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.

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