Company Performance of 1Q 08

BackMay 14, 2008

RPC/HO-SET/ELICID - 0034/08

May 14th, 2008

Subject: Company Performance of 1Q08

To: The President Stock Exchange of Thailand

Rayong Purifier Public Company Limited and its subsidiaries would like to clarify the 100.20% or 43.12 Million Baht increased in Net Profit after Tax in 1st Quarter 2008 (1Q08) compared to 1st Quarter 2007 (1Q07). The key factors that caused the increase of Net Profit from 43.03 Million Baht in 1Q07 to 86.15 Million Baht in 1Q08 are:

1. Gross Profit
Gross Profit in 1Q08 increased by 41.35 Million Baht or 22.32% compared to 1Q07. The reasons for the increase are as follows:

World Oil Price
There were Stock Gain due to increase of World Oil Prices during 1Q08. Gas Oilprice in Singapore market increased 20.50 USD/BBL from average 105.70 USD/Barrel in January 2008 to average 126.20 USD/Barrel in March 2008 while there were slightly changes during 1Q07.

Gross Profit from Affiliated Companies
In 1Q08, Gross Profit of Affiliated Companies increased 11 Million Baht or 275% compared to 1Q07 because there was no allocated loss from VTN-P Petrochemical Joint Venture Co., Ltd., Affiliated Company in Vietnam, which is now in the process of selling of assets to a Vietnamese company. Gross Profit of Pure Thai Co., Ltd. also increased from the increasing number of Gas Stations.

2. Other Income
In 1Q08, the Company generated 34.94 million Baht of Other Income, 30.46 Million Baht or 680% higher than 1Q07; 15.28 Million Baht gain from Commodity Swap Contract on Crack Spread between prices of Company's main products; 5 Million Baht gain from Foreign Currency Forward Contracts; 9 Million Baht from the increased Other Income of Affiliated Companies and 1 Million Baht from Earned Interest.

3. Selling and Administrative Expenses
In the 1Q08, Selling and Administrative Expenses of the Company increased 16.73 Million Baht or 13.74% compared to 1Q07 from the increase in Administrative Expenses of the Company and its subsidiaries due to the increasing number of Company's Gas Stations; the Operating Expenses of SCT Sahaphan Co., Ltd., newly acquired by Pure Thai Co., Ltd. in 2008 and from Pure Biodiesel Co., Ltd. which is now under construction.

4. Interest Expense
The Interest Expense in 1Q08 was 8.90 Million Baht, 2.61 Million Baht or 22.70% less than 1Q07 due to lower interest rates in 1Q08 and the lower Interest Expense from VTN-P Petrochemical Joint Venture Co., Ltd. because of the total long term loan repayment to Exim Bank in January 2008.

Therefore, the Company's Net Profit has increased by 100.20% or 43.12 Million Baht in 1Q08 compared to 1Q07.

Please be so informed.

 

Sincerely Yours,

 

(Mrs. Siraporn Krishnakan)
Assistant to Managing Director

 

Investor Relations/Managing Director's Office
Tel.0-2515-9036
E-mail ir@rpcthai.com

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