PowerPoint PresentationContents
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Set up 2 new charging stations for electric cars
PTTEP: Signed senior debt financing agreements of USD 14.9 bn to advance the first two-train LNG development
89%
5th Pipeline COD: 2021
96%
52%
PTT Group Refining Synergy amid COVID-19 • Rebalance JET & middle distillate during COVID-19 • Synergy group value chain optimization • PTT group refineries U-rate
2Q20 : 95% 1Q20 : 101%
Planned SD & TD
Low-income household 100 baht/person/month thru state welfare card for 6 months (Apr.-Sep.)
Public : reduced 3 baht/kg. (Apr.-Jul.)
Subsidies during COVID-19
Private : capped price at 15.31 baht/kg. for 5 months (16 Mar. -15 Aug.)
OPEX saving in 2020 • Target THB 6,500 mn • Progress ~THB 3,000 mn (46%)
PTT Group’s Bond issuance
THB 15 bn USD 850 mn USD 1,000 mn
Baht Bond : THB 35 bn Incl. Green Bond THB 2 bn USD Bond : USD 700 mn
OR: IPO Filing on 2 April 2020
Signed ESPA with Oman’s Ministry of Oil and Gas (MOG) : E&P rights of Block12
GPSC: Acquired Solar power plants in Thailand 39.5 MW
• GC : Olefin plants • IRPC : Refinery, ABS&SAN plants
Establishment PTTT USA: PTT International Trading USA
2Q20 • GSP#1 : Shutdown 46 days
and 50% Turndown 38 days • GSP#5 : Shutdown 10 days
and 50% Turndown 45 days
• GSP#5 shutdown 20 days and 50% turndown 27 days
1Q20:
30
31
32
33
34
Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Apr’20 May’20
HDPE-NAP PP-NAP PX-NAP BZ-NAP
HoH 20%
6% 48% 77%
Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20
QoQ YoY HoH
0
2
4
6
8
10
12
14
Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20
Key Business Drivers: QoQ: Oil prices bottomed out in April and started to recover while gas pooled prices tend to decline HoH: During COVID-19 pandemic and oil price war, most of petroleum and petrochemical prices dropped
AVG. Petroleum Prices ($/bbl)
2Q20 (End. 31.1) End: Baht Appre 1.8 bt. or 5.4%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Jul’20
AVG. FX (THB/USD)
546
399
267
174
31.5
689
3.6
50.7 43.4
2Q19 (End. 31.8) End: Baht Appre 0.02 bt. or 0.1%
2.4
1H19 (End 30.9) End: Baht Appre 1.7 bt. or 5.2%
30.6 28.9
594
506
150
29
32.1
2.1
9.1
6.90
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Jul’20
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Jul’20
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Jul’20
YoY 10%
1Q20 (End. 32.8) End: Baht Depre 2.5 bt. or 8.2%
3
1H20 (End 31.1) End: Baht Depre 0.7 bt. or 2.4%
23%
41%
11%
25%
Revenue
2Q20
PTT
- Lower from all businesses due to lower petroleum & petrochemical prices from oil price war and weaken demand caused by COVID-19
+ P&R: Increased from stock gain in 2Q20 (stock loss in 1Q20) and improved Mkt GRM and most of petrochemical spreads
- EP : Soften from lower sales vol.& prices - GAS : Weaken from GSP‘s turnaround and lower demand - Oil : Declined from weaken demand and products’ spread
69.4 63.5 67.4 50.7 30.6
2,336,155 2,219,739
119,647 92,951
351,396 288,972
Avg. Dubai (USD/BBL)
4
QoQ: Improved NI from lower stock loss despite weaken demand & prices 2019 vs 2018 : PTT’s Integrated value chain benefits in the volatile market
40% QoQ 55% YoY
29% QoQ 40% YoY
67% QoQ 27% YoY
>100% QoQ 54% YoY
+ Higher NI from better EBITDA + Higher FX gain from THB appreciation in 2Q20 + Lower Tax expenses mainly from PTTEP - Higher hedging loss on derivatives - Impairment from PTTEP’s Mariana Oil Sands project
5%
22%
22% 2019 vs 2018
18% 2019 vs 2018
- P&R , Trading, Oil : Declined from lower selling prices due of petroleum & petrochemical price downtrend
+ Power : Increased from GLOW’s revenue + EP, Gas : Rose from higher vol. & prices
5% 2019 vs 2018
EBITDA
Revenue
- P&R : Declined EBITDA from lower GRM and lower Petrochemical spreads
- GAS : Lower from GSP’s weaken selling prices vs. higher feed cost
+ Power : Increased from GLOW’s EBITDA + EP : Stronger EBITDA from higher sales vol. & prices
- Higher DD&A due to power and E&P businesses + Lower tax expenses from lower performances + Higher gain on FX & lower loss on derivatives
18%
Trading Capture arbitrage opportunity in a favorable market environment
2Q20 vs 1Q20 PTT Consolidated Performance (QoQ): Group performance rebounded due to lower stock loss over weaken demand & prices
PTTEP
PTT
5
Oil & Retail Margin decreased; Jet A-1 due to price structure Vol. decreased from impact of Covid-19 and lockdown
Extra Items 1Q20 : No extra items 2Q20 : EP’s asset impairment loss; Mariana Oil Sands project
Gas GSP: Soften demand from domestic fuel and petrochemical customers due to impact of COVID-19 & drought situation (GSP#1 & GSP#5: Shutdown & Turndown 50%) S&M : Lower NG sales vol. from Power, GSP and industrial sectors due to impact of COVID-19
Higher GM from lower natural gas and coal cost Higher contribution from affiliates
Petrochemical & Refining Stock gain in 2Q20 due to crude oil price recovery while stock loss in 1Q20 Higher GRM from lower crude premium Aromatics: Higher PX spread as a sharp drop in feedstock price Olefins: Better products’ spread & Volume as no SD in 2Q20
PTTEP Lower avg. selling prices due to decreased crude oil prices Lower sales vol. due to lower nomination from buyer
Power
Coal : lower vol. & prices and other income (tax payback) Others
>100%
<100%
>100%
(1,554)
MMTHB
1Q20: (35,693)
1Q20: 3,395
(18,418) 38,044
2019 vs 2018 Performance : Soften performance from squeezed margin due to pressure in both petroleum and petrochemical market
9,960
2019: 86,238 2018: 75,266
2019: 133,204 2018: 123,593
2019: 6,381 2018: 6,346
2019: 14,895 2018: 3,984
2019: 84,093 2018: 118,486
35%Extra Items
* Including PTT’s oil performance before business transferred to PTTOR in Jul 18
Petrochemical & Refining Weaken petchem spreads both Olefins & Aromatics Soften Mkt. GRM from lower product spreads and higher crude premium Lower vol. from more T/A in 2019 than 2018 Stock gain in 2019 VS stock loss in 2018
PTTEP Higher Vol. from additional stake in Bongkot (+22.22%) and M&A (Murphy & Partex) Improved ASP following higher gas price
Performance rose from GLOW since 1Q19 & Projects’ COD in 4Q19 Higher finance cost and DD&A expenses from Glow acquisition
Gas GSP dropped from lower selling prices from downtrend of ref. petchem product prices & higher feed cost; despite higher vol. S&M: industrial margin squeezed from lower ASP & higher NG cost
