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Investor UpdateSeptember 2015
Overview
Performance
2H/2015 Outlook
Overview Performance 2H/2015 Outlook
Contents
1
Indigenous (20%)
Imported Refined Petroleum Products 68 KBD
912 KBD (**)
Source: PTIT
Remark : (*)Refined product from refineries = 955 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 102 KBD
(**) Not included Inventory
KBD = Thousand Barrels per day
Import (80%)
Crude/ Condensate893 KBD
RefinedProducts1057 KBD*
Domestic
Crude/ Condensate 247 KBD
Supply Production Sales
Export
199 KBD
Oil Balance Thailand: Jan – Jun 2015
247 KBD
Adequate refining capacity maintains the stability of supply
Total Refining Capacity in Thailand: 1,087 KBD
PTT’s Associated Refineries : 790 KBD
(TOP, PTTGC, SPRC, IRPC)
Other Refineries : 297 KBD(ESSO, BCP)
RefinedProducts199 KBD
2
Crude Export 0 KBD
961 KBD
Overview Performance 2H/2015 Outlook
Chevron28%
PTTEP30%
Others42%
Natural Gas Balance: Jan – Jun 2015
Gulf of Thailand (70%)
Power (60%)
Industry (14%)
NGV (6%)
Petrochemical Feedstock
(14%)
IndustryHousehold
Transportation(6%)
Ethane/ Propane/LPG/NGL
LPG/NGL
Remark: MMSCFD = Million Cubic Feet @ Heating Value 1,000 Btu/ft3
3,430 MMSCFD
Main driver of the Thai economy
Supply Production Sales
3
LNG28%
Myanmar72%
Bypass Gas920
MMSCFD
943 MMSCFD (20%)
Methane 1,567 MMSCFD
Onshore (3%)
146 MMSCFD
6 GSPsTotal Capacity
2,740 MMSCFD @ Actual Heat
Import (27%)
1,297 MMSCFD
Overview Performance 2H/2015 Outlook
81%
71%19%
29%
2001 2014
Revenue
Net Income
Affiliate
PTT
702
1,716
IPO
1 As of 30 June 2015 : Avg.THB/US$ exchange rate of 33.882 As of December 2014
Largest company on Thai Stock exchange
Market cap ~US$60bn1 or ~ THB 2.0 trillion1
Group companies:14.4%1 of Thai Stock Exchange market
capitalization
Majority owned by Thai government (66%)
51% by Ministry of Finance
15% by Vayupak Fund
Fully integrated and highly diversified over the entire O&G
value chain
International exploration and production business with 777
mmboe 2 of proved reserves in 2014
Sole operator and owner of gas transmission pipelines and
GSPs in Thailand
Largest refinery group in Thailand with stakes in 4 of 6
refineries in the country
Largest petrochemical producer group in Thailand with
stakes in 6 of 8 major petrochemical plants
Leading oil marketing business with 1,409 retail stations
and 40%1 of market share by volume
International oil trading business having traded 74.2 bn
liters 2 in 2014
Coal business assets in Indonesia, Madagascar, and
Brunei
New Power Flagship (GPSC) to capture opportunity in
neighboring ASEAN countries
PTT Public Limited Company (“PTT”) Robust revenue and Net Income growth since IPO (MMUSD)
12,553
87,223
International and local recognition
Thailand best borrower award
2014Best CEO
Best CFO
Best Managed Company
Best Corporate Governance
Best Investor Relations
Best Corporate Social
Responsibility
Best Commitment to Strong
Dividend Policy
SET Awards
Top Corporate
Governance Report
Award 2010 & 2011
Best Corporate Social
Responsibility Awards
2011 & 2012
93rd Fortune Global
500 in 201584th in 2014
81st in 2013
95th in 2012
Platts Top 250 Global Energy
Company
24th Overall Global
Performance in Asia of 2014
180th in 2014144th in 2013
167th in 2012
171th in 2011
Dow Jones Sustainability
Index (DJSI)
DJSI Member 2013-2014
(Listed in 2011)
4
PTT is Thailand’s Largest Energy Company
Overview Performance 2H/2015 Outlook
Ministry of Finance holds majority stake in PTT PTT ratings at Thai sovereign level
Thai Ministry of Finance
51%
VayupakFund1
15%
Public 34%
Kingdom of Thailand –FC
Baa1 BBB+ BBB+ A-
PTT – FC Baa1 BBB+ BBB+ A-
PTT – LC Baa1 BBB+ A- A
Largest market cap on the Thai Stock Exchange
Note: As March 2015
• Foreign 17%
• Thai 17%
PTT PTTEP PTTGC TOP IRPC GPSC Total Others
Market cap (BNUSD)2 30.3 12.8 9.2 3.3 2.7 1.1 60.2 357.2
% of SET 7.3% 3.1% 2.2% 0.8% 0.6% 0.3% 14.4% 85.6%
Moody’s rating Baa1 Baa1 Baa2 Baa1 Ba1 N.A. - -
S&P rating BBB+ BBB+ BBB BBB BB+ N.A. - -
PTT’s Strategic Importance to Thailand
5
1 The Vayupak Fund is a registered investment management fund in Thailand in which the Government is a major unit holder. The Government has rights of first refusal with respect to
any of our shares to be sold by the fund. Although the fund’s shareholding may be considered to be beneficially owned by the Government under international standards, such shares
are not considered to be owned by the Government for the purposes of Thai law or our compliance with certain of our debt covenants 2 Based on data as of 30 June 2015/ Avg. THB/US$ exchange rate of 33.88
5
Overview Performance 2H/2015 Outlook
Our Major Businesses & Activities
E&P
Gas
PTTEP 65.29% Exploration and Production
Upst
ream
Oil Marketing
Int’l Trading
Dow
nst
ream
Petrochemical
& Refining
PTTGC 48.89% Petrochemical Flagship
TOP 49.10% Integrated Refinery & Petrochemical
IRPC 38.51% Integrated Refinery & Petrochemical
SPRC 36.00% Stand alone Complex Refinery
Infr
ast
ructu
re
Coal
GPSC 22.58% Power Flagship
• Oil Marketing 100% Retail service Stations and commercial Marketing
• Int’l Trading 100% Import/Export/Out-Out trading of petroleum and
petrochemical products
Inte
rmedia
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
6
Business Areas ActivitiesCompany PTT’s holding (%)
