“be pragmatic & agile”. chaiwat_bangch… · “be pragmatic & agile ... business...
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30 November 2017
“Be pragmatic & Agile”
Mr. Chaiwat Kovavisarach
President and Chief Executive Officer,Bangchak corporation PLC.
Crude Oil Price (As of Nov 22, 2017)
2011 2012 2013 2014 2015 2016 2017
Crude Oil Price ($/BBL)
-1.1
-0.19
-1.3
-0.16
1.48
0.97
-0.08
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
84
86
88
90
92
94
96
98
100
Implied Stock Change Demand [Right Axis] Supply [Right Axis]
Implied Stock Change(MBD)
Stock Change (MBD)
Global Oil Demand Supply and Stock Changes
EV’s could cut
8 MBD of use by 2040
Source : Bloomberg New Energy Finance
Business Disruption : Widespread Use of EVs
LOWER CRUDE OILPRICE FOR LONGER
Car Efficiency Improvement
5 km/L
20 km/L
100 km/L
1990
2017
2040Year
Business Disruption: 2oC Program/Reduction of Fossil in Power Generation
Source: Intergovernmental Panel on Climate Change (IPCC), Global Carbon Project
Increase in Global Temperature from pre-industry Carbon Emission
3.2 – 5.4 °CIf nothing is done
2.0 – 3.7°CIf current policy
continues
1.7 – 3.2°CAdditional policy
from Paris Agreement
< 2°CParis Agreement
Target
We are here
Global Primary Energy Supply (MTOE)
, X 2015
Bangchak New Vision, Mission, Core Value
….. Change to ……
Core Engines – to realize full potential
MarketingGreen Power
Plant
Second Largest Market Share in Thailand
Extensive retail network, with non-oil business a key competitive advantage
Integration with refinery provides benefits
Complex Refinery with Integration
On-going value enhancement projects
resulted in improvement in normalized utilization
rate with minimal unplanned shutdown time
Long-term Stable Earnings Stream
Balanced mix of green power generation assets across solar, wind and
geothermal
Bio-Based Products
National Leader of Bio-Based Products
Securing BCP own feedstock and to develop the largest bio-
based product producers in Thailand
Preserve long-term business
competitiveness
Seeking new sources of energy
New Growth Engines
RefineryResources
(E&P/Lithium)
Diversify to Green Business
BIIC Creates Green Ecosystem for Greenovative Breakthrough
BIIC : Bangchak Initiative and Innovation Center
Success Case : Lithium as Hedge
Jan Jul 2017
invested 32 MUSD @4.25 CAD/Share
&
Joint Venture 50/50 on the Cauchari-Olaroz project
Mar 2016
Invested 5 [email protected] CAD/Share
Invested 48 MUSD @4.25 CAD/Share
Jun
15
10
5
0
Stock Price ,CAD