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Safety and Sustainability:PTT has implemented several safety programs that really improve the safety performance
Aspiration = Zero Accident
• Total Recordable Injury Rate• IOGP = International Association of Oil & Gas Producer
1
Jan – Oct 2016 Performance
Policy and Standard
Process and Platform
Technology and Innovation
People and Culture
0.22
0.060
1
2
3
4
2009 2010 2011 2012 2013 2014 2015 Jan-Octl2016
Total Recorable Injury Rate (Injuries/Million hrs)
PTT: TRIR-employee PTT: TRIR-contractor
IOGP: TRIR employee IOGP: TRIR contractor
2
Rewards & Recognition
2
• Enterprises of the Year 2016 award • Award for Outstanding disclosure and transparency • Award for Outstanding Innovation (7th consecutive years)
SOE Award
PTT Business Continuity Management System: BCMS
• 1st large company in Thailand, certified by the international standard ISO22301 for the entire organization
• ranked "Excellent" for CGR Scoring, 8th consecutive years• categorized in Top Quartile among the companies with over 10,000 MB Market
Capitalization
Excellent CG Scoring Company (IOD)
• Most Organized Investor Relations• Strongest Adherence to Corporate Governance• Most Consistent Dividend Policy • Best Annual Report in Thailand
Alpha Southeast Asia Award
• selected as members of Dow Jones Sustainability Indices (DJSI) in 2016 (5th consecutive years)
Member of DJSI
9M/16 Highlights:
Key Events Update (Q3)
• GSP – No major T/A
• NGV – selling price reflected actual cost with no
ceiling since Jul’16
• Oil – 1st Amazon franchise in Japan
• Trading – Cabinet approved the establishment
of London office
• PTTGC – resumption of Olefin 3
• TOP – Fully operation of LABIX and 2 blocks of
TOP SPP
• PTTGC’s – Fire broke out at Phenol
storage tank
Performance (YoY)
• PTTEP – No impairment and successful cost
saving
• GAS –performance improved from lower feed
cost
• Oil – profit increased from stock gain
• Trading – performance improved from domestic
condensate
• Power – performance improved from higher
sales volume, lower gas cost and dividends
received from RPCL
• Petchem – Improved Aromatics and Olefins
• Coal – Better performance from successful cost
reduction initiated
• Refinery – pressured performance from market GRM despite stock gain
Finance PTT group Loan drawdown ~ 12,000 MB (PTTGC & IRPC)
4
Overview Performance Outlook
0
5
10
15
20
25
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16
LNG (JLC) ($/MMBTU) JKM Spot Avg. Pooled Gas ($/MMBTU)
31
32
33
34
35
36
37
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16
100
300
500
700
900
1100
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16
HDPE-Naphtha Spread PX-Naphtha Spread
10
50
90
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16
NG Prices ($/MMBTU)
* JLC = Japan LNG Cocktail : Landed LNG price in Japan
Key Business Drivers: Oil price started to pick up while NG continued to decline
Note: Figures are average
741
Dubai vs FO ($/BBL)
HDPE and PX spreads($/Ton) FX (USD/THB)
Dubai
FO
HDPE
341
PX
JLC*
56.6
55.1 Avg. Pooled
43.0
36.6
720
346
11.4
8.1
JKM 8.2
33.1
35.9
5
Depreciated
1.6 THB/USD (4.6%)
759
5* Naphtha (MOPJ)
9.2
7.47.5
30.4
25.8
5.7
6.8
5.4
407
Appreciate
0.5 THB/USD (1.4%)
35.8
43.243.2
35.239.8
743 753
394421
35.535.0
Avg. 9M/15 = 33.87 THB/USD
Avg. 9M/16 = 35.43 THB/USD
Overview Performance Outlook
TradingMargin increased from domestic condensateVol. decreased from out-out transactions
OilVol. increased from demand due to lower retail prices Margin improved from stock gain
Gas
GSP margin improved from lower feed costNGV loss decreased Increased TM performance Decreased Volume from EGAT & GSPs’ major T/A
PTTEPUnit cost reduced from DD&A and project SAVE to be SAFEOn track for 2016 sales volume target
938,330
12,180
49,7548,549
5,670
17,462
Margin
FX & Derivatives
OPEX* Depre & Amortiza-
tion
Other Income
Int. & CIT exp. & Other**
Impair
9M/2016 Performance: Improved performance in most businesses
6* including petroleum exploration expenses and royalties** including profit from discontinued operation
19,748
MMTHB
75,522
Net Income
49,835
Operating Performance
74,951
Extra Items
134%
1%
12%
18%
102%
Petrochem & Refining
Better Olefins performance from higher P2F Aromatics improved from spreads margin and volume increase Market GRM decreased
No Impairment of PTTEP & PTTGE
Insurance claim of PTTGC
Extra Items
Lower hedging Gain from PTTT
Others Affi
9M/15 9M/16
17,155
40,067 8,887
8,963
14,015
19,694
2,675
-
7,103
6,227
(30,087)
571
PTTEP
PTT
Others Affi.
P&R
BCP & SPRC
Overview Performance Outlook
43.68 43.15
52.96
39.37
36.62 36.32
47.47
36.00
Q2/16 Q3/16 9M/15 9M/16
-79
81 43154
75 705
-1,691
345
E&P : No impairment and cost saving improved NI, while ASP drop
Product Prices
Net Income (100%)
Sales Volume
Key Highlights
Liquid ($/BBL)
Gas($/MMBTU)
Weighted Avg.
