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To Our Shareholders

An unwavering commitment to reliable and safe operations, along with ongoing efforts to provide customers with high-quality products and services, yielded extraordinary financial and operating results for Esso in 2016. The accomplishments detailed in this annual report also underscore the value of a steadfast dedication to the highest standards of business conduct and an approach that responsibly and actively promotes positive impacts on local communities.

Net profit of Baht 6.7 billion represents a best-ever result, supported by an improvement in crude oil prices and paraxylene margins, strong operational reliability, and a record level of retail sales volume. The Company generated cash flow from operations of Baht 7.3 billion, allowing Esso to substantially improve its financial position and invest in projects that will create long-term shareholder value. The Company also strengthened the reliability of its operations, captured new business opportunities, and further improved the products and services offered to customers.

The refinery streamlined operations, increased the production of higher-margin products, and further reduced energy consumption. This included the successful and safe execution of 37 days of planned maintenance and greater crude diversification with the introduction of 12 new crudes. Logistics operations implemented terminal system upgrades to improve blending and distribution efficiency and installed heating tanks to support increased sales of high-margin Asphalt.

The retail business expanded its network of service stations for the third consecutive year while also increasing throughput per site. Efforts to expand services and improve product quality continued during the year, including the introduction of the Esso Smiles loyalty card program and a new fuels formula. These additional customer benefits and improved product quality combined with the presence of premium products at more sites, nationwide marketing campaigns, and an expanded alliance portfolio helped Esso maintain its position as the largest international brand fuels retailer in Thailand. Commercial fuel sales volume increased as well with the capture of several new business opportunities. The Company also expanded its Mobil-branded lubricants business with successful marketing initiatives and greater product distribution in multi-branded outlets.

The talented men and women that work for Esso and their devotion to operational excellence and effective risk management underpinned the exceptional financial and operating results and led to strong environmental and safety performance. Esso employees carry out their daily activities supported by well-established processes and practices that aid in the management of financial and operational risks. This dedicated focus at every level of the organization to what we view as fundamental business methods is particularly evident this year with best-ever annual safety performance and the completion of a ninth consecutive year without a recordable spill.

Esso employs sound corporate governance as demonstrated by the core principles outlined in the Company’s Standards of Business Conduct, which provide employees with guidelines for appropriately managing business activities. We greatly value the communities in which we operate and strictly adhere to principles and practices that make us a good corporate citizen. As recognition of these efforts, Esso received the Thailand American Chamber of Commerce (AMCHAM) recognition award for Corporate Social Responsibility for the seventh consecutive year.

On behalf of the Board of Directors, I appreciate the confidence you place in the Company and its employees as evidenced by your ongoing investment in Esso (Thailand) Public Company Limited. We reaffirm our commitment to you to work diligently to create long-term shareholder value.

Neil A. Hansen
Chairman and Managing Director
Esso (Thailand) Public Company Limited