PTT maintains its half-year performance in the midst of a volatile economic situation

Tuesday 20 August 2019 08:55
Mr. Chansin Treenuchagron, President & Chief Executive Officer, PTT Public Company Limited, revealed the slight shifted downward results of PTT second half of the year 2019 performance, comparing to last year's performance of the same period. The cause of this is due to the situation of trade war between great power countries, resulting in the expansion of the world economy to decrease, including gross refinery margins (GRM). Moreover, the price difference of products and raw materials of nearly all types of petroleum and petrochemical products also decreased. Causing the overall performance of PTT to decrease when compared to the same period of the previous year. However, PTT Group has continually adjusted investment ratios in various businesses, especially the petroleum exploration and production business and the electricity business. As well as accelerate investment in projects that have already been approved, which helps maintain operating results. PTT also seeks investment opportunities and implements measures to improve operating results (Productivity Improvement), thus reducing the impact that occurs as well as reducing unnecessary expenses.

In the first half of the year 2019, PTT generate revenues from sales and services at 1.121196 Trillion Baht, rising 9.437 Billion Baht or approximately 1 percent when compared with the same period of the previous year. The increase is due to the higher sales volume in natural gas and exploration, and Global Power Synergy Public Company Limited's acquisition on Glow Energy Public Company Limited.

The net profit of PTT Group is at 55.250 Billion Baht, decreasing by 14.567 Billion Baht or 21 percent. The drop has been caused by the reduction of sales margin in petrochemical and refinery and the oil stock loss. The gas separation business has also declined regarding a drop in petrochemical price and its higher cost

The profits after a reduction of dividends to the government and shareholders, including the after payment of the loan, PTT will allocate these investments toward company's key projects to create energy security, including continuing to support social enterprise operations according to the framework of sustainable business management thus creating balance in 3Ps dimensions (People, Plant, and Prosperity). The development of Wang Chan Valley in Rayong Province as Thailand's science, technology, and innovation city is a significant investment in propelling Thailand 4.0 strategy. The development of this area includes the construction of an intelligent operation center, considered as a main infrastructure for the development of EECi. Moreover, promoting science and technology education through Kamnoetvidya Science Academy (KVIS) has been successfully progressed as 18 of 72 students in the second enrollment have received scholarships to study abroad. PTT has also cooperated with Payubnai Subdistrict Organization, KVIS, and Elegant Farm Company Limited to develop biogas from a pig farm locally in Payubnai.

Besides, PTT Group has leveraged its knowledge and expertise in technology and innovation to drive OUR Khun Bangkachao project, so called Technology for Social Collaboration. The objective is to increase green areas as well as collaborating with network partners and communities to enhance local community's quality of life. In addition, PTT Group has launched Cafe Amazon Circular Living Concept, where coffee chaff, which are the leftovers from the coffee roaster and plastic waste are recreated into a decorative materials and inventively decorated in Cafe Amazon branches. Furthermore, PTT Group supports Thai farmers by buying their agricultural products such as mangosteen, longkong and rice plus allowing them to sell their products at PTT Stations. Thus creating a trading point of agricultural products (Market Place) for the communities.

In the second half of this year, PTT Group still maintains the national energy security and enhancing its competitiveness in order to cope with the challenges. PTT channel its business towards the sustainable future.