Thai Oil : MD&A Quarter 1/2024

Management's Discussion and Analysis (MD&A) Thai Oil Public Company Limited

For The First Quarter of 2024

Table of Contents

1.	Company and its Subsidiaries' Operating Results	2
2.	Summary of Financial Result by Business	4
	2.1	Market Condition and Financial Result of Refinery Business	5
	2.2	Market Condition and Financial Result of Aromatics Business	7
	2.3	Market Condition and Financial Result of an Intermediate for the Production of Surfactants Business	9
	2.4	Market Condition and Financial Result of Lube Base Oil Business	10
	2.5	Financial Result of Power Generation Business	11
	2.6	Financial Result of Solvent and Chemicals Business	12
	2.7	Financial Result of Olefin Business	13
	2.8	Financial Result of Ethanol Business	13
3.	Analysis of Consolidated Financial Statement	15
	3.1	Statement of Financial Position	15
	3.2	Statement of Cash Flows	17
	3.3	Financial Ratios	18
4.	Industry Outlook for the Second Quarter of Year 2024, and the Second Half of Year 2024	19
	5.1	Summary of Approved Investment Plan	21
	5.2	Summary of Key Project Investment: Clean Fuel Project (CFP)	21
	5.3	Plan of Scheduled Turnaround Maintenance in 2024	23

1

Management's Discussion and Analysis (MD&A)

Thai Oil Public Company Limited and Subsidiaries

For the First Quarter of 2024

1. Company and its Subsidiaries' Operating Results

Table 1: Summary of Consolidated Financial
(Million Baht)	Q1/24	Q4/23	+/(-)		Q1/23	+/(-)
Integrated Intake (kbd)	291	309	(18)	312	(21)
Gross Integrated Margin (GIM)(1) (US$/bbl)
: excludingStock Gain/(Loss)	10.4	8.6	1.8	11.8	(1.4)
: includingStock Gain/(Loss)	10.5	3.6	6.9		8.3	2.2

(Million Baht)	Q1/23	Q4/22	+/(-)
Sales Revenue	114,239	115,336	(1,097)
Net Realized Gain/(Loss) on Financial Instruments(2)	37	(781)	818
EBITDA	10,949	3,681	7,268
Net Gain/(Loss) on Fair Value Measurement of Financial
Instruments	(147)	1,700	(1,847)
Net Foreign Exchange Gain/(Loss) (3)	(871)	1,175	(2,046)
Net Gain/(Loss) on Repurchase of Debentures	232	-	232
Finance Costs	(1,047)	(1,053)	6
Reversal of Income Tax (Expense)	(1,464)	(710)	(754)
Net Profit/(Loss)	5,863	2,944	2,919
Basic Earnings/(Loss) per Share (Baht)	2.62	1.32	1.30
Stock Gain/(Loss)	82	(5,178)	5,260
Reversal/ (Write-Down) on Crude and Petroleum Product
Inventory(4)	(824)	1,841	(2,665)
Exchange Rate (Baht: 1 US$)	Q1/24	Q4/23	+/(-)
Average FX	35.81	35.83	(0.02)
Ending FX	36.63	34.39	2.24

Q1/22	+/(-)
115,943	(1,704)
329	(292)
8,182	2,767
158	(305)
571	(1,442)
-	232

1. (125)

(1,805)	341
4,554	1,309

2.04 0.58

(3,339) 3,421

1. (617)

Q1/23 +/(-)

34.081.73

34.262.37

Remark(1) Gross integrated margin is the integrated gross margin among Thaioil refinery, Thai Paraxylene Co., Ltd., LABIX Co., Ltd. and Thai Lube Base Plc.

1. Including net realized gain/ (loss) on commodity hedging
2. Including net foreign exchange gain / (loss) on foreign currency assets and liabilities in Q1/24, Q4/23, and Q1/23 of Baht (619) million, Baht 844 million, and Baht 763 million, respectively.
3. Including reversal / (write-down) of allowance for decline in value of crude and petroleum product inventories adjusted to net realizable value and reversal / (write- down) of petroleum product at cost.

