ESSO (THAILAND) PUBLIC COMPANY LIMITED
INTERIM CONSOLIDATED AND SEPARATE FINANCIAL INFORMATION (UNAUDITED)
30 JUNE 2020
AUDITOR'S REPORT ON THE REVIEW OF THE INTERIM FINANCIAL INFORMATION
To the Shareholders and the Board of Directors of Esso (Thailand) Public Company Limited
I have reviewed the interim consolidated financial information of Esso (Thailand) Public Company Limited and its subsidiaries, and the interim separate financial information of Esso (Thailand) Public Company Limited. These comprise the consolidated and separate statements of financial position as at 30 June 2020, the consolidated and separate statements of comprehensive income for the three-month and six-month periods then ended, the related consolidated and separate statements of changes in equity and cash flows for the six-month period then ended, and the condensed notes to the interim financial information. Management is responsible for the preparation and presentation of this interim consolidated and separate financial information in accordance with Thai Accounting Standard 34, "Interim Financial Reporting". My responsibility is to express a conclusion on this interim consolidated and separate financial information based on my review.
Scope of review
I conducted my review in accordance with the Thai Standard on Review Engagements 2410, "Review of interim financial information performed by the independent auditor of the entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Thai Standards on Auditing and consequently does not enable me to obtain assurance that I would become aware of all significant matters that might be identified in an audit. Accordingly, I do not express an audit opinion.
Conclusion
Based on my review, nothing has come to my attention that causes me to believe that the accompanying interim consolidated and separate financial information is not prepared, in all material respects, in accordance with Thai Accounting Standard 34, "Interim Financial Reporting".
PricewaterhouseCoopers ABAS Ltd.
Pongthavee Ratanakoses
Certified Public Accountant (Thailand) No. 7795
Bangkok
6 August 2020
Esso (Thailand) Public Company Limited
Statement of Financial Position
As at 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
Consolidated | Separate | ||||||||
financial information | financial information | ||||||||
Unaudited | Audited | Unaudited | Audited | ||||||
30 June | 31 December | 30 June | 31 December | ||||||
Notes | 2020 | 2019 | 2020 | 2019 | |||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 353,987 | 276,683 | 353,987 | 276,683 | |||||
Trade receivables, net | 8 | 4,030,829 | 6,464,042 | 4,030,829 | 6,464,042 | ||||
Amounts due from related parties | 14 f | - | - | 46,226 | 50,526 | ||||
Inventories, net | 12,659,725 | 19,085,170 | 12,659,725 | 19,085,170 | |||||
Other receivables, net | 1,669,596 | 1,377,578 | 1,669,596 | 1,377,578 | |||||
Other current assets | 4 | 2,195,903 | 4,774,725 | 2,366,177 | 4,957,208 | ||||
Total current assets | 20,910,040 | 31,978,198 | 21,126,540 | 32,211,207 | |||||
Non-current assets | |||||||||
Financial assets measured at fair value | |||||||||
through other comprehensive income | 4, 7 | 1,048,500 | - | 1,048,500 | - | ||||
Available-for-sale investments | 4, 7 | - | 1,350,000 | - | 1,350,000 | ||||
Investments in an associate | 2,001,223 | 2,206,905 | 1,729,360 | 1,729,360 | |||||
Investments in subsidiaries | - | - | 114,589 | 114,589 | |||||
Long-term loans to related parties | 14 g | - | - | 3,352,385 | 3,251,419 | ||||
Property, plant and equipment, net | 10 | 25,155,009 | 25,599,800 | 20,950,119 | 21,394,910 | ||||
Right-of-use assets, net | 4, 10 | 4,287,401 | - | 4,355,246 | - | ||||
Intangible assets, net | 10 | 186,685 | 181,174 | 186,685 | 181,174 | ||||
Deferred income tax assets, net | 3,822,923 | 1,500,999 | 3,712,253 | 1,388,763 | |||||
Prepaid rental and deferred charges | 4 | 310,496 | 1,725,830 | 587,447 | 2,118,327 | ||||
Other non-current assets | 1,966,407 | 1,699,723 | 1,966,407 | 1,699,723 | |||||
Total non-current assets | 38,778,644 | 34,264,431 | 38,002,991 | 33,228,265 | |||||
Total assets | 59,688,684 | 66,242,629 | 59,129,531 | 65,439,472 | |||||
Director …………………………………………………
The accompanying notes on pages 10 to 23 form part of this interim financial information.
2
Esso (Thailand) Public Company Limited
Statement of Financial Position
As at 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
Consolidated | Separate | ||||||||
financial information | financial information | ||||||||
Unaudited | Audited | Unaudited | Audited | ||||||
30 June | 31 December | 30 June | 31 December | ||||||
Notes | 2020 | 2019 | 2020 | 2019 | |||||
Liabilities and equity | |||||||||
Current liabilities | |||||||||
Bank overdrafts and short-term borrowings | |||||||||
from financial institutions | 11 | 4,091,974 | 6,488,377 | 4,091,974 | 6,488,377 | ||||
Trade and other payables | 5,850,761 | 5,020,169 | 5,850,757 | 5,019,720 | |||||
Amounts due to related parties | 14 f | 6,180,472 | 8,091,234 | 6,180,333 | 8,101,318 | ||||
Current portion of long-term borrowings | |||||||||
from financial institutions | 11 | 1,866,667 | 1,466,667 | 1,866,667 | 1,466,667 | ||||
Current portion of long-term borrowings | |||||||||
from related parties | 14 h | 2,933,333 | 1,633,333 | 2,933,333 | 1,633,333 | ||||
Short-term loans from related parties | 14 h | 9,884,753 | 13,188,379 | 9,885,626 | 13,189,278 | ||||
Current income tax payables | 1,278 | 632 | - | - | |||||
Current portion of lease liabilities | 4 | 332,641 | - | 358,061 | - | ||||
Short-term provisions for employee benefits | 867,779 | 787,070 | 867,779 | 787,070 | |||||
Total current liabilities | 32,009,658 | 36,675,861 | 32,034,530 | 36,685,763 | |||||
Non-current liabilities | |||||||||
Long-term borrowings | |||||||||
from financial institutions | 11 | 2,683,333 | 1,816,667 | 2,683,333 | 1,816,667 | ||||
Long-term loans from related parties | 14 h | 6,233,333 | 2,350,000 | 6,235,175 | 2,350,756 | ||||
Lease liabilities | 4 | 2,420,042 | - | 2,449,840 | - | ||||
Long-term provisions | |||||||||
for employee benefits | 3,276,629 | 3,280,326 | 3,276,629 | 3,280,326 | |||||
Other non-current liabilities | 5 | 1,845 | 5 | 1,845 | |||||
Total non-current liabilities | 14,613,342 | 7,448,838 | 14,644,982 | 7,449,594 | |||||
Total liabilities | 46,623,000 | 44,124,699 | 46,679,512 | 44,135,357 | |||||
The accompanying notes on pages 10 to 23 form part of this interim financial information.
