Vision

To be the leading Thai-owned company in energy and energy-related businesses, which creates business returns that are fair and sustainable, with full commitment to environment and society by modernized management.Good Corporate Governance principles and highly capable employees.

The Bangchak Petroleum Public Company Limited has operated the oil refinery business with maximum crude processing capacity of 120,000 barrels per day, with the supply of crude oil imported from the Middle East, Far East, as well as the domestic crude oil for oil production. The Company had invested to improve the production process to the level of complex refinery which can produce more high-value, gasoline and diesel, and increase the refinery’s capacity for domestic crude oil. The Company is also undertaking the project to use natural gas as fuel in the refining process to replace very-low-sulphur fuel oil, which when completed will reduce production cost and make operations more environmentally friendly. The Company has already awarded the contract to PTT Public Company Limited to establish an power plant to generate electricity and steam to respond to the energy demand from the refinery improvement and to maintain the stability of energy securities for the production process.

The Company is aware of the importance of the alternative energy, especially ethanol and biodiesel which contributes to the country’s energy security and reduction of foreign currency losses from oil imports. The promotion of alternative energy also helps to increase the price of agricultural products, create jobs, and generate more incomes for farmers. For this reason, the Company has promoted the production and use of ethanol and bio-diesel in the production of Gasohol 91 and 95 as well as Gasohol E20 and E85 (gasoline blended with ethanol) and PowerD B2 and PowerDB5 (diesel blended with biodiesel).

The Company has established the bio-diesel unit in the refinery complex. The unit has a total production capacity of 20,000 liters per day, and utilizes crude palm oil or used vegetable cooking oil as raw material for production. Currently the unit utilizes used vegetable cooking oil as its main raw material, which also helps to address the health problems caused by the consumption of used cooking oil and tackle environmental issues stemming from the disposal of used cooking oil in the public sewage system. Additionally, the Company is currently undertaking a one-billion-baht biodiesel plant construction near our Bang Pa-in terminal in Ayudhya Province with a daily capacity output of 300,000 litres. This modern European technology plant will use crude palm oil as it’s major raw material and is estimated to start operations in 2009.

The Company directly markets and distributes oil products to consumers as well as large and medium oil traders by means of oil pipes and water and land transportation, after which the traders sell the products directly to consumers via their distribution and sales channels. The Company also exports products to overseas markets, for example, the Company exports the very-low fuel oil to Japan and China.

The Company’s retail business consists of its network of 515 standard service stations and 550 community service stations (as of the end of 2008) under the trademark logo . It also directly distributes products to users in various sectors, namely the transportation, aviation, shipping, construction, industrial and the agricultural sectors. Apart from the oil business, the Company operates the “Lemongreen” and “Bai Chak” convenient stores, the engine-oil-changing services and car wash service centers or GREEN SERIES including the “Green Auto Serve”, “Green Serve” and “Green Wash”, as well as the “Inthanin” coffee houses, which are located in the service stations. Presently there are more than fifteen Company’s service stations that sell NGV, to offer an alternative for consumers.

In addition to the fuel products, the Company also produces and sells the “Bangchak” brand lubricant and special lubricant products (transmission fluid, brake fluid, and grease for lubrication). These products are marketed to the local customers through the network of Bangchak service stations, shops, factories, and the Original Equipment Manufacturer (OEM), as well exported to foreign markets, such as Burma, China, Laos, Cambodia, Taiwan, Fiji, etc.

The Company has two subsidiaries, Bangchak Green Net Co., Ltd and Bangchak Biofuel Co., Ltd, and two related companies, Fuel Pipeline Transportation Limited (FPT) and ASEAN Potash Mining Plc (APMC). The diagram below illustrates the relations between Bangchak and the four companies.

Note: Information as of December 31, 2008

Bangchak Green Net Co., Ltd.

The Company holds 49 % stake of Bangchak Green Net, which has registered capital of one million Baht. The subsidiary was set up to manage the retail business, including the oil service stations and the sales of the consumer products in Lemon Green and Bai Chak Convenient Stores. Other services include the engine-oil-changing service centers and the restaurants and cafes. Its mission is to serve the Company’s continued expansion in the retail business.

Bangchak Biofuel Co., Ltd

The Company holds a 70 % stake of Bangchak Biofuel, which has registered capital of 281.50 million Baht and paid-up capital of 112.60 million Baht. The subsidiary was set up to develop and produce domestic renewable energy. Bangchak Biofuel commenced construction of the biodiesel plant in 2008 with an initial daily capacity of 300,000 litres in Bang Pa-in, Ayudhya Province in Central Thailand. The main raw material for biodiesel plant is crude palm oil. This plant is currently under construction and is expected to be completed in 2009.

Fuel Pipeline Transportation Limited (FPT)

The Company owns 11.4 % shares of FPT, which has registered capital of 1,592 million Baht. FPT is in charge of distributing oil through the underground pipeline system. FPT’s Multi-Product Pipeline system can transport various types of oil via a single underground pipeline at the same time. The oil transportation starts at the Bangchak refinery. Its pipeline runs in parallel with the railway and leads to the Chongnonsri and Don Muang depots before reaching the Company’s depot and FPT in Bang Pa-in, where the pipeline ends. In 2005, the aviation fuel pipeline operator JP-One Asset Co extended the FPT’s pipeline in the Makasan area to the Suvarnabhumi Airport as part of its plan to serve the airport.

ASEAN Potash Mining Plc. (APMC)

The Company acquired 6.6 % stakes in APMC, which has registered capital of 2,227 million Baht and paid-up Capital of 1,166 million Baht, established to explore and produce Potash, a major ingredient in fertilizer, in Bumnegnarong, Chaiyaphum province, before it is produced and market as potassium chloride fertilizer. APMC is a joint venture bringing together the governments of the Association of Southeast Asian Nations (ASEAN) to capitalize on the natural resources of member countries.

Revenue Structure

For 2008, the total revenues of the Company and its subsidiary amounted to Baht 129,293 million consisting of the Company’s revenue of Baht 128,321 million and the subsidiary1/: the Bangchak Green Net’s (which the Company holds a 49% stake) revenue of Baht 18,252 million. The connected transactions worth Bt 17,280 million which its most parts were from the Company’ finishing oil sales to the Bangchak Green Net. The revenue classified by the product and service of the Company and its subsidiaries from 2006-2008 can be shown in the following table.

Note :
1/ The Company has another subsidiary, namely the Bangchak Biofuel Limited (holding 70% stocks), whose plant is currently under construction, and thus have no income from product sales, except in terms of interests amounting to 0.22 Baht million, shown with other earnings.
2/ The proportions of earnings from sales of products in the domestic in 2008, 2007 and 2006 is 78.4%, 82.6% and 96.5% respectively.
3/ Other earnings, namely, interest receivable, earnings from hedging gain, profit from exchange rates, loss adjustment from impairment assets, earnings from sales promotions, land lease, service station lease, equipment lease etc.