In Q1/24, compared with Q4/23, Thaioil and subsidiaries reported a decrease in integrated intake due to an unplanned shutdown of Crude Distillation Unit 3 (CDU-3) for 13 days. Sale revenue was reported at Baht 114,239 million, lower by Baht 1,097 million following the reduced selling prices of petroleum products as well as a decrease in sales volume. We reported GIM excludingstock gain / (loss) of 10.4 US$/bbl or an increase of 1.8 US$/bbl from the previous quarter, mainly from improving GRM as higher gasoline spread over Dubai which has been supported by the Cold Snap in the US, resulting in tight gasoline supply. In addition, crude premium has

2

decreased as China and India have reduced their purchases of crude oil from the Middle East and increased to import Russian crude oil after Russia imposed restrictions on exports to Europe. Meanwhile, supply from the Middle East has increased due to refinery maintenance in the region. Moreover, the contribution from the aromatics business has also improved mainly from increasing BZ spread over ULG95 due to cold weather in the US, resulting in tight BZ supply. Although PX spread over ULG95 has decreased due to concerns over global economic slowdown, particularly in China. However, the contribution from LAB has decreased due to lower domestic demand and supply pressures in the market. Similarly, the contribution from lube base oil and bitumen also decreased mainly from lower bitumen spread over fuel oil as the market has been pressured by weaker regional demand compared to the previous quarter. Although base oil spread over fuel oil slightly increased, supported by limited supply due to reduced exports from Japan and lube base plant maintenance in the region. In terms of crude oil prices in Q1/24, we recorded an inventory gain of Baht 82 million, or

0.1 US$/bbl, as Dubai price in March 2024 was slightly higher than Dubai price in December 2023. Although the average Dubai price in Q1/67 slightly decreased from the previous quarter due to economic concerns, as the US Federal Reserve and the European Central Bank maintained high interest rates while Chinese economy continued to be pressured by the real estate crisis. We reported GIM including stock gain / (loss) of 10.5 US$/bbl or an increase of 6.9 US$/bbl from the previous quarter, while we booked write-down on crude and petroleum product inventory of Baht 824 million and net realized gain from financial instrument including only commodity hedging of Baht 37 million, we reported higher EBITDA of Baht 10,949 million. Furthermore, we booked a loss on financial instruments of Baht 147 million in Q1/24, net loss on foreign exchange of Baht 871 million (including net foreign exchange loss on foreign currency assets and liabilities of Baht 619 million). In addition, Thai Oil Treasury Center (TTC) have repurchased debentures USD currency, resulting in an extra gain from the repurchase of Baht 232 million, which was booked in Q1/24. Offsetting with depreciation, finance cost and tax expense, we reported a higher net profit of Baht 5,863 million, or earning per share 2.62 Baht per share, increased by of Baht 2,919 million from Q4/23.

In comparison to Q1/23, we reported a decrease in integrated intake due to an unplanned shutdown of Crude Distillation Unit 3 (CDU-

1. for 13 days. Sale revenue was lower by Baht 1,704 million following the reduced selling prices of petroleum products as well as a decrease in sales volume. We reported lower GIM excluding stock gain / (loss) by a 1.4 US$/bbl from the previous quarter, mainly from softening GRM as lower jet/kerosene and gasoil spreads over Dubai as supply increased because arbitraged flow from Asia to Europe became more difficult due to attacks on vessels in the Red Sea. In addition, demand for heating oil decreased as Europe turned to cheaper gas. Similarly, the contribution from lube base oil and bitumen business decreased compared to Q1/23, as lube base spread over fuel oil decreased due to increased supply from lube base Group II and III while the demand in the region not recovering significantly. In addition, the contribution from LAB business also decreased due to lower domestic demand and higher supply in the market. In contrast, contribution from aromatics improved compared to Q1/23, as BZ spread over ULG95 increased due to tight global BZ supply. In term of crude oil prices, the increase in the average Dubai crude oil price resulted in inventory gain increased by Baht 3,421 million, compared to an inventory loss in Q1/23, while we booked write-down on crude and petroleum product inventory decreased by Baht 617 million, and booked net realized gain from financial instrument including only commodity hedging, we reported higher EBITDA increased by Baht 2,767 million. Furthermore, we booked net loss on financial instruments of Baht 147 million in Q1/24, compared to net gain on financial instruments of Baht 158 million in Q1/23, and net loss on foreign exchange of Baht 871 million compared to net gain on foreign exchange of Baht 571 million in Q1/23. Offsetting with depreciation, finance cost and tax expense, we reported net profit increased by Baht 1,309 million from the same quarter of the previous year.