($/BOE)
MMUSD
223 217 222 224
98 94 95 97
Q2/16 Q3/16 9M/15 9M/16
Liquid
Gas
KBOED
8
321
388
75156
*** Includes Deferred tax from Functional currency, Current Tax from FX Revaluation, Gain/loss from Financial instruments, Gain/(loss)on FX, H1 incident Insurance Claim, and etc.
1% YoY
Non-recurring***
Recurring NI
1% QoQ
23% YoY
119
Q1’16
1% QoQ
24% YoY
311 317 321
(986)
139% YoY
5.59 5.567.51
5.75
Q2/16 Q3/16 9M/15 9M/16
108% QoQ
E & P Gas Oil & Trading P&R Others
1% QoQ
26% YoY
3% QoQ
QoQ
• ASP remained low from slightly declined in oil & gas price
• Sales volume decreased mainly from Arthit
• NI increased, mainly from tax saving and oil price hedging
YoY
• Avg. selling price drop significantly from slump in oil & gas prices
• Sales volume increased mainly from Project B 8/32 & 9A
• NI improved from no impairment and cost saving program
Overview Performance Outlook
9
E&P Strategy:
RESET Cost Structure REFOCUS for Future Growth
Actual9M’16
Guidance 2016
Avg. Gas Price ($/MMBTU)
5.75 ~5.5
Avg. Sales Vol. (KBOD/D)
320.6 ~320
EBITDA margin (% of Sale Rev.)
73 ~70
Unit Cost(USD/BOE)
29.98 ~31
2016 Full year guidance
9
Path to re-tendering of expiring concessions in the Gulf of Thailand
Aug Jan SepMar
20172016
Legislation of Petroleum Act and associated laws
Tendering Process (preliminary expectation)
Terms of Reference (TOR)
~5 months
~5 months
~2 months
~7 months
Process: Indicative target for dataroom in March
and concession award within September 2017
TOR: approval process by the Cabinet
TOR: under drafting by the MoE
Associated Laws: under drafting by the MoE• Details and contract models of alternate regimes
Petroleum Act and PITA: under the National Legislative Assembly’s review
M&A• Producing/ near-term
producing assets in SEA
Exploration Portfolio• Low risk• Known areas• Quick commercialization in SEA
LNG Value Chain• Evaluate feasibility to form
LNG value chain partnership with PTT
FID Candidates
Mozambique Area 1 (hold 8.5%)• Initial development for 12 MMTPALNG
(2 trains)Contract 4 (Ubon) (hold 60%)• Oil resources in the Gulf of Thailand• Proposed production capacity in 25-30
kbpd rangeAlgeria HBR (hold 24.5%)• Successful appraisal wells results• Fasten development plan
Overview Performance Outlook
10
Overview Performance Outlook
PTT EBITDA Breakdown by BU’s:
Business Unit Q2/16 Q3/16 QoQ 9M/15 9M/16 YoY
Gas- EBITDA 16,974 20,072 18% 34,062 51,610 52%
• S&M 2,028 3,458 71% 6,659 6,852 3%
• TM 8,364 8,154 -3% 18,140 24,949 38%
• GSP 4,881 6,454 32% 10,861 14,833 37%
• NGV -909 -1,173 -29% -8,263 -3,019 63%
• Others 2,610 3,179 22% 6,665 7,995 20%
Oil- EBITDA 6,941 6,413 -8% 11,068 19,229 74%
Trading*- EBITDA 1,758 1,029 -41% 2,718 3,895 43%
Total** 25,673 27,514 7% 47,848 74,734 56%
(Unit:MMTHB)
*MIS** Included Gas & Oil subsidiaries 10
%QoQ %YoY
FO 13% 35%PooledPrice 3% 26%
11.9 11.712.3 12.0
7.78 7.47
8.60 7.81
Q2/16 Q3/16 9M/15 9M/16Vol.
MMCFD280 268 309 281
1,081 876 1,177 1,010
1,0811,000
1,003 992
860903
746 857
882 999 945 922
697 711 665 693
280 268 309 281
Q2/16 Q3/16 9M/15 9M/16
Gas BU: Pooled gas cost continued to fall, though NG volume declined
NG Price VS FO NG Customer Breakdown
$/MMBTU
EGAT (21%)
IPP (21%)
SPP (18%)
GSP (19%)
Industry (15%)NGV (6%)
MMSCFD
4,881
NGV Price/Sales Volume
QoQ
• Pooled gas cost continued to decline, while F/O price picked up
• NG sales volume dropped from seasonal high power demand in summer (Q2), despite no major GSP’s T/A in Q3
• Lower NGV volume, though NGV prices slightly drop, due to demand switching to persistently-low-price gasoline
YoY
• Overall NG sales declined from power customers and GSPs major T/A’s
• NGV volume decreased, as a result of lower demand
Key Highlights
4,755
ที่เพ่ิมข้ึนเป็นของ
K.Ton/Day
11
9% YoY
E & P Gas Oil & Trading P&R Others
4,757
$/Ton
Fuel Oil*
* MOPS HSFO 180 CST
Avg. Pooled gas price
LHS
RHS
2% YoY
•
THB/KG
NGV Avg. price
2% QoQ2% YoY
4,845
3% QoQ
4% QoQ
Overview Performance Outlook
8.6 9.2
8.6 8.5 8.5
7.9 7.3
6.6 6.2 5.8 5.6
610 607591
437
318377
265
217
160
219247
-
100
200
300
400
500
600
700
5
7
9
11
13
15
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16
1,375 1,234 1,576
1,266 1,188
1,375
1,234 1,153 1,103
1,153
1,139
Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16
333 333 333 333
