NOT SO SLICK
Performance surges in the first nine months
Oil and gas giant PTT posts a Q3 net profit of B22.3bn, down 17% year-on-year and 28% quarter-to-quarter.
PTT Plc, the oil and gas conglomerate, posted a net profit of 22.3 billion baht in the third quarter, a 17% drop on year and 28% down on quarter.
The decline was due l argely t o an impairment loss from a delayed project in Canada and lower production of its subsidiary, PTT Exploration and Production Plc (PTTEP).
President and chief executive Tevin Vongvanich said although normal operations of exploration and production business increased with higher sales volume and average selling prices, together with lower unit costs compared with the previous quarter, the impairment of the PTTEP asset still weighed on profit.
Its gas separation plant also had a lower performance, mainly from the drop in sales volume due to planned maintenance shutdown in this period.
But the petrochemical and refining business performed better, especially the latter, due to higher accounting gross refining margin (GRM), following the higher crack spreads of almost all products, as well as stock gain compared with stock loss in the previous period.
Crack spread is the differential between the price of crude oil and petroleum products extracted from it.
“PTT and its subsidiaries had lower gain on foreign exchange in this period due to foreign currency loan repayment during the period; besides, corporate income taxes increased following the better performance,” Mr Tevin said.
For the first nine months of this year, PTT had total sales revenue of 1.14 trillion bath, up 9.9% year-on-year.
Net profit stood at 99.8 billion baht, up 32% on year, with almost all businesses at PTT and its subsidiaries showing improvement, especially in the gas segment.
In addition, gains on foreign exchange because of the appreciation of the baht appreciation against US dollar, and on derivatives helped offset losses from PTTEP’s impairment of assets.
Overall profits were higher from its subsidiaries — PTTEP, PTT Global Chemical Plc, Thai Oil Plc, IRPC Plc, and Global Power Synergy Plc.
Mr Tevin said the strong third-quarter and nine-month performance had boosted the company’s efficiency to be ready for global competition and in securing the country’s energy supply.
It also helped enhance its potential to raise its corporate social responsibility (CSR), particularly in the Eastern Economic Corridor, with the EEC Innovation as part of its policy to push the country towards Thailand 4.0.
“Apart from expanding investment to help strengthen the economy, PTT will try to continue its CSR project to support social enterprises, opening up spaces at its petrol stations as channels to distributes local products,” he said.
PTT shares closed on the SET yesterday at 418 baht, up four baht, in heavy trade worth 2.556 billion baht.
PTT’s LNG terminal at Map Ta Phut, Rayong. The company’s Q3 profit decline was due largely to an impairment loss.