3
Esso (Thailand) Public Company Limited
Statement of Financial Position
As at 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
Consolidated | Separate | ||||||
financial information | financial information | ||||||
Unaudited | Audited | Unaudited | Audited | ||||
30 June | 31 December | 30 June | 31 December | ||||
2020 | 2019 | 2020 | 2019 | ||||
Liabilities and equity (continued) | |||||||
Equity | |||||||
Share capital | |||||||
Authorised share capital | |||||||
3,467,916,666 ordinary shares | |||||||
with par value of Baht 4.9338 each | 17,110,007 | 17,110,007 | 17,110,007 | 17,110,007 | |||
Issued and paid-up share capital | |||||||
3,460,858,000 ordinary shares | |||||||
with paid-up value of Baht 4.9338 each | 17,075,181 | 17,075,181 | 17,075,181 | 17,075,181 | |||
Share premium | 4,031,711 | 4,031,711 | 4,031,711 | 4,031,711 | |||
Retained earnings (deficits) | |||||||
Appropriated | |||||||
Legal reserve | 1,000,901 | 1,000,901 | 1,000,901 | 1,000,901 | |||
Unappropriated | (8,980,962) | (169,916) | (9,596,438) | (983,542) | |||
Other components of equity | (68,581) | 172,619 | (61,336) | 179,864 | |||
Equity attributable to owners of the parent | 13,058,250 | 22,110,496 | 12,450,019 | 21,304,115 | |||
Non-controlling interests | 7,434 | 7,434 | - | - | |||
Total equity | 13,065,684 | 22,117,930 | 12,450,019 | 21,304,115 | |||
Total liabilities and equity | 59,688,684 | 66,242,629 | 59,129,531 | 65,439,472 | |||
The accompanying notes on pages 10 to 23 form part of this interim financial information.
4
Esso (Thailand) Public Company Limited
Statement of Comprehensive Income
For the three-month period ended 30 June 2020 (All amounts in Baht thousand unless otherwise stated)
Consolidated | Separate | ||||||
financial information | financial information | ||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||
30 June | 30 June | 30 June | 30 June | ||||
2020 | 2019 | 2020 | 2019 | ||||
Revenue from sales and services | 23,798,000 | 45,581,325 | 23,798,000 | 45,581,325 | |||
Subsidy from Oil Fuel Fund | 615,458 | 166,580 | 615,458 | 166,580 | |||
Cost of sales and services | (26,357,193) | (45,463,292) | (26,360,791) | (45,466,723) | |||
Gross (loss) profit | (1,943,735) | 284,613 | (1,947,333) | 281,182 | |||
Selling expenses | (1,179,762) | (1,477,152) | (1,230,146) | (1,519,382) | |||
Administrative expenses | (59,788) | (80,124) | (59,667) | (80,124) | |||
Loss from sales | (3,183,285) | (1,272,663) | (3,237,146) | (1,318,324) | |||
Other income | 50,848 | 54,221 | 408,163 | 420,194 | |||
Interest income | 827 | 3,307 | 47,053 | 52,374 | |||
Finance costs | (78,903) | (81,907) | (79,224) | (81,927) | |||
Share of profit from an associate | 50,410 | 94,296 | - | - | |||
Loss before income tax | (3,160,103) | (1,202,746) | (2,861,154) | (927,683) | |||
Income tax credit | 656,669 | 276,132 | 658,177 | 275,828 | |||
Loss for the period | (2,503,434) | (926,614) | (2,202,977) | (651,855) | |||
Other comprehensive loss for the period, net of tax: | |||||||
Items that will not be reclassified to profit or loss | |||||||
Changes in fair value of equity investments | |||||||
at fair value through other comprehensive income | 158,400 | - | 158,400 | - | |||
Item that will be reclassified subsequently | |||||||
to profit or loss | |||||||
Changes in fair value of available-for-sale investments | - | 18,000 | - | 18,000 | |||
Total comprehensive loss | |||||||
for the period | (2,345,034) | (908,614) | (2,044,577) | (633,855) | |||
Loss attributable to: | |||||||
Owners of the parent | (2,504,193) | (927,376) | (2,202,977) | (651,855) | |||
Non-controlling interests | 759 | 762 | - | - | |||
(2,503,434) | (926,614) | (2,202,977) | (651,855) | ||||
Total comprehensive loss attributable to: | |||||||
Owners of the parent | (2,345,793) | (909,376) | (2,044,577) | (633,855) | |||
Non-controlling interests | 759 | 762 | - | - | |||
(2,345,034) | (908,614) | (2,044,577) | (633,855) | ||||
Loss per share for loss attributable | |||||||
to the equity holders of the parent | |||||||
(expressed in Baht per share) | |||||||
Basic loss per share | (0.72) | (0.27) | (0.64) | (0.19) | |||
The accompanying notes on pages 10 to 23 form part of this interim financial information.
5
Esso (Thailand) Public Company Limited
Statement of Comprehensive Income
For the six-month period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
Consolidated | Separate | ||||||||
financial information | financial information | ||||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||||
30 June | 30 June | 30 June | 30 June | ||||||
Notes | 2020 | 2019 | 2020 | 2019 | |||||
Revenue from sales and services | 6 | 62,508,856 | 91,540,330 | 62,508,856 | 91,540,330 | ||||
Subsidy from Oil Fuel Fund | 6 | 1,290,555 | 242,169 | 1,290,555 | 242,169 | ||||
Cost of sales and services | (72,187,541) | (88,838,363) | (72,194,696) | (88,845,186) | |||||
Gross (loss) profit | (8,388,130) | 2,944,136 | (8,395,285) | 2,937,313 | |||||
Selling expenses | (2,588,446) | (2,848,468) | (2,688,982) | (2,937,872) | |||||
Administrative expenses | (128,705) | (164,277) | (128,464) | (164,277) | |||||
Loss from sales | 6 | (11,105,281) | (68,609) | (11,212,731) | (164,836) | ||||
Other income | 56,398 | 57,262 | 413,713 | 423,235 | |||||
Interest income | 1,558 | 4,110 | 96,426 | 100,123 | |||||
Finance costs | (172,846) | (150,271) | (173,494) | (150,316) | |||||
Share of profit from an associate | 149,133 | 207,722 | - | - | |||||
(Loss) profit before income tax | (11,071,038) | 50,214 | (10,876,086) | 208,206 | |||||
Income tax credit | 9 | 2,260,751 | 50,310 | 2,263,190 | 50,640 | ||||
(Loss) profit for the period | (8,810,287) | 100,524 | (8,612,896) | 258,846 | |||||
Other comprehensive (loss) income | |||||||||
for the period, net of tax: | |||||||||
Items that will not be reclassified to profit or loss | |||||||||
Changes in fair value of equity investments | |||||||||
at fair value through other comprehensive income | (241,200) | - | (241,200) | - | |||||
Item that will be reclassified subsequently | |||||||||
to profit or loss | |||||||||
Changes in fair value of available-for-sale investments | - | 99,000 | - | 99,000 | |||||
Total comprehensive (loss) income for the period | (9,051,487) | 199,524 | (8,854,096) | 357,846 | |||||
(Loss) profit attributable to: | |||||||||
Owners of the parent | (8,811,046) | 99,762 | (8,612,896) | 258,846 | |||||
Non-controlling interests | 759 | 762 | - | - | |||||
(8,810,287) | 100,524 | (8,612,896) | 258,846 | ||||||
Total comprehensive (loss) income attributable to: | |||||||||
Owners of the parent | (9,052,246) | 198,762 | (8,854,096) | 357,846 | |||||
Non-controlling interests | 759 | 762 | - | - | |||||
(9,051,487) | 199,524 | (8,854,096) | 357,846 | ||||||
(Loss) earnings per share for (loss) profit attributable to the equity holders of the parent
(expressed in Baht per share)
Basic (loss) earnings per share | (2.55) | 0.03 | (2.49) | 0.07 | |||
The accompanying notes on pages 10 to 23 form part of this interim financial information.