PTTLNG: Improved from higher revenue recognition of LNG Terminal 1 (10 MTA) Coal: Weaken ASP according to coal price downtrend & lower vol. due to soften global demand
Oil & retail/ Power/ Others
Trading Margin decreased from domestic condensate Sales vol. increased from Out-Out expansion
Oil & Retail Higher diesel and gasoline vol. from station expansion & margin increased Lower stock loss Non-Oil rose from café Amazon expansion
Extra Items 2019: - PTT Group: Additional Employee Compensation : Labor
Protection Act 2019 - PTT’s payment on damage from court’s judgement (NACAP) - PTT’s pipeline allowance from high speed train project
2018: - Tax effect from oil business transferred in 3Q18 - GGC: Expenses of raw material derogation - PTTEP’s loss on Montara Divestment
Others:
(Unit: MMTHB)
1/ Others include PTTLNG, PTTNGD, and PTTGL 2/ For MIS and include PTTT and PTTT LDN Note Since July 2018 Oil business has been transferred to subsidiaries (OR), see more details in Oil business performance
PTT EBITDA Breakdown by Business
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94,083 71,407 24%
18,917 15,148 20%
35,157 34,037 3%
34,060 16,017 53%
(4,871) (4,177) 14%
10,820 10,382 4%
5,929 2,130 64%
100,012 73,537 26%
1,294,979 1,297,231
474,887 525,770
386,293 271,045
330,806 355,231
1,301,040 1,266,492
658,969 761,961
526,956 420,824
0.25 0.32
Statement of Financial Position Strong Balance Sheets with BBB+ rating
AP & Other Liabilities
Bearing Debt (IBD)
Net Debt/EBITDA ≤ 2.0
Net Debt/Equity ≤ 1.0
PTT Ratings at Sovereign Level − Foreign Currency : Moody’s (Baa1),
S&P (BBB+), FITCH (BBB+)
− Local Currency : Moody’s (Baa1), S&P (A-), FITCH (BBB+)
Assets/Liabilities/ Equity: - Decrease in accounts receivables and inventories: Impact from lower sales vol. and prices from COVID-19 & Price War - Decrease in accounts payables: lower vol. and prices + Increase in right of use assets; asset reclassification according to TFRS 16 (Leases) + Higher Interest Bearing Debt (IBD) from increase in affiliated companies’ long term borrowing (bond/loan) - Lower equity due to dividend payment despite lower net profit in 1H20 8
Remark: *restated
Free Cash flow
Current inv. 38,264 97,373
Beginning Cash & Cash Equivalents
292,184 292,542 142,421 38,263
Operating 2019 265,107
1H2020 99,440
Net Income 92,951 10,499 Changes in assets & liabilities 26,663 33,197 Non-Cash Adjustment 210,752 90,524 Income Tax (65,259) (34,780)
Investing 2019 (188,218)
CAPEX (PP&E, Intangible asset) (149,951) (80,267) Current investment 108,719 (63,524) Investment (Sub. & Affiliates & others) (161,121) (2,399) Others 2,922 10,077 Dividend/Interest Received 11,213 5,219
Financing (70,226) (5,885) Loan/Bond repayment (134,328) (60,435)
Dividend Paid (81,351) (42,687)
Others /Derivatives (41,991) (329)
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Ending Cash & Cash Equivalents 46,481 40,752
Current inv. 15,002 21,453 Ending cash incl. S/T investment 61,483 62,205
Beginning Cash and Cash Equivalents
86,204 46,481 21,972 15,002
(46,693) 722
Investing 2019 6,212
Dividend/Interest Received 33,035 20,241 Others (6,281) 11,156 Investment (Sub. & Affiliates & others) (20,098) 1,493 Current investment 17,761 (9,632) CAPEX (PP&E, Intangible asset) (18,205) (9,312)
Financing (93,171) (35,812) Dividend Paid (59,979) (31,416)
Finance cost paid (6,720) (2,716)
Loan/Bond repayment (50,658) (1,725)
Statements of Cash Flows (PTT Only) : 2019 vs 1H2020
Cash & cash eqi Current inv.
Unit : MMTHB
7.71 8.75
16.00
20.00 2.00 2.00
32.4% 32.6% 29.8% 30.1% 30.3% 30.8% 33.0% 43.6% 40.4% 34.7% 34.9% 35.5% 40.0%
54.1%
148.6%
50.0%
-900.00
-600.00
-300.00
0.00%
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2558 2559 2560 2561 2562 1H2563
25% PTT’s min. payout ratio Policy
Baht / share
Dividend payout
Dividend Policy & Historical Payments 1H2020 Dividend payout at 50.0% and dividend yield at 3.4%
* Spilt par value from 10 to 1 Baht/share since 24 April 2018
10-Year Avg. 55%
13
3Q20: GSP#1 planned TA (46 days) 4Q20: GSP#5 TD 50% (43 days) 3Q20 & 4Q20 GSP#6 TD 10% change equipment (69 days)
Gas Business Pooled gas price
2H20
PTT Group’s Maintenance Schedule
3Q20: Planned Major TA (LAB)
3Q20: Planned TA (LDPE,LLDPE II, Aro II, PS)
Upcoming Projects in 2020
4Q20: COD of MTP Retrofit (750 KTA) & PO/Polyols (330 KTA)
On-scheduled projects
4Q20 : 1.0-1.5 $/bbl
PTT Group Resilience
Strong Cash Position
Sales Volume 2020 6-11% compared to 2019
GSP : U-rate 3Q20 : U-rate ~ 89% 4Q20 : U-rate ~ 90-94% 2020 OPEX Cut
Target ~THB 21,000 mn
Upstream Intermediate Downstream Infrastructure
Gas Pipeline
• Performance maintain as per committed volume of pipeline
• Gas consumption in relation to domestic GDP both for power and industrial customers
• Optimal utilization rate to align with Petrochemical demand and domestic LPG demand
GSP
• Expected trading volume ~ 6%
• Sales volume both oil and non-oil businesses relative to country GDP
• Some reduction in Industrial users demand volume
• No impact to EGAT volume (incl. IPP & SPP)
*Note: compared to Business Plan Total Gas volume ~ 6-11% : mainly due to industrial’s and transportation’s demand
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• PTT group refinery U-Rate in 2020 range from 90%-100%
• Running optimization with group central balance model to get optimal In & out take plan as a group
0
2
4
6
8
Asian Spot LNG Henry Hub
Fuel Oil + Bunker demand slowly improve following the recovery in trade activities - Expected ease of supply due to lower level of OPEC+ production cuts - Demand from power generation will be faded after summer
2H2020 Petroleum and Gas Outlook
-5
0
5
10
15
20
0
20
40
60
80
100
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Dubai Mogas Gasoil FO Cracking (RHS)
$/bbl
FO (3.5%) 43.4 28.9 64.6 36.2 58.7 35-39
Singapore GRM
1.2 (0.9) 3.3 0.2 3.7 0.5-1.5
Gasoil + An uptick in industrial activities will support demand - The increase exports from India and China and the pullback in refinery runs
would create supply overhang
Mogas + Gradual demand returns from lifting lockdown restrictions, reopening economic
activity, driving season in US, despite the resurgence of COVID-19 infections. - High regional supply remains due to ramping up in refinery runs and strong
Chinese gasoline exports.