443 497
470 440 431
427 420 389 394 391 382380
359352
310 309 302284
2,028 3,458 6,659 6,852
8,364 8,154
18,140 24,949
4,881 6,454
10,861
14,833
(909) (1,173) (8,263) (3,019)
2,610 3,179
6,665
7,995
Q2/16 Q3/16 9M/15 9M/16
Propane (13%)
Gas - EBITDA
MMTHB
Others
TM
GSP
34,062
16,974
S&M
NGV
661 730
1,935 2,072 175 190
524 533
447 552
1,596 1,449
187 237
636 611
3 9
22 18
Q2/16 Q3/16 9M/15 9M/16
GSP Sales Volume
LPG (44%)
kTon
1,718
17% QoQ
1% YoY
Gas BU: Performance improved from all segments
NGL (11%)
Ethane (31%)
Key Highlights
GSP Feed Cost vs Petchem price
USD/Ton
Feed Cost**
LPG Ex-GSP*
* Effective on February 2, 2015** Revised feed cost calculation from per sale volume to per GSP production volume
Pentane (1%)
1,473
20,072
12
HDPE
52% YoY QoQ
• S&M margin increased from industrial sales due to rising F/O price and declining gas cost
• GSP margin improved from lowered feed cost with no major T/A
• Gas BU’s EBITDA is better from improvement in almost all segments, despite NGV
YoY
• Industrial performance improved S&M margin
• GSP’s margin increased from feed cost decline more than selling price
• TM performance increased from high TDC volume
• Subsidies on LPG & NGV removed
• Gas BU’s EBITDA continued to improve in all segments
4,713
18% QoQ
4,683
51,610
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
%QoQ %YoY
HDPE -1% -11%
LPG Ex-GSP -2% -9%
Feed Cost -6% -18%
13
Gas Business Roadmap
Gas transmission pipelinesDemand & Supply
GSP
Capacity
(MTA)
6.7 6.7 6.7 6.7
New Supply
6.7
LNG Ph#2
MajorProject
COD
LNGCapacity
(MTA)
5 10 10
• 4th
onshore
• Nakhon Sawan
• Offshore Comp.
• 4th
onshore Midline Comp.
7
6.7
• Comp Wangnoi
• Nakhon Ratchasima
LNG Ph#2(Early Sent Out)
11.5 11.5
LNG Terminal#1 - Extension
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
Project Progress @ Sep 2016
4th Onshore Midline Compressor 70.30%
NakornRatchasima Pipeline – Phase 1 93.94%
5th Transmission Pipeline Preparing for EPC Bidding
RA#6 – Ratchaburi Pipeline Preparing for EPC Bidding
Wang-noi Compressor Station EPC Bidding
1
2
3
45
13
1
2345
0.0
0.1
0.2
0.3
0.4
0.5
0.6
Q3/15 Q4/15 Q1/16 Q2/16 Q3/16
Import Industry Auto Household
9.00
9.50
10.00
10.50
11.00
11.50
12.00
12.50
13.00
0
5
10
15
Q3/15 Q4/15 Q1/16 Q2/16 Q3/16
Avg. Sales Vol. (K.Ton/day)Price (THB/Kg)
-50
0
50
0
500
1,000
1,500
Q3/15 Q4/15 Q1/16 Q2/16 Q3/16
Sales Vol. Export M.Litre
(50.00)
(40.00)
(30.00)
(20.00)
(10.00)
-
10.00
20.00
30.00
40.00
0
1,000
2,000
3,000
Q3/15 Q4/15 Q1/16 Q2/16 Q3/16
Sales vol. Export
14
Oil BU: Demand stabilizing after price liberalization
NGV - volume continues to fall despite price decline
M.Ton
Diesel - demand improved as price fallGasoline - demand surged, as a result of
price drop
THB/Litre
27.4324.19 23.55 23.76
M.Litre
THB/Litre
12.38
LPG – Overall volume falls from lower imports
THB/kg
20.29
23.07
11.7311.85
24.72 23.87
20.29
K Tons/day
0.51
0.40 0.38
Overview Performance Outlook
E & P Gas Oil & Trading P&R Others
10.00
40.00
70.00
100.00
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Jul-16 Aug-16 Sep-16
0.58
0.96 0.94 0.80
6,558 6,621
18,758 19,856
Q2/16 Q3/16 9M/15 9M/16
965 953 2,362 2,797
5,976 5,460
8,706
16,432
Q2/16 Q3/16 9M/15 9M/16
QoQ YoY
Oil 9% 89%
Non-oil 1% 18%
Oil BU : Better overall performance mainly from stock gain
MMTHB
THB/Liter
15
Oil
Non-Oil*
* EBITDA from Operating
Contribution margin1/Sales volume2
MM Liter
1/Excluded Non-oil and stock gain/loss 2/PTT only
15% YoY
6% YoY
3,572 42 (3,113) 4,300
Petroleum Prices
Stock Gain/Loss(MMTHB)
66% QoQ
1% QoQ
Oil - EBITDA
USD/BBL
(Average Prices)
Key Highlights
Gasoline
Diesel
Dubai
QoQ
• Sales vol. increased slightly, mainly from low LPG sales in Q2 (effect from GSP 6/PTTGC T/A )
• Improved contribution margin mainly from the absence of diesel imports in Q2’16
• EBITDA decreased from higher selling and operating expenses
YoY• Sales volume increased mainly from higher demand following
lower product prices
• Lower contribution margins mainly from higher diesel imports during PTTGC T/A in Q2’16
• Higher EBITDA mainly from stock gains & higher sales volumes
6,4136,941
11,068
19,229
Overview Performance Outlook
E & P Gas Oil & Trading P&R Others
*
*Excluded refund of oil fund
*
48.16 45.41 54.89
44.16
43.18 43.16
54.31
38.93