6
Esso (Thailand) Public Company Limited
Statement of Changes in Equity
For the six-month period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
Consolidated financial information (Unaudited) | ||||||||||||||||||||||||||
Attributable to owners of the parent | ||||||||||||||||||||||||||
Other components of equity | ||||||||||||||||||||||||||
Retained earnings (deficits) | Other comprehensive income | |||||||||||||||||||||||||
Measurement of | ||||||||||||||||||||||||||
equity investments | Total | |||||||||||||||||||||||||
Unappropriated | at fair value | Share of other | Total | attributable | ||||||||||||||||||||||
Issued and | - retained | through other | comprehensive | other | to owners | Non- | ||||||||||||||||||||
paid-up | Share | Appropriated | earnings | Available-for- | Provisions for | comprehensive | loss of | components | of the | controlling | Total | |||||||||||||||
Note | share capital | premium | - legal reserve | (deficits) | sale investments | employee benefits | income | an associate | of equity | parent | interests | equity | ||||||||||||||
Opening balance at 1 January 2019 | ||||||||||||||||||||||||||
17,075,181 | 4,031,711 | 1,000,901 | 3,241,873 | 1,150,200 | (673,022) | - | (2,180) | 474,998 | 25,824,664 | 7,434 | 25,832,098 | |||||||||||||||
Changes in equity for the period | ||||||||||||||||||||||||||
Total comprehensive income | - | - | - | 99,762 | 99,000 | - | - | - | 99,000 | 198,762 | 762 | 199,524 | ||||||||||||||
Dividend paid | - | - | - | (346,086) | - | - | - | - | - | (346,086) | (762) | (346,848) | ||||||||||||||
Closing balance at 30 June 2019 | ||||||||||||||||||||||||||
17,075,181 | 4,031,711 | 1,000,901 | 2,995,549 | 1,249,200 | (673,022) | - | (2,180) | 573,998 | 25,677,340 | 7,434 | 25,684,774 | |||||||||||||||
Opening balance at 1 January 2020 | ||||||||||||||||||||||||||
- as reported | 17,075,181 | 4,031,711 | 1,000,901 | (169,916) | 1,051,200 | (871,336) | - | (7,245) | 172,619 | 22,110,496 | 7,434 | 22,117,930 | ||||||||||||||
Retrospective adjustments from changes | ||||||||||||||||||||||||||
in accounting policy | 4 | - | - | - | - | (1,051,200) | - | 1,051,200 | - | - | - | - | - | |||||||||||||
Opening balance at 1 January 2020 | ||||||||||||||||||||||||||
- restated | 17,075,181 | 4,031,711 | 1,000,901 | (169,916) | - | (871,336) | 1,051,200 | (7,245) | 172,619 | 22,110,496 | 7,434 | 22,117,930 | ||||||||||||||
Changes in equity for the period | ||||||||||||||||||||||||||
Total comprehensive (loss) income | - | - | - | (8,811,046) | - | - | (241,200) | - | (241,200) | (9,052,246) | 759 | (9,051,487) | ||||||||||||||
Dividend paid | - | - | - | - | - | - | - | - | - | - | (759) | (759) | ||||||||||||||
Closing balance at 30 June 2020 | 17,075,181 | 4,031,711 | 1,000,901 | (8,980,962) | - | (871,336) | 810,000 | (7,245) | (68,581) | 13,058,250 | 7,434 | 13,065,684 | ||||||||||||||
The accompanying notes on pages 10 to 23 form part of this interim financial information.
7
Esso (Thailand) Public Company Limited
Statement of Changes in Equity
For the six-month period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
Separate financial information (Unaudited) | |||||||||||||||||||
Other components of equity | |||||||||||||||||||
Retained earnings (deficits) | Other comprehensive income | ||||||||||||||||||
Measurement of | |||||||||||||||||||
equity investments | |||||||||||||||||||
Unappropriated | at fair value | Total | |||||||||||||||||
Issued and | - retained | through other | other | ||||||||||||||||
paid-up | Share | Appropriated | earnings | Available-for- | Provisions for | comprehensive | components | Total | |||||||||||
Note | share capital | premium | - legal reserve | (deficits) | sale investments | employee benefits | income | of equity | equity | ||||||||||
Opening balance at 1 January 2019 | 17,075,181 | 4,031,711 | 1,000,901 | 2,452,481 | 1,150,200 | (673,022) | - | 477,178 | 25,037,452 | ||||||||||
Changes in equity for the period | |||||||||||||||||||
Total comprehensive income | - | - | - | 258,846 | 99,000 | - | - | 99,000 | 357,846 | ||||||||||
Dividend paid | - | - | - | (346,086) | - | - | - | - | (346,086) | ||||||||||
Closing balance at 30 June 2019 | 17,075,181 | 4,031,711 | 1,000,901 | 2,365,241 | 1,249,200 | (673,022) | - | 576,178 | 25,049,212 | ||||||||||
Opening balance at 1 January 2020 | |||||||||||||||||||
- as reported | 17,075,181 | 4,031,711 | 1,000,901 | (983,542) | 1,051,200 | (871,336) | - | 179,864 | 21,304,115 | ||||||||||
Retrospective adjustments from changes | |||||||||||||||||||
in accounting policy | 4 | - | - | - | - | (1,051,200) | - | 1,051,200 | - | - | |||||||||
Opening balance at 1 January 2020 | |||||||||||||||||||
- restated | 17,075,181 | 4,031,711 | 1,000,901 | (983,542) | - | (871,336) | 1,051,200 | 179,864 | 21,304,115 | ||||||||||
Changes in equity for the period | |||||||||||||||||||
Total comprehensive loss | - | - | - | (8,612,896) | - | - | (241,200) | (241,200) | (8,854,096) | ||||||||||
Closing balance at 30 June 2020 | 17,075,181 | 4,031,711 | 1,000,901 | (9,596,438) | - | (871,336) | 810,000 | (61,336) | 12,450,019 |
The accompanying notes on pages 10 to 23 form part of this interim financial information.