3

2. Summary of Financial Result by Business

Table 2: Financial Result by Business

Sales Revenue	Q1/24	Q4/23	+/(-)
Consolidated	114,239	115,336	(1,097)
Refinery	122,033	124,795	(2,762)
Aromatics and LAB(1)	20,098	20,848	(750)
Lube Base Oil	5,380	6,061	(681)
Power Generation	3,314	3,364	(50)
Solvent and Chemicals(2)	5,083	5,309	(226)
Ethanol(3)	415	569	(154)
Others(4)	1,739	2,184	(445)

EBITDA	Q1/24	Q4/23	+/(-)
Consolidated	10,949	3,681	7,268
Refinery	8,603	1,449	7,154
Aromatics and LAB	962	895	67
Lube Base Oil	322	398	(76)
Power Generation	822	836	(14)
Solvent and Chemicals	285	194	91
Olefins	(2)	2	(4)
Ethanol	54	10	44
Others	66	52	14

Net Profit / (Loss)	Q1/24	Q4/23	+/(-)
Consolidated	5,863	2,944	2,919
Refinery	4,293	2,030	2,263
Aromatics and LAB	561	227	334
Lube Base Oil	225	268	(43)
Power Generation (5)	474	519	(45)
Solvent and Chemicals	236	(29)	265
Olefins (6)	(199)	(68)	(131)
Ethanol	1	(24)	25
Others (7)	347	132	215

	(Million Baht)
Q1/23	+/(-)
115,943	(1,704)
123,767	(1,734)
19,002	1,096
6,268	(888)
2,859	455
4,758	325
470	(55)
1,557	182
Q1/23	+/(-)
8,182	2,767
5,555	3,048
780	182
1,141	(819)
584	238
232	53
(3)	1
44	10
50	16
Q1/23	+/(-)
4,554	1,309
2,942	1,351
181	380
886	(661)
473	1
135	101
32	(231)
(15)	16
92	255

Remark

1. Thai Paraxylene Co., Ltd. invested 75% of total investment in LABIX Co., Ltd. which produces an intermediate for the production of surfactants (LAB).
2. Including Thaioil Solvent Co., Ltd., having respective interests in TopNEXT international Co., Ltd. (Former name: TOP Solvent Co., Ltd.), Sak Chaisidhi Co., Ltd., TOP Solvent (Vietnam) LLC., PT Tirta Surya Raya, and JSKEM Private Limited
3. Including Thaioil Ethanol Co., Ltd., having respective interests in Sapthip Co., Ltd. (Investment in subsidiary), and Ubon Bio Ethanol Plc (Financial asset measured at fair value through other comprehensive income).
4. Including Thaioil Energy Services Co., Ltd. (TOP holds 99.99% shares) which provides human resources management service and Thaioil Treasury Center Co., Ltd. (TOP holds 99.99% shares) which conducts the business in the area of International Business Center (IBC) and Treasury Center (TC) for Thaioil and Subsidiaries.
5. Since 7 June 2022, Thaioil and Subsidiaries reduced share proportions in the investments in Global Power Synergy Plc. (GPSC) to 10.0% and reclassified the remaining investment as Financial assets measured at fair value through other comprehensive income. During the annual general meeting of GPSC on March 31, 2566, a resolution was passed to approve the distribution of dividends for the fiscal year based on GPSC's 2022 performance. This resulted in receiving dividends of 85 million baht in 1Q/23.
6. PT TOP Investment Indonesia holds 15% shares in PT Chandra Asri Petrochemical Tbk, which is the major integrated petrochemical company in Indonesia.
7. Including net profit / (loss) from Thaioil Energy Services Co., Ltd. and Thaioil Treasury Center Co., Ltd. and share of profits / (loss) from the investments in PTT Digital Solutions Co., Ltd., PTT Energy Solutions Co., Ltd. and Thai Petroleum Pipeline Co., Ltd. On 29 August 2022, The Extraordinary General Meeting of PTT Energy Solutions Co., Ltd shareholders No.1/2022 pass a resolution to liquidate the company, the process was completed on 29 December 2022.