6
PTT Energy Resources 100% Coal Business
Power
Overview Performance 2H/2015 Outlook
PTT AspirationStrategic direction and target to achieve “Big-Long-Strong” aspiration
“Thai Premier Multinational Energy Company”
7
Strong
TOP Quartile ROIC
Listed in DJSI since 2011
Long
Ranked Fortune 93rd
Big
Technologically Advanced and Green National Oil Company
Overview Performance 2H/2015 Outlook
7,141 1,512
12,418
16,427
7,480
5,982
2,747
25,011
15,657
20,277
6,482
3,308
11,082
7,420
7,532
1,879
5,577
1H/2014 1H/2015
Petrochem
Olefins business declined from Polymer price dropped Refinery’s margin increased 19% Aromatics improved: P2F margin raised 73%
PTTEP
PTT
Others
Refinery
Petrochem
57,895
197%
2%
235%
68%
37%
1H/15 Performance: PTT Group: Integrated business model proves resilient
8
MMTHB
*including petroleum exploration expenses and royalties
OilVol. increased 1%Performance decreased from stock losses
TradingVol. increased 13% Margin dropped 62% from condensate business
Higher performance of others mainly from
PTTLNG, PTTT and divestment of BCP
Margin
FX gain OPEX*
Share of
income
Interest expense &
income taxes
Other Income
20%
46,330
NCI
PTTEP
Others
Refinery
Avg. A/C GIM increased 50%
Aggregate intake increased 14%
GasGSP and Industrial selling prices dropped
NG Sale Volume increase 5% mainly from new IPPs
Overview Performance 2H/2015 Outlook
Sales volume increased 6%Performance declined following lower product prices and higher DD&A
Contents
Overview
Performance
2H/2015 Outlook
Overview Performance 2H/2015 Outlook
9
264
35
940
299
Non-recurring*** Net Income
Q1/15
E&P : Net profit lower from non-recurring items
Product Prices
Net Income (100%)
Sales Volume
Key Highlights
8.03 7.29 7.96* 7.66
50.12 59.34
102.82
54.83
48.74 48.4766.35**
48.61
Q1/15 Q2/15 1H/14 1H/15
Liquid ($/BBL)
Gas($/MMBTU)
Weighted Avg.($/BOE)
MMUSD
232 227 203 229
95 99104
97
Q1/15 Q2/15 1H/14 1H/15
326
Liquid
Gas
KBOED
327
10
* Gas price, if excludes Vietnam 16-1 retroactive sale recording, is 8.04$ for 1H 14
** Average selling price, if excludes Vietnam 16-1 retroactive sale recording is 66.84$ for 1H 14
307
Q2/15
QoQ
• Avg. selling price decreased, mainly from lower gas price according to lagging price adjustment formula
• Sales volume decreased slightly from Myanmar gas field and Arthit shutdown
• Net income declined, mainly from higher exploration expenses and non-recurring items, i.e., deferred taxes from USD functional currency, FX loss & oil price hedging
HoH
• Avg. price significantly decreased from a slump on oil price • Volume increased from Zawtika full production & Hess acquisition• Net income declined from lower product prices & higher DD&A
from newly completed projects and loss on non-recurring items in Q2/15
18%
0.6%
6% HoH0.3% QoQ
1H/14
68% HoH
87% QoQ
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance 2H/2015 Outlook
9%
47%
27%
4%
326
1H/15
16
(159) (141)
11
*** Includes Gain/(loss)on FX, Deferred tax from Functional currency, Current Tax from FX Revaluation, Gain/loss from Financial instruments, H1 incident Insurance Claim, and etc.
…2025
E&P Roadmap:Deliver operational excellence, cost savings and project development as planned Reinforcing the passion to achieve sustainable growth
E & P Gas Oil & Trading Refining PetChem Others
11
Overview Performance 2H/2015 Outlook
2015 Priorities 1st Half 2015 Recap+6% PROGRESS
2015
Deliver sales volume
growth through safe and
reliable operations
Adopt a cautious
approach to pre-FID
assets and reinforce focus
on Southeast Asia
Contract 4(Ubon)
MZ Area 1
Algeria HBR
Mariana Oil Sands
Advancing towards final investment decisions
Progressing with exploration program
Cost improvement plan and revised work program
Revised growth outlook on domestic economy and increase in LNG supply
Progressing Algeria 433a & 416b project start-up
Myanmar
ExplorationMaintain active presence through appraisal programs
Monitor and prepare to
capture value-creating
opportunities
Focus on conventional assets M&A in Southeast Asia
Cautiously review potential entry opportunities into North American unconventional assets
Focus on cost optimization
and investment
prioritization
~14% reduction plan to announced budget rolled out
De-risked exploration through prioritization and rescheduling
Business Unit Q1/15 Q2/15 QoQ 1H/14 1H/15 HoH
Gas- EBITDA 9,262 14,348 55% 28,909 23,610 (18%)
• S&M 2,476 3,145 27% 10,067 5,621 (44%)
• TM 6,775 6,784 0.1% 13,504 13,559 0.4%
• GSP 916 4,380 4.78x 11,190 5,296 (53%)
• NGV (3,019) (2,488) 18% (10,019) (5,507) 45%
• Others 2,114 2,527 20% 4,167 4,641 11%
12
(Unit:MMTHB)
3,927 4,455 13% 8,652 8,382 (3%)
740 949 28% 4,391 1,689 (62%)
*MIS** Included Gas/Oil/Trading affiliates
12
Oil-EBITDA
Trading*-EBITDA
Total** 13,929 19,752 42% 41,952 33,681 (19%)
PTT EBITDA Performance Breakdown by BU’s:
Overview Performance 2H/2015 Outlook
8.82
8.60
8.79 8.71
Q1/15 Q2/15 1H/14 1H/15
3% QoQ
4,704 4,685
4,4974,469
4,450
4,768 4,731 4,802 4,832 4,879
Q1 Q2 Q3 Q41,129 1,297 1,297 1,213
1,011 930 718 970
720 752711 736
985 902929 943
670 689639
680317 309
316313
Q1/15 Q2/15 1H/14 1H/15
Gas BU: Power sector drives volume growth
NG Sales Volume* NG Customer Breakdown
2013
2015
2014
MMSCFD
EGAT (25%)
IPP (20%)
SPP (15%)
GSP (20%)
Industry (14%)NGV (6%)
MMSCFD
4,6104,832
AVG.
