Pride & Treasure of Thailand - listed companyptt-th.listedcompany.com/misc/PRESN/20151117-ptt-am3q2015.pdfNov 17, 2015 · Corporate Governance Report (CGR) for ... on FX, H1 incident

Analyst MeetingQ3/2015

PTT Auditorium17 November 2015

Pride &

Treasure of

Thailand

Pride & Treasure of Thailand

1

2

Pride & Treasure of Thailand

PTT Group joined Anti-Corruption day 2015 on 6 September 2015, held by Anti-corruption organization of Thailand under the theme “Active Citizen”

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3

Safety and Sustainability:PTT has implemented several safety programs that really improve the safety performance

Aspiration = Zero Accident

* Total Recordable Injury Rate

Benchmark : 2013 SAM Robeco Sustainability Members Oil & Gas Industry

Contractor76% 59%

EmployeePercent better than peer Percent better than peer

3

“ZERO” Injury for employee & “Low TRIR”2015 Performance (As of 1st Nov)

Compared with 2014 Performance

Policy and Standard

Process and Platform

Technology and Innovation

People and Culture

* ** As of 1 Aug 2015

0

1

2

3

4

2009 2010 2011 2012 2013 2014 2015*

Injury Rate (Injuries/Million hrs)

TRIR-employee TRIR-contractor

Benchmark- Employee Benchmark- Contractor

Rewards & Recognition

PTT received 3 Certificate awards in the ceremony “รอ้ยดวงใจ รว่มใจลดโลกรอ้น” for the Year 2015

PTT received 3 Certificates from the Ministry of Natural Resources and Environment hosted by Thailand Greenhouse Gas Management Organization (Public Organization) or TGO consisting of:1) Certificate on Operational Success regarding Carbon

Footprint of Product : CFP for 5 products within the Natural Gas BU

2) Certificate on Carbon Neutral3) Certificate on Low Emission Support Scheme : LESS)

from Forest in the City project “โครงการป่าในกรงุ”

PTT received Corporate Governance award

for 7 consecutive years

• PTT was ranked “Outstanding” and

received 5 CGR Symbols from the

Corporate Governance Report (CGR) for

the Year 2015 for listed companies.

• One of the TOP QUARTILE listed

companies with market capitalization >

10,000 MB

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5

Rewards & Recognition

PTT remains a Member, for the 4th consecutive year

within the Oil and Gas Industry

- Dow Jones Sustainability World Index (DJSI

World); and

- Dow Jones Sustainability Emerging Markets Index

(DJSI Emerging Markets)

PTT received 2 Sustainability Awards for the Year

2015 from the Stock Exchange of Thailand (SET)

1. Sustainability Awards and Thailand

2. Sustainability Investment Awards

5

Overview

Performance

Key takeaways

Overview Performance Key takeaways

Contents

6

Key Events Update (Q3)

• NGV price increase 0.50 THB/Kg to 13.50 THB/Kg (on September 8, 2015)

• SPRC’s timeline of IPO still on schedule by end of 2015

• PTTGE completed disposition of investment in PT Az Zhara on 31 August 2015

• PTTEP impairment• PTTGE impairment on KPI assets

Performance (YoY)

• Refinery – better performance from

high GRM without turnaround despite

stock loss

• Power – higher performance from

higher sales volume and dividends

received from RPCL

• PTTEP – performance squeezed following lower oil prices and loss from non-recurring items

• Gas – performance hit by lower industry and GSP margins

• Oil – margins slightly declined from stock loss • Trading – performance declined mainly from

squeezed margin of domestic condensate • Petchem – pressured petrochemical prices

alleviated by refining and aromatics margins• Coal – lower performance from further drop in

coal price despite continued cost reductions

Finance • Issued Baht bond 4,200 mb (Loyalty Program) on Oct 19,2015

• Top Corporate Borrowers in Asia –Thailand Award from FinanceAsia for 3rd consecutive year

Highlights : 9M/15Overview Performance Key takeaways

7

30

31

32

33

34

35

36

37

Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15

100

300

500

700

900

1100


HDPE - Naphtha* PX - Naphtha*

0

40

80

120


0

5

10

15

20

25


LNG (JLC) ($/MMBTU) JKM Spot Avg. NG ($/MMBTU)

