(Translation) Ref. No. 01-554/2013 August 7, 2013 Subject: Submission of the Interim Financial Statements for the three-month period and six-month period ended June 30, 2013 and the Management's Discussion and Analysis (MD&A) of PTT Global Chemical Public Company Limited and its Subsidiaries To: President, The Stock Exchange of Thailand Attachment: 1. A copy of the Interim Financial Statements of PTT Global Chemical Public Company Limited (the "Company") and its Subsidiaries for the three-month period and six-month period ended June 30, 2013 and reviewed report of certified public accountant, with a copy of English translation 2. Company's and its Subsidiaries performance report (Form F45-3) 3. Management's Discussion and Analysis (MD&A) and operating results of the Company and its Subsidiaries for the three-month period ended June 30, 2013 We are pleased to submit the Interim Financial Statements for the three-month period and six-month period ended June 30, 2013 of the Company and its Subsidiaries, which were audited by our external auditor, KPMG Phoomchai Audit Ltd., and were reviewed by the Company's Audit Committee (details as per Attachment 1 and 2) and hereby prepared management's discussion and analysis (details as per Attachment 3). In 2Q/2013, the Company reported net profit of 4,172 MB or 0.93 Baht/share, increased 177% from 2Q/2012 (restated) with net profit of 1,508 MB or 0.33 Baht/share and decreased 65% from 1Q/2013 with net profit of 12,075 MB or 2.68 Baht/share. Performance Summary (Unit: Million Baht) 2Q/2013 2Q/2012 1Q/2013 YoY % + /(-) QoQ% + /(-) 6 Month Ending June 30, 2013 Sale Revenue 111,887 139,241 141,309 -20% -21% 253,196 EBITDA 11,466 7,537 16,419 52% -30% 27,885 EBITDA Margin (%) 10% 5% 12% 5% -1% 11% Net Profit 4,172 1,508 12,075 177% -65% 16,247 Earnings Per Share 0.93 0.33 2.68 182% -65% 3.60 Adjusted EBITDA1 12,468 13,422 16,914 -7% -26% 29,382 Adjusted EBITDA Margin (%) 11% 10% 12% 2% -1% 12% Note: 1. Adjusted EBITDA refers to EBITDA excluding impact of inventory value (excludes Inventory and NRV) and excluding impact of commodity hedging In 2Q/2013, Dubai crude was in the range of 97 - 108 USD/bbl, and averaged at 101 USD/bbl, decreased from the same period of previous year by 5 USD/bbl or 5%, and decreased from previous quarter by 7 USD/bbl or 7% due to seasonally low demand including economy slowdown in US, China, and Europe as well as unrest in Middle East. As a result, market GRM was at 2.38 USD/bbl coupled with 44 day turnaround of the Refinery, and CDU utilization rate was 63%. Aromatics business had P2F of 325 USD/ton, decreased from previous quarter at 394 USD/ton due to lower spreads of paraxylene and benzene over condensate, including planned shutdown of Aromatics plant no 2, resulting with BTX utilization rate of 84%. Olefins and olefins derivatives business had lower utilization rate and lower PE sales from previous quarter due to planned shutdown of some PE plants. As a result, PE utilization rate was at 90%. HDPE price averaged at 1,443 USD/ton, decreased 3% from previous quarter. In 2Q/2013, the Company had stock loss net NRV of 1,422 MB from decreasing crude price during the quarter and had FX loss of 2,726 MB from THB depreciation of approximately 1.82 THB/USD. According to market situation and business operation as mentioned above, the Company had EBITDA of 11,466 MB, increased 52% from 2Q/2012 and decreased 30% from 1Q/2013 while EBITDA margin was at 10%. However, adjusted EBITDA for this quarter was 12,469 MB and adjusted EBITDA margin of 11%. Changes that have impact on financial statements of 2Q/2013, 2Q/2012, and 1Q/2013: - On May 2, 2013, the Company acquired the remaining 40% shares of PTT Phenol Company Limited ("PPCL") from PTT Public Company Limited ("PTT"). The Company's holding in PPCL changed from 60% to 100%, as a result, the minority of PPCL decreased from 40% to 0%. - In 2Q/2013, the purchase price adjustment (PPA) for the investment of NatureWorks and Vencorex on May 31, 2012 was restated. The valuation of the PPA was completed at the end of 4Q/2012, thus the accounting standard required the Company to realize the adjusted PPA on the investment date, and therefore 2Q/2012 financial statements were restated. - On January 10, 2013, PTT Utility Company Limited ("PTTUT") amalgamated with Independent Power (Thailand) Company Limited ("IPT") and became Global Power Synergy Company Limited ("GPSC") which