February 2019 - listed companyptt.listedcompany.com/misc/presentations/20190212... · PTT Group.: Bt 2,426 bn 2001 2017 Revenue Net Income Affiliate PTT 702 55% 19% 3,964 45% 81%

February 2019

Contents

1

Overview Performance Outlook

2 Q3/2018 & 9M/2018 Performance

1Overview

4Supplementary

Information

3Outlook 2019

Indigenous (17%)209 KBD

Imported Refined Petroleum Products 62 KBD

966 KBD (**)

Source: PTIT

Remark : (*)Refined product from refineries = 1,034 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 111 KBD

(**) Not included Inventory

KBD = Thousand Barrels per day

Import (83%)

Crude/ Condensate951 KBD

RefinedProducts1,145 KBD*

Domestic

Crude/ Condensate 177 KBD

Supply Production Demand

Export

243 KBD

Oil Balance Thailand: Jan. – Sept. 2018 Adequate refining capacity maintains the stability of country supply

Total Refining Capacity in Thailand: 1,232 KBD

PTT’s Associated Refineries : 770 KBD

(TOP, PTTGC, IRPC)

Other Refineries : 462 KBD(SPRC, ESSO, BCP)

RefinedProducts211 KBD

2

Crude Export 32 KBD

1,013 KBD


Natural Gas Balance: Jan. – Sept. 2018

Gulf of Thailand (67%)

Power (57%)

Industry (16%)

NGV (5%)

Petrochemical Feedstock

(15%)

IndustryHousehold

Transportation(7%)

Ethane/ Propane/LPG/NGL

LPG/NGL

Remark: MMSCFD = Million Cubic Feet @ Heating Value 1,000 Btu/ft3

PTT the main driver of the Thai economy

Supply Production Demand

LNG44%

Myanmar56%

1,023 MMSCFD (22%)

Methane 1,697 MMSCFD

84 MMSCFD

Import (31%)

1,473 MMSCFD

3

PTTEP,

29%

Others,

71%

3,153 MMSCFD

Bypass Gas433

MMSCFDOnshore (2%)


6 GSPsTotal Capacity

2,860 MMSCFD @ Actual Heat

Ministry of Finance holds majority stake in PTT

PTT ratings at Thai sovereign level

Thai Ministry of Finance…

Vayupak Fund1…

Public 37%

FC Baa1 BBB+ BBB+

PTT – FC Baa1 BBB+ BBB+

PTT – LC Baa1 BBB+ BBB+

• Foreign 14%• Thai 23%

PTT’s Strategic Importance to Thailand


International and local recognition

Note: As of Oct 2018

Ministry of Finance holds majority stake in PTT

15%

85%

SET market Cap.: Bt 15,979 bn

54%19%

13%

6%5% 4%

PTT Group.: Bt 2,426 bn

2001 2017

Revenue

Net Income Affiliate

PTT

702

55%

19%

3,964

45%

81%19%

Robust revenue and Net Income growth since IPO (MMUSD) 4

1 As of 31 Dec 2018 : Avg. BOT selling rate USD/THB of 32.61 (End rate) 2 As of 30 Sep 20183 For the year 2017 4 2017 Annual Avg. BOT selling rate USD/THB of 34.1053 (Avg. rate)

12,553

58,516

2001 2017

International E&P business: 631 mmboe proved reserves in 2017 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 : 1,959 retail stations2 and

40%2 of market share by sales volume International oil trading business having traded 75.6 bn liters3 in 2017 A Power Plant Flagship listed in SET: To capture opportunity in ASEAN

Fully integrated & highly diversified over entire O&G value chain

Thai Premier Multinational Energy Company

Note: As of Dec 2018

Others

PTT Group

PTT PTTEP

PTTGC

TOP

IRPC GPSC

4

Our Major Businesses & Activities

E&P

Gas

PTTEP 65.29% Exploration and Production

Up

str

ea

m

Oil Marketing

Int’l Trading

Do

wn

str

ea

m

Petrochemical & Refining

PTTGC 48.65% Petrochemical Flagship

TOP 48.91% Refinery Flagship

IRPC 46.27% Integrated Refinery & Petrochemical

Infr

astr

uctu

re

Coal

GPSC 22.58% Power Flagship

• Int’l Trading 100% Import/Export/Out-Out trading of petroleum and

petrochemical products

Inte

rme

dia

te

PTT PLC

• Gas Pipeline 100% Sole owner/operator of the Transmission pipeline

• S&M 100% Supply & Marketing of Natural Gas

• GSP 100% Extracting Hydrocarbon contents in NG for

Petrochemical’s feedstock

5

Business Areas ActivitiesCompany PTT’s holding* (%)

PTTGM 100% Coal Business(PTT Global Management)

Power


*PTT’s holding as of Jun 30, 2018, **Transferred asset to PTTOR on July 1, 2018

PTTOR** 100% Retail service stations and commercial marketing


7

BALANCING SUSTAINABILITY : PEOPLE PLANET & PROSPERITY

76

7

ContentsOverview Performance Outlook


1Overview

4Supplementary

Information

3Outlook 2019

Key Events Update (9M18)

• PTT

• Acquisition of IRPC shares to become 48.05% (Feb)

• Split Par (Baht 10 Baht 1 per share) (Apr.)