8
Esso (Thailand) Public Company Limited
Statement of Cash Flows
For the six-month period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
Consolidated | Separate | ||||||||
financial information | financial information | ||||||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||||
30 June | 30 June | 30 June | 30 June | ||||||
Notes | 2020 | 2019 | 2020 | 2019 | |||||
Cash flows from operating activities | |||||||||
Cash generated from (used in) operations | 12 | 118,730 | (449,619) | 142,057 | (433,414) | ||||
Interest paid | (105,234) | (119,156) | (105,256) | (119,190) | |||||
Income tax received | 4,681 | 31,421 | 4,908 | 32,426 | |||||
Net cash generated from (used in) operating activities | 18,177 | (537,354) | 41,709 | (520,178) | |||||
Cash flows from investing activities | |||||||||
Loan payments received from related parties | 14 g | - | - | - | 50 | ||||
Loans made to related parties | 14 g | - | - | (100,966) | (116,088) | ||||
Purchase of property, plant and equipment | (746,031) | (737,550) | (746,031) | (737,550) | |||||
Purchase of intangible assets | 10 | (14,399) | (8,031) | (14,399) | (8,031) | ||||
Payments for right-of-use assets | (121,474) | - | (121,474) | - | |||||
Proceeds from disposal of property, plant and equipment | 3,236 | 8,634 | 3,236 | 8,634 | |||||
Interest received | 1,558 | 4,110 | 100,726 | 98,858 | |||||
Dividend received from a subsidiary | - | - | 2,500 | 3,700 | |||||
Dividend received from an associate | 354,815 | 362,271 | 354,815 | 362,271 | |||||
Dividend received from financial assets measured at | |||||||||
fair value through other comprehensive income | 45,900 | 51,300 | 45,900 | 51,300 | |||||
Net cash used in investing activities | (476,395) | (319,266) | (475,693) | (336,856) | |||||
Cash flows from financing activities | |||||||||
Net payments on short-term borrowings | (2,396,403) | (1,946,641) | (2,396,403) | (1,946,641) | |||||
Payments on long-term borrowings | (733,334) | (700,000) | (733,334) | (700,000) | |||||
Proceeds from long-term borrowings | 2,000,000 | 1,300,000 | 2,000,000 | 1,300,000 | |||||
Net (payments on) proceeds from short-term loans | |||||||||
from related parties | (3,353,997) | 3,154,610 | (3,354,023) | 3,154,584 | |||||
Payments on long-term loans from related parties | (816,667) | (1,150,000) | (819,784) | (1,154,601) | |||||
Proceeds from long-term loans from related parties | 6,000,000 | 700,000 | 6,004,203 | 704,279 | |||||
Dividends paid to group shareholders | - | (346,086) | - | (346,086) | |||||
Dividends paid to non-controlling interests | (759) | (762) | - | - | |||||
Payments on lease liabilities | (163,318) | - | (189,371) | - | |||||
Net cash generated from financing activities | 535,522 | 1,011,121 | 511,288 | 1,011,535 | |||||
Net increase in cash and cash equivalents | 77,304 | 154,501 | 77,304 | 154,501 | |||||
Cash and cash equivalents at the beginning of the period | 276,683 | 482,648 | 276,683 | 482,648 | |||||
Cash and cash equivalents at the end of the period | 353,987 | 637,149 | 353,987 | 637,149 | |||||
The accompanying notes on pages 10 to 23 form part of this interim financial information.
9
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
1 General information
Esso (Thailand) Public Company Limited ("the Company") is a public limited company incorporated and domiciled in Thailand. The address of its registered office is 3195/17-29 Rama IV Road, Klongton, Klongtoey, Bangkok, 10110.
The Company listed on the Stock Exchange of Thailand ("SET") on 6 May 2008.
The Company and its subsidiaries (together "the Group") are involved in the refining and marketing of petroleum products, which includes a network of retail service stations. The Group operates a refinery and chemical manufacturing plant in Sriracha, Thailand. The Group also operates distribution facilities and oil terminals throughout Thailand. The Group's products are sold through a network of retail service stations, directly to industrial customers, and through export. Additionally, the Group is involved in the sale of chemical products to both domestic and overseas customers.
The Company is a subsidiary of ExxonMobil Group which holds 65.99% of the Company's shares.
This interim consolidated and separate financial information was authorised for issue by the Board of Directors on 6 August 2020.
2 Basis of preparation
The interim consolidated and separate financial information has been prepared in accordance with Thai Accounting Standard (TAS) no. 34, Interim Financial Reporting and other financial reporting requirements issued under the Securities and Exchange Act.
The interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2019.
For the period ended 30 June 2020, loss for the period of the Group was Baht 8,810 million and, as at the same period ended date, the current liabilities of the Group exceeded the current assets by Baht 11,100 million. The Group currently has adequate financing sources to generate operational cash flow and to enable the payment of liabilities when they become due as follows: (1) uncommitted borrowing facilities from related companies and financial institutions in the amount of Baht 78,879 million, and (2) the ability to offer Baht 12,000 million of bills of exchange in a revolving program as approved by the Securities and Exchange Commission. Even though the aforementioned situation exists, the Group continuously operates and considers operational and financial plans in order to ensure an ability to continue its operations as a going concern in accordance with the demand and supply of relevant industries of the Group. In addition, the Group places importance on and closely monitors the situations. Accordingly, the consolidated and separate financial statements have been prepared on a going concern basis and do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or to amounts or classification of liabilities that may be necessary if the going concern basis of preparing the consolidated and separate financial statements is not appropriate.
An English version of the interim consolidated and separate financial information has been prepared from the interim financial information that is in the Thai language. In the event of a conflict or a difference in interpretation between the two languages, the Thai language interim financial information shall prevail.
3 Accounting policies
The accounting policies used in the preparation of the interim financial information are consistent with those used in the annual financial statements for the year ended 31 December 2019, except as described in note 4.
10
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
4 Adoption of new financial reporting standards and changes in accounting policies
The Group has adopted financial reporting standards relating to financial instruments (TAS 32, TFRS 7 and TFRS 9) and leases standard (TFRS 16) retrospectively from 1 January 2020, but has not restated comparatives for the 2019 reporting period, as permitted in the standards. The reclassifications and adjustments arising from the new requirements are therefore recognised in the opening Statement of Financial Position on 1 January 2020.
The other new and amended Thai Financial Reporting Standards effective for the accounting periods beginning on or after 1 January 2020 do not have material impact on the Group.