4

2.1 Market Condition and Financial Result of Refinery Business

Table 3: Average Crude Oil Price, Petroleum Product Prices, Crude Premiums, and Crack Spreads
Average Prices (US$/bbl)	Q1/24	Q4/23	+/(-)		Q1/23	+/(-)
Dubai Crude Oil (1)	81.2	83.8	(2.5)	80.2	1.0
Unleaded Gasoline (ULG95)	99.1	96.2	2.9	98.9	0.2
Jet/Kero	102.4	107.4	(5.0)	106.3	(3.9)
Gasoil (GO)	104.4	108.2	(3.9)	108.5	(4.1)
Fuel Oil (HSFO)	71.5	72.6	(1.1)	64.2	7.3

Crude Premiums (US$/bbl)	Q1/24	Q4/23	+/(-)		Q1/23	+/(-)
Murban(2)	1.1	3.3	(2.2)	5.0	(3.9)
Arab Light(3)	2.2	3.9	(1.7)	2.4	(0.2)
Spreads over Dubai (US$/bbl)	Q1/24	Q4/23	+/(-)		Q1/23	+/(-)
Unleaded Gasoline (ULG95)	17.9	12.5	5.4	18.7	(0.8)
Jet/Kero	21.2	23.6	(2.5)	26.0	(4.8)
Gasoil (GO)	23.1	24.5	(1.3)	28.2	(5.1)
Fuel Oil (HSFO)	(9.7)	(11.1)	1.4	(16.0)	6.3
Very Low Sulfur Fuel Oil (VLSFO)	6.0	6.3	(0.3)	4.8	1.2

Remark(1) Closing Dubai crude oil price at the end of Q1/24, Q4/23, and Q1/23 were calculated from average Dubai prices in the last month in the respective period. The prices were 84.2 US$/bbl, 77.3 US$/bbl, and 78.5 US$/bbl, respectively.

1. Murban crude premium (compared with market price) since June 2021 was calculated from the difference between average Murban price for loading month (month "M") and Dubai forward price for month "M" which was announced daily in two months before. The formula is based on ADNOC's new pricing structure.
2. Arab Light crude premium is announced by the producer and is priced as a differential to the Oman/Dubai average

Graph 1: Prices of Crude Oil and Petroleum Product

Crude oil prices in Q1/24 slightly declined compared to Q4/23 due to concerns over the economy, as the Fed and ECB maintained their interest rates at elevated levels. This was coupled with a real estate crisis in China, putting pressure on the economy. Additionally, supply increased from non-OPEC+ countries such as the U.S., Canada, and Guyana. However, crude oil prices in Q1/24 rose compared to Q1/23, supported by OPEC+ implementing oil production cuts totaling 2.2 million barrels per day to balance the market. Furthermore, unrest in

the Middle East and tensions between Russia and Ukraine contributed to crude price volatility.

In Q1/24, Murban spread over Dubai and Arab Light spread over Dubai and Oman dropped from Q4/24, as China and India have reduced their purchases of crude oil from the Middle East and increased to import Russian crude oil after Russia imposed restrictions on exports to Europe. Meanwhile, supply from the Middle East has increased due to refinery maintenance in the region.

Gasoline spread over Dubai in Q1/24 rose compared to Q4/23, supported by a coal snap in the U.S. that caused unplanned outages in refineries, resulting in a tight supply in gasoline. Additionally, gasoline was also supported by Indonesia's election on February 14, 2024, and higher imports before the Ramadan festival season, leading to increased demand for gasoline within the country. However,

