & SouthEast
Middle East
Operating PerformanceCrude Intake by source Sales Channel
■Diversified crude intake portfolio to optimize yield and strengthen cost competitiveness
■Captured strong demand growth by increasing domestic retail and commercial sales
FY2015 1Q2016
53% 56%
38% 37%
9% 7%
Export
Retail
Commercial
Operating Performance
6
FY2015 1Q2016
10% 13%
45% 43%
27% 27%
18% 17% Feedstock
Light
Middle
Heavy
Refinery Product YieldsRefinery Production
■ Heavy product yields increased, resulting from higher demand for fuel oil and asphalt
■Middle distillate product yields decreased by 2% driven by a lower product price spread for diesel
FY2015 1Q2016
18% 17%
9% 11%1% 2%8% 8%
37% 35%
19% 19%
3% 3%5% 5%LPG
Naphtha
Gasoline
Diesel
Jet/Kerosene
Asphalt
Fuel Oil
Feedstock andother
Operating Performance
7
203
268298
117 102 118
1Q 15 4Q 15 1Q 16PX-UGP PX-MX
Operating PerformancePx Spread ($/Ton) Px Production (K Ton / quarter)
■ Paraxylene spreads increased on lower crude oil prices; however, industry margins remained challenging due to excess capacity in the region
■Maintained production levels based on integrated economics and domestic customer commitments
62
60
58
1Q 15 4Q 15 1Q 16
8
16
24 23
3
2013 2014 2015 1Q16
Marketing Business Update
67
151
240 254
2013 2014 2015 1Q16
Service Stations offering Premium ADO Service Stations offering E20
35
327
400 406
2013 2014 2015 1Q16
New Service Stations Alliance Stores
150179
260 273
2013 2014 2015 1Q16
9
■Held Esso SMILES loyalty program roadshow for dealers in advance of May 1st launch
■ Introduced new alliance partner “S-Minimart” with a target to open 12 stores by June 2016
Marketing Business Update
10
0.2 0.1
-
0.1
0.2
4Q2015 1Q2016
4035
-
10.0
20.0
30.0
40.0
50.0
4Q2015 1Q2016
1.1
2.9
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4Q2015 1Q2016
0.5
1.9
-
1.0
2.0
4Q2015 1Q2016
Comprehensive IncomeSales Revenue Interest Expenses
Net Profit/(Loss)EBITDA
Comprehensive Income
11
Balance Sheet Indicators
Cash Flow
■ Decrease in assets driven by lower inventory level
■ Decrease in liabilities driven by lower debt and crude payables
■ Debt to equity decreased with lower debt and higher shareholders equity
■ Cash flow from operating activities reflects strong operating performance
■ Cash flow used in investing activities includes investments for equipment maintenance and service station upgrades
■ Financing activities reflect repayment of debt
37 36
1 14 5
14 120.3 0.3
0
10
20
30
40
50
60
4Q2015 1Q2016Cash InventoryReceivables Other current AssetNon-current Assets
14 16
29 27
11 9 3 1
-
10
20
30
40
50
60
4Q2015 1Q2016
Shareholder's Equity DebtPayables Others
D/E 2.1D/E 1.7
6.92.6
(0.8) (0.2)
(6.3)(2.4)
-10
-5
0
5
10
4Q2015 1Q2016
Cash flow from financing activities
Cash flow from investing activities
Cash flow from operating activities
Financial Position
12
■ Maintained focus on operational excellence, strengthened retail network, and achieved strong financial and operating performance
Strong crude run of 146 KBD
Earnings for the period of 1.9 Billion Baht
Cash flow from operating activities of 2.6 Billion Baht
Esso SMILES loyalty program launch preparation
Summary