Source: PTT, PRISM Petroleum Rolling as of Jul 2020
Singapore GRM + Firmer crack margins affected by the recovery in demand
Dubai + Global economy and oil demand recover after lockdown eased. However,
market remains concern about the second wave of COVID-19. + OPEC+ cut oil output 7.7 MMBD from Aug. to Dec.’20, non-OPEC supply in 2020
is expected to decrease by 3 MMBD YoY (IEA). + Geopolitical Risk; U.S. conflicts with Iran, and Venezuela, plus unrest in other oil
producing countries such as Libya, Nigeria. - U.S. - China trade tensions, including political standpoints may weigh on market
sentiment.
Asian Spot LNG 3.6 2.1 5.8 2.9 6.0 2.7 – 3.3
Henry Hub (HH)
Gas/ LNG • Asian Spot LNG:
+ Higher demand as the region enters winter - Record high inventory levels pressured demand growth
• Henry Hub: - Reduction in economic activities result in lower prices
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Aromatics
Polystyrene
HDPE CFR SEA PP Yarn CFR SEA
0 200 400 600 800
1,000 1,200
BZ FOB Korea PX CFR Taiwan
600 800
PS CFR SEA
Aromatics - PX downstream demand expect to be stable-to-soft,
especially in textile and clothing industries, due to slow growth of global macroeconomics.
- Incoming Chinese PX supply to startup at the end of this year - Benzene downstream demand, especially automotive and
appliance, gradually recover after the easing of the COVID-19 restriction but expect to slow toward the end of year
Polystyrene (PS) + Two major PS producers in Asia discontinued production
due to bearish long-term outlook. + Healthy PS demand for food packaging and medical
application as ongoing COVID-19 pandemic. - Demand from appliance, automotive and construction
are not expected to show significant recovery in 2020 as global economic slowdown.
Olefins + Downstream demand recover after the easing of the COVID-19
restriction amid concern on the 2nd wave of COVID-19. + High demand from single-use applications, such as food
packaging and medical products, will continue throughout this year. - New supply from Malaysia and China in 2H20
Price 1Q20 2Q20 1H19 1H20 Y19 Y20(E)
HDPE 839 760 1,086 800 991 820-840
PP Yarn 948 834 1,135 891 1,079 900-920
Price 1Q20 2Q20 1H19 1H20 Y19 Y20(E)
BZ 614 371 607 493 641 460-480
PX 707 495 995 601 901 575-595
Price 1Q20 2Q20 1H19 1H20 Y19 Y20(E)
PS 1,061 875 1,275 968 1,224 950-970
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Gas Business Roadmap Short term Gas Demand growth be maintained
17
LNG new project LNG Terminal 2 19.0
New Supply Additional capacity (mmscfd)
Major Project : COD 5th pipeline
RA#6 Pipeline
for power generation
Natural Gas be the most important source of energy with highest portion among other fuels
PDP 2015* PDP 2018 Rev.1
Stronger demand of NG for power plants
Unit: GWh
37%
Lignite
*Source: Ministry of Energy ** Source : EPPO (Public Hearing presentation) 18
Unit: GWh
: Total ~ 0.1% : Power ~ 2% : GSP ~ -7% : Industry ~ 1% : NGV ~ -6%
Thailand Gas Demand Replace : Coal (800 MW), EE 30%
*Source: Ministry of Energy ** Source : PTT Business plan 2020 approved by BOD on 16 Jan 2019 19
Thailand Gas demand forecast (CAGR during 2020-2034) : Total ~ 2% : Power ~ 2% : GSP ~ 0% : Industry ~ 3% : NGV ~ -1%
Natural Gas : Growth of natural gas upon Government fuel diversification policy for power generation
• Signed PSC ERW & BKT • Acq. Murphy in Malaysia • Acq. PARTEX in ME • Add stake in Sinphuhom
2019
PTT Group : Upcoming Projects
MTP Retrofit (Olefins Reconfiguration) Ethylene 500 KTA, Propylene 250 KTA
Southwest Vietnam *PTTEP hold 7-8.5% 490 MMSCFD or ~80 KBOED
5th onshore pipeline Length 400 KM.