4,688
4,855
4,589
5% HoH
NGV Sales Volume
Vol. MMCFD
317 309 316 313
QoQ
• NG volume increased mainly from power sector demand (EGAT+SPP).
• NGV demand was lower, following gradual price rise amid other petros’ falling prices
HoH
• NG volume increase mainly due to higher GSP gas demand and new IPPs
• NGV demand declined slightly due to gradual retail price adjustment amid lower oil prices
Key Highlights
4,855
1% QoQ
ที่เพ่ิมข้ึนเป็นของ
* NG Sales Volume include Inter-BA Transaction
K.Ton/Day
13
1% HoH
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance 2H/2015 Outlook
4,879
380 359 392 370
444
505 867
475
1,188
1,375 1,563 1,282
1,148
1,343
1,572
1,246
498*
497* 333
498*
318 367
608
343
Q1/15 Q2/15 1H/14 1H/15
2,476 3,145 10,067
5,621 6,775 6,784
13,504
13,559 916
4,380
11,190
5,296
(3,019) (2,488)(10,019)
(5,507)
2,114
2,527
4,167
4,641
Gas - EBITDA
MMTHB
Others
TM
GSP9,262
Q1/15 Q2/15 1H/14 1H/15
14,348
S&M
NGV
674 609 1,305 1,283 187 166
365 353552 496
977 1,048
204 221
413 425
3 10
13
Q1/15 Q2/15 1H/14 1H/15
1,502
GSP Sales Volume
LPG (42%)
kTon
1,620
3,060
7% QoQ
2% HoH
Gas BU : Lagging feed price reduction and sell price to industrial pressured performance
QoQ
• Better GSP margin from gradually lower feed cost and higher petchemprices
• GSP sales volume declined from GSP#1 major turnaround
• Gas BU’s EBITDA significantly increased, resulting from better GSP S&M margins and lower NGV loss following price adjustment
HoH
• Lower performance mainly from GSP and S&M, despite NGV loss decline from increased retail prices
• GSP: sharply lower selling prices linked to sharp-fallen petchem prices whilst feed gas cost gradually lower with lagging price adjust formula
• S&M: lower performance due to lag time between selling price to industrial customers and feed cost adjustment
Propane (12%)
NGL (11%)
Ethane (34%)
Key Highlights
55% QoQ
GSP - Reference Product Prices
PP
HDPE
Naphtha
USD/Ton
Feed Cost***
LPG Ex-GSP
* Effective on February 2, 2015** MOPS HSFO 180 CST***Revised Feed cost due to re-calculated with GSP production volume instead of sale volume
28,909
Pentane (1%)
18% HoH
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance 2H/2015 Outlook
3,122
23,610
14
Fuel Oil**
18%
21%
50%
45%
44%
6%
HoH
Gas Business Roadmap
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance 2H/2015 Outlook
GAS BU Strategies
15
-10
0
10
20
30
40
0
1,000
2,000
3,000
Jul-14 Oct-14 Jan-15 Apr-15
Sales vol. Export Price (RHS)
-90
-40
10
60
0
500
1,000
Jul-14 Oct-14 Jan-15 Apr-15
Sales Vol. Export Price (RHS)
0.0
0.2
0.4
0.6
Jul-14 Oct-14 Jan-15 Apr-150
5
10
15
Jul-14 Oct-14 Jan-15 Apr-15
Avg. Sales Vol. (K.Ton/day) Price (THB/Kg)
16
Industry Auto Household
Price +24%
Avg.Vol. -3%
E & P Gas Oil & Trading Refining PetChem Others
Oil BU: Impact from Price Reform
NGV Higher price – Lower volume
M.Ton
DieselExport improved while price decline
GasolineDemand surged from lower price
M.LitreTHB/Litre
48.7535.16
29.99
25.82
10.50
13.00
M.LitreTHB/Litre
29.84
21.38
22.63
Jun-15
11.5012.50
LPG Import and Vol. dipped after restructuring
Price-24%
Avg.Vol.+10%
Export +1%
Price -14%
Avg,Vol.
+14%
Export -21%
Overview Performance 2H/2015 Outlook
23.96 THB/Kg
Industry -5%
Auto-12%
Household -7%
Import -43%
May-15
Total Domestic Demand -19%
May-15 May-15
108 105109
5345
59 5363 61 60
30
80
130
0.81 0.91 0.85 0.86
Q1/15 Q2/15 1H/14 1H/15
746 841 1,355 1,587
3,181 3,614
7,297 6,795
Q1/15 Q2/15 1H/14 1H/15
3,927
8,652
4,455
8,382
Oil BU : Stock loss overweight margin
Contribution Margin 1/
MMTHBTHB/Liter
1/Excluded non–oil business
17
•••
••••
Oil
Non-Oil*
E & P Gas Oil & Trading Refining PetChem Others
* EBITDA from Operating
6,386 6,214
12,505 12,600
Q1/15 Q2/15 1H/14 1H/15
Sales Volume 2/
MM Liter
2/ Only PTT and PTTRM
1% HoH
1% HoH
3% HoH
(1,229) (119) 44 (1,348)
Petroleum Prices
Stock Gain/Loss(MMTHB)
Overview Performance 2H/2015 Outlook
12% QoQ
3% QoQ
Oil - EBITDA
USD/BBL
(Month-end Prices)
13% QoQ
Q4/13 Q2/14 Q4/14 Jan Feb Q1/15 Apr May Q2/15
Oil BU : Beyond traditional business
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance 2H/2015 Outlook
Digital Focus Retail Focus
Blue Card: Happiness in a single pass
Mileage card with Rewards and Privileges
Master Franchise“Texas Chicken”
We're the thirdrestaurant in the world. KFC is the largest QSR operator in the world with the biggest market share in most countries. We're a growing brand. We will open Pacific this Texas Chicken, founded in the US in the two brands make up one of the largest QSR chains in the world. They countries and systemUS$There are currently Asia, including Singapore, Vietnam and Malaysia, and the brand has just launched in New Zealand.