The following tables show the adjustments made to the amount recognised in each line item in the statement of financial position upon adoption of the financial reporting standards relate to financial instruments (TAS 32 and TFRS 9) and leases standard (TFRS 16):
Consolidated financial information | |||||
As at | TAS 32 and TFRS 9 | TFRS 16 | As at | ||
31 December 2019 | Reclassifications | Reclassifications | 1 January 2020 | ||
Previously reported | and adjustments | and adjustments | Restated | ||
Assets | |||||
Current assets | |||||
Other current assets | 4,774,725 | - | (141,336) | 4,633,389 | |
Total current assets | 4,774,725 | - | (141,336) | 4,633,389 | |
Non-current assets | |||||
Financial assets measured at | |||||
fair value through other | |||||
comprehensive income | - | 1,350,000 | - | 1,350,000 | |
Available-for-sale | |||||
investments | 1,350,000 | (1,350,000) | - | - | |
Right-of-use assets, net | - | - | 3,582,743 | 3,582,743 | |
Prepaid rental and | |||||
deferred charges | 1,725,830 | - | (1,367,374) | 358,456 | |
Total non-current assets | 3,075,830 | - | 2,215,369 | 5,291,199 | |
Total assets | 7,850,555 | - | 2,074,033 | 9,924,588 | |
Liabilities | |||||
Current liabilities | |||||
Current portion of lease | |||||
liabilities | - | - | 207,579 | 207,579 | |
Total current liabilities | - | - | 207,579 | 207,579 | |
Non-current liabilities | |||||
Lease liabilities | - | - | 1,866,454 | 1,866,454 | |
Total non-current liabilities | - | - | 1,866,454 | 1,866,454 | |
Total liabilities | - | - | 2,074,033 | 2,074,033 |
11
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
Separate financial information | |||||
As at | TAS 32 and TFRS 9 | TFRS 16 | As at | ||
31 December 2019 | Reclassifications | Reclassifications | 1 January 2020 | ||
Previously reported | and adjustments | and adjustments | Restated | ||
Assets | |||||
Current assets | |||||
Other current assets | 4,957,208 | - | (141,336) | 4,815,872 | |
Total current assets | 4,957,208 | - | (141,336) | 4,815,872 | |
Non-current assets | |||||
Financial assets measured at | |||||
fair value through other | |||||
comprehensive income | - | 1,350,000 | - | 1,350,000 | |
Available-for-sale | |||||
investments | 1,350,000 | (1,350,000) | - | - | |
Right-of-use assets, net | - | - | 3,663,306 | 3,663,306 | |
Prepaid rental and | |||||
deferred charges | 2,118,327 | - | (1,367,292) | 751,035 | |
Total non-current assets | 3,468,327 | - | 2,296,014 | 5,764,341 | |
Total assets | 8,425,535 | - | 2,154,678 | 10,580,213 | |
Liabilities | |||||
Current liabilities | |||||
Current portion of lease | |||||
liabilities | - | - | 233,632 | 233,632 | |
Total current liabilities | - | - | 233,632 | 233,632 | |
Non-current liabilities | |||||
Lease liabilities | - | - | 1,921,046 | 1,921,046 | |
Total non-current liabilities | - | - | 1,921,046 | 1,921,046 | |
Total liabilities | - | - | 2,154,678 | 2,154,678 |
The adjustments and reclassifications above are summarized below;
Financial instruments
The adoption of the new financial reporting standards on financial instruments mainly affects the Group's accounting treatment as follows;
Classification and measurement of investments in equity instruments
The Group has elected to reclassify all its equity investments not held for trading to financial assets measured at fair value through other comprehensive income which previously classified as available-for-sale investments. As a result, assets with a fair value of Baht 1,350 million were reclassified from available-for-sale investment to financial assets measured at fair value through other comprehensive income on 1 January 2020.
12
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
Leases
On adoption of TFRS 16, the Group recognised lease liabilities in relation to leases which had previously been classified as operating leases under the principles of TAS 17 Leases. As at 1 January 2020, these liabilities were measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate. The Group's incremental borrowing rates applied to the lease liabilities on 1 January 2020 for 1-5 years lease term and over than 5 years lease term were 1.53% and 1.84%, respectively.
Consolidated | Separate | |
financial | financial | |
information | information | |
Operating lease commitments disclosed as at 31 December 2019 | 2,497,817 | 7,400,590 |
Less: Discounted using the lessee's incremental borrowing rate | (245,801) | (247,848) |
Less: Non-qualified leases | (177,983) | (177,983) |
Less: Variable lease payments | - | (4,820,081) |
Lease liability recognised as at 1 January 2020 | 2,074,033 | 2,154,678 |
Current lease liabilities | 207,579 | 233,632 |
Non-current lease liabilities | 1,866,454 | 1,921,046 |
2,074,033 | 2,154,678 |
Variable leases are from the leases of land from the Company's subsidiaries under lease agreements effective in 2018. Rental was a variable lease payments as a cost plus basis over 30 years lease term. Therefore, it will not be included in the measurement of lease liabilities.
The Group measured right-of use assets at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised in the statement of financial position as at 31 December 2019. There were no onerous lease contracts that would have required an adjustment to the right-of-use assets at the date of initial application.
The recognised right-of-use assets relate to the following types of assets:
Consolidated | Separate | |||||
financial information | financial information | |||||
30 June | 1 January | 30 June | 1 January | |||
2020 | 2020 | 2020 | 2020 | |||
Properties | 3,710,155 | 3,582,743 | 3,778,000 | 3,663,306 | ||
Motor vehicles | 577,246 | - | 577,246 | - | ||
Total right-of-use assets | 4,287,401 | 3,582,743 | 4,355,246 | 3,663,306 |
Practical expedients applied
In applying TFRS 16 for the first time for the lease contract available before 1 January 2020, the Group has used the following practical expedients permitted by the standard:
- the use of a single discount rate to a portfolio of leases with reasonably similar characteristics
- the operating leases with less than 12 months remaining lease term as at 1 January 2020 be defined as short-term leases
- the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application, and
- the election not to reassess whether a contract is, or contains a lease as defined under TFRS 16 at the date of initial application but relied on its assessment made applying TAS 17 and TFRIC 4 Determining whether an Arrangement contains a Lease.
13
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
Changes in accounting policies from adoption of the financial reporting standards related to financial instruments and leases
Investments and other financial assets
Classification and measurements
From 1 January 2020, the Group classifies its financial assets as follows:
- those to be measured subsequently at fair value either through profit or loss (FVPL) or through other comprehensive income (FVOCI)
- those to be measured at amortised cost
The Group initially recognises a financial asset on trade date at its fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.
Equity instruments
All equity instruments held must be irrevocably classified to two measurement categories; i) at fair value through profit or loss, or ii) at fair value through other comprehensive income without subsequent recycling to profit or loss. The classification of equity instruments is considered on investment-by-investment basis. Dividends from such investment continue to be recognised in profit or loss as other income.