LNG Terminal 2 7.5 MTPA
MARS - Maximize Aromatics PX 1-1.3 MTPA, BZ 300-500 KTA
Clean Fuel Project 275 400 KBD
Mozambique Area 1 *PTTEP hold 8.5%
13.1 MTPA or ~300 KBOED
Algeria HBR (Phase I) 10-13 KBD *PTTEP hold 24.5%
ERU Project Power 250 MW
Acquired Glow 2,771 MW Xayaburi 1,285 MW
*GPSC hold 25% CUP4 expansion 45MW
Catalyst Cooler LSFO
2025
*PTTEP hold 24.5%
Defer • Maintenance • New projects
“Decrease-Discard-Defer” Measures & Prioritize CAPEX
Cultivate Cost Conscious Culture
CAPEX reduction; new projects under study, non-core asset disposal
Revision
CAPEX
Continued CAPEX: Under- construction project
+ Spending from procurement + Expense reduction i.e. SG&A + Addition from process redesign
22
Note: The CAPEX revision excluded the restructuring transaction of power business within PTT Group
Reform Reform corporate & businesses to operate in every situation
4R’s levers
PTT group mitigate the Impact thru “PTT Group Vital Center”
Reimagine & Reform … for Next normal
Present focus on Resilience & Restart … to New normal
PTT Group Vital Center
Restart
02
0301
Resilience
Strong foundation for growth thru any crisis
• Stress tests & adaptive planning • Spend smarter & Prioritize CAPEX • Liquidity mgmt. & Credit Rating • PTT group value chain optimization • Safeguard employees & WFH • Protect & care for customers
Immediate actions to address challenges and ensure resiliency
Restart the business back to scale quickly and ensure competitiveness
• New normal operation thru Group synergy
• Maintain financial strength and business competitiveness
• Efficient & agile workforce • Engage and retain customers
Re si li en ce
Pe rf
or m
an ce
23
REIMAGINE Upstream REIGNITE new business at SCALE
REINFORCE downstream
“Strategic move in LNG Business to be LNG Portfolio Player”
Reimagination : Initiate business action: Both in existing businesses and new growth for the next normal
“Enhance more synergy for group value to create sustainable
long-term competitiveness” “Drive strategic enablers to
speed up execution” • Expand LNG Business overseas • Globally Investment in upstream
related businesses
• Strengthen collaboration and trust to maximize value along value chain
• Reduce redundant investment
• Explore & Expand into New Business (Life Sciences, Advanced Materials, Mobility & Life Style, Logistics)
24
Explore & Expand in Life Science projects
Develop Thailand's first cancer pharmaceutical factory
Explore M&A opportunities
Develop Bio-Cellulose for Wound Dressing
Note: Currently, PTT Group’s renewable energy portfolio is 200 MW : Investment budget is included in the Provisional CAPEX
New Business
EV Platform : Currently 30 stations Target: 100 EV chargers in 2021
New Energy Opportunities Screening & Alignment
Battery Plant & Smart Grid, Artificial Intelligence
Bringing manufacturing technology Focus on natural ingredients.
Medical masks, Dust mask, and Medical gloves from the situation of the COVID-19
~10%
851 KBD (**)
Source: PTIT Remark : (*)Refined product from refineries = 937 KBD, including domestic supply of LPG from GSPs and Petrochemical
Plants = 94 KBD (**) Included Inventory KBD = Thousand Barrels per day
Import (82%)
242 KBD
Oil Balance Thailand: Jan – Jun 2020 Adequate refining capacity maintains the stability of country supply
Total Refining Capacity in Thailand: 1,242 KBD
PTT’s Associated Refineries : 770 KBD (TOP, PTTGC, IRPC)
Other Refineries : 472 KBD (SPRC, ESSO, BCP)
Refined Products 212 KBD
Crude Export 30 KBD
Gulf of Thailand (64%)
Main driver of the Thai economy
Supply Production Sales
867 MMSCFD (20%)
Methane 1,533 MMSCFD
Chart1
Onshore
Sales
1
Sheet1
Sales
Onshore
100%
To resize chart data range, drag lower right corner of range.
56%18%
13%
87%
2001 2019
PTT ratings at Thai sovereign level
Thai Ministry of Finance 51%
Vayupak Fund 12%
Public 37%
FC Baa1 BBB+ BBB+ PTT – FC Baa1 BBB+ BBB+ PTT – LC Baa1 A- BBB+
• Foreign 11% • Thai 26%
Market Cap : SET & PTT Group
Robust revenue and net income growth since IPO (MMUSD) 1
1 2019 Annual Avg. BOT selling rate USD/THB of 31.22 (Avg. rate) 2 As of 31 Dec 2019 3 For the year 2019
12,553
71,100
2001 2019
International E&P business: 1,140 mmboe proved reserves in 2019 Sole operator & owner of gas transmission pipelines and Gas
Separation Plants (GSPs) in Thailand Largest refinery group in Thailand : 3 of 6 refineries Largest petrochemical producer group in Thailand : 6 of 8 major
petrochemical plants Leading oil marketing business in Thailand : 1,911 retail stations2 and
~40%2 of market share by sales volume International oil trading business having traded 82.9 bn liters3 in 2019 Power Plant flagship with committed capacity of 5,026 MW (equity portion)
Fully integrated & highly diversified over entire O&G value chain
Thai Premier Multinational Energy Company
Note: As of Aug 31, 2020
Others
Thailand best borrower award Best CEO Best CFO Best Managed Company Best Corporate Governance Best Investor Relations Best Corporate Social Responsibility Best Commitment to Strong Dividend Policy
SET Awards
Platts Top 250 Global Energy Company
21st in 2019 10th in 2018 12th in 2017 63th in 2016 31th in 2015
Dow Jones Sustainability Index (DJSI)
DJSI Member 2011-2019 (8th consecutive years)
30
130th Fortune Global 500 in 2019 163th in 2018 192th in 2017 146th in 2016 93th in 2015
170th in 2020 165th in 2019 156th in 2018 190th in 2017 337th in 2016
International and local recognition
Market Share ~ 40% - Oil & Non-oil Retail - Lubricants - International Oil & Retail
Trading
E & P
Coal Power
Petrochemicals
Facilities
Refineries
• Diversified International portfolio for ensuring long-term energy security
• Infrastructure Business – Create networking of energy that leads to sustainable growth and PTT’s S-curve
• Ensuring customer satisfaction and loyalty by products and services
• Create value added thru downstream businesses
PTT Group Businesses and Activities
31
Marketing • NGV
Singapore/ Dubai/ London/ Thailand
(95) 124 44 (15) 6
1,215 1,445
134
86 102 88 113
67.40 61.18
65.25 52.75
Liquid ($/BBL)
Gas ($/MMBTU)
Weighted Avg.
($/BOE)
MMUSD
Liquid
Gas
KBOED
351
* Includes Gain/(Loss) on FX, Deferred tax from Functional currency, Current Tax from FX Revaluation, Gain/(Loss) from Financial Instruments, Impairment loss on assets and etc.
Non- recurring*
Recurring NI
335
1,569 1,120
E&P : Prices & Volume and NI QoQ: Soften performance due to lower selling prices and volume 2019 vs 2018: Solid result from the completion of additional stakes in Bongkot and acquisitions in Murphy & Partex
QoQ - Avg. Selling Price: decreased 22% according to lower crude oil price - Volume: decreased 10% mainly from lower gas nomination in
Bongkot & Contract 4 projects - NI: dropped 51% as lower avg. selling prices & sales vol., hedging
loss and impairment in Mariana Oil sand project Y2019 vs Y2018 + Volume: increased from the acquisition of +22% Bongkot stakes, Malaysia & Partex + Avg. Selling Price: increased from higher gas price vs lower oil price + NI : increased due to higher sales Vol. & lower tax expenses from Baht
appreciation and no loss from divestment, despite higher OPEX & DD&A
327 363
51% QoQ
69% YoY
40%
433
2019 Guidance*
*Include sales volume from ADNOC Gas Processing (AGP) Based on average Dubai oil price in 2020 at 38$/BBL
Strong gas price with competitive unit cost
2030 Aspiration Targets Achievable through “Execute” and “Expand” Strategy
Energy Partner of Choice
33
2019 vs 2018 12% 9%
QoQ - NG sales vol. declined 8% mainly from Power, GSP, and industrial customers due to
COVID-19 - GSP vol. decreased 11% as more planned SD and TD 50% of GSP1’s & GSP5’s in 2Q20
according to seasonal drought and COVID-19’s lower demand + Avg. pooled gas price (cost) dropped 5% from Myanmar gas and imported LNG - NGV: selling prices of public car decreased 3 baht/kg. despite the lower sales vol.