Avg. 16.6

NG Prices ($/MMBTU)

* JLC = Japan LNG Cocktail : Landed LNG price in Japan

Key Business Drivers:

Note: Figures are monthly average

Avg. 607

Dubai vs FO ($/BBL)

HDPE and PX spreads($/Ton) FX (USD/THB)

Dubai

FO

HDPE

Avg. 302

PX

Avg. 87.9

Avg. 82.8

Avg. 750

Avg. 385

Avg. 16.0

JLC*

Avg. 105.3

Avg. 97.9

Avg. NG

Avg. 8.5Avg. 8.8

Avg. 51.9

Avg. 51.2

Avg. 682

Avg. 302

Avg. 13.6

Avg. 8.4

Avg. 17.5

Avg. 12.5

SpotLNG

Avg. 9.1

Spread 1H14 2H14 Q1/15 Q2/15 Q3/15

Gasoil-DB 16.9 15.2 16.3 13.7 10.8

Mogas95-DB 15.3 13.3 15.4 19.8 19.3

FO-Dubai -9.5 -7.0 -0.7 -2.2 -7.1

32.8032.79

33.41

8

Depreciated

1.33 THB/USD (4.0%)

Avg. 9M/14 = 32.54 THB/USD

Avg. 9M/15 = 33.87 THB/USD


32.59

Appreciate

0.35 THB / USD (1.1%)

Depreciate

1.99 THB/USD (6.0%)


Avg. 7.5

Avg. 7.7

Avg. 9.2

Avg. 49.7

Avg. 42.6

Avg. 771

Avg. 345

35.40

32.24

8* Naphtha (MOPJ)

Avg. 61.3

Avg. 59.1

Avg. 9.3

Avg. 7.3

Avg. 7.9

Avg. 800

Avg. 337

6,406 1,129

14,988

21,927

34,867

17,970

5,270

51,080

37,119

19,241

30,265

(23,688)

2,321

9,906

11,878

8,374

2,902

5,915

PTTEP

PTT

Others

Refinery

Petrochem

84,485

9M/15 Performance: PTT Group: still strong core operations despite impairment

9

MMTHB

*including petroleum exploration expenses and royalties

OilVol. increased 2% mainly from increased demand from lower retail prices

Performance decreased from stock losses

TradingVol. increased 5% from no major T/AMargin dropped 53% from condensate business

Higher performance mainly from PTTLNG,

PTTT, and divestment of BCP

Margin

FX gainOPEX*

Share of

income

Interest exp. & income taxes

Other Income

77%

19,748

NCI

PTTEP

Others

GasGSP and Industrial margin squeezed

better NGV performance NG Sale Volume increase 4% mainly from new IPPs

Impairment loss on assets Avg. selling price decreased 29% Sales volume increased 5%


Petrochem

Olefins business declined from Polymer price dropped Refinery’s margin increased 10% Aromatics improved P2F margin 16%

Refinery

Avg. A/C GIM increased 64%

Aggregate intake increased 14%

ImpairmentPTTEP (65.29%) 34,956

PTTGE (100%) 1,187Total 36,143

178%

48%

29%

327%

104%

9M/2014 9M/2015

Contents

Overview

Performance

Key takeaways

10


E&P : Net loss in Q3 from settling once and for all the overhanging issue of impairment

Product Prices

Net Income (100%)

Sales Volume

Key Highlights

7.29 7.10 8.02* 7.47

59.3449.36

101.93

53.00

48.47 44.55

65.9347.22

Q2/15 Q3/15 9M/14 9M/15

Liquid ($/BBL)

Gas($/MMBTU)

Weighted Avg.($/BOE)

MMUSD

227 236 209 231

99 96104 97

Q2/15 Q3/15 9M/14 9M/15

332

Liquid

Gas

KBOED

326

11

* Gas price, if excludes Vietnam 16-1 retroactive sale recording, is 8.08$ for 9M14

** Average selling price, if excludes Vietnam 16-1 retroactive sale recording is 66.24$ for 9M14

313

Q3/15

QoQ

• Avg. selling price slightly decreased, mainly from lower oil price • Sales volume increased slightly from Myanmar gas field recovery

from shutdown in Q2/15• Net loss in Q3 from non-recurring items, i.e., loss on impairment