17,309 19,463
60,847 55,252
Q2/16 Q3/16 9M/15 9M/16
QoQ
• Contribution margin slightly declined mainly from lower domestic condensate margin
• Volume increased from higher crude supply to domestic refinery from the absence of PTTGC T/A
• Lower EBITDA performance, mainly from paper swap timing mismatch
YoY• Margin improved mainly from domestic condensate following higher
demands
• Sales volume declined from out-out trading volume supplied to Indonesia
• Better performance, from better domestic condensate margins
0.11 0.10
0.06
0.09
Q2/16 Q3/16 9M/15 9M/16
* PTT only : FX Adjusted
1,758
1,029
2,718
3,895
Q2/16 Q3/16 9M/15 9M/16
Trading BU: Performance improved from better domestic condensate margin
Contribution Margin*
Trading - EBITDA*
Sales Volume
Key Highlights
MMTHB
MM Liter
16
* PTT only : FX Adjusted
43% YoY
Contribution Margin (THB/Liter)
NWS($/BBL)
28%
9% YoY
6%
41% QoQ
Dubai ($/BBL)
0%
20%
50% 9%
YoYQoQ
12% QoQ
Overview Performance Outlook
E & P Gas Oil & Trading P&R Others
EAST FLAGSHIP
LDN
SG
WEST
FLAGSHIPOut-Out
businesses in Western corridor
Trading BU & PTTT: Key Achievements in Q3/16
GROWTH
LONDON OFFICE
Nov 2016
Registered capital: £420,000
Incorporation Date: 24th Oct’16
Overview Performance Outlook
17
E & P Gas Oil & Trading P&R Others
234 253 241 253
405 402 373
407
Q2/16 Q3/16 9M/15 9M/16
83%
75%
77% 82%
7,753 2,941
8,432 15,420
3,706
1,307
8,955
8,027
4,925
6,225
15,812
15,857
2,003
1,557
3,329
4,209
(454)
640
(1,098)
312
6,382
1,933
Q2/16 Q3/16 9M/15 9M/16**
3.39 3.63
6.13
4.08
6.57
3.37 5.05 4.46
11.74
6.89 7.71 8.43
Q2/16 Q3/16 9M/15 9M/16
1,153 1,139 1,266
1,132 1,082 1,090 1,209
1,034
Q2/16 Q3/16 9M/15 9M/16
18
43.2 43.2 54.3 38.9
GRM/GIM
Olefins
USD/BBL
A/C GRM*
A/C GIM*
Mkt GRM
Dubai
Net Income (100%)
P&R BU : Soften GRM whilst better Aromatics and Olefins performance
3.73 -0.03 -1.41 0.75StockGain/Loss
43,745
17,93312,670
IRPC
TOP
SPRCBCP
*A/C GRM and A/C GIM include effect from hedging gain/(loss)
Unit : MMTHB
18** Sold out of BCP and SPRC
43,825
29%
QoQ YoY
QoQYoY
24% w/o BCP and SPRC
A/C GIM41% A/C GIM
9%
Olefins U-Rate 85%
93%93%
86%
USD/Ton
HDPEPrice
PPPrice
1% 1% 11%14%
QoQ YoY
Aromatics
BZ-Cond
PX-Cond
USD/Ton
8%
9%
5%
QoQ YoY
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
PTTGC
HMC
Others
1%
205 179 205 201AromaticsAcc P2F
2%
BTXU-Rate
13%
19
P&R : Strategic Project Update and Roadmap
Linear Alkyl Benzene (LAB)
• Successfully COD on 25 Feb 2016
• Capacity 120 Kton/annum
• Project cost 400 M$
TOP SPP (2blocks of SPP)
• Successfully COD 1st block of TOP
SPP (124MW) on 1 April 16
• Successfully COD 2nd block (115 MW)
on 1 June 2016
19
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
To be a Leading chemical company for Better living
Sustain Core
Project MTP retrofit
Olefins Reconfiguration
Project MAX
Improve productivity
Project Asset Injection
Reduce complexity & Maximize integration
Accelerate Growth Levers
International hub
Performance chemicals
Green business
Balance Business & Social Value
19
42
4755
44
35
36
47
36
52
67
61
56
Q2/16 Q3/16 9M/15 9M/16
2.0
6.5 5.6
9.3
Q2/16 Q3/16 9M/15 9M/16
Other Businesses : Coal - SAR Better performance from lower depreciation and cost, despite lower coal price
Net income
Sales Volume
Key Highlights
MMUSD
USD/Ton
2,153 2,040
4,519 5,639
414 384
1,335
1,415
2,567 2,424
5,854
7,054
Q2/16 Q3/16 9M/15 9M/16
kTon
Jembayan
Sebuku
Avg. Selling Price
Total Cash Costs
6% QoQ
Avg. Selling Price* & Cash cost*
New Castle
20% YoY
66% YoY
29%
3%
20%
8%
23%
20
QoQ YoY
QoQ
• Selling price increased by 12% following the rise in coal price from the effect of China coal production limit
• Sales vol. decreased by 6% mainly from bad weather
• Performance improved mainly from the price increase
YoY
• Cash cost declined by 23% from successful negotiation w/ contractors and reduction in fuel cost
• Sales vol. increased following the increase in coal production
• Performance improved mainly from lower depreciation & successful cost reduction
*Calorific value ~ 5,500 kcal/ton
Overview Performance Outlook
12%
225% QoQ
E & P Gas Oil & Trading P&R Others
Combine Cycle : IPP
66.1%
Cogen : SPP
31.2%
Renewable2.3%
Combined heat: VSPP
0.4%
624 599
1,603 1,7971,475 1,492
3,604
4,287
Q2/16 Q3/16 9M/15 9M/16
Hydro Electricity
63%
