IRPC Public : Submission of IRPC Public Company Limited and its subsidiaries' financial statements for the 3-month and 6-month period ended June 30, 2020 and operating results

-Translation-

Ref. Ngor Nor Por. 020/2020

10 August 2020

Subject : Submission of IRPC Public Company Limited and its subsidiaries' financial statements for the 3-month and 6- month period ended June 30, 2020 and operating results

To :President,

The Stock Exchange of Thailand

IRPC Public Company Limited ("the Company") would like to submit the financial statements and consolidated financial statements for the 3-month and 6-month period ended June 30, 2020, which was reviewed by independent auditor, and was approved by the Company's Audit Committee. The consolidated financial statements can be summarized as follows:

In the second quarter of 2020 (2Q/2020), the Company's net sales was Baht 30,370 million, decreasing 30% from the first quarter of 2020 (1Q/2020), QoQ, including a 27% decrease in average selling price following a volatility of crude oil price and a 3% decrease in sales volume. The average crude intake was 189,000 barrels per day, was similar to those of 1Q/2020.

The Market GIM was Baht 4,669 million (USD 8.46 per barrel), jumped 27% thanks to the lower crude premium amid the oil-price war. Saudi Arabia announced a significant reduction in the selling price of crude oil (Official Selling Price: "OSP") together with the improving petrochemical products spread especially the medical and packaging product groups. On the contrary, most petroleum products spread remained under pressure derived from weakening demand caused by the COVID-19 pandemic.

Crude oil price situation in 2Q/2020 seems highly volatile. At the beginning of the quarter, crude oil price continued to decline from 1Q/2020. Dubai price was dropping to the lowest level of USD 13.55 per barrel as the COVID-19 outbreak and recovering in May 2020. As a result, the Company had a net stock gain of Baht 89 million or USD 0.17 per barrel, including the reversal of LCM amounting to Baht 2,835 million and oil hedging gain of Baht 644 million offset with the stock loss of Baht 3,390 million against the net stock loss of Baht 6,811 million in the prior quarter. These led to the Accounting GIM of Baht 4,758 million or USD 8.63 per barrel contrasted with the loss on Accounting GIM amounted to Baht 3,146 million in the last quarter.

The operating expenses of Baht 3,476 million, slightly increased by 2% was due mainly to the higher maintenance cost and consulting expense. These resulted in the earning before interest, tax, depreciation and amortization (EBITDA) of Baht 1,505 million, comparing with the 1Q/2020 loss on EBITDA of Baht 6,436 million. The financial cost was Baht 457 million, down by 2% compared with 1Q/2020. Meanwhile, there were loss from financial derivatives amounting to Baht 26 million decreasing from the loss totaling Baht 558 million in the previous quarter comprising of loss from Interest Rate Swap contracts (IRS) amounting to Baht 213 million and realized loss of Cross Currency Swap contracts (CCS) amounting to Baht 346 million that unwinding in the preceding quarter.

In addition, the Company recorded foreign exchange gain on USD loan of Baht 353 million owing to the Thai Baht appreciation against the foreign exchange loss of Baht 500 million in the previous period. There was unrealized gain from oil hedging of Baht 359 million compared to unrealized loss from oil hedging of Baht 993 million last quarter. Gain from Investments

was Baht 68 million, was up 39%. There was corporate income tax benefit amounting to Baht 39 million against corporate income tax benefit of Baht 2,246 million in the prior quarter. All mentioned above resulted to the 2Q/2020 net loss of Baht 411 million, sharply improved from the net loss of Baht 8,905 million in 1Q/2020.

In the first six months of 2020 ( 1H/2020) , the Company generated net sales of Baht 73,987 million, decreased by Baht 37,989 million or 34% when compared to the first six months of 2019 ( 1H/2019) , which contributed to a 26% decrease in selling price due to decline in crude oil price and a 8% drop in sales volume. The average crude intake was 188,000 barrels per day, decreasing by 7% because of the decline in products demand during the COVID-19 pandemic.

The Company had Market GIM Baht 8,334 million or USD 7.64 per barrel, decreased by Baht 2,053 million or 20% compared with 1H/2019 as a decline of both petroleum and petrochemical products spread, due to impact of the COVID-19 pandemic. The Company had net stock loss amounting to Baht 6,722 million, including the stock loss of Baht 7,851 million against the reversal of LCM amounting to Baht 162 million and oil hedging gain of Baht 967 million, compared with 1H/2019 net stock gain of Baht 1,211 million. Hence, the Accounting GIM was Baht 1,612 million or USD 1.48 per barrel, decreased by Baht 9,986 million from 1H/2019. The other incomes of Baht 1,022 million, down by 11%. The operating expenses were Baht 6,871 million, decreasing by 7% mostly from the implementation of cost reduction initiatives. These resulted in the loss on EBITDA of Baht 4,932 million, EBITDA decreased by Baht 9,591 million, compared with 1H/2019.

In 1H/2020, the depreciation expenses were Baht 4,451 million, increased by Baht 300 million from 4,151 million in 1H/2019 owing to the completion of the expansion and efficiency improvement projects. The net financial costs were Baht 921 million, decreasing by 2%. There was loss from financial derivatives amounting to Baht 584 million, mainly from the realized loss from CCS amounting to Baht 346 million and loss from IRS amounting to Baht 239 million compared to the gain of Baht 576 million in 1H/2019. The Company had foreign exchange loss of Baht 147 million as the Thai Baht depreciation compared to foreign exchange gain of Baht 340 million in 1H/2019. There was unrealized loss from oil hedging amounting to Baht 634 million. The Company had investments gain amounting to Baht 117 million, declined by 40% owing to a weakening performance from associates and joint ventures. The Company recorded the corporate income tax benefit amounting to Baht 2,285 million compared to 1H/2019 corporate income tax benefit of Baht 4 million because of the decreasing operating results. All mentioned above resulting the net loss of Baht 9,316 million against the net profit of Baht 660 million in 1H/2019.

As of June 30, 2020, the Company had total assets of Baht 167,484 million, total liabilities of Baht 94,902 million and shareholders' equity was amounted to Baht 72,582 million.

Please be informed accordingly.

Yours sincerely,

(Mr. Noppadol Pinsupa)

President & Chief Executive Officer

Finance & Investor Relations Department

Tel. [phone]Fax.[phone]