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Q: SPRC's Business

Founded in 1992, SPRC is one of the leading petroleum product producers and oil refiner in Thailand and the Asia Pacific region.

SPRC owns and operates a complex refinery with a capacity of 165,000 barrels per day of crude oil, which represents 13.4% of the refining capacity in Thailand.

SPRC strategically located in Map Ta Phut, Thailand's premier petrochemicals hub and our key products consist of LPG, premium and regular grade of gasoline, jet fuel, diesel and fuel oil.

Our unique configuration and flexibility in production enables us to produce more gasoline compared to other Thai refineries.

Q: The Chevron connection

The Chevron connection brings many benefits to SPRC including:

  • Access to their Operational Excellence Management System (OEMS) which is comprehensive and systematic management of process safety, personal safety & health, the environment, reliability and efficiency
  • Global Crude trading organization with bargaining power for crude purchases
  • A well-established network of crude oil sources
  • Product off-take contracts
  • Sourcing other refinery materials under Chevron master supply agreements
  • Access to proprietary technology and research
  • Refinery optimization expertise
  • Best practice systems and process management concerning decision analysis, project development and execution, governance and safety

Q: Shareholding Structure

The shareholding structure had been changed following the completion of our IPO on December 8, 2015. The updated shareholding structure is as shown below.

Chevron, our major shareholder, remains 60.6% of shareholder in SPRC and continue to provide benefit to SPRC through access to Chevron's global procurement services for crude oil and feedstocks, a global refined petroleum products sales network, advanced technological, operational, engineering and other technical support services, and Chevron's master supply agreements for materials and services.

Q: Dividend policy

The dividend payment policy of SPRC is to pay twice per year of at least 50 percent of net profits after legal reserve requirements. The payment is subject to actual and future cash flows, market conditions, capital requirements and other considerations as our board of directors may deem relevant

The dividend declaration shall be made in US Dollar and converted to Thai Baht by using the average selling exchange rate of The Bank of Thailand for 7 Banking days before the notification date of the Board of Directors for consideration on the dividend payment.

Our board of directors may recommend an annual dividend payment, subject to the approval of our shareholders at the shareholders' meeting. Our board of directors may also, by its resolution, decide to pay an interim dividend to our shareholders if the directors determine that it is justified by our profits. It is the policy of our board of directors to consider an interim dividend payment to shareholders every year.

Q: Vision and mission


"One Family…Fueling the Future of Thailand"


"We are a highly engaged Family, dedicated to providing sustained superior returns to our shareholders through industry leading safe and reliable operations, producing quality products that exceed customer expectations, in harmony with our communities and the environment"

Q: Product Pricing

Most of the products sold through the offtake Agreement are benchmarked off the Mean of Platts Singapore, or MOPS. Thai domestic prices are adjusted from MOPS pricing with certain transportation, production, product quality, and market adjustments as appropriate.

Domestic sale prices of petroleum products sold outside of the Offtake Agreement are also market driven and are generally based on the monthly average of regional benchmark prices with certain adjustment for the applicable product in the month that they are sold. Our exports for petroleum products are also generally based on benchmark pricing, such as the price for the relevant product quoted on MOPS, plus or minus a premium or discount based on market conditions and negotiations with potential purchasers as well as differences in product quality and location.

Q: What is Refining margin?

The Company use gross refining margin as one measure of the profitability of our refinery. Revenues from, and costs of, our refining operations, viewed individually, are not necessarily indicative of our financial performance. The gross refining margin of our refinery is calculated as the difference between (i) the value at which our petroleum products produced in our production facilities are sold or transferred, and (ii) the landed cost of crude oil and other feedstocks used in the refining process, less (iii) the cost of energy (whether internally produced or purchased) used in operations. Landed cost is the total cost of crude and shipment costs including purchase price, freight, insurance and other costs up to the shipment's port of destination. The cost of energy mainly consists of purchased natural gas for use in our electricity and steam generators and as supplemental fuel for our furnaces, as well as purchased electricity for use as a backup source in the event of shutdown of one of our power generating facilities or if we face a significant disruption of our natural gas supply. Gross refining margin is not a measure of financial performance recognized under TFRS.

Our market gross refining margin is a metric based on current replacement cost and represents our gross refining margin primarily excluding changes in the value of our inventory. Our gross refining margin is impacted by changes in the value of our inventory because of our use of the weighted average cost method to determine the value of our inventory during the period. Rather than using current replacement cost, the weighted average cost method determines value of our inventory based on the cost of each unit of crude oil at the time that it was acquired. That is accounting gross refinery margin.

Our market gross refining margins generally move in line with movements in Singapore refining margins. Singapore refining margins are to a large extent driven by global and regional supply and demand conditions.

Our gross refining margins have been and will continue to be affected by numerous factors, some of which are beyond our control, including:

  • Fluctuations in the prices of crude oil, other feedstocks and petroleum products. The difference between the cost of the crude oil and other feedstocks used by our refinery and the prices that we are able to realize for the petroleum products that our refinery produces is the primary factor that impacts our gross refining margins.
  • Weighted average inventory costing method. Our gross refining margins are also affected by the way we account for the cost of our inventory. We maintain an inventory of crude oil and other petroleum products, which we account for based on the lower of cost or net realizable value, cost being determined on the weighted average method. Net realizable value is the estimated selling price of the particular item in inventory in the ordinary course of business, less the estimated costs necessary to make the sale.
  • Sales volumes. Our sales volumes are influenced by various factors, including utilization of our production facilities and demand for our products.
  • Domestic or export sales. Our gross refining margin is affected by whether our petroleum products are ultimately sold domestically or abroad, in addition to where the crude oil and other feedstocks are sourced. Domestic sales of our petroleum products generally result in a higher gross refining margin.
  • Energy costs. We primarily use natural gas supplied by the PTT Group as a fuel source for our electricity and steam generators and as supplemental fuel for our furnaces and are subject to fluctuations in the price of natural gas. Prices for natural gas used in our petroleum product manufacturing process are indexed off of MOPS fuel oil prices and producer price indices, which are affected by world and regional crude and fuel oil price fluctuations. Prices for natural gas used in our cogeneration power plant are based on the sales price of natural gas that PTT charges the Electricity Generating Authority of Thailand ("EGAT").
  • Other factors. Our gross refining margin is affected by other factors as well, including the design of our refinery, our ability to purchase the optimal blend of crude oil and other feedstocks, feedstock and product transportation costs, our ability to produce products that match customer demand and the Government's price caps on LPG.

Q: SPRC's formula for success

Formula for Success is simple in concept, but requires commitment, discipline and attention to every detail in implementation. It starts with a strong foundation in personal safety, which is leveraged into exceptional process safety and reliability, which allows us to maximize utilization of our facilities. Exceptional reliability and utilization provides the opportunity for our SPRC Family to focus on driving optimization and cost efficiency and thereby maximizing capture of Gross Refining Margin.

SPRC's ability to successfully implement the "formula" is the "secret" behind our continued exceptional operational and financial performance.

Q: Impact of crude oil price volatility

Volatility in crude oil price has directly impacted on refinery business but it will only be in short term impact. In downward trend, crude oil intake today is inventory that the Company purchased in advance with higher cost. Therefore, it provides stock loss on refinery operation. In contrast to upward trend, crude oil intake today is inventory that the Company purchased in advance with lower cost. Therefore, the Company presumably receives stock gain.