Cogen: SPP 32%
Renewable5%
686 724
1,571
2,281
Q2/16 Q3/16 9M/15 9M/16
Net Income (100%)Sales Volume
Key Highlights
MMBahtGWh
Other Businesses : Power - GPSC Outstanding performance supported by dividend income from its affiliates
‘000 Ton
Committed Capacity
Power
Steam
21
QoQ YoY
Operating1,376 MW
Underconstruction
546 MW
Overview Performance Outlook
QoQ
• Lower electricity sales vol. from both IPP and SPP due to lower vol. dispatched to EGAT and lower sales vol. to non-firm
• Higher NI mainly came from the dividend income from RPCL amounting to 240 MB
YoY
• Higher sales vol. from SPP to industrial customers and also COD of IRPC-CP in Q4/15
• Higher NI as a result of higher sales vol, lower natural gas cost and better cost management
1% 12%
19%
45% YoY6% QoQ
Present 2019
E & P Gas Oil & Trading P&R Others
4%
Other Businesses : Power – GPSC
Overview Performance Outlook
E & P Gas Oil & Trading P&R Others
To be Updated
Project Type Capacity SCOD Construction Progress
as of Q3/16
CHPP Solar Cooperatives(VSPP) Solar • Electricity: 5 MW Dec’16 8%
IRPC-CP phase 2 (SPP) Cogen • Electricity: 240 MW
• Steam: 180-300 T/HJun’17 90%
Bangpa-In Cogeneration Company Limited (BIC) Phase 2(SPP)
Gas-Fired Power Plant
• Electricity: 117 MW• Steam: 20 T/h
Jun’17 78%
Ichinoseki Solar Power 1GK (ISP1) Solar • Electricity: 20.8 MW Q4’17 84% land
preparation
Project Highlight: 4 Projects to COD in 2017
22
53%
27%
12%
8%
48%
17%
6%
28%
1%
24,879 26,974 19,748
75,522
26,403
49,835
74,951
Q2/16 Q3/16 9M/15* 9M/16
43.18 43.16 54.31 38.93
PTT Consolidated Performance: 9M/2016
Avg. Dubai (USD/BBL)
9M/169M/15
420,447 435,172
1,554,885
1,241,989
Q2/16 Q3/16 9M/15* 9M/16
PTT
P&R
Others
PTTEP
Net Income
Unit : MMTHB
EBITDA
Net Income/Operating Performance
Revenue Revenue
EBITDA
82,150 75,701
220,635 229,058
Q2/16 Q3/16 9M/15* 9M/16
23
46%
18%
6%
29%
1%
Revenue
PTT - Oil
& Trading
PTT - Gas
Others
PTTEP
P&R
20% YoY
* Included gain on BCP divestment and IRPC reverse allowance for doubtful debt
36%
23%
10%
30%
1%
EBITDA
P&R
PTT - Gas
Others
PTTEP
PTT - Oil
& Trading
Net Income
46%
15%
6%
31%
2%
97%
93%
-120%
30%
Overview Performance Outlook
4% QoQ
4% YoY
0.04% QoQ 28% YoY
8% QoQ
QoQ8%6%
YoY282%50%
2424
PTT Group Performance : 9M/2016 (YoY)
*SPRC before disposed = 36%, **BCP divested in April 2015
% PTT
holding
9M/15 9M/16 YoY 9M/15 9M/16 YoY
PTT Net operating Income 19,241 40,067 108% 19,241 40,067 108%
E&P - PTTEP -36,284 13,732 138% 65.3% -23,688 8,963 138%
Petrochemical 18,043 20,378 13% 8,374 9,664 15%
- PTTGC 15,812 15,857 0% 49.3% 7,454 7,769 4%
- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 2,231 4,521 103% 920 1,895 106%
Refining 25,702 23,447 -9% 9,906 10,601 7%
Refining (Excluded SPRC & BCP) 17,387 23,447 35% 7,231 10,601 47%
- TOP 8,432 15,420 83% 49.1% 4,085 7,369 80%
- IRPC 8,955 8,027 -10% 38.5% 3,146 3,232 3%
- SPRC 6,382 0 -100% 5.41%* 2,122 - -100%
- BCP 1,933 0 -100% 0%** 553 - -100%
Others Business 8,591 10,493 22% 5,915 6,227 5%
Inter - PTTER, PTTGE -4,074 -860 79% 100% -4,086 -876 79%
Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 4,162 4,244 2% 3,659 3,649 0%
Utilities -GPSC/ TP/ DCAP 2,653 3,542 34% 752 903 20%
Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 5,850 3,567 -39% 5,590 2,551 -54%
Shared of Net Income from Affiliates 16,052 68,050 324% 507 35,455 6893%
PTT Conso. Net Income 35,293 108,117 206% 19,748 75,522 282%
Equity Method % PTTPerformance 100%
Unit : MMTHB
24
Overview Performance Outlook
PTT Ratings at Sovereign Level
− FC : Moody’s (Baa1), S&P (BBB+),
JCR (A-), FITCH (BBB+)
− LC : Moody’s (Baa1), S&P (BBB+),
JCR (A), FITCH (BBB+)
Other Liabilities
PPE
Others Non-
currentAssets
OtherCurrentAssets
L/TLiabilities(incl. due within 1 yr)
TotalEquity
MMTHB
Cash & S/T Invest
31 Dec 13 30 Sep 14
1,805,041 1,818,746
Statement of Financial Position
1,118,677 1,096,860
375,617 371,658
332,977300,749
346,725345,201
1,087,687 1,132,043
632,834 585,921
453,475 396,504
1 2 3 4 5
3%
2,173,996 2,114,468
30 Sep 1631 Dec 15
25
Overview Performance Outlook
0.290.24
1.09
0.91
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
YE15 9M/16
Net Debt/EBITDA ≤ 2.0
Net Debt/Equity ≤ 1.0
Assets/Liabilities slightly decreased :
• Decrease in AR and AP following lower ASP