5

gasoline spread over Dubai softened from Q1/23 due to new refineries in the Middle East such as Al-Zour and Duqm starting to run at full capacity. Meanwhile, jet/kero and gasoil spreads over Dubai went down compared with Q4/23 and Q1/23 because shipments were rerouted from the Red Sea to the Good Hopes due to the attacks, resulting in a rise in freight costs that limited the export flow from Asia to Europe. This led to ample supply in the region. In addition to reduced heating demand as Europe shifted to cheaper gas prices, the slow economic recovery in the U.S., China, and Europe was also reflected in the purchasing managers' index (PMI), which remained below 50 throughout the quarter. High sulfur fuel oil spread over Dubai in Q1/24 increased from Q4/23 and Q1/23 resulted from higher demand for bunker and increased raw material imports from China. Furthermore, OPEC+ maintained its oil production cut, resulting in tight supply for high sulfur fuel oil. Low sulfur fuel oil over Dubai in Q1/24 dropped marginally from Q4/23. This was due to increased supply from new refinery in Kuwait (Al-Zour 0.61 million barrel per year). While low sulfur fuel oil over Dubai in Q1/24 rose compared with Q1/23 after the unrest in the Red Sea resulted in reduced exports from the West to Asia. Meanwhile, the demand for bunker fuel increased.

Table 4: Financial Result of Refinery Business
			Q1/24		Q4/23	+/(-)			Q1/23		+/(-)
Throughput(1) (%)		105%		111%	(6%)		112%		(7%)
Intake (kbd)		288		306	(18)		308	(20)
Gross Refining Margin (GRM) (US$/bbl)		9.0		7.2	1.8		10.0		(1.0)
: excludingStock Gain/(Loss)
: includingStock Gain/(Loss)		9.1		2.1	7.0		6.4		2.7
Remark	(1) Throughput (%) calculated based on 275,000 barrels per day

In Q1/24, Thaioil refinery reported hikes in EBITDA and net profit from the prior quarter. This was because of a rise in GRM excluding stock gain/loss tracking higher ULG95 spread and lower crude premiums despite CDU-3 unplanned shutdown for 13 days.

In Q4/23, Thai Oil Refinery reported utilization rate of 105% which decreased from Q4/23 due to CDU-3 unplanned shutdown for 13 days.The refinery booked sales revenue of Baht 122,033 million, or a decrease of Baht 2,762 million following lower selling prices of several producs following lower crude oil prices and weakened demand as well as a slight drop in sales volume. Sales volume comprised of 87% domestic, 10% Indochina, and 3% export. The company reported GRM excludingstock gain/loss of 9.0 US$/bbl, an increase of 1.8 US$/bbl from the previous quarter mainly due to a rise in ULG95 spread over Dubai supported by 1) tight supply from the cold snap in the U.S., and 2) drops in crude premiums because China and India snapped Russian crude oil up and reduced crude imports from the Middle East where oil supply increased after maintenance shutdowns in the region. Moreover, the refinery reported stock gain of 0.1 $/bbl or Baht 82 million, compared with stock loss of Baht 5,178 million in Q4/23. However, there was a write-down on crude and product inventory of Baht 824 million, compared to a reversal of of this transaction of Baht 1,841 million in the previous quarter. Altogether with net realized gain on financial instruments of Baht 5 million, compared with net realized loss of Baht 822 million in Q1/24, the company booked EBITDA of Baht 8,603 million, an increase of Baht 7,154 million from the previous quarter. Nevertheless, there was a loss from fair value measurement on financial instruments of Baht 124 million, compared with a gain of Baht 1,606 million in Q4 /23. Furthermore, net foreign exchange loss of Baht 1,153 million was also booked during the period (mainly from foreign currency denominated assets and liabilities worth Baht 1,308 million),

6

Compared Q1/24 with Q1/23, the refinery posted increases in EBITDA and net profit since stock gain was realized while there was stock loss in Q1/23.

compared with net foreign exchange gain of Baht 1,524 million in the prior quarter. Offsetting with depreciation, finance cost, and tax expenses, net profit of Baht 4,293 million was posted, a rise of Baht 2,263 million from Q4/23 (net profit with dividend income in Q1/24 was Baht 4,299 million).

