Translation
RPC/HO-SET/ELICID-00021/06
August 10th, 2006
Subject : Company Performance in The 2nd Quarter 2006
To : President
The Stock Exchange of Thailand
Rayong Purifier Public Company Limited and its subsidiaries
would like to clarify the decrease of Baht 28.28 million
in the Net Profit of the company after Tax in the 2nd Quarter 2006
(2Q06) or down 18.9%, compared to the 2nd Quarter 2005 (2Q05).
The main contributors that caused the decrease in the Net Profit
from Baht 149.83million in 2Q05 to Baht 121.55 million
in 2Q06 can be summarized as follows:-
1. Increase of Condensate Residue Supply
In 2Q06, the company obtained an additional supply of feed stock
or Condensate Residue (CR) from the Aromatic (Thailand) PLC.
This helped increase the production from 11.0 KBD in 2Q05 to 14.3 KBD
in 2Q06, by 3.3 KBD or 30% up.
2. Increase of Revenue and services
The revenue of the company in 2Q06 was Baht 5,326 Million,
increasing Baht 1,945 million or 58% from Baht 3,381million in 2Q05.
This resulted from the rising oil prices in the world market and
increasing sale volume of 27 million Liters or 14% up in 2Q06,
compared to 2Q05.
3. Gross Profit
The Company earned Baht 278 million in gross profit in 2Q06,
decreasing Baht 14 million or 5% compared to Baht 292 million in 2Q05.
This was due to the lower marketing margin in 2Q06 compared to
the one in 2Q05, when the controlled diesel price policy
was promulgated.
4. Selling and Administration Expenditure
In 2Q06, the company spent Baht 117 million in sale and
administrative cost, increasing Baht 27 million or up 30%,
compared to Baht 90 million in 2Q05. This mainly came from
approximately Baht 8 million due to the increase of sale volume
in 2Q06, Baht 10 million from retail segment expansion of
PURE THAI ENERGY COMPANY LIMITED (PTEC) and
other subsidiary expenses.
5. Interest Expense
The company paid Baht 5 million or 125% more in 2Q06
for the interest compared to 2Q05 as a result of rising interest rate
and increase of interest expense of VTN-P Petrochemical Joint Venture,
subsidiary in Vietnam.
As a result, the net profit of the company decreased by
Baht 28.28 million or 18.9% in 2Q06 compared to 2Q05.
Please be so informed.
Sincerely Yours,
Mrs. Siraporn Krishnakan
Assistant to Managing Director
Investor Relations / Managing Director Office
Tel 0 2515-8671
e-mail ir@rpcthai.com