(1,385 MMUSD), deferred taxes from USD functional currency and FX loss; while operationally registered a net profit of 264 MMUSD

YoY

• Avg. price significantly decreased from a slump on oil price • Volume increased from Zawtika full production & Hess acquisition• Net income declined from loss on impairments and other non-

recurring items in Q3/15• Registered net loss of 986 MMUSD

17%

8%

5% YoY2% QoQ

9M/14

170% YoY3,769% QoQ

E & P Gas Oil & Trading Refining PetChem Others

3%

48%

28%

7%

328

9M/15

1,417

(986)(1,284)

35

*** Includes Impairment loss, 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.


Q2/15

Non-recurring***

Recurring NI

12

E&P :

PTTEP Net Income breakdown 9M/2015



Details of Project• Montara project • Mariana Oil sand• Natuna Sea A• B8/32&9A (Benjamas)• Oman

-1200

-800

-400

0

400

800

1200

1600

Recurring Net Income Effect of FinancialInstruments

Effect of FX & Others Impairment loss Net Income

Net income 9M/2015

MMUSD

70554 (360)

(1,385)

(986)

12

Business Unit Q2/15 Q3/15 QoQ 9M/14 9M/15 YoY

Gas- EBITDA 14,348 9,033 (37%) 45,120 32,643 (28%)

• S&M 3,145 1,260 (60%) 17,155 6,881 (60%)

• TM 6,784 4,541 (33%) 20,180 18,100 (10%)

• GSP 4,380 4,137 (6%) 16,372 9,433 (42%)

• NGV (2,488) (2,831) (14%) (15,102) (8,338) 45%

• Others 2,527 1,926 (24%) 6,515 6,567 1%

13

(Unit:MMTHB)

4,455 2,375 (47%) 11,760 10,757 (9%)

949 859 (9%) 5,400 2,548 (53%)

*MIS** Included Gas/Oil/Trading subsidiaries

13

Oil-EBITDA

Trading*-EBITDA

Total** 19,752 12,267 (38%) 62,280 45,948 (26%)

PTT EBITDA Performance Breakdown by BU’s:


8.60

8.35

8.82

8.60

Q2/15 Q3/15 9M/14 9M/15

3% QoQ

4,704 4,685

4,4974,469

4,450

4,768 4,731 4,802

4,832 4,879 4,822

Q1 Q2 Q3 Q41,297 1,105 1,252 1,177

930 1,067 790 1,003

752 765 701 746

902 949 934 945

689 636 656 665309 300 317 309

Q2/15 Q3/15 9M/14 9M/15

Gas BU: NG volume slightly lower from EGAT/ Industry sector/ NGV

NG Sales Volume* NG Customer Breakdown

2013

2015

2014

MMSCFD

EGAT (24%)

IPP (21%)

SPP (15%)

GSP (20%)

Industry (14%)NGV (6%)

MMSCFD

4,6504,879

AVG.

4,688

4,845

4,589

4% YoY

NGV Sales Volume

Vol. MMCFD

309 300 317 309

QoQ

• NG volume decreased mainly from lower power sector (EGAT) and industry sector demand.

• NGV demand was lower, following gradual price rise amid other petros’ falling prices

YoY

• NG volume increase mainly due to higher new IPPs and GSP gas demand

• NGV demand declined slightly due to gradual retail price adjustment amid lower oil prices

Key Highlights

4,845

1% QoQ

ที่เพ่ิมข้ึนเป็นของ

* NG Sales Volume include Inter-BA Transaction

K.Ton/Day

14

2% YoY


4,822


9M/14 9M/15 %YoY

LPG Ex-GSP 333 470 41%

Naphtha 855 451 -47%

Fuel Oil 603 317 -47%

Feed Cost 391 364 -7%

858 876 832

577

444

505

405

333 333 333 333

443 497

470 389 394 391

382 380359 352

610 607 591

437

318

367

265

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15

3,145 1,260

17,155 6,881

6,784 4,541

20,180

18,100 4,380

4,137

16,372

9,433

(2,488) (2,831)(15,102)