from COVID-19 effect
Gas Business : Prices & Sales Vol. QoQ : Lower NG vol. from Power, GSP, and Industrial owing to COVID-19’s weak demand 2019 vs 2018 : Higher NG volume from all Power customers and higher pooled gas price
Key Highlights
30% QoQ 40% YoY
4%QoQ 1%YoY
6.90
383
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
780 843 836
979 624 495
1,269 1,261 1,288
1,010 949 847
755 752 670
$/MMBTU
Avg. Pooled gas price
2019 vs 2018 + Higher NG sales vol. from power sector
+ Power vol. increased 112 MMSCFD mainly from SPP due to 2019 longer period of summer than 2018 - Industry vol. decreased from customers’ T/A & economic slowdown and NGV vol. decreased
- Price: Industrial selling prices decreased following FO price - Avg. pooled gas price increased 9% due to increase in last 6-12 months FO price + NGV selling price increased and sales vol. dropped
6.1 5.4
2018 2019
1,085 1,049 986
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
916 796 645
2Q19 1Q20 2Q20
QoQ - GSP performance declined due to lower sales vol. from GSP’s SD & TD in 2Q20
more than in 1Q20 and lower average selling prices - S&M decreased from 8% lower gas sales vol. due to soften domestic power
demand and GSP’s SD and TD - NGV higher loss from lower public selling prices but lower vol. from lock down • TM & LNG terminal still contributed stable performances
4,438 1,924
14,433
Gas Business Performance QoQ: Lower EBITDA due to overall gas sales volume dropped esp. GSP from more planned SD & TD 2019 vs 2018 : Lower EBITDA mainly due to lower GSP while lower loss from NGV and sustained TM
GSP Sales Volume Unit : kTon
1,865
1,720 1,493
282 286 277 316 309 314 314 334 331 328
QoQ
PP 12% LDPE 9%
3,203 3,594
645 674
2,389 2,398
907 892
48 51
2018 2019
7,192 7,609
2019 vs 2018 - GSP dropped significantly from lower petrochemical price linked to selling
price, higher feed cost, despite higher volume - S&M decreased from higher avg. pooled gas cost & industrial selling price
drop from FO price linked - TM decreased from lower TDC vol. + NGV lower loss from higher avg. selling prices & lower sales volume
18,917 15,148
35,157 34,037
5,929
2,130
0.11
2018 2019 2Q19 1Q20 2Q20
3 PTT Trading BU + trading subsidiaries: FX Adjusted + gain/loss on derivatives
Unit: MMTHB
36
1 PTT Trading BU + trading subsidiaries: FX Adjusted + gain/loss on derivatives
Gross Margin1 Sales Volume2
Trading – EBITDA3 Key Highlights
Trading Business: QoQ: Higher EBITDA due to enhanced gross margin from arbitrage opportunity despite lower sales vol. 2019 vs 2018 : Pressured domestic condensate margin despite increased vol. from out-out activities
QoQ + Margin increased 17% from lower domestic condensate discount - Volume decreased 8% mainly from out-out transaction of crude oil &
petroleum products from impact of COVID-19 + EBITDA increased from higher GM from capturing arbitrage opportunity
2018 vs 2019 + Volume increased 3% due to higher out-out trading activities from
International offices - Margin & EBITDA reduced from lower domestic condensate price and
more discount in 2019 due to lower prices of substitutes
17% QoQ
40% YoY
64% 38% QoQ
10,509 12,016
2018 2019 2Q19 1Q20 2Q20
2Q19 1Q20 2Q20 QoQ YoY 2018 2019 2019 vs 2018 Kerosene 79.6 59.3 30.5 49% 62% 84.8 77.2 9% Gasoline 74.9 57.4 33.1 42% 56% 79.9 72.5 9% Diesel 79.7 61.7 36.3 41% 55% 84.1 77.2 8% Dubai 67.4 50.7 30.6 40% 55% 69.4 63.5 9%
Oil Business : OR Group QoQ: lower EBITDA from lower margin and sales volume during lockdown 2019 vs 2018 : Improved EBITDA from better margin, lower stock loss, and non-oil expansion
Key HighlightsOR Group – EBITDA QoQ YoY 2019 vs 2018
Oil 25% 31% 14%
Non-oil 33% 39% 2%
Total 22% 27% 13%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
27,470 27,627
GM (Unit: THB/Liter)
Gross margin1/Sales volume
1/Excluded Non-oil, stock gain/loss, non-recurring item
Petroleum Prices
37
1%
3%
QoQ - Margin was lower mainly from Jet A-1 (lower margin amid 2Q20 oil
price uptrend as “month -1” selling price structure) - Volume dropped 18% in all products from COVID-19 pandemic and
lockdowns mainly jet fuel - EBITDA decreased 22% due to lower oil’s margin & volume and non-
oil EBITDA amid COVID-19’s lockdown 2019 vs 2018 - Vol: Increased mostly from oil business due to stations expansion + Margin: Increased mainly from diesel tight marketing margin during high competition in 2Q18-3Q18 + EBITDA: Improved from higher oil gross margin & lower stock loss
while non-oil rose mainly from Café Amazon expansion
1.03 1.06 1.06 1.24 0.77
18% QoQ 15% YoY
(2.6) (4.9) (2.3) (7.4)
(1.6)
P&R Businesses QoQ: Improved performance thanks to oil demand recovery 2019 vs 2018: Soften performance in line with global trend
1,067
U-Rate
BZ PX
(PE Plant) (GC’s plant)
TOP’s T/A (Aro)
Kerosene
Diesel
Spread to Dubai: $/bbl
