Company Performance for 3rd Quarter 2005

BackNov 10, 2005

 

Subject : Company Performance for 3rd Quarter 2005
      
      To      : President
                The Stock Exchange of Thailand
       
            Rayong Purifier Public Company Limited and its subsidiaries would
      like to clarify the 25.74 % or 43.65 Million Baht decrease in the
      Company's Net Profit after Tax in 3rd Quarter 2005 (3Q05) compared to
      3rd Quarter2004 (3Q04). The key factors that caused the decrease of Net
      Profit from 169.61  Million Baht in 3Q04  to 125.96 Million Baht in
      3Q05 can be summarized  as follows:-
      
      1. Decrease in Gross Profit
      In 3Q05, the company has 248 Million Baht of Gross Profit, decreased 98
      Million Baht or 28% compared to 346 Million Baht in the same period of
      2004. The decrease is due to the change of accounting books  keeping
      which result from the acquisition of transportaion company as an
      affiliated  company in 2005. Therefore, the Transportation Cost has to
      be recorded as Cost of Goods Sold, instead of Selling and
      Administration Expenditure. Furthermore, the abrogation of
      the controlled diesel price policy in July 2005 has invited high
      competition  in pricing and caused  the marketing margin to decline.
      Moreover, the world oil price fluctuation during this quarter also hurt
      the marketing margin. However,the company managed to  maximize the
      gross profit by swithching the production mode to maximize  export
      volume which generated higher margin.
      
      2. Increase of Sale Revenue and Service
      On the other hand, the rise of world oil price, $72/BBL of Means of
      Platts Singapore average in 3Q05, which increased $22/BBL or 54%
      compared to $50/BBL average in 3Q04 cause the rise to the Sales Revenue
      in 3Q05  to 4,114 Million Baht from 2,599 Million Baht in 3Q04,
      increased by  1,515 Million Baht or 58%.  The total sales  consists of
      37 Million Liters of export volume, which  increased 19 Million Liters
      or 106% compared to the same period of 2004
      
      3. Decrease of Selling and Administration Expenditure
      There was 41 Million Baht or 34% decrease in the Selling and
      Administration Expenditure in 3Q05, from 122 Million Baht in 3Q04 to 81
      Million Baht in 3Q05. This is a result of 32 Million Baht of
      transportation cost changed to be recorded as  Cost of Goods Sold, as
      described in topic 1 above. In additional, the merger with SCT group,
      from January 2005, also reduces consolidated Selling and
      Administration Cost.
      
      
      
      As a result, the companys  net profit has decreased by 25.74% or 43.65
      Million Baht in 3Q05 compared to 3Q04.
      
      
      Please be so informed.
      
      
      Sincerely Yours,
      
      
      
      Mrs. Siraporn Krishnakan
      Assistant to  Managing Director
      
      
      
      
      
      Inrestor Relations/Managing Director Office
      Tel.02-5158600 Ext. 8671