(8,338)

2,527 1,926

6,515

6,567

Gas - EBITDA

MMTHB

Others

TM

GSP14,348

Q2/15 Q3/15 9M/14* 9M/15

9,033

S&M

NGV

609 652

2,025 1,935 166 171

549 524

496 548

1,509 1,596

221 211

575 636

10 9

22

Q2/15 Q3/15 9M/14 9M/15

1,591

GSP Sales Volume

LPG (41%)

kTon

1,502

4,658

6% QoQ

1% YoY

Gas BU : Lower margin and one-time compensation pressured performance

QoQ

• GSP margin pressured by more petchem price decrease vs feed cost,

despite LPG price lifting

• GSP sales volume increased due to the return of GSP#1 from major

T/A

• EBITDA dropped from squeezed S&M and GSP margins, as well as a

one-time compensation to EGAT for 4th pipeline delay (charged on TM

and S&M)

YoY

• Lower EBITDA performance, mainly from GSP and S&M margin

squeeze, despite decreased NGV loss

Propane (13%)

NGL (11%)

Ethane (34%)

Key Highlights

37% QoQ

GSP Feed Cost vs Petroleum price

Naphtha

USD/Ton

Feed Cost***

LPG Ex-GSP*

* Effective on February 2, 2015** MOPS HSFO 180 CST*** Revised feed cost calculation from per sale volume to per GSP production volume

45,120

Pentane (1%)

28% YoY


4,713

32,643

15

Fuel Oil**


*Restated

Gas Business Roadmap

Key ProgressDemand & Supply

5th Onshore Gas Pipeline

Approved by NEPC and wait for the Cabinet approval within 2015

16

Commence gas flow on 17th Sep 2015

Design Capacity: 1,400 mmscfd

Customer: Power Plant, NGV,

Industrial Estate

4th Onshore Gas Pipeline

Construction completed 66.21%, consisting of Jetty and LNG tank

LNG Terminal Phase 2



0.91

0.60

0.82 0.77

Q2/15 Q3/15 9M/14 9M/15

841 775 2,039 2,362

3,614 1,600

9,721 8,395

Q2/15 Q3/15 9M/14 9M/15

4,455

11,760

2,375

10,757

Oil BU : Fallen oil price, hence stock loss weighed on performance

Contribution Margin 1/

MMTHBTHB/Liter

1/Excluded non–oil business

17

••

••

••

Oil

Non-Oil*


* EBITDA from Operating

6,214 6,158

18,448 18,758

Q2/15 Q3/15 9M/14 9M/15

Sales Volume2/

MM Liter

2/ Only PTT and PTTRM

6% YoY

2% YoY

9% YoY

(119) (1,765) (902) (3,113)

Petroleum Prices

Stock Gain/Loss(MMTHB)

34% QoQ

1% QoQ

Oil - EBITDA

USD/BBL

(Average Prices)

47% QoQ


104 106 101

74

5261 56

48 45

30

80

130

Q1/14 Q3/14 Q1/15 Q2/15 Jul Aug Sep

1st Platinum PTT station in Cambodia with plans to increase to 70 PTT stations within the year 2020 (currently 29 stations)

PTT Lubricants and IRPC entered Industrial Lubricants market in New Zealand



Oil BU : Overseas expansion continues

Laos

CambodiaPhilippines

Myanmar

PTT plans to expand the no. of stations in neighboring countries, especially in major ASEAN countries

Export to over 30 countries

18

62.60 49.58

104.18

54.89

14% QoQ

0.07 0.06

0.12

0.06

Q2/15 Q3/15 9M/14 9M/15

50% YoY

* PTT only : FX Adjusted

949 859

5,400

2,548

Q2/15 Q3/15 9M/14 9M/15

20,248 19,470

58,098 60,785

Q2/15 Q3/15 9M/14 9M/15

4% QoQ

Trading BU :Margin continued to be squeezed from sustained low oil price

Contribution Margin*

Trading - EBITDA*

Sales Volume

Key Highlights

MMTHB

MM Liter

19

QoQ

• Lower margins mainly from timing mismatch of paper settlement

• Sales volume lowered from decline in Out-Out activities supplied to Indonesia

YoY• Margins squeezed from sustained low oil prices • Sales volume increased mainly due to the absence of

refinery turnarounds in 2015. On the contrary, high GRM encourages refineries to maximize productions