reduced the Company's shareholding structure from 60% to 30.31%. The Company has changed the method in realizing gain/loss from investment of GPSC from consolidating PTTUT's financial statement after elimination of connected transaction into the Company's (Consolidation) to realizing only gain/loss of the investment portion in to the Company's financial statements (Take equity). This method has been applied since 1Q/2013, however when compare year-on-year, the account basis will still be different. Summary of the Company's major events in 2Q/2013 until the release of financial statement as follows: - On April 4, 2013, the Company held an annual general meeting for the year 2012 and the Company's shareholders approved the dividend payment for the year 2012 performance at the rate of 3.40 Baht per share, totaling 15,329 MB. - On April 26, 2013, the Board of Directors of the Company approved the acquisition of 40% shareholding in PPCL and the acquisition transaction was completed on May 2, 2013. Currently, the Company holds 100% shares in PPCL. - In April 2013, Myriant Corporation had completed the construction of a 14,000 ton/year Succinic Acid Plant in Louisiana State and is currently commissioning. - In April 2013, Natureworks has started commissioning of the expansion portion of PLA plant which increases the nameplate capacity of PLA from 140,000 ton/year to 150,000 ton/year. - In May 2013, the Company set up a joint venture in Auria BioChemicals Company Limited ("Auria BioChemical") with Myriant Corporation ("Myriant") (the Company holds 47.25% in Myriant). The purpose of this joint venture is to conduct research and development of bio-based chemicals to enhance the Myriant's technology and pave the way towards an investment in a commercial scale production plant in South East Asia. The Company holds 54% and Myriant holds another 46% of total share. - On June 21, 2013, the Board of Director had approves on capital increase of PPCL for the investment of Phenol 2 project with total investment of 348.3 MUSD (Approximately 10,450 MB). Phenol 2 project will have phenol capacity of 250,000 tons per year and acetone of 155,000 tons per year. - On July 1, 2013, the Company has completed the entire business transfer of Bangkok Polyethylene Public Company Limited ("BPE") and PTT Polyethylene Company Limited ("PTTPE") to the Company is effective under the law and the Company will proceed with the dissolution of BPE and PTTPE. - Since July 10, 2013, the Company has shutdown LDPE plant (capacity 300,000 tons per year) to repair the cylinder of the Booster/Primary Compressor with an estimate repair period of 3.5 months. The Company expected the impact of no greater than 2% of the year net profit. - On July 27, 2013, at 6.50 hrs., leakage in the flexible hose was found at the Single Point Mooring (SPM) while discharging crude oil from a vessel to the Refinery. The leakage resulted in oil spill of approximately 50,000 liters or equivalent to 316 barrels into the sea. The Company together with private and public agencies has continuously been mitigating the incident by collecting oil from the sea surface, and spraying oil-spill dispersants both by ships and aircrafts. However, on July 28, 2013 some of the leaked crude oil has hit the Prao bay, Samed Island in Rayong Province which the Company has urgently clean the oil slick in the bay. Currently the oil slick has been completely cleaned. Furthermore, the Company has set up a mitigation plan to mitigate the environment and community in the area such as short-term measure is to set petition center for the community, medium-term measure is to work together with environmental experts to study the impact on the marine environment, to put together the rehabilitation plan and implement the plan and investigate cause of the oil leak and finally long-term measure is to investigate cause of the oil leak and explore fact finding investigation result and improve operating procedures standard. The Refinery is currently running at normal. Please be informed accordingly. Sincerely yours, (Mr. Anon Sirisaengtaksin) Chief Executive Officer Corporate Finance and Investor Relations Tel: 02 265 8400 ext. 8421, 8714, 8327 ______________________________________________________________________ This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand has no responsibility for the correctness and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.