• Transferred Oil BU’s assets to PTTOR (1st Jul)

• PTTEP

• Acquired Bongkot (22.22%) (Q3)

• Divestment 100% stakes of assets in Montara (Q2)

• PTTGC

• EHIA for Olefins Reconfiguration Project (Q1)

• TOP

• FID Clean Fuel Project : CFP (Q2)

• GPSC

• BOD approved to acquire GLOW (69.11% & tender offer 30.89%) (Q2)

• PTT

• GSP#2 (Planned T/A 16 days)

• GSP#3 (Planned T/A 18 days)

• PTTGC

• I1 (Planned Major T/A 37 days)

• TOP

• CDU 1 (Planned T/A 21 days)

Performance (9M18)

Activities Highlights :

Business Performance

Upstream PTTEP

Coal

Midstream Gas

Downstream Oil

Trading

Petchem

Refinery

Infrastructure Power

8

41.353.2 51.1

70.1

10

18%

48%

30%

4%

1,718,846

1,995,722

1,463,763

1,718,738

2016 2017 9M/17 9M/18

PTT

P&R

OthersPTTEP

Net Income

Unit : MMTHB

EBITDA

Revenue

Revenue

312,526 345,395

251,182286,953

2016 2017 9M/17 9M/18

9

32%

25%6%

33%

4%

EBITDA

P&R

PTT - Gas

Others

PTTEP

PTT - Oil

& Trading

Net Income

5%

13%

50%

31%

1%

Revenue

PTT - Oil

& Trading

PTT - Gas

OthersPTTEP

P&R

17%

14%

16%

PTT Consolidated Performance: 9M/2018

Avg. Dubai (USD/BBL) 9M/189M/17

29% 37%


Net Income

EBITDA

94,040

135,187

99,816 100,146

2016 2017 9M/17 9M/18

44%

5%

15%

48%

31%

1%

31%

24%6%

35%

4%

7%

55%

29%

9%0.3%

11%

Stronger EBITDA and Net Income

43,003

18,5057,232 3,990

7,545

12,868

29,543

49,722 48,152

19,359 18,660

29,001 29,921

8,657 10,235

(6,923) (6,822)

9M18 Performance: Affirmed performance from core businesses


PTTEPHigher tax expenseImproved ASP & Sales Vol. from oil price recovery

9M/17: - Marina Oil Sand Impairment

+ Dividends from mutual fund (EPIF)9M/18- Tax effect from oil business transferred - Loss on Montara divestment

Extra Items

Petrochem & Refining Higher stock gain Better Olefins from product price & sale vol.Aromatics decreased from BZ spreadsWeaken Mkt. GRM from higher crude premium

OilSlimmer margin and lower stock gainHigher vol. from aviation & station expansionNon-oil expansion

Gas

GSP increased vol. and LPG marginS&M margin roseTM increased from TDC vol.

TradingVol. increased from lower refineries shutdown

Margin slightly increased from rising oil price

Higher CIT

Others Affi.

* including petroleum exploration expenses and royalties

99,816

MMTHB

100,146Net Income

Extra Items

0.3%

9M/17 9M/18

PTTEP

PTT

P&R 3%

4%

1%

3%

10

HO

Margin

FX & Derivatives

OPEX*Depre & Amortiza-

tionOther

Income

Int. & CIT exp.&

Other

Impair

18%

PTTOR from oil business transferredPTT NGD from higher FO priceHigher revenue from LNG Terminal 1 Phase 2Coal business from tax penalty

Others Affi

PTT EBITDA Breakdown by BU’s

Business Unit 2016 2017 YOY 9M/17 9M/18 9Mvs9M

Gas- EBITDA 72,082 89,402 24% 60,764 72,711 20%

• S&M 9,128 16,267 78% 11,549 13,712 19%

• TM 32,666 34,134 4% 25,828 26,802 4%

• GSP 23,134 29,424 27% 20,650 27,821 35%

• NGV (3,954) (4,188) (6%) (3,332) (3,563) 7%

• Others 11,108 13,765 24% 6,0691/ 7,9391/ 31%

Oil- EBITDA 22,918 19,598 (14%) 15,085 13,789 9%

Trading2/ - EBITDA 5,024 5,387 7% 3,491 4,520 29%

Total3/ 100,024 114,387 14% 79,340 91,020 15%

(Unit: MMTHB)

1/ Others include PTTLNG, PTTNGD, and PTTGL (restructured by excluding GPSC, PTTES, PTTDigital and ENCO)2/ MIS3/ Included subsidiaries from all BUs 11


0.11 0.10

0.39

0.33

2017 9M/18

MMTHB

Statement of Financial Position

12

Assets/Liabilities increased :• Increase in inventory from rising oil price and

AR from higher selling price and volume• PPE increase from PTT’s pipeline#5 and PTTEP’s

acquisition Bongkot stake, investment in Zawtika and S1

• Higher current liabilities due mainly to AP from higher crude oil and PTTEP’s payable for additional Bongkot stake

• Equity increase from stronger performance

AP & Other Liabilities

PPE

Others Non-

currentAssets

AR & OtherCurrentAssets

LTLiabilities(incl. due within 1 yr)

TotalEquity

Cash & ST Invest

31 Dec 13 30 Sep 14

1,805,041

1,076,906 1,102,215

373,238 387,377

386,330451,642

395,840

404,435

1,248,556 1,294,054

511,353495,770

472,405555,845

1 2 3 4 5

2,232,314

2,345,669

30 Sep. 1831 Dec. 17

Net Debt/EBITDA ≤ 2.0

Net Debt/Equity ≤ 1.0

5%


Key Financial Ratios

PTT and Wholly Owned Subsidiaries Committed CAPEX

13


Gas

Transmission

Downstream

TEG & HO & OthersPTTLNG

Other JV & wholly owned subsidiaries

2019 2020 2021 2022 2023

Other JV & wholly ownedsubsPTTLNG

Natural Gas

Transmission

Downstream

46,181

17,1849,450

70,501

23,798

Unit: MMTHB

66,525 MB

10,908 MB

27,527 MB

11,779 MB

15,695 MB

40%

7%

16%

7%

9%

34,680 MB

21%

Note: 2019-2023 CAPEX budget be approved by BOD on 21 Dec 18

PTT 5-Years Committed CAPEX Plan

Note: 2019-2023 committed CAPEX excluding project under study (provisional CAPEX)

Committed CAPEX during 2019-2023: ~Bt 167bn or USD 5bn

PTT Group : Upcoming Projects

14


2019

2020 2021

2022 2023

2024

Erawan & BongkotDCQ 1,500 MMSCFD

PO/Polyols PO 200 KTA, Polyols 130 KTA

MTP Retrofit (Olefins Reconfiguration)

Ethylene 500 KTA, Propylene 250 KTA

Southwest Vietnam490 MMSCFD or ~80 KBOED

5th onshore pipelineLength 400 KM.