• EBITDA declined, mainly from squeezed margins on domestic condensate

* PTT only : FX Adjusted

53% YoY


Contribution Margin (THB/Liter)

NWS ($/BBL)

47% YoY5% YoY

21% QoQ

9% QoQ


Trading BU :Contract with Petro-Ecuador - Growth Strategy Unlocked

GROWTH STRATEGYStep out into new markets for global coverage

GLOBAL TRENDUS Shale Renaissance changes Latin America crude trade flow

STRATEGY UNLOCKEDCaptured crude paradigm shift opportunity by proceeding long term Latin America crude supply contract with EP Petro-Ecuador

BENEFITs1. Support TBU’s aspiration on generating revenue by capturing opportunity in new region2. Sustainably establish business for prospective London office by developing new trading

network and new trading structure in Western region

CRUDE GRADEOriente / Napo Crude Oil

AGREEMENT PERIODJune 2015 – Dec 2020

TOTAL QUANTITY116.64 MMBBL

One extra SPOT in Sep 15

20

Stock gain/lossnet NRV

8,774 7,997

15,659

31,953

6,976

(10,013) (9,877)(6,251)

Q2/15 Q3/15 9M/14 9M/15

84%

91%

79%80%

**Performance BCP 4 mths

115 74

289

96

246 233

288 245

Q2/15 Q3/15 9M/14 9M/15

61.3 49.7104.0

54.3

6.97 5.51

3.58

6.93

9.70

1.78 2.98

5.43

13.14

5.76 5.22

8.58

Q2/15 Q3/15 9M/14 9M/15

GRM/GIM*

Refinery Utilization*

USD/BBL

A/C GRM

A/C GIMMkt GRM

Dubai

Net Income (100%)

U-Rate (%) Q2/15 Q3/15 9M/14 9M/15

Aggregated U-Rate

99 97 88 98

TOP 107 107 95 107

IRPC 89 83 79 85

Aggregated Intake (KBD) 653668

2% QoQ

578

AromaticsAromatics Production

BZ-ULG95

PX-ULG95

Refining BU:Stock losses dented Q3 performance

21

BZ: 36%

QoQ

PX: 5%

2.81 -4.32 -1.34 -1.68StockGain/Loss

T/A(23 days )

BZ: 67%

YoY

PX: 15%


A/C GIMQoQ: 56%

YoY: 64%

USD/Ton

657

14% YoY Total NIYoY345%

T/A

(46 days)

*Adjusted to exclude BCP

IRPC

TOP

SPRC

BCP

15,750

(2,016)

5,782

25,702

Total NIQoQ113%


OperatingIncome

Operating NIYoY104%

Operating NIQoQ9%

Refineries : Projects Updates

22

Ongoing Projects:

LABIX : 99% progress

COD: 1Q16

SPPs : 97% progress

COD: 2Q16

(2 SPPs: Total power capacity 239 MW)

UHV: 98% progress

COD: Dec 2015

PPE+PPC: (Total PP Capacity 775 KTA)

COD: 2H17

Status

Total investment = $236.5 MM

• EPC awarded with Sinopec : May, 2015

IPO: during IPO Roadshow

(Targeted Listing will be in early Dec 15)



http://www.thaioilgroup.com/

http://www.thaioilgroup.com/

23

5.40 4.16 4.24

5.16

7.59

0.91

3.84 4.22

Q2/15 Q3/15 9M/14 9M/15

100% 101% 102% 101%

A/C GRM 10% YoY

85% 57% 84% 77%

1,375 1,234

1,576

1,266 1,343 1,135

1,587

1,209

Q2/15 Q3/15 9M/14 9M/15

271 235

394

241

391 397 400 374

Q2/15 Q3/15 9M/14 9M/15

Net Income (100%)