18
International Focus
52.48 62.60
105.93
57.54
17% QoQ
0.06 0.07
0.15
0.07
Q1/15 Q2/15 1H/14 1H/15
53% HoH
* PTT only : FX Adjustment in compliance with Accounting Standard** Not restated
740 949
4,391
1,689
Q1/15 Q2/15 1H/14 1H/15
21,067 20,253
36,581 41,320
Q1/15 Q2/15 1H/14 1H/15
4% QoQ
Trading BU :Performance continues under pressure from squeezed margins
Contribution Margin*
Trading - EBITDA*
Sales Volume
Key Highlights
MMTHB
MM Liter
19
QoQ
• Better margins following volatile, yet improved oil prices• Sales volume lower, mainly from weaker naphtha and FO
demand
HoH• Margins squeezed from broadly lowered oil prices, hence higher
condensate discounts• Sales volume increased mainly from high GRM encouraged
refineries to maximize productions as well as no major refinery T/O
• EBITDA declined, mainly from squeezed margins of domestic condensate business
* PTT only : FX Adjustment in compliance with Accounting Standard
62% HoH
E & P Gas Oil & Trading Refining PetChem Others
Contribution Margin (THB/Liter)
NWS ($/BBL)
46% HoH
Overview Performance 2H/2015 Outlook
13% HoH19% QoQ
28% QoQ
Trading BU : Growth Drivers
Colombia
Panama
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance 2H/2015 Outlook
20
**Performance BCP 4 mths
66%
84% 87%
75%
Q1/15 Q2/15 1H/14 1H/15
98 115
270
106
255 246 246 251
Q1/15 Q2/15 1H/14 1H/15
51.9 61.3105.3
56.6
8.34 6.97
3.44
7.64
4.75
9.70
4.22
7.27 6.71
13.13
6.68
9.99
Q1/15 Q2/15 1H/14 1H/15
GRM/GIM*
Refinery Utilization*
USD/BBL
A/C GRM
A/C GIMMkt GRM
Dubai
Net Income (100%)
U-Rate (%) Q1/15 Q2/15 1H/14 1H/15
Aggregated U-Rate
97 99 87 98
TOP 106 107 100 107
IRPC 84 89 80 87
Aggregated Intake (KBD) 668651
3% QoQ
580
AromaticsAromatics Production
BZ-ULG95
PX-ULG95
Refining BU:High GRM’s and no shutdown contribute to stellar performance
21
BZ: 17%
QoQ
PX: 4%
-3.62 2.81 -0.03 -0.35StockGain/Loss
T/A(23 days )
BZ: 61%
HoH
PX: 2%
32% QoQ
E & P Gas Oil & Trading Refining PetChem Others
A/C GIMQoQ: 96%
HoH: 50%
USD/Ton
Overview Performance 2H/2015 Outlook
659
14% HoH
**Performance BCP 1 mth
255% HoH
T/A
(15 days ++)
*Adjusted to exclude BCP
IRPC
TOP
SPRC
BCP11,968
15,798
7,826
27,766
Refineries : Initiatives Roadmap
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance 2H/2015 Outlook
Strengthening Core Business and Beyond
1 Delta Program
Operational Excellence
Commercial Excellence
Procurement &HR Excellence
2 3UHV + PPE & PPC Projects
Specialty Products
Focus Execution TOP-GET-BEST
• Operational excellence • Margin improvement • Cost management
TOP GET BEST
• Organic growth• PTT Group collaboration
in Sriracha area• International business• Value chain
enhancement & Integrated downstream
• New business• R&D• Portfolio master plan
22
Refineries : Projects Updates
23
Ongoing Projects:
LABIX : 98% progress
COD: End 2015
SPP : 91% progress
COD: 2Q16
(2 SPP: Total power capacity 239 MW)
UHV: 95% progress
COD: End 2015
PPE+PPC: Focus on propylene &
polypropylene chain due to solid
competitive advantage
(Total PP Capacity 775 KTA)
COD: 2H17
IPO: Timeline of IPO depends on the SEC’s approval process and market sentiment , among other
factors.
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance 2H/2015 Outlook
UHV+PPE&PPC Projects
5.98 5.40
4.46 5.68
4.17
7.59
4.99 5.92
Q1/15 Q2/15 1H/14 1H/15
102% 100% 102% 101%
A/C GRM 19% QoQ
88% 85%90%
86%
1,188
1,375 1,563
1,282 1,148
1,343 1,572
1,246
Q1/15 Q2/15 1H/14 1H/15
217 271
375
244 333
391 360 362
Q1/15 Q2/15 1H/14 1H/15
Net Income (100%)
Aromatics
Unit : MMTHB
5,6319,019
12,38114,650
Q1/15 Q2/15 1H/14 1H/15
PTTGC
HMC Others
9,608
Olefins U-Rate
96%89% 84%
92%
Olefins
USD/Ton
BTXU-Rate
Refineries
CDU U-Rate
A/C GRMMkt GRM
BZ-CondPX-Cond
-1.50 2.22 0.04 0.41StockGain/LossNet NRV
Petrochemical BU:Better refinery and Aromatics performance more than offset pressured Olefins performance
6,944
HDPEPrice
PPPrice
HDPE: 16%
QoQ
PP: 17%
24
BZ-Cond: 25%
QoQ
PX:-Cond 17%
BZ-Cond: 35%
HoH
PX-Cond: 0.6%
HDPE: 18%
HoH
PP: 21%
38% QoQ
E & P Gas Oil & Trading Refining PetChem Others
219 216 126 218
USD/TonUSD/BBL
Mkt P2FQoQ 1%Aromatics
Mkt P2F
A/C GRM 82% QoQ
Overview Performance 2H/2015 Outlook
Mkt P2FHoH: 73%
15,619 16,552
6% HoH
Petrochemical : Initiatives Roadmap
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance 2H/2015 Outlook
25
43
16
76
58
10
-3
8 7
Q1/15 Q2/15 1H/14 1H/15
Other Businesses : Coal - SAR (95.26%)Cost reduction initiative relieved the effect of continuing price decline
EBITDA & Net Income (100%)
Sales Volume
Key Highlights
MMUSD
USD/Ton
1,968 1,372
3,627 3,340 573
316
1,672 889
2,541
1,688
5,299
4,229
Q1/15 Q2/15 1H/14 1H/15
kTon
Jembayan
Sebuku
Avg. Selling Price
Cash Costs
34% QoQ
Avg. Selling Price & Cash cost
New Castle
2%
20% HoH
13%
Q1/15 Q2/15 1H/14 1H/15
EBITDA 63%
9%
35%
15%
17%
11%
QoQ
• Cash cost increased mainly from the rise in fixed cost per unit as a result of the decrease in sales volume as well as higher stripping ratio of Sebuku and Jembayan
• EBITDA & NI decreased mainly from higher cash cost
HoH
• Sales volume decreased as coal price dropped from oversupply
• Cash cost improved from cost saving initiatives, reduced admin costs and mine plan review
26
NI 130%
QoQ HoH
HoHQoQ
24%
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance 2H/2015 Outlook
56 55
66
56
34
46 45
40
66
60
76
63
Q1/15 Q2/15 1H/14 1H/15
EBITDA
NI
531474
672
1,005
Q1/15 Q2/15 1H/14 1H/15
Net Income (100%)Sales Volume
Key Highlights
MMBahtGWh
50% HoH
Other Businesses : Power - GPSC (22.60%)
Better performance supported by higher sales volume
1,625 1,842
2,819
3,467
1,233 1,254
2,457 2,487
Q1/15 Q2/15 1H/14 1H/15
‘000 Ton
E & P Gas Oil & Trading Refining PetChem Others
Capacity
Power 23%
Steam 2%
Steam 1%
11% QoQ
QoQ
• Higher power sales volume in Q2/15 mainly from increased EGAT dispatch from Sriracha plant as a result of Myanmar gas fields maintenance shutdown
• Lower performance mainly from exchange loss and expense from employee stock ownership in Q2/15.