Naphtha: 38% QoQ
12.2
3,797
17,097
Unit: $/BBL 2018 2019 2Q19 1Q20 2Q20 Mkt GRM 4.69 2.67 2.44 0.83 1.6
Stock G/L excl. NRV -0.28 0.21 0.02 -9.00 -3.33
Hedging G/L -0.05 0.13 0.36 0.79 0.17 A/C GRM 4.36 3.01 2.82 -7.38 -1.56
2018 2019 2Q19 1Q20 2Q20
LLDPE: 19%
Sheet1
• Capture more benefit thru LSFO project
• 42.6 MT/Month
• PO (200 KTA)
• Polyols (130 KTA)
• Ethylene (500 KTA)
• Propylene (250 KTA)
• Refining capacity 275 400 KBD
• Utilize excess Naphtha/ Toluene/ Xylene as feedstock to maximize PX & BZ products
• Paraxylene (1,000-1,300 KTA)
1,320 MB (~40 MMUSD) 3 MB 888 MMUSD 985 MMUSD
4.8 Bn.USD incl. ERU unit 757
M.USD 1.0-1.3 Bn.USD
COD Apr’19 Phase I: May’19 Phase II: Aug‘19 Jul’19 2H20
(FID Aug’17) 2H20
(FID Jan’18) 1Q23
(FID Jul’18) 2Q25
107
2018 2019 2Q19 1Q20 2Q20
2018 2019 2Q19 1Q20 2Q20
QoQ - Volume dropped 16% from lower export from Jembayan - Avg. Selling Price: lower 12% due to referenced New Castle Coal price + Cash cost was down 6% from lower gasoil price & New Castle Coal price - NI decreased 93% from no payback on tax lawsuit case as in 1Q20
2019 vs 2018 - ASP & Cash cost drop following coal price - Vol. dropped from lower global demand and China & Taiwan import
restriction due to pollution concern - Net Income: decreased from lower volume & selling price, despite past
tax lawsuits net payback
Other Businesses : Coal Business (SAR) QoQ: NI dropped due to lower other income from tax lawsuit case and lower selling prices & volume 2019 vs 2018 : Volume and coal price dropped in line with slowdown of global demand and environmental concerns
Net income
Sales Volume
Key Highlights
40
kTon
36%
58
90
19%
27%
4%
http://www.straitsasia.com/
3.08 3.02 2.99
QoQ - Sales vol. decreased slightly due to lower dispatch vol. of Sriracha
according to EGAT instruction while SPP and VSPP volume improved + SPP Avg. NG Cost decreased according to lower NG prices + NI increased mainly from lower NG and coal cost, and higher contribution
from affiliates (XPCL,GRP solar power plants, ISP1) 2019 vs 2018 + Sales vol. increased from the recognition of GLOW’s performance. + Avg. selling price slightly increase from higher gas price in 2019. + NI increased from the recognition of GLOW’s performance, COD of
Xayaburi, CUP-4, and Num Lik 1 Power plants and no major maintenance of Sriracha power plant; despite higher DD&A, amortization cost of goodwill & finance cost.
1,081
Unit: Power: GWh Steam: ‘000 Ton
Other Businesses : Power - GPSC QoQ: NI increased from lower NG cost and higher contribution from affiliates 2019 vs 2018: Better performance from GPSC’s acquisition of GLOW
2019 vs 2018 QoQ YoY Power >100% 2 % 7% Steam 95% 2 % 4%
Steam Power
Unit: MMTHB
SPP Avg. Selling Prices (THB/kWh)
2019 vs 2018 QoQ YoY
SPP Avg. Selling Prices 1% 3%
Avg. NG Cost 5% 1 % 4%
283 273 270
2Q19 1Q20 2Q20
5,4126,572
17,572
12,821
GPSC Growth Pipeline and Strategy
Committed Capacity SCOD from 2020 - 2023
GPSC Electricity Growth Pipeline
Strategic Direction and Growth Strategy Selective Growth “Continuously seeking more international growth opportunities”
Notes: 1. Consisting of operating projects 4,708 MW (COD before 2020), GRP, NNEG 2. Maintain original capacity of Glow Cogeneration plants 3. SPP Replacement Stage 1: Glow Energy Phase 2 (new plant with 2 PPAs with
EGAT, total capacity of 192 MW electricity and 300 T/h steam, SCOD in 2022; and SPP Replacement Stage 2: Glow SPP2 and Glow SPP3 is under feasibility study for internal investment approval. 42
PTT Group Performance : 2Q2020 (QoQ)
43
% PTT holding
2Q19 1Q20 2Q20 QoQ YoY 2Q19 1Q20 2Q20 QoQ YoY
PTT Net operating Income 10,748 1,716 4,963 >100% (54%) 10,748 1,716 4,963 >100% (54%)
E&P - PTTEP 13,684 8,613 4,322 (50%) (68%) 64.88% 8,934 5,569 2,801 (50%) (69%)
Petrochemical 2,269 (8,712) 1,728 >100% (24%) 1,173 (4,015) 837 >100% (29%)
- PTTGC 2,202 (8,784) 1,671 >100% (24%) 47.92% 1,106 (4,088) 780 >100% (29%)
- Other 67 72 57 (21%) (15%) 67 73 57 (22%) (15%)
Refining 1,074 (22,659) 2,069 >100% 93% 753 (10,471) 520 >100% (31%)
- TOP 567 (13,754) 2,480 >100% >100% 47.12% 540 (6,255) 690 >100% 28%
- IRPC 507 (8,905) (411) 95% <(100%) 47.55% 213 (4,216) (170) 96% <(100%)
Others Business 6,009 5,559 6,096 10% 1% 4,643 6,049 2,944 (51%) (37%)
Inter - PTTER/PTTGM 303 (2,007) 1,218 >100% >100% 100% 308 154 82 (47%) (73%)
Gas - PTTLNG/PTTNGD/PTTGL/TTM(T)/TTM(M) 2,094 2,353 1,465 (38%) (30%) 1,862 2,386 1,337 (44%) (28%)
Utilities - GPSC/TP/DCAP/PTTME/PTTES/PTTDIGITAL/ENCO 1,526 2,234 2,568 15% 68% 382 564 641 14% 68%
Oil & Oth. - PTTT/PTTOR/THAPPLINE/Others1/ 2,086 2,979 845 (72%) (59%) 2,091 2,945 884 (70%) (58%)
Shared of Net Income from Affiliates 23,036 (17,199) 14,215 >100% (38%) 15,503 (2,868) 7,102 >100% (54%)
Tax adjustment for gain on disposal of investment and asset (313) (402) (12) 97% 96% (313) (402) (12) 97% 96%