Impairment
From 1 January 2020, the Group assesses expected credit loss on a forward looking basis for its financial assets carried at FVOCI and at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk, except trade receivables which the Group applies the simplified approach in determining its expected credit loss.
Leases
The group leases office building, equipment, motor vehicle and various plots of land on which retail service stations are operated under lease agreement. The lease terms generally range between 3 to 30 years, and may have the renewal option at the end of the lease period.
Before 2020 financial year, leases were classified as operating leases. Payments made under operating leases were charged to profit or loss on a straight-line basis over the period of the lease.
From 1 January 2020, leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the lease payments.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group's incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.
Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability and any lease payments made at or before the commencement date. Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
14
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
5 Estimates
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, not necessarily equal the related actual results.
In preparing this interim financial information, the significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements and the separate financial statements for the year ended 31 December 2019.
6 Segment and revenue information
As at 30 June 2020, the Group is organised into two main business segments, namely:
- Downstream, which includes the refining and marketing of petroleum products; and
- Petrochemicals, which includes the manufacturing and marketing of chemical products
Consolidated financial information
For the six-month period ended 30 June 2020
Downstream | Petrochemicals | Total | ||
Total segment revenue
Inter-segment revenue
Total revenue
Segment loss from sales
Revenue from contracts with customers Timing of revenue recognition
- At a point in time
- Over time
Total
Other revenue not from contracts with customers
Total revenue
66,080,673 | 6,775,980 | 72,856,653 | |||
(5,648,979) | (3,408,263) | (9,057,242) | |||
60,431,694 | 3,367,717 | 63,799,411 | |||
(10,400,264) | (705,017) | (11,105,281) | |||
59,050,529 | 3,367,661 | 62,418,190 | |||
25,830 | 56 | 25,886 | |||
59,076,359 | 3,367,717 | 62,444,076 | |||
1,355,335 | - | 1,355,335 | |||
60,431,694 | 3,367,717 | 63,799,411 |
Consolidated financial information
For the six-month period ended 30 June 2019
Downstream | Petrochemicals | Total |
Total segment revenue
Inter-segment revenue
Total revenue
Segment profit (loss) from sales
Revenue from contracts with customers Timing of revenue recognition
- At a point in time
- Over time
Total
Other revenue not from contracts with customers
Total revenue
93,564,709 | 14,810,273 | 108,374,982 |
(10,275,349) | (6,317,134) | (16,592,483) |
83,289,360 | 8,493,139 | 91,782,499 |
412,568 | (481,177) | (68,609) |
82,913,079 | 8,478,874 | 91,391,953 |
23,076 | 14,265 | 37,341 |
82,936,155 | 8,493,139 | 91,429,294 |
353,205 | - | 353,205 |
83,289,360 | 8,493,139 | 91,782,499 |
15
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
7 Fair value
Fair value estimation
The table below demonstrates financial instruments carried at fair value, by the valuation method. The different levels have been defined as follows:
- Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
- Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
The following table presents the Group's financial assets that are measured and recognised at fair value Level 1 at 30 June 2020 and 31 December 2019.
Consolidated and Separate | ||||
financial information | ||||
30 June | 31 December | |||
2020 | 2019 | |||
Financial assets measured at fair value through | ||||
other comprehensive income | ||||
Equity securities | 1,048,500 | - | ||
Available-for-sale investments | ||||
Equity securities | - | 1,350,000 | ||
Total | 1,048,500 | 1,350,000 |
The Group and the Company have no financial assets that are measured at fair value Level 2 or 3. There were no changes in valuation techniques during the periods.
8 Trade receivables, net
Outstanding trade receivables, as at 30 June 2020 and 31 December 2019, are analysed as follows:
Consolidated and Separate | |||
financial information | |||
30 June | 31 December | ||
2020 | 2019 | ||
Current | 3,911,665 | 6,354,026 | |
Overdue: | |||
- Less than 3 months | 108,959 | 103,953 | |
- 3 to 6 months | 5,006 | 3,835 | |
- 6 to 12 months | 3,883 | 1,928 | |
- Over 12 months | 34,268 | 33,005 | |
4,063,781 | 6,496,747 | ||
Less: Allowance for doubtful account (Note 12) | (32,952) | (32,705) | |
Total | 4,030,829 | 6,464,042 |
16
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
9 Income tax expense
Income tax expense for six-month period ended 30 June 2020 and 30 June 2019 are as follows:
Consolidated | Separate | |||||||
financial information | financial information | |||||||
30 June | 30 June | 30 June | 30 June | |||||
2020 | 2019 | 2020 | 2019 | |||||
Current income tax | 873 | (4,517) | - | (4,847) | ||||
Deferred income tax | (2,261,624) | (45,793) | (2,263,190) | (45,793) | ||||
Income tax credit | (2,260,751) | (50,310) | (2,263,190) | (50,640) |
The interim income tax credit and expense are accrued based on management's estimate using the tax rate that would be applicable to expected total annual earnings. The estimated average annual tax rate used is 20%.
10 Property, plant and equipment, net, right-of-use assets, net and intangible assets, net
Movements of property, plant and equipment, right-of-use assets and intangible assets for six-month period ended
30 June 2020 are as follows:
Consolidated financial information | |||||||
Property, plant | Right-of-use | Intangible | |||||
and equipment | assets | assets | |||||
Opening net book value | 25,599,800 | - | 181,174 | ||||
Adjustment from adoption of TFRS 16 | |||||||
on 1 January 2020 (Note 4) | - | 3,582,743 | - | ||||
Additions | 585,211 | 940,642 | 14,399 | ||||
Disposals | (11,095) | - | - | ||||
Depreciation and amortization | (1,018,907) | (235,984) | (8,888) | ||||
Closing net book value | 25,155,009 | 4,287,401 | 186,685 |
Separate financial information | |||||||
Property, plant | Right-of-use | Intangible | |||||
and equipment | assets | assets | |||||
Opening net book value | 21,394,910 | - | 181,174 | ||||
Adjustment from adoption of TFRS 16 | |||||||
on 1 January 2020 (Note 4) | - | 3,663,306 | - | ||||
Additions | 585,211 | 940,642 | 14,399 | ||||
Disposals | (11,095) | - | - | ||||
Depreciation and amortization | (1,018,907) | (248,702) | (8,888) | ||||
Closing net book value | 20,950,119 | 4,355,246 | 186,685 |
Right-of-use assets as at 30 June 2020 comprise of leasehold land, leasehold building and motor vehicle.
17
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
11 Borrowings from financial institutions
Movements of borrowings for six-month period ended 30 June 2020 and 30 June 2019 are as follows:
For the six-month period ended
Beginning balance
Net movement of borrowings
Ending balance
Consolidated and Separate
financial information
30 June 30 June
20202019
9,771,711 7,896,189
(1,129,737) (1,346,641)
8,641,974 6,549,548
From January to June 2020, the decrease in borrowings of Baht 1,130 million consists of the following:
- Net decrease in revolving short-term loans of Baht 1,896 million.