HoH
• Power sales volume increased due to the lack of maintenance shutdown of Sriracha plant in H1/15
• Better performance due to increasing power and steam sales.
PowerSteam
Power 13%
27
Diversified Assets
Natural Gas Hydro Renewable
1,472 MW(78%)
347 MW(19%)
53 MW(3%)
Natural Gas Hydro Renewable
QoQ
HoH
Overview Performance 2H/2015 Outlook
Other Businesses : Power – GPSC (22.60%)Project update
E & P Gas Oil & Trading Refining PetChem Others
28
28
Overview Performance 2H/2015 Outlook
48%
17%
6%
13%
15%1%
PTT - Oil &
TradingPTT - Gas
Others
PTTEP
22,584 23,746
57,89546,330
Q1/15 Q2/15 1H/14 1H/15
51.9 61.3 105.3 56.6
PTT Consolidated Performance: 1H/2015
Dubai (USD/BBL) 1H/151H/14
35%
43%
13%
6%3%
42%
14%6%
16%
19%3%
PTT - Oil & Trading
PTT - Gas
Others
PTTEP
515,583 536,678
1,344,762
1,052,261
Q1/15 Q2/15 1H/14 1H/15
14%
34%
16%
24%
12%
PTT
PetChem
Others PTTEP
RefiningNet
Income
Unit : MMTHB
EBITDA
Net Income
RevenueRevenue
EBITDA
52%
13%
6%
12%
16%1%
54%
18%
6%
14%
6%2%
Revenue
EBITDA
Net Income
71,73987,610
162,781 159,349
Q1/15 Q2/15 1H/14 1H/15
29
PetChem
Refining
PetChem
Refining
22%
4%
22%2%
20%5%
Overview Performance 2H/2015 Outlook
PTT Group Performance : 1H/2015 (HoH)
% share
Unit : MMTHB1H2014
(Restate)1H/2015 HoH
1H2014
(Restate)1H2015 HoH
PTT Net operating Income 25,011 15,657 -37% 25,011 15,657 -37%
E&P - PTTEP 30,621 9,928 -68% 65.29% 20,277 6,482 -68%
- PTTGC 12,381 14,650 18% 48.89% 5,904 6,657 13%
- HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/
PTTME/PTTMCC/PMMA3,238 1,902 -41% 40-50% 1,516 875 -42%
Petrochemical 15,619 16,552 6% 7,420 7,532 2%
- TOP 4,538 10,774 137% 49.10% 2,288 5,180 126%
- IRPC 522 8,068 1446% 38.51% 276 3,099 1023%
Refining 7,826 27,766 255% 3,308 11,082 235%
Inter - PTTER, PTTGE -1,391 -2,068 49% 100% -1,392 -2,068 49%
Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 2,714 2,691 -1% 50-100% 1,977 2,397 21%
Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 1,178 1,673 42% 20-30% 348 463 33%
Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others 1,534 5,032 228% 33-100% 946 4,785 406%
Others Business 4,035 7,328 82% 1,879 5,577 197%
Shared of Net Income from Affiliates 58,101 61,574 6% 32,884 30,673 -7%
PTT Conso. Net Income 83,112 77,231 -7% 57,895 46,330 -20%
Performance 100% Equity Method % PTT
30
Overview Performance 2H/2015 Outlook
0.4 0.3
1.4
1.3
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
(0.1)
0.1
0.3
0.5
0.7
0.9
2014 Q2/15
Other Liabilities
PP&E
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
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 (A-)
Net Debt/EBITDA ≤ 2.0
Net Debt/Equity ≤ 1.0
1,105,147 1,121,373
441,067 434,751
387,484 381,023
316,757 307,240
1,054,694 1,122,628
697,000669,946
498,761 451,813
1 2 3 4 5
0.3%
2,244,3872,250,455
30 Jun 1531 Dec 14
Assets slightly declined :
• Drop in trade A/R primarily from international
trading and oil business
• Reduce in Cash from Bonds and Loans repayments
• Decrease in L-T investment from disposal of BCP
31
2014 Q2/2015
Overview Performance 2H/2015 Outlook
7.71 8.75
13.43
22.40
30.5734.14 34.82
18.3321.06
29.58
24 36.5832.52
19.3316.08
2.50 2.85 4.006.75
9.25 10.50 11.508.00 8.50
10.2513.00 13.00 13.00
11.00
6.00
2 % 2 %
32.4% 32.6% 29.8% 30.1% 30.3% 30.8% 0%43.6% 40.4% 34.7% 34.9% 35.5% 40.0% 56.9% 37.3%
2001 2002 200 2004 200 200 200 200 200 2010 2011 2012 201 2014 1H2015
Dividend Policy & Historical Payments
PTT’s minimum payout ratio
PTT is firmly committed to pay dividend at no less than 25% of net income
Baht / share
EPS
DPS
Dividend payout
32
Overview Performance 2H/2015 Outlook
Gas 55%
Oil &Trading
R&D, Others
5%
M&A and
Investment Oversea
1
LNG
8
Infrastructure 2%
PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 299 bn* ($9bn) during 2015-2019
CAPEX Breakdown : 5 Years
By Business Unit
JV &
Investment in
Subsidiaries
29%
33
33
33
CAPEX revision Y2015:
• CAPEX lower by ~ THB 22 bn from THB 77 bn previously
• Reduction mainly from:
Postpone new oversea investments
Adjust plan for new LNG receiving terminal project
• While maintaining 5-years CAPEX of Bt. 299bn
Overview Performance 2H/2015 Outlook
* 2015-2019 budget approved by NESDB at YE2014
Unit: MMTHB
Infrastructure
Investment in JV & Sub.
