Company Performance of 2Q/08

BackAug 11, 2008

RPC/HO-SET/ELICID - 0006/08

11 August 2008

Subject: Company Performance of 2Q08

To: The President Stock Exchange of Thailand

Rayong Purifier Public Company Limited (RPC) and its subsidiaries would like to clarify the 79% or 115 million Baht increased in Net Profit after Tax in the second quarter of this year (2Q08) compared to the second quarter of last year (2Q07). The key factors for the increase of Net Profit from 146 million Baht in 2Q07 to 261 million Baht in 2Q08 are as follows:

1. Gross Profit Gross Profit in 2Q08 increased 145 million Baht or 48% higher than 2Q07 whichresulting from:

World Oil Price There were Stock Gain, especially on Legal Reserved Stock, due to the increase of World Oil Prices in 2Q08. Gas Oil price in Singapore market increased 40 USD/BBL in 2Q08, from average 126 USD/Barrel in March 2008 to average 166 USD/Barrel in June 2008.

2. Other Income There was 104 million Baht of Other Income in 2Q08, 93 million Baht or 845% higher than in 2Q07. The 'Gain from Assets Sale' of 75 million Baht was allocated from VTN-P Petrochemical Joint Venture Co., Ltd., RPC's subsidiary in Vietnam, and 9 million Baht from 'Gain from Foreign Currency Forward Contracts'.

3. Selling and Administrative Expenses In the 2Q08, Selling and Administrative Expenses increased 61 million Baht or 53% compared to 2Q07. This was from the increase in Administrative Expenses of the Company and its subsidiaries such as Pure Biodiesel Co., Ltd. which is still under plant construction and SCT Sahaphan Co., Ltd., newly acquired by Pure Thai Co., Ltd., RPC's subsidiary, in 2008.

4. Interest Expense The Interest Expenses in 2Q08 was 14 million Baht which was 11 million Baht or 181% higher than 2Q07. Since Thailand domestic oil prices in 2Q08 could not catch up with the rapid increase of international prices, the Company increased the export of finished products to international markets which inevitably effect the increase of secured-short-term Accounts Receivable, higher Short Term Working Capital Loan as well as Debt to Equity Ratio.

Therefore, the Company's Net Profit in 2Q08 has increased by 79% or 115 million Baht compared to 2Q07.

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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