Thai Oil (TOP) Investor Presentation summary

Business overview and strategic positioning

• Operates as a leading integrated refining and petrochemical group in Asia Pacific with a 275 kbd refinery, representing 22% of Thailand's refining capacity and a Nelson Complexity Index of 9.81.

• Strong strategic partnership with PTT, which holds a 48% stake, providing long-term business and operational synergies, including crude procurement and product offtake.

• Diversified business structure across oil refining, petrochemicals, lube base, power generation, solvents, and international marketing arms.

• Strategic location in Sriracha offers direct access to deep water ports and product pipelines, facilitating efficient market access in Thailand and Indochina.

• Member of Dow Jones Sustainability Indices, recognized for ESG leadership and strong corporate governance.

Operational and market highlights

• Maintained high refinery utilization at 113% in Q1/25, outperforming industry averages, with a focus on maximizing middle distillates and platformate production.

• Domestic sales remain robust, with 86% of sales to local customers and 11% to Indochina markets.

• Flexible crude sourcing and product output optimization help manage margins amid volatile market conditions.

• Q1/25 saw a softer gross refining margin (GRM) at $3.5/bbl due to global economic slowdown and increased supply from new refineries in China and Nigeria.

• Aromatics and lube base segments experienced margin pressure from elevated inventories and weak demand, while solvents and ethanol saw improved contributions from better margins and lower costs.

Financial performance and capital management

• Q1/25 net profit was 3,504 MB, up from 2,767 MB in Q4/24, supported by gains from bond buybacks and inventory revaluation.

• Sales revenue for Q1/25 was 106,270 MB, with EBITDA at 6,462 MB; free cash flow remained positive despite lower sales and margins.

• Net debt stood at 105,840 MB, with a net debt/EBITDA ratio of 6.1 and average debt life of 13.82 years at a 4.18% cost.

• Dividend policy targets a payout of at least 25% of consolidated net profit, with a 2024 annual dividend of 2.75 THB/share and a yield of 6.7%.

• Credit ratings remain investment grade, with Baa3 (Moody’s), BBB (S&P), and A+ (Fitch, Thai), all with negative outlooks.