R&D and Others
Oil & Int’l Trading
Natural Gas
PTT 5-Years CAPEX Plan ̴Bt 299 bn
Overview
Performance
2H/2015 Outlook
Contents
Overview Performance 2H/2015 Outlook
34
: - China’s central bank uses expansionary monetary policy in order to maintain economics growth at 7%
- Property market shows a few signs of recovery
: - Low oil prices to help boost consumption and non-oil investment
- Construction activity to ramp up amid growing housing demand
: - Accommodative policy measures help to boost domestic demand
: - Exchange rate volatility
35
Economic Outlook : Challenges Ahead
US market : The only bright spot
: - A strong US dollar to continue to weigh on exports- A monetary tightening cycle expected to begin in 2H’15
EU market: Greece/EU out of the woods?: - ECB’s ultra-loose monetary policy and a weak euro to continue to
benefit the economy : - Implementation of austerity measures to reduce government budget
deficit to continue to weigh on growth
Thailand market: Expected to slowly recover: - Recovery in tourism arrivals to continue
: - Recent drought crisis and its negative wealth effect to consumer spending
AEC market : Government measure to boost economic growth
: - Recent stock market rout and its negative wealth effect to consumer spending
PTT Performance: Solid performance amid low oil price environment : - Solid performance from integrated business model of PTT Group
: - Uncertainty on Global Economics affects to global reference price
Overview Performance 2H/2015 Outlook
35
China market: Accommodative monetary policies to avoid hard landing
Still-on-going in shale production
Lower-than-expected heating demand as mild weather
Factors to watch
US LNG Export Terminal Projects
Source : EIA Annual Outlook, July 2015
Henry Hub Natural Gas Price Forecast
Henry Hub / JKM Price Outlook: Gas price trend to move lower from higher supply
LNG Global Demand/Supply
Korea and China LNG demand are lower-than-expected as Nuclear Reactor starting up as well as slow economy respectively.Mild Weather in winter swept across North Asia region
Japan-Korea Market Price Forecast
Excess Supply expected in L-T
Expected JKM price 2015 8-9 $/MMBtu
Factors to watch
Average JKM price 2014 = 14.89 $/MMBtu
Overview Performance 2Q/15 Outlook
Nuclear power plant delayed the start up period.
Additional spot demand from new imported countries such as Jordan, Egypt & Pakistan
36
Averaged HH Price 2014 =4.26 $/MMBtu
USD/MMBtu
EIA projected HH Price 2015 = 2.84 $/MMBtu
EIA projected HH Price 2016 = 3.18 $/MMBtu
EIA Outlook
Future JKM PriceActual JKM Price
Current Price @ 8.20 $/MMbtu
53.64 54.03 55.56 57.08
58.57
30
50
70
90
110
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15WTI Brent Dubai Dubai Forecast (PTT Group PRISM)
2014 Dubai $96.6/bbl
Dubai Forecast Y2015Range $50-60/bbl
93.593.1
94.2
95.095.3
96.496.0
95.4
-0.5
0.5
1.5
2.5
3.5
4.5
91.0
92.0
93.0
94.0
95.0
96.0
97.0
Q1/15 Q2/15 Q3/15 Q4/15
MBD MBD
World oil Demand(LHS) World Oil Supply(LHS)Stockbuild*(RHS)
Oil Rig Count declined
Prolonged geopolitical tension in Yemen, Libya
China and India return to fill up SPR when oil price drop
“World Oil Supply surplus trend to lower in 2H 2015 mainly from reduced well completions and declines in capex should have an impact on shale output by 1Q16.”
Source: (PTT Group) Estimated (23.07.2015)
Crude Oil Outlook: Oversupply conditions persist
Iran could ramp up production by 500-700 KBD within the next 6-12 months after sanctions lifted
OPEC keep production rate to maintain market share
Crude Oil Price Forecast in Y2015 range bound 50-60 $/bblFactors to watch
World Oil Demand/Supply Balance
Source: BOAML , IEA, Prism
surplus
surplus
surplus
surplus
US
D/b
bl
37
Overview Performance 2H/2015 Outlook
Source: FACTS, DB, KBC, Reuters , IEA, Reuters, Thaioil and PRISM Estimated ( Aug 2015)
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15
Stockpile demand before Hajj season in Sep’15.
Demand growth from Latin America and Africa.
Forecast
GO
Mogas
FOReturn of U.S. refineries from maintenance season.
New barrels from the new ME refinery (Yasref, Ruwais)
Singapore GRM Forecast in Y2015 to be around 7-8$/bblFactors to watch
“Softer middle distillate product spreads from new refineries startups. However, healthy gasoline cracks in
2H/15 as low retail oil prices stimulate demand ”
Refinery Margin Outlook : Lower GRM from return of refineries turn around
CDU Additional Vs Additional Demand –AP&ME
V
Source: FACTs Semi Annual Reports, Spring 2015, Reuters, Bloomberg, TOP estimate
US
D/b
bl
38
Overview Performance 2H/2015 Outlook
0100200300400500600700800900
Jan
-14
Fe
b-1
4
Ma
r-14
Ap
r-14
Ma
y-1
4
Ju
n-1
4
Ju
l-14
Au
g-1
4
Se
p-1
4
Oct-
14
No
v-1
4
Dec-1
4
Jan
-15
Fe
b-1
5
Ma
r-15
Ap
r-15
Ma
y-1
5
Ju
n-1
5
Ju
l-15
Au
g-1
5
Se
p-1
5
Oct-
15
No
v-1
5
Dec-1
5
Spread HDPE Spread PP
New supplies in regional weight down market sentiment
Olefins Product Spread
Petrochemical Outlook: Ethylene and Propylene demands are still under uncertainties amid ample supplies.