Ubon(Contract 4)25-30 KBPD

LNG Terminal 27.5 MTPA

MARS - Maximize AromaticsPX 1-1.3 MTPA, BZ 300-500 KTA

Clean Fuel Project275 400 KBD

Mozambique Area 112 MTPA or ~300 KBOED

Algeria HBR (Full Phase)50-60 KBPD

LNG Terminal 1 Extension

1.5 MTPA

7.718.75

13.43

22.40

30.57

34.1434.82

18.33

21.06

29.58

37.24 36.58

32.52

20.34

6.73

32.68

46.74

2.432.50 2.85 4.00

6.75

9.2510.50

11.50

8.00 8.5010.25

13.00 13.00 13.0011.00 10.00

16.00

20.00

0.80

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%

49.0% 42.8% 32.9%

-900.00%

-600.00%

-300.00%

0.00%

0.00

10.00

20.00

30.00

40.00

50.00

60.00

2001 2002 2003 2004 2005 2006 2007 200 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H/2018

25% PTT’s min. payout ratio Policy

Baht / share

DPS

Dividend payout

15

Dividend Policy & Historical PaymentsFirmly commit on dividend payment not less than 25% of net income


Split par*

* Spilt par value from 10 to 1 Baht/share since 24 April 2018

10-Year Avg. 51%

Avg. since IPO42%

EPS

16

ContentsOverview Performance Outlook


1Overview

4Supplementary

Information

3Outlook 2019

Benzene

Olefins:

• More U.S. PE cargoes to divert to SEA after start-up of new units (approx. 4 MTA) and ongoing US-China trade war

• PP demand maintain mostly from automotive and household appliance

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19

PE CFR SEA PP CFR SEA300

500

700

900

1,100

1,300

1,500


BZ FOB Korea PX CFR Taiwan

$/Ton $/Ton

Petrochemical Rolling as of Dec’18

Price 2018A 2019E

HDPE 1,335 1,160-1,170

PP (Film) 1,269 1,190-1,200

Price 2018A 2019E

BZ 823 795-805

PX 1,069 1,045-1,055

Source: PTT, PRISM, วผท.

Petroleum and Petrochemical Outlook

GRM

40

50

60

70

80

90

100

110


Dubai Mogas Gasoil-2

0

2

4

6

8

10


Cracking Hydroskimming

$/bbl $/bbl

Price 2018A 2019E

Dubai 70 55-65

Mogas 80 65-75

Gasoil 84 70- 0

Price 2018A 2019E

Cracking 5.8 5.0-6.0

Hydro 2.5 1.0-2.0

Mogas:

• Lower supply from shifting refinery yield to maximize middle distillate ahead of IMO implementation in 2020

• Improving demand during CHY and becoming driving season

• High global inventory level

Gasoil:

• Low global inventory vs last few years• Stock buildup ahead of IMO in 2020• Higher China exports after govt. granted

more export quota • Soft demand after end of winter season

Petroleum Products GRM

Olefins Aromatics

Dubai:

• OPEC cut supply 1.2 MMBD to balance market• Political Risk; Iran sanction, Venezuela, unrest

in Libya• Surging Non-OPEC output; U.S. and Russia• Lower demand due to expectation on econ.

slowdown

GRM:

• Asian refining margins to remain at $5.0 – 6.0/bbl in 2019

• Lower gasoline & FO crack margins in 4Q19 before IMO in 2020

Aromatics:

• PX price to drop then to maintain at high level due to affirmed downstream demand and seasonal plant turnaround in 1H19

• China to lower import PX due to start-up of Zhejiang Petrochemical (4 MTA) and Hengli Group (4 MTA)• Ample BZ supply, high inventory in China while demand remains at low level

Note: Dampened Aromatics Prices during Q42018 due to supply from 1) Nghi Son (Vietnam) 2) Petro Rabigh (Saudi Arabia) 3) TPPI (Indonesia)


17

18

Contents


1Overview

4Supplementary

Information

3Outlook 2019

21

Supplementary Information

19

Financial Performance by business

Debt Profile

PTT Group Accounting Structure

Natural Gas Price Structure

Thailand Gas Demand Forecast

Gas Pipeline Business

Project Plan in EEC

P.20-36

P.37

P.38

P.39

P.40

P.41

P.42

5.60 5.59 5.54

6.24

41.17

52.26 49.87

67.85

35.9139.20 38.29

46.25

20162 20172 9M/17 9M/18

-94

-242 (291)

(81)

446

836

596

932

Liquid ($/BBL)

Gas($/MMBTU)

Weighted Avg.

($/BOE)

MMUSD

221 209 205 213

98 90 90 87

2016 2017 9M/17 9M/18

Liquid

Gas

KBOED

20

319

352

594

* 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.

Non-recurring*

Recurring NI

299

E & P Gas Oil & Trading P&R Others

YoY

• ASP increased from the rise in oil price

• Sales vol. decreased from PTTEP Australasia & Sinphuhorm

• NI rose from higher ASP, and lower unit cost esp. from DD&A, despite impairment in Q3/17

9M/17 vs 9M/18

• ASP increased from rising in oil Price.