- Net decrease in Bills of Exchange of Baht 500 million.
- Repayment of 5-year loan by installments of Baht 100 million.
- Repayment of 3-year loan by installments of Baht 250 million.
- Repayment of 3-year loan by installments of Baht 217 million.
- Repayment of 3-year loan by installments of Baht 167 million.
- Increase in 3-year loan of Baht 2,000 million which was obtained in June 2020 and is repayable in 12 quarterly installments commencing from October 2020 to June 2023. The loan bears interest at 1-month (BIBOR) rate plus a margin.
From January to June 2019, the decrease in borrowings of Baht 1,347 million consists of the following:
- Net decrease in revolving short-term loans of Baht 1,747 million.
- Net decrease in Bills of Exchange of Baht 200 million.
- Repayment of 5-year loan by installments of Baht 100 million.
- Repayment of 5-year loan by installments of Baht 100 million.
- Repayment of 3-year loan by installments of Baht 250 million.
- Repayment of 3-year loan by installments of Baht 250 million.
- Increase in 3-year loan of Baht 1,300 million which was obtained in June 2019 and is repayable in 12 quarterly installments commencing from September 2019 to June 2022. The loan bears interest at 3-months (BIBOR) rate plus a margin.
18
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
12 Cash generated from operations | ||||||||
Consolidated | Separate | |||||||
financial information | financial information | |||||||
For the six-month period ended | 30 June | 30 June | 30 June | 30 June | ||||
2020 | 2019 | 2020 | 2019 | |||||
(Loss) Profit before income tax expense | (11,071,038) | 50,214 | (10,876,086) | 208,206 | ||||
Adjustments for: | ||||||||
Depreciation (Note 10) | 1,254,891 | 996,940 | 1,267,609 | 996,940 | ||||
Amortisation (Note 10) | 8,888 | 15,850 | 8,888 | 15,850 | ||||
Allowance for doubtful account (Note 8) | 247 | 13,645 | 247 | 13,645 | ||||
Write-down of inventory to net realisable value | 116,278 | 161,501 | 116,278 | 161,501 | ||||
Loss on disposal of property, plant and | ||||||||
equipment | 7,859 | 4,836 | 7,859 | 4,836 | ||||
Share of profit from an associate | (149,133) | (207,722) | - | - | ||||
Interest income | (1,558) | (4,110) | (96,426) | (100,123) | ||||
Finance costs | 172,846 | 150,271 | 173,494 | 150,316 | ||||
Dividend income | (45,900) | (51,300) | (403,215) | (417,271) | ||||
Net unrealised foreign exchange (gain) / loss | (2,349) | 10,434 | (2,349) | 10,434 | ||||
Changes in working capital | ||||||||
Trade receivables | 2,425,311 | (117,177) | 2,425,311 | (117,177) | ||||
Amount due from related parties | - | 50 | - | - | ||||
Inventories | 6,309,167 | (536,367) | 6,309,167 | (536,367) | ||||
Other receivables | (292,021) | 1,289,249 | (292,021) | 1,289,249 | ||||
Other current assets | 2,432,576 | 186,780 | 2,444,787 | 164,364 | ||||
Prepaid rental and deferred charges | 47,960 | (334,029) | 163,588 | (197,665) | ||||
Other non-current assets | (266,684) | (550,970) | (266,684) | (550,293) | ||||
Trade and other payables | 988,328 | 97,632 | 988,773 | 110,439 | ||||
Amount due to related parties | (1,892,110) | (1,732,162) | (1,902,335) | (1,747,114) | ||||
Provisions for employee benefits | 77,012 | 106,905 | 77,012 | 106,905 | ||||
Other non-current liabilities | (1,840) | (89) | (1,840) | (89) | ||||
Cash generated from / (used in) | ||||||||
operations | 118,730 | (449,619) | 142,057 | (433,414) | ||||
Consolidated and Separate | ||||||||
financial information | ||||||||
Non-cash transactions | 30 June | 30 June | ||||||
2020 | 2019 | |||||||
Acquisition of property, plant and equipment | 132,216 | 155,302 | ||||||
Acquisition of right-of-use assets | 819,168 | - |
13 Commitments and contingencies
-
Capital commitments
As at 30 June 2020 and 31 December 2019, the Group had capital commitments amounting to Baht 546 million and Baht 640 million, respectively. - Contingent liabilities
As at 30 June 2020, the Group had contingent liabilities in respect to bank guarantees arising in the ordinary course of business, amounting to Baht 67 million (31 December 2019: Baht 70 million) to third parties. It is not anticipated that any material liabilities will arise from these bank guarantees.
19
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
14 Related-party transactions
ExxonMobil Asia Holding Private Limited acquired 65.43% of the shares from ExxonMobil International Holdings Incorporated and 0.56% of the shares from other companies within the ExxonMobil Group on 28 November 2014.
Therefore, the Group is controlled by ExxonMobil Asia Holding Private Limited incorporated in Singapore, which owns 65.99% of the Company's shares as at 30 June 2020. The ultimate holding company is Exxon Mobil Corporation incorporated in the United States of America.
(a) Sales of goods and services | |||
Consolidated and Separate | |||
financial information | |||
For the six-month period ended | 30 June | 30 June | |
2020 | 2019 | ||
Sales of goods and services | |||
- Other related parties | 3,085,912 | 5,634,172 | |
Total | 3,085,912 | 5,634,172 |
Sales of goods and services between related parties are based on market prices and primarily relate to the sale of petroleum and petrochemical products.
- Purchases of goods and services
Consolidated and Separate | |||
financial information | |||
For the six-month period ended | 30 June | 30 June | |
2020 | 2019 | ||
Purchase of goods | |||
- Other related parties | 36,433,939 | 58,592,803 | |
Purchase of services | |||
- An associate | 323,453 | 393,832 | |
Total | 36,757,392 | 58,986,635 |
Purchases of goods from related parties primarily relate to the purchase of crude oil, petroleum and petrochemical products. Purchases of services from an associate relate to the provision of pipeline transportation services for the Group's products. Purchases of goods and services are based on market prices.
(c) | Expenses | ||||||||
Consolidated | Separate | ||||||||
financial information | financial information | ||||||||
For the six-month period ended | 30 June | 30 June | 30 June | 30 June | |||||
2020 | 2019 | 2020 | 2019 | ||||||
Expenses paid to: | |||||||||
- Subsidiaries | - | - | 109,490 | 105,768 | |||||
- Other related parties | 1,702,503 | 1,697,212 | 1,701,378 | 1,694,899 | |||||
Total | 1,702,503 | 1,697,212 | 1,810,868 | 1,800,667 |
Expenses primarily relate to the provision of support services and are charged on either a cost or cost plus basis.