• Decrease in PPE from depreciation expense
• Decrease in L/T liabilities from loan repayment
Free Cash flow
45,219 48,182
Investing9M/15
(158,930)9M/16
(134,942)
CAPEX (PP&E, Intangible asset) (129,116) (82,814)
Investment (Sub. &Affiliates) 13,993 (1,778)
Current investment (60,522) (53,025)
Dividend/Interest Received 12,135 7,506
Others 4,580 (4,831)
Operating9M/15
204,1499M/16
183,124
Net Income 19,748 75,522
Changes in assets & liabilities 19,551 (19,150)
Income Tax (40,969) (29,073)
Non-Cash Adjustment 205,819 155,825
Ending Cash & Cash Equivalents
169,678 185,429
Ending cash incl. S/T investment
312,745 345,201
Beginning Cash and Cash Equivalents
234,212 239,978
Cash In/(Out)
(64,534) (54,549)
Adjustment
11,805 65
Financing (121,558) (102,796)
Repayment Loans (98,294) (64,052)
Interest paid (25,338) (23,238)
Dividend paid (43,332) (44,374)
Received from share issue 9,990 102
Received from loans/Bonds 35,504 23,610
Others (88) 5,156
Statements of Consolidated Cash Flows : 9M/16
26
Overview Performance Outlook
Bull : - Strong housing market’s recovery, - Stimulus measures help support growth
Bull : - Strong labor market Rising household spending
28
Global Economic Outlook : Uncertainty in the Aftermath of the US Presidential Election
US economy : Continuous Growth
Bear : - Trump presidency and policy uncertainty
Euro Area economy: Resilient GrowthBull : - QE and low interest rate support growth
Bear : - Brexit negotiations impact on trade, migration, and investment in Europe
Thai economy: Growth continues at a Moderate PaceBull : - Increases in public spending & Tourism Growth
Bear : - Weak exports & private investment slowdown growth
Bear : - Industrial overcapacity persists
- High corporate debt
China economy: Government Stimulus and Steady Growth
28
Overview Performance Outlook
- Strong US dollar, low oil price Weak business investment
- New Elections in EU Policy risks following US Election
Summary: Outlook 2017
Business 9M/2016 2017 (Forecast)
Reason
Gas Price ($/mmbtu)- Henry Hub- JKM
2.905.38
Range 2.9 – 3.35.9 – 7.2
• Growing domestic consumption & higher pipeline exports to Mexico
• New projects delay and uncertainty of nuclear situation in South Korea
Oil Price ($/bbl)Dubai Price 38.9
Range50-55
• 2017 Global oil demand will grow 1.2 MMBD• Non-OPEC supply is tightened due to
delayed investments• Geopolitical uncertainties
Refinery Margin ($/bbl)Singapore GRM 5.91
Range6.6-7.7
2017 Singapore GRM is expected to be higher than 2016• Higher gasoline crack spread from less
oversupply than 2016• Higher Jet/IK demand from higher air travel
demand and return to normal weather
Petrochemical ($/ton) - Olefins (HDPE, PP)
- Aromatics (PX, BZ)
HDPE-Naphtha =750
PP –Naphtha = 630
PX-Naphtha = 406BZ-Naphtha = 233
HDPE-Naphtha = 670-680PP –Naphtha = 580-590
PX-Naphtha = 365-375BZ-Naphtha = 215-225
Olefin• New capacity additions (ME) exceed
demand growth • Stronger naphtha price squeezed margin
Aromatics• Large additional capacity of PX from India
and Korea exceed demand growth.• BZ spread will be closed to 2016 estimated
spread ($223/T). The additional capacity and demand growth grow at same pace.
29
Overview Performance Outlook
9M/2016
Improved performance in most businesses
• Oil price remain low & NG further decline
• PTTEP - No impairment/ SAFE to be SAVE
• Gas - Lower feed cost improved margin
• Oil - Enhanced Oil performance from stock gain
• P&R - Better aromatics & olefins despite lower
refineries
• Power - improved from sales volume &
dividend income
• T/A GSPs and PTTGC’s Refinery
Looking Forward (2017)
• Global growth slightly increase
• Oil price gradually improve to be 50-55 $/bbl
• Re-tendering of expiring concessions in the
Gulf of Thailand
• Approval of Petroleum Act
• Feed gas cost expected to be further declined
• Major T/A for IRPC and PTTGC
• Petrochemical prices tend to be weaken
Key Takeaways
30
Thank youPTT Public Company Limited – Investor Relations Department
Tel. +66 2 537-3518, Fax. +66 2 537-3948, E-mail: [email protected] Website: http://www.pttplc.com
Disclaimer
The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking
statements that reflect our current views with respect to future events and financial performance. 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.