• Sales vol. increased from Contract 4 and MTJDA projects.

• 9M/18 NI increased from ASP & Vol vs 9M/17 recognition of impairment loss from Marina Oil sand project

300

305

2% 7% YoY

295

179% 60% YoY 851

2016 2017 9M/17 9M/18

27%

36%

0%

13%

9%

21%

E&P : Volume & Prices and NIImproved performance mainly from ASP and Vol. without impairment

Product Prices Sales Volume

Net Income (100%) Key Highlights

2018 Key Factors

FY2018

Avg. Sales Vol. (KBOED)

310

Avg. Gas Price ($/MMBTU)

~6.5

Unit Cost($/BOE)

~31

EBITDA margin (% of Sale Rev.)

~70-75

*Based on FY2018 Dubai oil price at 72 $ /BBL

Timeline for the Bidding of Expiring Concessions in GoT


Data Room & Bid preparation

Minimum DCQ

• G1/61: 800MMSCFD,

• G2/61: 700MMSCFD

Facility bonusG1/61: 350 MMTHB

G2/61: 175 MMTHB

Decommissioning

Gas price formula

Commit under fixed

formula in TOR

Mozambique LNG: Stronger path towards FID by 1H2019

Production

Start-up Y2023

12 MTPA

• Legal & Contractual Framework, Marine Concessions and development plan approved

• Resettlement Commenced and site preparation underway

• 1.2 MTPA SPA signed with EDF and 0.28 MTPA signed with Tohoku Electric

• Offshore contractor selections• Project finance: To secure 2/3 leverage

(Debt 66.67/Equity33.33)• Secured sufficient non-binding HOAs to

meet target off-take volume

Geographical: SEA, Middle East and other potential areas

Target: Focus on producing or near-producing Size: 500 – 1,000 MMUSD

Execution of M&A Deal

Fasted Pre-FID Projects

Along with finalizing key terms of other pre-FID candidates

Southwest Vietnam

490 MMSCFD2024

Ubon(Contract 4)

25-30 KBOED2023

Algeria(HBR)

50-60 KBPD2024

G1/61 (Erawan)

G2/61 (Bongkot)

Co

mp

lete

dIn

-P

rog

ress

Mozambique Rovuma offshore Area 1

Must be obligated all infrastructure / facilities both new & transferred per PSC agreement

ProductionStart-up

E&P : Key factors and Project Update

21

6.2 5.8

5.6 5.4 5.5 6.0 5.8 5.9 6.1 6.5 6.6 160

219

247

296318 304 312

357 374

430 449

100

200

300

400

5

7

9

11

13

15

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

975 757 797 713

972934 946 758

869 1,043 1,013 1,220

946 996 982 1,023

715 727 721 759285 268 263 239

2016 2017 9M/17 9M/18

4,7224,762

%QoQ %YoY

FO 4% 34%

PooledPrice 2% 14%

12.0 12.2 12.112.8

7.68 6.75 6.83 6.20

2016 2017 9M/17 9M/18

Gas BU: Rising pooled price, NG vol. maintained

NG Price VS FO NG Customer Breakdown

$/MMBTU

EGAT (15%)

IPP (16%)

SPP (26%)

GSP (22%)

Industry (16%)

NGV (5%)

MMSCFD

4,725

NGV Price/Sales Volume

YoY

• Overall NG sales slightly decreased mainly from lower power demand offsetting with higher GSP sales volume

• NGV vol. dropped from demand switching to diesel and gasoline

9M/18 vs 9M/17

• NG sales vol. maintained from slightly lower power demand vs higher GSP and Industry volume

• NGV vol. dropped from demand switching to diesel

Key Highlights

K.Ton/Day

22

$/Ton

Fuel Oil*

* MOPS HSFO 180 CST

Avg. Pooled gas price

0.2%YoY

•

THB/KGNGV Avg. price 6% YoY

9% YoY12% YoY

1% YoY


2% YoY

4,712

1,103

1,153 1,139 1,134 1,176

1,133 1,138 1,226

1,379

1,384

1,350

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18

9,128 16,267 11,549 13,712

32,666 34,134

25,828 26,802

23,134

29,424

20,650 27,821

(3,954) (4,188)(3,332) (3,563)

11,108

13,765

6,069

7,939

2016 2017 9M/17 9M/18

2794 29192,179 2,365

721 688

501 485

2059 2333

1,720 1,793

856827

573 671

24.544

32 35

2016 2017 9M17 9M/18

GSP Sales Volume

LPG (44%)

kTon

6,455

6% QoQ

431 427 420 378 375 386 395 401 407 420

416

309 297 288247 253 262 259 269

282 286 277

60,764

5,349

Propane (12%)

Gas - EBITDA

MMTHB

Others

TM

GSP

89,402

72,082

S&M

NGV

7% YoY

Gas BU: Performance improved in almost segments

NGL (9%)

Ethane (34%)

Key Highlights

GSP Feed Cost vs Petrochem price

USD/Ton

Feed Cost*

LPG cost of GSP

* Revised feed cost calculation from per sale volume to per GSP production volume

Pentane (1%)

HDPE

20% YoY YoY: GAS EBITDA improved in almost segments, despite NGV

• GSP greatly improved from lower feed cost, higher sales volume and selling prices

• S&M margin increased

9M18 vs 9M17:

GAS EBITDA improved mainly from GSP and S&M

• GSP improved from increased vol. & selling prices

• TM increased due to rising demand mainly from SPP

• S&M margin increased from higher avg. selling prices and gas vol.