Source: HIS, ICIS and PRISM
Asia Ethylene Supply/Demand Balance
Factors to watch
2015 (F)
Asia Propylene Supply/Demand Balance
39
Energy and feedstock prices downward trend
Manufacturing season anticipates to kick-off in late August
Olefins Product Spread Forecast in Y2015
• HDPE-Naphtha expected to be around 640-828 USD/TON
• PP-Naphtha expected to be around 577-796 USD/TON
US
D/T
on
Ava
ila
bilit
y
Millio
n M
etr
ic T
on
s
2015 (F)2015 (F)
Ava
ila
bilit
y
Millio
n M
etr
ic T
on
s
Concerns on lower-than-expected of global economic growth
Most plants operate at high cracker run rates
Overview Performance 2H/2015 Outlook
Petrochemical Outlook: Bearish Benzene and PX sentiments driven from weak energy values and new capacities.
Manufacturing season anticipates to kick-off in late August
New benzene capacity and production in Asia together with the extremely large scale of new PX plants.
Aromatics Product Spread
Factors to watch
0
50
100
150
200
250
300
350
400
450
500
Ja
n-1
4
Ju
l-1
4
Ja
n-1
5
Ju
l-1
5
Spread BZ Spread PX
Source: HIS, ICIS and PRISM 40
Chinese economy expands slower than expect
Aromatics Product Spread Forecast in Y2015
• BZ-Naphtha forecasted to be around 138-254 USD/TON
• PX-Naphtha forecasted to be around 311-398 USD/TON
US
D/T
on
2015 (F)
Ca
pa
cit
y A
va
ila
bil
ity %
Asia Benzene Production Capacity Losses in 2015
Th
ou
sa
nd
Me
tric
To
ns
2015 (F)
Asia Paraxylene Production Capacity Losses in 2015
Ca
pa
cit
y A
va
ila
bil
ity %
Th
ou
sa
nd
Me
tric
To
ns
2015 (F)
Energy and feedstock prices downward trend
Overview Performance 2H/2015 Outlook
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.
41
41
42
Debt Profile : Control Cost & Manage Risk
Debt Portfolio
Managed debt according to financial risk and policy
ConsolidatedPTT OnlyUnit : MMTHB
: Cost of debts ~ 4.63%: % fixed-rate ~ 75%: Avg. debt life ~ 8.43 years
: Cost of debts ~ 4.46%: % fixed-rate ~ 73%: Avg. debt life ~ 7.06 years
181,399 204,560 194,006 208,298
384,548 382,711
125,972 83,985 75,619
259,665
305,127 279,998
307,371 288,545 269,625
467,963
689,675662,709
31 Dec 13 31 Dec 14 30 Jun 15 31 Dec 13 31 Dec 14 30 Jun 15
USD THB
(35%)
(65%)
(29%)
(71%)
(28%)
(72%)
(49%)
(51%)
(44%)
(56%)
(42%)
(58%)
Note : Data as of 30 Jun 15 (THB/USD = 33.9266 THB/JPY = 0.278603) Excluding liabilities from finance leases; Cost of debts includes withholding tax. 42
PTT Group Performance : Q2/2015 (QoQ)
% share
Unit : MMTHB Q1/15 Q2/15 QoQ Q1/15 Q2/15 QoQ
PTT Net operating Income 6,638 9,019 36% 6,638 9,019 36%
E&P - PTTEP 8,616 1,312 -85% 65.29% 5,616 866 -85%
- PTTGC 5,631 9,019 60% 48.89% 2,684 3,973 48%
- HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/
PTTME/PTTMCC/PMMA1,313 589 -55% 40-50% 635 240 -62%
Petrochemical 6,944 9,608 38% 3,319 4,213 27%
- TOP 4,498 6,276 40% 49.10% 2,217 2,963 34%
- IRPC 3,832 4,236 11% 38.51% 1,571 1,528 -3%
Refining 11,968 15,798 32% 4,740 6,342 34%
Inter - PTTER, PTTGE -347 -1,721 396% 100% -347 -1,721 396%
Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 1,073 1,618 51% 50-100% 1,042 1,355 30%
Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 854 819 -4% 20-30% 259 204 -21%
Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others 1,463 3,569 144% 33-100% 1,317 3,468 163%
Others Business 3,043 4,285 41% 2,271 3,306 46%
Shared of Net Income from Affiliates 30,571 31,003 1% 15,946 14,727 -8%
PTT Conso. Net Income 37,209 40,022 8% 22,584 23,746 5%
Performance 100% Equity Method % PTT
43
Free Cash flow
54,647 13,012
Investing1H/14
-81,6921H/15
-113,352
CAPEX(PP&E, Intangible asset) -80,339 -85,041
Investment (Sub. &Affiliates) -28,334 -779
Dividend/Interest Received 10,311 5,474
Others 16,670 -33,006
Operating1H/14
136,3391H/15
126,364
Net Income 57,895 46,330
Changes in assets & liabilities 13,686 12,517
Income Tax -43,677 -32,429
Non-Cash Adjustment 104,590 99,081
Interest-net 3,845 865
Ending Cash & Cash Equivalents
230,994 172,665
Beginning Cash and Cash Equivalents
196,854 234,212
Cash In/(Out)
34,140 -61,547
Adjustment
-987 -2,031
Financing -19,520 -72,528
Repayment Loans -68,924 -53,802
Interest paid -16,211 -16,924
Dividend paid -40,648 -20,296
Received from share issue 32,557 9,953
Received from loans/Bonds 73,706 8,541
Statements of Consolidated Cash Flows : 1H/2015
44
44
45
Free Cash flow
36,498 13,227
Financing -31,228 -36,208
Repayment Loans -2,288 -20,766
Interest paid -6,722 -6,286
Dividend paid -22,851 -14,265
Received from share issue - -
Received from loans/Bonds 633 5,108
Investing1H/147,938
1H/15-8,607
CAPEX (PP&E, Intangible asset) -14,004 -18,201
Investment (Sub. &Affiliates) -1,652 -2,068
Dividend/Interest Received 17,551 12,422
Others 6,043 -760
Operating1H/1428,559
1H/1521,834
Net Income 25,257 33,144
Changes in assets & liabilities -8,550 -4,207
Income Tax -1,388 -1,968
Non-Cash Adjustment 8,668 -8,684
Interest - net 4,573 3,551
Ending Cash & Cash Equivalents
69,196 35,037
Beginning Cash and Cash Equivalents
63,927 58,018
Cash In/(Out)
5,269 -22,981
Adjustment
-0.9 -0.1
Statements of Cash Flows (PTT Only) : 1H/2015
45
Subsidiaries ConsolidatePTT (Cambodia) Co., Ltd. PTTCL 100.00%Subic Bay Energy Co., Ltd. SBECL 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 100.00%PTT PMMA Co., Ltd. PTTPMMA 100.00%PTT Global Chemical Plc.* PTTGC 48.89%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%
Refining Associates EquityStar Petroleum Refining Co., Ltd. SPRC 36.00%
Others Fair ValueDhipaya Insurance Plc. TIP 13.33%
Subsidiaries ConsolidateEnergy Complex Co., Ltd. EnCo 50.00%Business Service Alliance Co., Ltd. BSA * 25.00%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 June 2015
International Investment
Subsidiaries ConsolidatePTT Energy Resources Co., Ltd. PTTER 100.00%PTT Green Energy Pte. Ltd PTTGE 100.00%
46
46
47
Natural Gas Price Structure : Jan-Jun 2015
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.
