IRPC Public : Submission of IRPC Public Company Limited and its subsidiaries' financial statements for the 3-month and 9-month period ended September 30, 2020 and operating results

-Translation-

Ref. Ngor Nor Por. 029/2020

9 November 2020

Subject : Submission of IRPC Public Company Limited and its subsidiaries' financial statements for the 3-month and 9-month period ended September 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 9-month period ended September 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 third quarter of 2020 (3Q/2020), the Company's net sales was Baht 37,671 million, increasing 24% from the second quarter of 2020 ( 2Q/ 2020) , QoQ, including a 18% increase in average selling price following crude oil price and a 6% increase in sales volume. The average crude intake was 195,000 barrels per day, up by 4%.

The Market Gross Integrated Margin (Market GIM) was Baht 4,937 million (USD 8.74 per barrel), rose by 6% due mainly to higher petrochemical products spread particularly in Styrenics group such as ABS which driven by a surge in Chinese demand. While crude premium had risen and most petroleum products spread remained under pressure amid the COVID-19 outbreak.

In 3Q/ 2020, the average crude oil price increased from the previous quarter as a high compliance of output cut deal among OPEC and non- OPEC producers along with an increase in oil demand after the easing of restrictions during COVID-19 pandemic. These resulted in the net stock gain of Baht 3,770 million or USD 6.67 per barrel, attributing to the stock gain of Baht 2,752 million and realized gain on oil hedging of Baht 1,018 million. It rose by Baht 3,681 million. These led the Company had the Accounting Gross Integrated Margin ( Accounting GIM) of Baht 8,707 million or USD 15. 41 per barrel, improved by Baht 3,949 million or 83%.

The operating expenses of Baht 3,120 million declined by 10% , mainly owing to lower maintenance cost. These contributed to the earning before interest, tax, depreciation and amortization ( EBITDA) of Baht 5,843 million, increased by Baht 4,338 million. The financial cost was Baht 454 million, similar to those in last quarter. The loss on foreign exchange from US Dollar - borrowings of Baht 129 million was owing to the Thai Baht depreciation opposed to gain on foreign exchange of Baht 353 million in the prior quarter. There was unrealized loss on oil hedging of Baht 1,134 million compared to unrealized gain on oil hedging of Baht 359 million in 2Q/2020. While there was gain on investments of Baht 95 million, up by 40%. There was corporate income tax amounting to Baht 366 million against corporate income tax benefit of Baht 39 million in the prior quarter. All mentioned above had led to the 3Q/ 2020 net profit of Baht 1,556 million, sharp increased by 479% from the net loss of Baht 411 million in 2Q/2020.

In the nine-month period of 2020 (9M/2020), the Company's net sales was Baht 111,658 million, decreasing 33% from the nine- month period of 2019 ( 9M/ 2019) , YoY, including a 25% decrease in average selling price following crude oil price together with a 8% decrease in sales volume amid the COVID- 19 outbreak. The average crude intake was 191,000 barrels per day, down by 4%.

The Market GIM was Baht 13,270 million ( USD 8. 03 per barrel) , decreasing by Baht 2,680 million or 17% as a drop in demand and products spread following the economic recession during the COVID-19 pandemic. The Company had the net stock loss of Baht 2,952 million or USD 1. 78 per barrel, including the stock loss of Baht 5,099 million, the reversal of LCM of Baht 162 million and realized gain on oil hedging of Baht 1,985 million. While there was net stock loss of Baht 122 million in 9M/2019. Hence, the Accounting GIM was Baht 10,318 million or USD 6.25 per barrel, comparing with the 9M2019 Accounting GIM of Baht 15,828 million or USD 9. 23 per barrel, decreased by Baht 5,510 million or 35% . However, other incomes were Baht 1,603 million, rising by 6% . The operating expenses were Baht 9,991 million, decreasing by 8% , mostly from the employee expenses. As a result, the EBITDA was amounting to Baht 911 million, dropped by Baht 4,486 million or 83%.

There were depreciation expenses amounting to Baht 6,711 million, increasing by 6% , mainly owing to the completion of the expansion and efficiency improvement projects such as the Catalyst Cooler project and Floating Solar project. The net financial cost was Baht 1,375 million, decreasing by 4% owing to lower interest rate. There was loss on financial derivatives amounting to Baht 597 million against the gain on financial derivatives amounting to Baht 587 million, YoY. Likewise, there was loss on foreign exchange from US Dollar - borrowings of Baht 276 million as the Thai Baht depreciation while there was gain on foreign exchange of Baht 370 million at the same period last year. Besides, the Company recorded 9M/2020 unrealized loss on oil hedging amounting to Baht 1,768 million in accordance with Thai Financial Reporting Standards No. 9 Financial Instruments which effective on 1 January 2020. While there was gain on investments of Baht 212 million, fell by 30%. The Company had the corporate income tax benefit of Baht 1,919 million, increasing by Baht 1,585 million from a decline in operating results. All previously mentioned resulting the net loss of Baht 7,760 million in 9M/2020 versus the net loss of Baht 661 million in 9M2019.

As of September 30, 2020, the Company had total assets of Baht 181,507 million, total liabilities of Baht 107,362 million and shareholders' equity was amounted to Baht 74,144 million.

Please be informed accordingly.

Yours sincerely,

(Mr. Noppadol Pinsupa)

President & Chief Executive Officer

Finance & Investor Relations Department

Tel. [phone]Fax.[phone]