• NGV higher loss from rising feed gas cost

• PTTLNG revenue from LNG terminal 1 ph#2 started since Mar 18

24% QoQ

6,811

%QoQ %YoY

HDPE 3% 19%

LPG cost of GSP 1% 8%

Feed Cost 3% 9%


5,005

72,711

23

Gas Business Roadmap

24


Thailand Gas Demand Outlook

LNG new project LNG1 Phase#2 LNG1 – Extension LNG Terminal 2

10.0 11.5 11.5 19.0

New SupplyAdditional capacity (mmscfd)

Bongkot

210

Major Project : CODCompressor

WangnoiNakhon

Ratchsima

4,182

5th pipelineRA#6 Pipeline

4,702Cum. Pipeline Length (Km)

4th onshoreMidline Comp

GSP project: COD

2,860 2,860

GSP#6Debottleneck

2,860 2,8602,860 2,860

GSP#6Debottleneck

Cum. GSP Production (mmscfd)

Cum. Capacity (MTA) 10.0 11.5

Natural Gas growth upon Government fuel diversification policy

for power generation

Natural Gas be the most important source of energywith highest portion among other fuels

PDP 2015 NEW (Draft*) – PDP

37%

Supply of power plants by type of fuels

Unit: GWh

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Thailand Power Development Plan

37%

Lignite

Import Coal

Natural Gas

Import Hydro

Domestic Hydro

Renewable

Energy Efficiency

53%

6%

18%

2%

9%

7%

5%

63%

8%

3%

10%

2%

15%

62%

11%

2%

9%

8%

8%

8%

58%

11%

10%

2%

11%

60%

13%

9%

7%

3%8%

Source: Ministry of Energy * Approved by the NEPC on Jan 24,2018

25

Unit: GWh

40.00

50.00

60.00

70.00

80.00

90.00

100.00

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Jul-18 Aug-18 Sep-18

3,259 3,615 2,752 3,046

19,659 15,983

12,333 10,743

2016 2017 9M/17 9M/18

0.78 0.91 0.95 0.93

26,464 26,006

2016 2017 9M/17 9M/18

YoY 9Mvs9M

Oil 19 % 13%

Non-oil 11% 11%

Total 14% 9%

Oil BU & PTTOR Soften performance from lower margin despite higher volume

MMTHB

THB/Liter

26

Oil

Non-Oil3

Gross margin1/Sales volume2

MM Liter

1/Excluded Non-oil, stock gain/loss, non-recurring item 2/PTT only

5,682 2,201 40 470

Petroleum Prices

Stock Gain/Loss(MMTHB)

USD/BBL

(Average Prices)

Key Highlights

YoY

• Higher gross margin from

- strong gasoline demand

- Aviation fuel price structure

• Lower EBITDA mainly from lower stock gain despite higher margins and non-oil

9M/18 vs 9M/17

• Sales vol. increased from - Aviation fuel after ICAO lifts red flag & economic expansion- Gasoline & Diesel from stations’ expansion

• Lower gross margin mainly from Aviation fuel • Decreased EBITDA from declining margin and lower stock

gain, as well as higher SG&A

13,789

3/ Domestic only

Oil - EBITDA


2%

15,085

2%

2%17%

19,363 19,809

Q2/18 Q3/18 QoQ

Kerosene 7.3 . 2%

Gasoline 4.2 5. 2%

Diesel 6.7 .7 2%

Dubai 72.1 74.3 3%

22,91819,598

5,024 5,387 3,491

4,520

2016 2017 9M/17 9M/18

74,627 75,638

56,107 59,457

2016 2017 9M/17 9M/18

YoY

• Sales volume improved from Western demand (crude and

petchem)

• EBITDA increased mainly from higher domestic condensate margin

as well as higher trading volume in new region

9M/17 vs 9M/18

• Sales vol. increased due to higher crude & condensate imports

mainly from lower major Turnaround of refineries.

• Gross margin & EBITDA increased from domestic condensate and

Out –Out transaction

0.09 0.09 0.10 0.11

2016 2017 9M/17 9M/18

3 PTT Trading BU + trading subsidiaries: FX Adjusted + derivatives

MMTHB

MM LiterGross Margin (THB/Liter)

2 PTT Trading BU + trading subsidiaries

27

1 PTT Trading BU + trading subsidiaries: FX Adjusted + derivatives

Trading BU: Improved performance mainly from Domestic Condensate


6% 1 % YoY

29% 7% YoY

10%0% YoY

QoQ

•

•

•••

Gross Margin1 Sales Volume2

Trading – EBITDA3 Key Highlights

2830

Net Income (100%)

P&R BUStrong performance from refinery and Olefins

Aromatics

GRM

*A/C GRM and A/C GIM include effect from hedging gain/(loss)

Olefins


On Jul 3, 2017 PTT transferred HMC/PTTPL/PTTPM/PTTAC/PTTMCC and the Projects’ Study Results of PTTPMMA to PTTGC

4.49 5.74 5.81

4.76 5.12

6.40 5.94 6.47

2016 2017 9M/17 9M/18

YoY 9Mvs9M

A/C GRM 25% 9%

41.353.2

51.170.1

USD/BBL

A/C GRM*Mkt

GRM

Dubai

1.24 1.05 0.33 1.71StockGain/Loss

1,132 1,168 1,149

1,371

1,046

1,155 1,141

1,287

2016 2017 9M/17 9M/18

90% 96% 93%101%

YoY 9Mvs9M

HDPE 3% 19%

PP 10% 13%

Olefins U-Rate

USD/Ton

PPPrice

82% 80% 75%93%

395 380 388 412

262

357 372

248

2016 2017 9M/17 9M/18

BZ-Cond

PX-Cond

USD/Ton

BTXU-Rate

QoQ YoY

PX 4% 6%

BZ 36% 33%

21,222 24,856 17,929

14,961

9,721 11,354

6,841 9,362

25,602

39,298

29,740 36,009

-

-

-723

2,684

5,480 282

2016 2017 9M/17 9M/18

62,549

81,049

TOP

Unit : MMTHB

59,990

PTTGC

Others

1%

30%

60,614

P&R : Projects Update

2019 2020

UHV Catalyst Cooler

ME plants2PO/Polyols

MTP Retrofit

ME plants2

UHV Catalyst Cooler

PO/Polyols

MTP Retrofit(Olefins

Reconfiguration)