Capped at 13.00 Baht/Kg from Jan 2015
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
47
Power Producers 60%
: EGAT 25%
: IPP 20%
: SPP 15%
GSP 20%
Petrochemicals Feedstocks
Industry 14%
NGV 6%
Ethane, Propane, LPG
NGL
Local Cooking Gas
Export Cooking Gas
*
* EGAT IPP and SPP Supply Margins not more than 2.1525 and 11.4759 respectively
*
*
Natural Gas : A steadily growth of natural gas upon Government fuel diversification policy for power generation
48Source : PTT
Gas demand forecast (CAGR during 2015-2030): Total ~ 0.1%: Power ~ 0.2%: GSP ~ -2.2%: Industry ~ 1.8%: NGV ~ 0.4%
Thailand’s Projected Energy Demand
49
Primary Energy Consumption
Source : EPPO/ PDP 2015 Preliminary ( Jan 2015) / PTT analysis as of Jan 2015
0
500
1000
1500
2000
2500
3000
3500
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
32%
40%
15%11%
Oil
Natural Gas
Coal/Lignite
Hydro/Import
KBD
Renewable
2%
2,438
2,052
31%
38%
16%
13%2%
28%
34%
20%
5%
13%
2,840
29%
36%
18%
4%
13%
3,240
Gas Business Generates Stable Returns
Sole owner and operator of entire
gas transmission pipelines in
Thailand (> 3,000 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
Phu Hom
Nam Phong
Thailand
Ban I Tong
Ratchaburi
Nakhon Sawan
SBK
NBK
The Luang
Nakhon Ratchasima
Kaong Khoi
Samut Prakan
ESB
Bang Pakong
Khanom
Songkhla
Sadao
Yadana
Yetagun
Chon Buri
Rayong
Wang Noi
Thai-Malaysia
(JDA)
Arthit
Arthit–FPSOErawan
PailinBongkot
South Bongkot
Chevron–Additional
Platong
Tantawan
Benchamas
Natural gas fields
Power plantsGas separation plant
1,2,3,5,6 in Rayong
Gas separation unit 4
in Nakhon Si Thammarat
Existing pipeline
Future pipeline
Andaman Sea
50
50
-8,000
-6,000
-4,000
-2,000
-
2,000
4,000
6,000
8,000
10,000
Unit: MMUSDNet Income Comparison: Q1’14 - Q2’15
Source: Bloomberg/Petronas Website
2014 '15 2014 '15 2014 '15 2014 '15 2014 '15 2014 '15 2014 '15
HoH: 20% HoH: 49% HoH: 14% HoH: 16%HoH: 69% HoH: 147% HoH: 44%
• Integrated business model more resilient
• Companies with more upstream hurt more
• All companies except Exxon decided to take impairment on their assets
• Exxon said they view low prices and margins as temporary
• Some global peers records profits from sales of assets
12 Months Trailing PTT Exxon Shell Chevron Total BP Petronas
Impairment (MMUSD) 784 0 6,983 2,960 6,500 3,600 6,715
% Impairment to NI % 0% 4% 20% % 1 1% 4 %
Overview Performance 2H/2015 Outlook
PTT Performance vs. Global Peers
51
Gas Business Roadmap
Key ProgressDemand & Supply
LNG Terminal Phase 2
Tie – in procedure & Site investigation / Factory acceptance test / and construction of tank roof structure
Construction completed 52.15%
5th Onshore Gas Pipeline
Under revision to be more suitable for the country’s needs and energy security
Expected to be submitted to NEPC within 2015
TPA codes for onshore NG pipeline and LNG terminals effective as from 30th March 2015
TPA Code
52
15
20
25
30
35
Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15
5
10
15
Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15
0
40
80
120
Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15
53
Energy Price Reform: Blessing in Disguise
Dubai Petroleum Products
LPG NGV
Adjusted 3 timesTotal change +2.50 for Private Car+1.50 for Public Car
Adjusted 4 times to “Single price”Total change +5.83 for Cooking+2.58 for Auto-6.17 for Industry
107.11
61.79
USD/BBL
Jun-15
New Gov.
Public Car8.50 THB/Kg
Private Car10.50 THB/Kg
10.00
13.00
Auto21.38
Cooking18.13
Industry30.13
THB/Kg
20
30
40
50
Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15
Gasoline46.85
Diesel29.99
35.66
25.59
Total change -11.19 for Gasoline-4.40 for Diesel
THB/Litre New Gov.
12.50
11.50
9.50
New Gov. THB/Kg
Jun-15
Jun-15Jun-15
23.9624.16
53
Energy Price Reform: LPG Prices
CP-20 $/ton or 423 $/ton
Lifted GSP Capped Price from 333 USD/TON to reflect GSP Cost
GSP3.6 Mil. Ton
(48%)
Imported 2.0 Mil.
Ton(27%)
Refinery1.9 Mil.
Ton(25%)
488 $/TON
or1 11 ฿/kg
CP+85 $/ton or 528 $/ton
498 $/ton
*CP Jan’15= 443 $/ton
Tax2.39 ฿/kg
Margin3.26 ฿/kg
Oil Fund0.82 ฿/kg
VAT1.58 ฿/kg
Oil FundAS
CLEARING HOUSE
Margin3.26 ฿/kg
VAT1.19 ฿/kg
Tax2.39 ฿/kg
No oil
Fund
24.16 ฿/kg
18.13 ฿/kg
Cooking
Transport
Industrial
Low income
Need subsidy
4.81 ฿/kg
LPG prices for Petchem : not controlled, but linked to market price and/or contract price
54