PTT Conso. Net Income 33,471 (15,885) 19,166 >100% (43%) 25,938 (1,554) 12,053 >100% (54%)
Unit : MMTHB Performance 100% Equity Method % PTT
45
45
44 1/ Including BSA, PTT TCC and RTC
% PTT holding
PTT Net operating Income 59,123 30,673 (48%) 59,123 30,673 (48%)
E&P - PTTEP 36,206 48,803 35% 65.29% 23,646 31,882 35%
Petrochemical 40,440 11,994 (70%) 20,174 5,767 (71%)
- PTTGC 40,069 11,682 (71%) 47.92% 19,802 5,455 (72%)
- Other 371 312 (16%) 372 312 (16%)
Refining 17,884 5,103 (71%) 8,967 2,335 (74%)
- TOP 10,149 6,277 (38%) 47.53% 5,330 2,788 (48%)
- IRPC 7,735 (1,174) <(100%) 47.55% 3,637 (453) <(100%)
Others Business 26,552 28,095 6% 13,933 22,546 62%
Inter - PTTER/PTTGM 8,496 1,817 (79%) 100% 2,064 1,815 (12%)
Gas - PTTLNG/PTTNGD/PTTGL/TTM(T)/TTM(M) 8,409 8,442 0% 6,788 7,456 10%
Utilities - GPSC/TP/DCAP/PTTME/PTTES/PTTDIGITAL/ENCO 5,379 6,145 14% 1,367 1,574 15%
Oil & Oth. - PTTT/PTTOR/THAPPLINE/Others1/ 4,268 11,691 >100% 3,714 11,701 215%
Shared of Net Income from Affiliates 121,082 93,995 (22%) 66,720 62,530 (6%)
Tax adjustment for gain on disposal of investment and asset (6,196) (252) (96%) (6,196) (252) (96%)
PTT Conso. Net Income 174,009 124,416 (29%) 119,647 92,951 (22%)
Unit : MMTHB Performance 100% Equity Method % PTT
20192018 2019 vs 2018
45 1/ Including BSA, PTT TCC, and RTC
% PTT holding
PTT Net operating Income 19,164 6,679 (65%) 19,164 6,679 (65%)
E&P - PTTEP 26,163 12,935 (51%) 64.88% 17,081 8,370 (51%)
Petrochemical 8,782 (6,984) <(100%) 4,177 (3,178) <(100%)
- PTTGC 8,645 (7,113) <(100%) 47.92% 4,040 (3,308) <(100%)
- Other 137 129 (6%) 137 130 (5%)
Refining 5,635 (20,590) <(100%) 2,592 (9,951) <(100%)
- TOP 4,975 (11,274) <(100%) 47.12% 2,289 (5,565) <(100%)
- IRPC 660 (9,316) <(100%) 47.55% 303 (4,386) <(100%)
Others Business 15,365 11,655 (24%) 12,549 8,993 (28%)
Inter - PTTER/PTTGM 1,553 (789) <(100%) 100% 1,563 236 (85%)
Gas - PTTLNG/PTTNGD/PTTGL/TTM(T)/TTM(M) 4,305 3,818 (11%) 3,755 3,723 (1%)
Utilities - GPSC/TP/DCAP/PTTME/PTTES/PTTDIGITAL/ENCO 3,050 4,802 57% 769 1,205 57%
Oil & Oth. - PTTT/PTTOR/THAPPLINE/Others1/ 6,457 3,824 (41%) 6,462 3,829 (41%)
Shared of Net Income from Affiliates 55,945 (2,984) <(100%) 36,399 4,234 (88%)
Tax adjustment for gain on disposal of investment and asset (313) 390 >100% (313) (414) 32%
PTT Conso. Net Income 74,796 4,085 (95%) 55,250 10,499 (81%)
Unit : MMTHB Performance 100% Equity Method % PTT
PTT: Committed CAPEX (PTT and Wholly Owned Subsidiaries)
Other Infrastructure
PTTLNG Transmission
49,107
6%
PTT 5-Years (2020-2024) Committed CAPEX Plan totaling Baht 173,3951/ million or ~ USD 5.4 bn
mainly downstream businesses i.e. Oil and retail businesses, MTP Phase#3 (PTT Tank)
GSP Maintenance
LNG Terminal 2
i.e. EECi (Wangchan Valley), VC, and Energy related new business
1/ The revision of 5-years capex plan decreased by 4% from 180,814 MB (Business Plan) 2/ Subject to project’s approval
53,901 41,415
20,545 19,06030,484
2020 (revised)
2021 (revised)
2022 (revised)
2023 (revised)
2024 (revised)
22%
46 Note: 2020 budget revision approved by BOD on 28 May. 20 & 2021-2024 revision is estimated by PTT’s Planning and Budgeting Department
: The Committed CAPEX excluded the restructuring transaction of power business within PTT Group
13%
53%
32%
2%
48
and Production in Thailand (Bongkoch, Erawan etc.)
• Algeria HBR • Southwest Vietnam • SK410B • Mozambique LNG
Key Projects • ERU • Synergy Capture • Renewable Energy (Solar/Wind)
Key Projects • TOP: Clean Fuel Project (CFP) • GC: Olefin reconfiguration Plant,
Propylene Oxide/Polyols, • IRPC: Euro V • OR: Oil & Retail Expansion in
domestic & international
PTT Business
Downstream Business
47
Total committed CAPEX during 2020-2024* : ~Bt 827 bn or USD 26 bn
27,118
10,000 15,000 20,000 25,000 30,000 35,000 40,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2042 2110
USD (LHS) THB (LHS) PTT Debt Outstanding (RHS)
110,715 84,702 84,657
187,207 236,049
689,114
31 Dec 18 31 Dec 19 30 Jun 20 31 Dec 18 31 Dec 19 30 Jun 20
USD&Others
Debt Portfolio Managed debt according to financial risk and policy
Debt Outstanding and Repayment Profile
ConsolidatedPTT Only Unit : MM THB
: Cost of debts ~ 5.19% : % fixed-rate ~ 84.92% : Avg. debt life ~ 9.83 years
: Cost of debts ~ 3.70% : % fixed-rate ~ 72.08% : Avg. debt life ~ 10.25 years
(24%)
(76%)
(28%)
(72%)
(37%)
(63%)
(40%)
(72%)
(39%)
(61%)
Note : 1. PTT Data as of 30 Jun 20 (THB/USD = 31.0658 THB/JPY = 0.2906) excluding liabilities from finance leases.
3. Cost of debts, % fixed rate, and avg. debt life took into account the derivative transactions, including withholding tax (update as of 30 Jun 20). 2. Debt Outstanding represents amount and portion before derivative swaps, and reconciled with accounting.