Compared to Q1/23, the company reported a decrease in utilization rate by 7% because of CDU-3 unplanned shutdowns for 13 days. The refinery booked a drop in sales revenue of Baht 1,734 million following lower selling prices of some products and slightly lower sales volume. However, GRM excludingstock gain/loss went down by 1.0 US$/bbl from drops in almost all petroleum product spreads over Dubai. Moreover, the refinery recorded small stock gain, compared to stock loss of Baht 3,339 million in Q1/23. However, the refinery had greater write-down on crude and product inventory by Baht 617 million. Altogether with lower net realized gain on financial instruments of Baht 321 million, EBITDA was increased by Baht 3,048 million. Nevertheless, the refinery reported a loss from fair value measurement on financial instruments of Baht 124 million, compared with a gain of Baht 296 million in Q1/23. Furthermore, net foreign exchange loss of Baht 1,153 million was also booked during the period, compared with net foreign exchange gain of Baht 535 million in the same period last year. Offsetting with depreciation, finance cost and tax expenses, greater net profit of Baht 1,351 million was reported.

2.2 Market Condition and Financial Result of Aromatics Business

Table 5: Average Prices and Spreads of Aromatics Products
Average Prices (US$/Ton)	Q1/24	Q4/23	+/(-)		Q1/23	+/(-)
Paraxylene (PX)(1)	1,027	1,014	13	1,034	(7)
Benzene (BZ)(2)	1,000	888	112	930	70
Toluene (TL)(2)	881	857	24	874	7
Spreads over ULG95 (US$/Ton)	Q1/24	Q4/23	+/(-)		Q1/23	+/(-)
Paraxylene (PX)	184	198	(14)	193	(9)
Benzene (BZ)	157	71	86	89	68
Toluene (TL)	38	40	(2)	33	5
Remark(1) Based on CFR Taiwan price

(2) Based on FOB Korea price

Graph 2: Prices of Aromatics Products and ULG95

In Q1/24, PX price went up from Q4/23, supported by increased demand after the Chinese New Year, coupled with higher demand for PET bottles in late Q1/24 to support regional consumption during the summer. However, PX price in Q1/24 slightly decreased from Q1/23, coupled with a decrease in PX spread over ULG 95 in Q1/24 compared to Q4/23 and Q1/23 due to concerns over a global economic slowdown, ongoing economic challenges in China, and thin profit margins in downstream production, such as PTA, resulting in a limited recovery in the PX market.

7

In Q1/24, BZ price and its spread over ULG 95 increased from Q4/23, following a tightening of global BZ supply. Some BZ producers in the U.S. experienced cold weather, resulting in temporary production halts. Additionally, there was an increase in the import of BZ from Asia. Furthermore, BZ supply from the olefins industry was constrained due to low operating rates, along with low BZ inventories in China. This resulted in a tight BZ supply. However, the economic risks in China continued to limit BZ downstream demand in electronics sector.

In Q1/24, TL price increased from Q4/23 and Q1/23, while TL spread over ULG 95 remained stable from Q4/23 and Q1/23. This was attributed to an increased demand for TL in producing PX and BZ, which began to recover after the Chinese New Year. Additionally, there was a growing demand for TL to be used as an octane booster in ULG 95.

Table 6: Financial Result of TPX
		Q1/24	Q4/23	+/(-)		Q1/23	+/(-)
Aromatics Production Rate (1) (%)		76%	79%	(3%)	67%	9%
Aromatics Production (kTon)		158	167	(9)	138	20
Product-to-feed Margin(2) (US$/Ton)		67	55	12	65	2

Remark(1) Based on a nameplate capacity of 838,000 Tons/year (527,000 tons of paraxylene per year, 259,000 tons of benzene per year and 52,000 tons of mixed xylene per year)

(2) Calculated from gross margin divided by feedstock volume (Ton)

In Q1/24, TPX had better product-to-feed margin mainly due to a significant improved BZ spread from tighter supply. Thus, TPX had a better performance than the previous quarter.

Compared to Q1'23, TPX had a slightly higher product-to-feed margin from better BZ and TL spreads although PX spread was lower. Therefore, TPX performance was better.