Petroleum Reserves and Resources Information
In this presentation, the Company discloses petroleum reserves and resources that are not included in the Securities Exchange and Commission of Thailand (SEC) Annual
Registration Statement Form 56-1 under “Supplemental Information on Petroleum Exploration and Production Activities”. The reserves and resources data contained in
this presentation reflects the Company’s best estimates of its reserves and resources. While the Company periodically obtains an independent audit of a portion of its
proved reserves, no independent qualified reserves evaluator or auditor was involved in the preparation of reserves and resources data disclosed in this presentation.
Unless stated otherwise, reserves and resources are stated at the Company’s gross basis. This presentation may contain the terms “proved reserves”, “probable reserves”,
and/or “contingent resources”. Unless stated otherwise, the Company adopts similar description as defined by the Society of Petroleum Engineers.
Proved Reserves - Proved reserves are defined as those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable
certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government
regulations.
Probable Reserves - Probable reserves are defined as those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be
recoverable.
Contingent Resources – Contingent resources are defined as those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from
known accumulations, but which are not currently considered to be commercially recoverable. The reasons for non commerciality could be economic including market
availability, political, environmental, or technological. 31
31
2016 2016(revised)
2017 2018 2019 2020
11,118 4,993 10,850 6,619 5,698 5,2827,315 7,868
5,4664,430 3,191 3,272
827 833609
502 342 325
10,96710,872
17,60712,106 13,245 13,586
20,61218,741
32,983
34,64946,042
29,008
Infrastructure
Investment in JV andits subs
Head Office andOthers
Oil and InternationalTrading
Natural Gas
Infrastructure55%
Gas13%
Oil & Trading
8%
M&A and Oversea
investment8%
LNG15% R&D, Others
1%
PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 297bn ($8bn) during 2016-2020
By Business UnitJV &
Investment in
Subsidiaries
23%
67,514 68,517
51,47350,83958,306
* 2016-2020 budget approved by BOD on 17 Jun 16
5th pipeline & extension
LNG, M&A and Investment Oversea
Unit: MMTHB
43,307*
CAPEX revision Y2016: lower by ~ THB 7.5 bn mainly from
• Increase efficiency:
Natural gas: Early completion & lower land cost
• Project cancellation/postponement:
Natural gas: Terminated GSP capacity expansion,
Postpone Hybrid NGL project
Infrastructure: Delayed Offshore compressor
PTT 5-Years CAPEX Plan ̴Bt 297 bn
32
204,595
89,085
2,969
Energy Infrastructure
69%
Green, 1%By Strategy
PTT Group Performance : Q3/2016 (QoQ)
*SPRC before disposed = 36%, **BCP divested in April 2015 33
% PTT
holding
Q2/16 Q3/16 QoQ Q2/16 Q3/16 QoQ
PTT Net operating Income 13,115 14,985 14% 13,115 14,985 14%
E&P - PTTEP 2,661 5,446 105% 65.3% 1,734 3,558 105%
Petrochemical 6,474 8,422 30% 3,062 4,030 32%
- PTTGC 4,925 6,225 26% 49.3% 2,453 3,074 25%
- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 1,549 2,197 42% 609 956 57%
Refining 11,459 4,248 -63% 4,897 2,092 -57%
Refining (Excluded SPRC & BCP) 11,459 4,248 -63% 4,897 2,092 -57%
- TOP 7,753 2,941 -62% 49.1% 3,466 1,537 -56%
- IRPC 3,706 1,307 -65% 38.5% 1,431 555 -61%
Others Business 3,288 3,833 17% 2,071 2,309 11%
Inter - PTTER, PTTGE -354 -158 55% 100% -355 -157 56%
Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 1,294 1,601 24% 1,144 1,277 12%
Utilities -GPSC/ TP/ DCAP 1,058 1,173 11% 265 322 22%
Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 1,290 1,217 -6% 1,017 867 -15%
Shared of Net Income from Affiliates 23,882 21,949 -8% 11,764 11,989 2%
PTT Conso. Net Income 36,997 36,934 0% 24,879 26,974 8%
Equity Method % PTTPerformance 100%
Unit : MMTHB
Statements of Cash Flows (PTT Only) : 9M/16
34
Operating9M/15 9M/16
48,094 55,861
Net Income 43,355 62,788
Changes in assets & liabilities 10,965 (3,997)
Income Tax (4,589) (5,073)
Non-Cash Adjustment (1,637) 2,143
Investing9M/15 9M/16
1,346 (12,497)
CAPEX (PP&E, Intangible asset) (27,881) (16,806)
Investment (Sub. &Affiliates) 12,067 323
Current investment (8,047) (17,391)
Dividend/Interest Received 23,724 24,098
Others 1,483 (2,721)
Free Cash Flow
49,440 43,364
Financing (63,745) (65,462)
Repayment Loans (23,268) (27,702)
Interest paid (9,076) (9,956)
Dividend paid (31,401) (28,560)
Received from share issue
- -
Received from loans/Bonds
- 756
Adjustment
28 63
Beginning Cash and Cash Equivalents
58,018 67,525
Cash In/(Out)
(14,277) (22,035)
Ending Cash & Cash Equivalents
43,741 45,490
Ending cash incl. S/T investment
71,638 97,349
35
Debt Profile : Control Cost & Manage Risk
Debt Portfolio
Managed debt according to financial risk and policy
ConsolidatedPTT OnlyUnit : MMTHB
: Cost of debts ~ 4.69%: % fixed-rate ~ 71%: Avg. debt life ~ 8.52 years
: Cost of debts ~ 4.47%: % fixed-rate ~ 68%: Avg. debt life ~ 7.35 years
204,560 184,091 156,799
384,548 368,733333,439
83,98581,154
81,361
305,127256,588
245,665
288,545265,245
238,160
689,675
625,321579,104
31 Dec 14 31 Dec 15 30 Sep 16 31 Dec 14 31 Dec 15 30 Sep 16
USD&Other
THB
(29%)
(71%)
(34%)
(66%)
(44%)
(56%)
(42%)
(58%)
Note : Data as of 30 Sep 16 (THB/USD = 34.8755 THB/JPY = 0. 347041) Excluding liabilities from finance leases; Cost of debts includes withholding tax.