CFP(Clean Fuel Project)

MARS (Maximize Aromatics)

Objective/Capacity

• Methyl Ester (200 KTA)

• Flexibility of crude selection

• Lower utility cost from cracking heavy crude

• Create value added in Polyurethane chain

• PO (200 KTA)

• Polyols (130 KTA)

• Ethylene (500 KTA)

• Propylene (250 KTA)

• Upgrade lower value product higher value

product

• Ability to process heavier (cheaper) crude oil

• Utilize excess Naphtha/ Toluene/ Xylene as feedstock to maximize PX & BZ products

• Paraxylene(1,000-1,300 KTA)

• Benzene(300 - 500 KTA)

• Other Products (200 KTA)

CAPEX 47 MMUSD1,320 MB

(32 MMUSD)888 MMUSD 985 MMUSD 4,825 MMUSD 1.0-1.1 Bn.USD

COD Q1/19 Q1/192020

(FID Aug’17)2H/20

(FID Jan’1 )Q1/23

(FID Jul’1 )Q1/23

2023

CFP


Maximize Aromatics

29

Other Businesses : Coal - SAR Performance declined from one-off tax penalty despite better coal price

Net income

Sales Volume

Key Highlights

Avg. Selling Price1/ & Cash cost1/

YoY : Perf. improved from better coal price

• Cash cost increased from royalties following coal price

• Sales volume declined mainly from mud slide in Sebuku

• Performance improved mainly from higher selling price

9M/17 vs 9M/18: Perf. declined from tax issue, despite better margin

• Cash cost increased from royalties following coal price• Sales vol. increased from higher contracted vol. and Sebuku

mudslide in 9M/17• Better margin from higher price & vol., despite higher cash cost

1/Average Calorific value ~ 5,450 kcal/kg

30


2/Non-recurring items include the settlement of past’s tax lawsuit

47

70 69

80

36

50 4756

66

88 85

108

2016 2017 9M/17 9M/18

USD/Ton

Avg. Selling Price

Total Cash Costs

New Castle

16%

27%

19%38%

49%

33%

7,874 8,187

5,764 5,959

1,941 119

71 156

9,815

8,306

5,835 6,115

2016 2017 9M/17 9M/18

kTon

Jembayan

Sebuku

5%

15%

20

107

62 67

(5) (18)

15

(12)

MMUSD>100%

77

Operating NI

NI 8915

Non-recurring items2/

29%

2016 2017 9M/17 9M/18

55

http://www.straitsasia.com/

2,700

3,175

2,453

2,873

2016 2017 9M/17 9M/18

Hydro Electricity85%

Cogen: SPP15%

Combine Cycle : IPP

60%

Cogen: SPP 36%

Renewable4%

Combined heat : VSPP

0%

Net Income (100%)Sales Volume*

Key Highlights

MMTHBGWh

‘000 Ton

Committed Capacity

ELECTRICITY1,940 MW (operate 1,410 MW)

STEAM 1,585 T/H(operate 1,446 T/H)

INDUSTRIAL WATER2,080 Cu.m./H

CHILLED WATER12,000 RT

Operating1,530 MW

Underconstruction

410 MW

Present 2020


*sales vol. of Sriracha, Rayong, IRPC-CP, ISP1 power plants

Other Businesses : Power - GPSC Enhanced performance mainly from full operation of IRPC-CP

YoY

• Lower power sales volume from Sriracha power plant lower dispatch

• Lower steam volume from customers planned S/D and S/D for IRPC-CP commissioning

• NI rose due to lower NG cost, IRPC-CP and ISP1 started COD and higher share of profit from affiliates.

9M/17 vs 9M/18

• Sales volume increased from full phase operation in 2018 of IRPC-CP COD in Nov. 17 and ISP1 COD in Dec. 17

• NI increased from full operation of IRPC-CP & ISP1 and increase of Ft rate 31

6,489 5,881

3,472 4,257

6,694 6,429

4,713 4,936

2016 2017 9M/17 9M/18

Power Steam

18% 17%YoY 9M vs 9M

Power 9% 23%

Steam 4% 5%

YoY 9M vs 9M

Power 9% 23%

Steam 4% 5%



Committed Capacity SCOD in 2020


Xayaburi Power Company Limited (XPCL)

Capacity: 1,220 MWProgress: 96%

Nam Lik 1 Power (NL1PC)Capacity: 63.8 MW

Progress: 95%

CUP4 Expansion ProjectCapacity: Power 45 MW

and Steam 70 TPH (Phase1)Progress: 40%

NNEG Expansion Project Capacity: Power 60 MW

and Steam 10 TPHProgress: EPC contractor has been awarded on 30 September 2018

Other Businesses : Power - GPSC Upcoming Projects to Bolster Future Growth

GPSC Strategic Direction and Growth Strategy

32

PTT Group Performance : 3Q2018 (QoQ)

33** Since Feb 21,2018, PTT hold 48.05% in IRPC

1/ On Jul 3, 2017 PTT transferred all stake in HMC/PTTPL/PTTPM/PTTAC/PTTMCC and the Projects’ Study Results of PTTPMMA to PTTGC2/ Including BSA, PTT TCC and RTC