In Q1/24, compared with Q4/23, Thai Paraxylene Co., Ltd. (TPX) had an aromatics production rate of 76%. TPX had sales revenue of Baht 13,966 million, decreased by Baht 145 million due to lower sales volume. However, BZ spread over ULG95 increased considerably owning to the cold snap in the U.S. resulted in tighter supply. Despite a slightly lower PX spread over ULG95, product-to-feed was higher by 12 US$/ton from the previous quarter. In addition, TPX had a net realized gain on financial instruments of Baht 27 million, decreased by Baht 13 million from Q4/23. Thus, TPX recorded an EBITDA of Baht 671 million, higher EBITDA by Baht 240 million. Moreover, in this quarter, net gain on fair value measurement of financial instruments of Baht 53 million was recorded compared with loss on fair value measurement of financial instruments of Baht 0.5 million in the previous quarter. TPX also had a net foreign exchange gain of Baht 57 million, compared with a net foreign exchange loss of Baht 63 million in the previous quarter. Offsetting with depreciation, finance costs and plus income tax, In Q1/24, TPX posted a net profit of Baht 477 million, higher net profit by Baht 334 million from the former period.

Compared with Q1/23, TPX aromatics production rate increased by 9% and sales revenue rose by Baht 1,176 million due to an increased sales volume. TPX reported a higher in product-to-feed margin by 2 US$/ton since BZ and TL spreads over ULG95 were widened. Combining with net realized gain on financial instruments, TPX had an EBITDA Baht 671 million, compared with an EBITDA of Baht 419 million in Q1/23. In addition, TPX had a gain on fair value measurement of financial instruments of Baht 53 million, compared with net loss on fair value measurement of financial instruments of Baht 112 million, and had a net foreign exchange gain of Baht 57million compared with a net foreign exchange loss of Baht 14 million. Therefore, TPX posted a net profit of Baht 477 million, higher net profit by Baht 395 million from the same period last year.

8

In Q1/24, aromatics group (TPX holds 75% shares of LABIX) had consolidated sales revenue of Baht 20,098 million, consolidated EBITDA of Baht 962 million and consolidated net gain of Baht 561 million.

2.3 Market Condition and Financial Result of an Intermediate for the Production of Surfactants Business

Table 7: Average Price of LAB

Average Price (US$/Ton)

Linear Alkylbenzene (LAB)(1)

Remark(1) Based on ICIS price

Graph 3: Price of LAB

Table 8: LAB Production

	Q1/24			Q4/23		+/(-)		Q1/23	+/(-)
	1,466			1,497	(31)	1,624	(158)

In Q1/24, LAB price and its spread over jet and benzene declined from Q4/23 and Q1/23 due to concerns over slower economic growth, particularly in China, which was pressured by vulnerabilities in the real estate sector. Moreover, higher supply came from India starting in early Jan'24 after a turnaround in the previous quarter, resulting in increased supply in the region. Additionally, dropped demand during the Chinese New Year and increased benzene price due to tight supply from the cold snap in the U.S. put pressure on LAB spreads. (Source : ICIS 2024)

	Q1/24	Q4/23	+/(-)		Q1/23	+/(-)
LAB Production Rate(1) (%)	120%	123%	(3%)	121%	(1%)
LAB Production (kTon)	36	37	(2)	36	-

Remark(1) Based on nameplate capacity of 120,000 Tons/year

In Q1/24, LABIX had a drop on gross margin leading to lower performance.

Compared with Q1/23, LABIX had a dropped on gross margin following lower domestic demand and higher pressure from supply in the market. LABIX then had a lower performance.

In Q1/24, LABIX Co., Ltd. (LABIX) had LAB production rate at 120% and LAB sales volume was quite similar to Q4/23. However, a decrease in LAB price tracking feedstock prices resulted in sales revenue was Baht 6,539 million, a decreased by Baht 668 million. While LABIX had a lower gross margin due to a drop in domestic demand coupled with pressure from higher supply in the LAB market, LABIX then reported EBITDA of Baht 292 million, a decrease of Baht 173 million. However, LABIX had a net foreign exchange gain of Baht 57 million, compared to a net foreign exchange loss of Baht 81 million in Q4/23. After offsetting with depreciation, finance costs and income tax expenses, LABIX posted net profit of Baht 112 million, unchanged from the prior quarter.

Compared with Q1/23, LABIX had quite the same production rate and sales volume. However, a decrease in LAB price tracking feedstock prices, resulted in sales revenue decreased by Baht 307 million. While LABIX had a lower gross margin due to a drop in domestic demand coupled with the pressure from increased supply in the LAB market, LABIX then had a lower EBITDA by Baht 70 million. However, In Q1/24 LABIX had a higher net foreign exchange gain of Baht 57 million,

9