20
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
(d) | Finance costs, net | ||||||||
Consolidated | Separate | ||||||||
financial information | financial information | ||||||||
For the six-month period ended | 30 June | 30 June | 30 June | 30 June | |||||
2020 | 2019 | 2020 | 2019 | ||||||
Interest income received from: | |||||||||
- Subsidiaries | - | - | 94,868 | 96,020 | |||||
Total | - | - | 94,868 | 96,020 | |||||
Interest expenses paid to: | |||||||||
- Subsidiaries | - | - | 647 | 45 | |||||
- Other related parties | 88,468 | 86,593 | 88,468 | 86,593 | |||||
Total | 88,468 | 86,593 | 89,115 | 86,638 |
Interest charges and interest income are based on market rates at the time the agreements were entered.
(e) | Key management compensation | |||
Consolidated and Separate | ||||
financial information | ||||
For the six-month period ended | 30 June | 30 June | ||
2020 | 2019 | |||
Salaries and other short-term employee benefits | 38,392 | 35,629 | ||
Post-employment benefits | 10,616 | 9,268 | ||
Total | 49,008 | 44,897 |
The above information is prepared in accordance with the Securities and Exchange Commission's regulations. This includes the managing director, the first four managers reporting to the managing director as well as all managers at the same level.
- Outstanding balances arising from sales/purchases of goods/services and expenses
Consolidated | Separate | ||||||
financial information | financial information | ||||||
30 June | 31 December | 30 June | 31 December | ||||
2020 | 2019 | 2020 | 2019 | ||||
Amount due from: | |||||||
- Subsidiaries | - | - | 46,226 | 50,526 | |||
- Other related parties | - | - | - | - | |||
Total | - | - | 46,226 | 50,526 | |||
Amount due to: | |||||||
- Subsidiaries | - | - | 7 | 10,269 | |||
- Other related parties | 6,180,472 | 8,091,234 | 6,180,326 | 8,091,049 | |||
Total | 6,180,472 | 8,091,234 | 6,180,333 | 8,101,318 |
Amounts due from related parties relate primarily to interest receivables on long-term loans (Note 14g).
The amounts due to related parties reflect a net payable which arises mainly from the purchase and sales of crude oil, petroleum and petrochemical products under standard industry terms.
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Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
- Loans to related parties
Consolidated | Separate | ||||
financial information | financial information | ||||
30 June | 31 December | 30 June | 31 December | ||
2020 | 2019 | 2020 | 2019 | ||
Long-term loans to: | |||||
- Subsidiaries | - | - | 3,352,385 | 3,251,419 | |
Total | - | - | 3,352,385 | 3,251,419 |
Movements in long-term loans to related parties are analysed as follows:
For the six-month period ended
Beginning balance
Loans advanced during the period Loan repayments received
Ending balance
Separate
financial information
30 June 30 June
20202019
3,251,419 3,035,705
100,966 116,088 -(50)
3,352,385 3,151,743
Long-term loans to related parties are unsecured. They bear interest based on the minimum lending rate of Bangkok Bank Public Company Limited.
(h) | Loans from related parties | ||||||
Consolidated | Separate | ||||||
financial information | financial information | ||||||
30 June | 31 December | 30 June | 31 December | ||||
2020 | 2019 | 2020 | 2019 | ||||
Current: | |||||||
Short-term loans from: | |||||||
- Subsidiaries | - | - | 873 | 899 | |||
- Other related parties | 9,884,753 | 13,188,379 | 9,884,753 | 13,188,379 | |||
Total | 9,884,753 | 13,188,379 | 9,885,626 | 13,189,278 | |||
Current portion of long-term loans from: | |||||||
- Other related parties | 2,933,333 | 1,633,333 | 2,933,333 | 1,633,333 | |||
Total | 12,818,086 | 14,821,712 | 12,818,959 | 14,822,611 | |||
Non-current: | |||||||
Long-term loans from: | |||||||
- Subsidiaries | - | - | 1,842 | 756 | |||
- Other related parties | 6,233,333 | 2,350,000 | 6,233,333 | 2,350,000 | |||
Total | 6,233,333 | 2,350,000 | 6,235,175 | 2,350,756 |
Movements in loans from related parties are analysed as follows:
Consolidated | Separate | |||||
financial information | financial information | |||||
For the six-month period ended | 30 June | 30 June | 30 June | 30 June | ||
2020 | 2019 | 2020 | 2019 | |||
Beginning balance | 17,171,712 | 7,449,161 | 17,173,367 | 7,451,279 | ||
Additional borrowings | 7,848,422 | 4,663,775 | 7,852,631 | 4,668,062 | ||
Loans repaid during the period | (5,968,715) | (1,930,467) | (5,971,864) | (1,935,102) | ||
Ending balance | 19,051,419 | 10,182,469 | 19,054,134 | 10,184,239 |
22
Esso (Thailand) Public Company Limited
Condensed Notes to the Interim Financial Information (Unaudited)
For the interim period ended 30 June 2020
(All amounts in Baht thousand unless otherwise stated)
Short-term loans from other related parties include:
- Revolving loan from a related party totaling Baht 7,364 million out of facility size Baht 12,000 million at the end of June 2020.
- Short-termloan from a related party under Loan and Current Account Agreement totaling Baht 2,521 million at the end of June 2020.
Short-term loans from related parties are unsecured. They have no fixed term of repayment and bear interest based on the adjusted minimum lending rate of Bangkok Bank Public Company Limited or Bangkok Interbank Offered Rate (BIBOR).
Long-term loans from other related parties include:
- A 5-year loan of Baht 6,000 million which was obtained in September 2015 and is repayable in 20 quarterly installments commencing from January 2016 to October 2020. The loan bears interest at 1-month (BIBOR) rate plus a margin. As at 30 June 2020, the outstanding loan balance was Baht 200 million, which is payable in 2020.
- A 3-year loan of Baht 700 million which was obtained in June 2019 and is repayable in 12 quarterly installments commencing from September 2019 to June 2022. The loan bears interest at 3-months (BIBOR) rate plus a margin. As at 30 June 2020, the outstanding loan balance was Baht 467 million, of which Baht 233 million is payable within 1 year.
- A 3-year loan of Baht 3,000 million which was obtained in November 2019 and is repayable in 12 quarterly installments commencing from February 2020 to November 2022. The loan bears interest at 1-month (BIBOR) rate plus a margin. As at 30 June 2020, the outstanding loan balance was Baht 2,500 million, of which Baht 1,000 million is payable within 1 year.
- A 3-year loan of Baht 6,000 million which was obtained in June 2020 and is repayable in 12 quarterly installments commencing from October 2020 to June 2023. The loan bears interest at 1-month (BIBOR) rate plus a margin. As at 30 June 2020, the outstanding loan balance was Baht 6,000 million, of which Baht 1,500 million is payable within 1 year.
Long-term loans from related parties bear interest based on the adjusted minimum lending rate of Bangkok Bank Public Company Limited or Bangkok Interbank Offered Rate (BIBOR).
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Esso Thailand pcl published this content on 11 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2020 07:53:08 UTC