% PTT

holding

Q2/18 Q3/18 QoQ Q2/18 Q3/18 QoQ

PTT Net operating Income 15,423 13,534 -12% 15,423 13,534 -12%

E&P - PTTEP 3,590 10,401 >100% 65.29% 2,352 6,792 >100%

Petrochemical 10,918 12,888 18% 5,663 6,259 11%

- PTTGC1/ 10,827 12,793 18% 48.65% 5,573 6,164 11%

- PTTTANK and others 91 95 4% 90 95 6%

Refining 8,844 7,119 -20% 3,866 3,518 -9%

- TOP 4,795 4,558 -5% 48.91% 2,287 2,078 -9%

- IRPC 4,049 2,561 -37% 46.27% 1,579 1,440 -9%

Others Business 5,730 7,633 33% 3,941 5,896 50%

Inter - PTTER/PTTGE/PTTGM 911 872 -4% 100% 876 796 -9%

Gas - PTTLNG/PTTNGD/PTTGL/TTM(T)/TTM(M) 2,102 2,340 11% 1,802 1,764 -2%

Utilities - GPSC/TP/DCAP/PTTES/PTTDIGITAL/ENCO 1,550 1,457 -6% 385 372 -3%

Oil & Oth. - PTTT/PTTOR/THAPPLINE/Others2/ 1,167 2,964 >100% 878 2,964 >100%

Shared of Net Income from Affiliates 29,082 38,041 31% 15,822 22,465 42%

Tax adjustment for gain on disposal of investment and asset (1,216) (5,670) >(100%) (1,216) (5,670) >(100%)

PTT Conso. Net Income 43,289 45,905 6% 30,029 30,329 1%

Unit : MMTHB

Performance 100% Equity Method % PTT

3636

PTT Group Performance : 9M/2018 (YoY)

34

1/ On Jul 3, 2017 PTT transferred all stake in HMC/PTTPL/PTTPM/PTTAC/PTTMCC and the Projects’ Study Results of PTTPMMA to PTTGC2/ Including BSA, PTT TCC and RTC3/ PTT Tank and others

% PTT

holding

9M/17 9M/18 YoY 9M/17 9M/18 YoY

PTT Net operating Income 54,982 48,152 -12% 54,982 48,152 -12%

E&P - PTTEP 11,138 27,372 >100% 65.29% 7,278 17,871 >100%

Petrochemical 35,220 36,290 3% 17,394 18,172 4%

- PTTGC1/ 29,740 36,008 21% 48.65% 14,759 17,889 21%

'- PTTTANK/HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA1/ 5,480 282 -95% 2,635 283 -89%

Refining 24,770 24,323 -2% 11,607 11,749 1%

- TOP 17,929 14,961 -17% 48.91% 8,672 7,215 -17%

- IRPC 6,841 9,362 37% 46.27% 2,935 4,534 54%

Others Business 13,705 22,801 66% 8,645 11,272 30%

Inter - PTTER/PTTGE/PTTGM 1,658 7,258 >100% 100% 1,603 853 -47%

Gas - PTTLNG/PTTNGD/PTTGL/TTM(T)/TTM(M) 5,593 6,330 13% 4,401 5,055 15%

Utilities - GPSC/TP/DCAP/PTTES/PTTDIGITAL/ENCO 4,118 4,401 7% 1,050 1,106 5%

Oil & Oth. - PTTT/PTTOR/THAPPLINE/Others2/ 2,336 4,812 >100% 1,591 4,258 >100%

Shared of Net Income from Affiliates 84,833 110,786 31% 44,924 59,064 31%

Tax adjustment for gain on disposal of investment and asset (90) (7,070) >(100%) (90) (7,070) >(100%)

PTT Conso. Net Income 139,725 151,868 9% 99,816 100,146 0%

Unit : MMTHB

Performance 100% Equity Method % PTT

3/

Free Cash flow

103,115 199,401

Ending Cash & Cash Equivalents

195,453 277,518

Ending cash incl. S/T investment

395,840 404,434

Beginning Cash and Cash Equivalents

215,566 166,189

Cash In/(Out)

(20,113) 111,329

Adjustment

(10,459) 813

Statements of Consolidated Cash Flows : 9M2018

35

Operating9M/2017 9M/2018

205,951 176,137

Net Income 99,816 100,146

Changes in assets & liabilities (19,582) (70,265)

Income Tax (32,545) (43,608)

Non-Cash Adjustment 158,262 189,864

Investing9M/2017 9M/2018

(102,836) 23,264

CAPEX (PP&E, Intangible asset) (77,069) (76,825)

Investment (Sub. & Affiliates & others) (23,905) (21,239)

Current investment (5,185) 109,632

Dividend/Interest Received 12,634 10,031

Others (9,311) 1,665

Financing (112,769) ( , 5)

Repayment Loans (62,029) (93,325)

Interest paid (23,237) (20,191)

Dividend paid (73,320) (61,354)

Received from share issue 3,056 52

Received from loans/Bonds 12,366 95,135

Others 30,395 (9,202)

Statements of Cash Flows (PTT Only) : 9M2018

36

Free Cash Flow

52,209 117,781

Adjustment

111 (268)

Beginning Cash and Cash Equivalents

62,648 38,692

Cash In/(Out)

(23,675) 65,954

Ending Cash & Cash Equivalents

38,973 104,646

Ending cash incl. S/T investment

106,748 133,197

Operating9M/2017 9M/201

54,602 46,640

Net Income 83,768 153,147

Changes in assets & liabilities (11,924) (21,555)

Income Tax (9,240) (12,000)

Non-Cash Adjustment (8,002) (72,952)

Investing9M/2017 9M/201

(2,393) 71,141

CAPEX (PP&E, Intangible asset) (16,484) 106,950

Investment (Sub.& Affiliates & Others) (34,224) (119,104)

Current investment (20,618) 45,554

Dividend/Interest Received 39,912 36,374

Others 29,021 1,368

Financing (75,995) (51,559)

Repayment Loans (18,520) (11,431)

Interest paid (8,579) (6,924)