FX: 31.0658 As of 30 Jun 20
*PTTC10DA (Century Bonds) is due on 2 Dec 2110
Unit : MM THB
Note: 1. Debt Outstanding for Repayment Profile represents financial data and portion after derivative swaps 2. Bond repayment in 2022 is THB swaps to USD. 48
Subsidiaries Consolidate PTT Energy Resources Co., Ltd. PTTER 100.00% PTT Green Energy Pte. Ltd PTTGE 100.00% PTT Global Management Co., Ltd. PTTGM 100.00%
Others Cost Sarn Palung Social Enterprise Company Ltd. SPSE 20.00% Dhipaya Insurance Plc. TIP 13.33%
Subsidiaries Consolidate PTT Oil & Retail Business Co., Ltd. OR 100.00%
Others Cost PetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00% PetroAsia (Sanshui) Co., Ltd. PA(Sanshui) 25.00%
Others
Subsidiaries Consolidate PTT Exploration & Production Plc. PTTEP 64.79% PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00% PTT LNG Co., Ltd. PTTLNG 100.00% PTT Global LNG Co., Ltd PTTGL 50.00%
Joint Ventures Equity Trans Thai-Malaysia (Thailand) Co., Ltd. TTM (T) 50.00% Trans Thai-Malaysia (Malaysia) Sdn. Bhd. TTM (M) 50.00% Map Ta Phut Air Products Company Limited MAP 49.00%
Petrochemical Subsidiaries Consolidate PTT Global Chemical Plc.* GC 47.92% PTT Tank Terminal Co., Ltd. PTTTANK 100.00%
Refining Subsidiaries Consolidate Thai Oil Plc.* TOP 47.03% IRPC Plc.* IRPC 47.55%
Subsidiaries Consolidate Business Service Alliance Co., Ltd.* BSA 25.00% PTT Regional Treasury Center Pte. Ltd. PTTRTC 100.00% PTT Treasury Center Co. Ltd PTT TCC 100.00%
International Trading Business Group
Subsidiaries Consolidate
Global Power Synergy Co., Ltd* GPSC 22.81% Thai Oil Power Co., Ltd.* TP 26.00% PTT Digital Solutions Co., Ltd.* PTT DIGITAL 20.00% PTT Energy Solutions Co., Ltd.* PTTES 40.00% Energy Complex Co., Ltd. EnCo 50.00%
Joint Ventures Equity District Cooling System and Power Plant DCAP 35.00%
Remark : * Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies.
Petrochemicals & Refining Business GroupE&P and Gas Business Group Oil Business Group
Data as of 30 Jun 2020
International InvestmentTechnology and Engineering Business Group
Subsidiaries Consolidate PTT International Trading Pte. PTTT 100.00% PTT International Trading London Ltd PTTT LDN 100.00% PTT International Trading USA Inc. PTTT USA 100.00%
PTT Group Accounting Structure
49
Others Cost Baania (Thailand) Company Ltd. Baania 2.89% HG Robotics Plc. HG Robotics 9.49% Innospace (Thailand) Innospace 19.42%
5151
Customers Sales Price Structure
Average Purchased Gas Price
Reference to Saudi Aramco’s contract price
Charged at prices comparable to fuel oil
Gas prices are mostly agreed under long term contracts and volatility pass-through to ensure stable returns
Profit-sharing mechanism based on market prices of petrochemicals
Reference to Naphtha market price
At GSPs cost (adjusted every 3 months)
*
*
*
* EGAT IPP and SPP Supply Margins not more than 2.1525 and 11.4759 bt/mmbtu respectively
50
: EGAT 19%
: IPP 12%
: SPP 29%
Public transportation vehicles : regulated and capped to minimize the impact from the rising global crude prices on end-users • Since 16 May 2018 : Allowance to adjust NGV public price from 10.62 Baht/Kg. to 13.62 Baht/Kg. by every 4 month
(16 May 19, 16 Sep 19 and 16 Jan 20) • As of Aug 2020 = 13.62 Baht/Kg.
Private vehicles: reflect the natural gas cost, gas quality adjustment and operating cost (not fully cover PTT’s operating cost) • Since 16 Jul 2016 : The retail price is set to reflect the natural gas cost but operating cost is still regulated • Since 5 Sep 2017 : Allowance to adjusted +0.46 Baht/Kg. to 3.8920 Baht/Kg. for gas quality improvement cost • As of 16 Aug 2020 = 14.41 Baht/Kg.
NGV 4%
Gas Business Generates Stable Returns
Sole owner and operator of entire gas transmission pipelines in Thailand (~ 4,000 km), a regulated business
• IRROE ranges between 12.5% - 18% for transmission pipeline investment
Supply & marketing of natural gas provides fixed margin with long-term contracts of 25-30 years
6 Gas Separation Plants; Total production 6.7 MTA; are on petrochemical market price-linked profit sharing basis
51
Overview Gas transmission pipeline capacity
Gas Separation Plant Capacity Unit 1 420 MMcf/d Unit 2 and 3 820 MMcf/d Unit 4 170 MMcf/d Unit 5 580 MMcf/d Unit 6 880 MMcf/d
value along value chainE S G
Sustainability Value “Sustainable Growth for All”
GOVERNANCE & ECONOMICS
Sustainable Production and Consumption
Enhance Eco- Efficiency & New Business through
Circular Economy
Operate Business with Integrity
Balancing Sustainability : PEOPLE PLANET & PROSPERITY PTT commits to sustainably operate its business
with an emphasis to balance 3 sustainability management aspects (3P) 8 consecutive year
as a member of the DJSI (Year 2012-2019)
Prosperity People Planet
Create Sustainable Growth for the Thai Economy and Society
Developing Human Resources, Creating Quality Livelihoods and Inclusive Business Growth with Community and Society
Conserving Natural Resources and the Environment, and Caring for Community and Society
from RobecoSAM and S&P Dow Jones Indices
PTT SDGs Focus
Short-term: 2020 Target Long-term: 2030 Target Reduce greenhouse gas emissions 7-20% from business as usual level
Nationally Appropriate Mitigation Actions (NAMAs)
Reduce greenhouse gas emissions 20 - 25% from business as usual level
Nationally Determined Contributions (NDCs):
Reduce Operational Carbon Footprint
Target Measurement
Increase PTT Group’s revenue from low carbon products in 2023
Implement carbon pricing for new investment in 2020
PTT: GHG Emission from operation (scope 1 & 2) Target Verified by 3rd party
53
: Production sector 12.6% : Office building 10%
7.32% of water recycled & reused to
total water consumption in 2019
Water Recycling Efforts • Committing to the 3Rs principle –
Reduce, Reuse, and Recycle • Desalinating seawater to reduce
reliance on public water resources
Waste Management
0.15% of routine hazardous waste to landfill to total routing
hazardous waste in 2019
Thank you PTT Public Company Limited – Investor Relations Department
Disclaimer The information contained in our presentation is intended solely for your personal reference only. Please do not circulate this material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any action in reliance upon it. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events, financial performance and result of PTT’s activities. These views are based on assumptions subject to various risks and uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ materially from those projected.
The information contained in this presentation is subject to change without notice and PTT does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.
55
54
Website: http://www.pttplc.com
E-mail: ptt-ir@pttplc.com
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