35Cost of debts, % fixed rate, and avg. debt life took into account the derivative transactions. Debt outstanding is reconciled with accounting.
(31%)
(69%)
(41%)
(59%)
Subsidiaries ConsolidatePTT (Cambodia) Co., Ltd. PTTCL 100.00%PTT Retail Business Co., Ltd. PTTRB 100.00%Thai Lube Blending Co., Ltd. TLBC** 48.95%PTT Tank Terminal Co., Ltd. PTTTANK 100.00%PTT Oil Myanmar Co., Ltd. PTTOM 100.00%
Associates EquityKeloil-PTT LPG Sdn. Bhd. KPL 40.00%Thai Petroleum Pipeline Co., Ltd.THAPPLINE 40.40%PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00%
Others CostPetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00%PetroAsia (Sanshui) Co., Ltd. PA(Sanshui) 25.00%Intoplane Services Co., Ltd. IPS 16.67%Fuel Pipeline Transportation Co., Ltd.FPT 0.00024%
Others Fair ValueBangkok Aviation Fuel Services Plc. BAFS 7.06%
Others
Subsidiaries ConsolidatePTT Exploration & Production Plc. PTTEP 65.29%PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00%PTT LNG Co., Ltd. PTTLNG 100.00%Thai Oil Power Co., Ltd.* TP 26.00%Global Power Synergy Co., Ltd* GPSC 22.58%
Joint Ventures EquityTrans Thai-Malaysia (Thailand) Co., Ltd. TTM (T) 50.00%Trans Thai-Malaysia (Malaysia) Sdn. Bhd. TTM (M) 50.00%District Cooling System and Power Plant DCAP 35.00%
Petrochemical Subsidiaries ConsolidatePTT Polymer Marketing Co., Ltd. PTTPM 50.00%PTT Polymer Logistics Co., Ltd. PTTPL**50.00%PTT PMMA Co., Ltd. PTTPMMA 100.00%PTT Global Chemical Plc.* PTTGC 49.42%PTT Maintenance and Engineering* PTTME 40.00%PTT Energy Solutions Co., Ltd.* PTTES 40.00%
Joint Ventures EquityHMC Polymers Co., Ltd. HMC 41.44%PTT Asahi Chemical Co., Ltd. PTTAC 48.50%PTT MCC Biochem Co., Ltd. PTTMCC 50.00%
Refining Subsidiaries ConsolidateThai Oil Plc.* TOP 49.10%IRPC Plc.* IRPC 38.51%
Others Fair ValueStar Petroleum Refining Co., Ltd. SPRC 5.41%
Others Fair ValueDhipaya Insurance Plc. TIP 13.33%
Subsidiaries ConsolidateEnergy Complex Co., Ltd. EnCo 50.00%Business Service Alliance Co., Ltd. BSA * 100.00%PTT Regional Treasury Center Pte. Ltd. PTTRTC 100.00%PTT ICT Solutions Co., Ltd.* PTTICT 20.00%
International Trading Business Group
Subsidiaries ConsolidatePTT International Trading Pte. PTTT 100.00%
Remark : *The companies have changed their status to subsidiaries due to impact from PACK5** 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 Sep 2016
International Investment
Subsidiaries ConsolidatePTT Energy Resources Co., Ltd. PTTER 100.00%PTT Green Energy Pte. Ltd PTTGE 100.00%
36
36
3737
Natural Gas Price Structure : Jan-Sep 2016
CustomersSales Price Structure
Gas Pool Price Supply Margins Pipeline Tariffs+ +
Average Purchased Gas Price
1.75%
1.75%
9.33%
21.9 Bt/MMBtu
Charged at the same price structure of power producers
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)
• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions
*
*
*
GSP 20%
Petrochemicals Feedstocks
Industry 14%
Ethane, Propane, LPG
NGL
Local Cooking Gas
Export Cooking Gas
Power Producers 60%
: EGAT 21%
: IPP 21%
: SPP 18% * EGAT IPP and SPP Supply Margins not more than 2.1525 and 11.4759 respectively
• 21 Jan -15 Jul 2016: Capped at 13.50 Baht/Kg. If cost is less than 13.50 Baht/Kg, retail price will be set to reflect the cost.
• Since 16 Jul 2016 : The retail price is set to reflect the cost.• NGV retail Price as of 30 Sep,16 = 12.46 Baht/Kg.
NGV 6%
37
Gas demand forecast (CAGR during 2016-2030): Total ~ 1%: Power ~ 2%: GSP ~ -3%: Industry ~ 2%: NGV ~ 0%
Natural Gas : A steadily growth of natural gas upon Government fuel diversification policy for power generation
38
39
Thailand’s Projected Energy Demand
39
Primary Energy Consumption
Sources : EPPO/ DEDE/ PDP 2015/ PTT analysis as of Nov 2016
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
KBD
Oil
Natural Gas
Coal/Lignite
Hydro/Import
Renewable
27%
27%
15%
3%
28%
4,187
2,613
29%
35%
14%
20%
2%
2,501
29%
36%
13%
20%
2%
2.0%
1.0%
2.8%
4.0%
6.5%
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
Overview Gas transmission pipeline capacity
40