Dividend paid (51,413) (34,258)

Received from loans/Bonds 2,517 1,054

39

Debt Profile : Control Cost & Manage Risk

Debt Portfolio

Managed debt according to financial risk and policy

ConsolidatedPTT OnlyUnit : MMTHB

: Cost of debts ~ 5.25%: % fixed-rate ~ 71%: Avg. debt life ~ 8.59 years

: Cost of debts ~ 4.46%: % fixed-rate ~ 65%: Avg. debt life ~ 6.99 years

147,592 129,279 129,265

325,524 311,317 336,02681,245

45,088 34,583

250,968194,284 154,640

228,837

174,367 163,848

576,492

505,601 490,666

31 Dec 16 31 Dec 17 30 Sep 18 31 Dec 16 31 Dec 17 30 Sep 18

USD&Others

THB

(36%)

(64%)

(21%)

(79%)

(44%)

(56%)

(32%)

(68%)

Note : Data as of 30 Sep 18 (THB/USD = 32.5767 THB/JPY = 0.289234 Excluding liabilities from finance leases; Cost of debts includes withholding tax.

Cost of debts, % fixed rate, and avg. debt life took into account the derivative transactions. Debt outstanding is reconciled with accounting.

(26%)

(74%)

(38%)

(62%)

37

Subsidiaries ConsolidatePTT Oil & Retail Business Co., Ltd. PTTOR 100.00%

Others CostPetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00%PetroAsia (Sanshui) Co., Ltd. PA(Sanshui) 25.00%

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%PTT Global LNG Co., Ltd PTTGL 50.00%

Joint Ventures EquityTrans Thai-Malaysia (Thailand) Co., Ltd. TTM (T) 50.00%Trans Thai-Malaysia (Malaysia) Sdn. Bhd. TTM (M) 50.00%

Petrochemical Subsidiaries ConsolidatePTT Global Chemical Plc.* PTTGC 48.65%PTT Tank Terminal Co., Ltd. PTTTANK 100.00%

Refining Subsidiaries ConsolidateThai Oil Plc.* TOP 48.91%IRPC Plc.* IRPC 46.27%

Subsidiaries ConsolidatePTT Digital Solutions Co., Ltd.* PTT DIGITAL 20.00%PTT Energy Solutions Co., Ltd.* PTTES 40.00%Energy Complex Co., Ltd. EnCo 50.00%Business Service Alliance Co., Ltd.* BSA 100.00%PTT Regional Treasury Center Pte. Ltd. PTTRTC 100.00%PTT Treasury Center Co. Ltd PTT TCC 100.00%

International Trading Business Group

Subsidiaries ConsolidateGlobal Power Synergy Co., Ltd* GPSC 22.58%Thai Oil Power Co., Ltd.* TP 26.00%

Joint Ventures EquityDistrict 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 Sep 2018

International Investment

Subsidiaries ConsolidatePTT Energy Resources Co., Ltd. PTTER 100.00%PTT Green Energy Pte. Ltd PTTGE 100.00%PTT Global Management Co., Ltd. PTTGM 100.00%

Others CostSarn Palung Social Enterprise Company Ltd. SPSE 20.00%Baania (Thailand) Company Ltd. Baania 3.57%

Others Fair ValueDhipaya Insurance Plc. TIP 13.33%

38

Power Business Group

Subsidiaries Consolidate PTT International Trading Pte. PTTT 100.00%PTT International Trading London Ltd PTTTLDN 100.00%

PTT Group Accounting Structure

4141

Natural Gas Price Structure : Jan.-Sept. 2018

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

*

*

*

* EGAT IPP and SPP Supply Margins not more than 2.1525 and 11.4759 bt/mmbtu respectively

39

• Since 16 Jul. 16, Retail prices are set to reflect NG cost but operating cost is still regulated

• Since 5 Sept, 17, Allowance to adjusted +0.46 Baht/Kg. for gas quality improvement cost

• Since 16 May 18, Allowance to adjusted Retail price of NGV public bus to 10.62 Baht/Kg.

• NGV retail Price as of 30 Sep 18 = 15.13 Baht/Kg.

GSP 22%

Petrochemicals Feedstocks

Industry 16%

Ethane, Propane, LPG

NGL

Local Cooking Gas

Export Cooking Gas

Power Producers 57%

: EGAT 15%

: IPP 16%

: SPP 26%

NGV 5%

Natural GasNG Growth upon Government fuel diversification policy for power generation

40

Thailand Gas DemandReplace :Coal Krabi (800 MW), EE 30%

Thailand Gas demand forecast (CAGR during 2018-2032): Total ~ 0.1%: Power ~ 2%: GSP ~ -7%: Industry ~ 1%: NGV ~ -6%

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

41

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 5 570 MMcf/d

Unit 6 880 MMcf/d

Driving the country towards EEC and Economic ExpansionOverview Performance Outlook

5 Years CAPEX plan (Y2019 – 2023) Total Baht ~ 264 Bn.

EECi @ Wangchan Valley

New LNG receiving Terminal

5th onshore pipeline

Olefin Reconfiguration

Polyol/ PU System

Clean Fuel Project

Jetty Expansion

Ultra Clean fuel project

Gas Distribution system

Cold Energy Utilization

Paraxylene

1

2

3

4

5

7

6

8

9

10

11

2

3

7 811

42

Thank youPTT 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. 45

43

Tel. +66 2 537-3518, Fax. +66 2 537-3948

Website: http://www.pttplc.com

E-mail: [email protected]

http://www.pttplc.com/

mailto:[email protected]

Documents

February 2019 - listed companyptt.listedcompany.com/misc/presentations/20190212... · PTT Group.: Bt 2,426 bn 2001 2017 Revenue Net Income Affiliate PTT 702 55% 19% 3,964 45% 81%