Aromatics

Unit : MMTHB

7,3898,974

4,4851,207

26,780

20,152 20,143

15,8122,325

-3,064 -2,259 -2,100

Q2/15 Q3/15 9M/14 9M/15

PTTGC

HMC

Others

1,421

Olefins U-Rate89%

93%87%

93%

Olefins

USD/Ton

BTXU-Rate

Refineries

CDU U-Rate

A/C GRMMkt GRM

BZ-CondPX-Cond

2.22 -3.22 -0.86 -1.62StockGain/LossNet NRV

Petrochemical BU:Lower performance from stock loss and pressured petrochemical prices

9,714

HDPEPrice

PPPrice

HDPE: 10%

QoQ

PP: 15%

BZ-Cond: 13%

QoQ

PX:-Cond 2%

BZ-Cond: 39%

YoY

PX-Cond: 7%

HDPE: 20%

YoY

PP: 24%


216 183 178 207

USD/TonUSD/BBL

Mkt P2FQoQ 15%Aromatics

Mkt P2F

A/C GRM 88% QoQ

Mkt P2FYoY: 16%

24,521

18,043

Total NIYoY26%

Total NIQoQ85%


Operating Income

Stock Gain/loss net NRV-PTTGC

Operating NI YoY25%

Operating NI QoQ39%

Petrochemical : Strategic Plans : Major Projects


24


16 14

-3-1Q2/15 Q3/15

113

73

86

9M/14 9M/15

Other Businesses : Coal - SAR (95.26%)Additional cost reductions relieved the effect of price decline

EBITDA & Net Income (100%)

Sales Volume

Key Highlights

MMUSD

USD/Ton

1,372 1,179

5,128 4,519 316 446

2,474

1,335

1,688 1,625

7,602

5,854

Q2/15 Q3/15 9M/14 9M/15

kTon

Jembayan

Sebuku

Avg. Selling Price

Cash Costs

4% QoQ

Avg. Selling Price & Cash cost

New Castle

4%

23% YoY

25%

Q2/15 Q3/15 9M/14 9M/15

EBITDA 13%

2%

17%

15%

16%

9%

QoQ• Cash cost decreased mainly from: - Additional cost savings from further negotiations with

contractors as well as lower fuel cost from lower diesel price- Sales of coal produced from previous quarter

• NI increased mainly from the decrease in depreciation from lower production volumes

YoY• Sales volume decreased as coal price dropped from

oversupply

• Cash cost improved from cost saving initiatives, reduced admin costs and mine plan review 25

NI 67%

QoQ YoY

YoYQoQ

35%


56

5553

65

55

34

4638

43

39

66 60 59

73

61

Q1/15 Q2/15 Q3/15 9M/14 9M/15

EBITDA

NI


http://www.straitsasia.com/


474566

1,181

1,571

Q2/15 Q3/15 9M/14 9M/15

Net Income (100%)Sales Volume

Key Highlights

MMBahtGWh 33% YoY

Other Businesses : Power - GPSC (22.58%)

Better performance supported by dividend income from affiliate

1,842

1,038

4,061 4,505

1,254 1,117

3,702 3,604

Q2/15 Q3/15 9M/14 9M/15

‘000 Ton


Capacity

Power 11%

Steam 11%

Steam 3%

19% QoQ

QoQ

• Lower sales volume due to Sriracha plant’s Combustion Inspection (CI), EGAT’s dispatch instruction to reserve for shutdown as well as customers’ maintenance shutdowns (PTTGC ARO 2/ TOCGC).

• Higher net income from dividend income of 288MB from RatchburiPower (RPCL).

YoY• Higher power sales volume as there was a major maintenance

shutdown of Sriracha plant in Q1/14 which also caused higher repair and maintenance costs.

• Better performance due to increased power sales and dividend received from RPCL in Q3/15.

PowerSteam

Power 44%

26

Diversified Assets

QoQ

YoY


Natural Gas Hydro Renewable

1,517 MW(79%)

347 MW(18%)

53 MW(3%)

Natural Gas Hydro Renewable





Other Businesses : Power – GPSC (22.58%)CUP-4 Project (Growth alongside PTT Group)


27

27


CUP-4 Phase 1

Name: Central Utility Plant Project 4 (CUP-4)

Type: Gas-fired Cogeneration Power Plant/ Utilities

Location: PTT’s WEcoZi, Asia Industrial Estate (AIE), Rayong

Province

Estimated Capacity: Phase 1: 45MW, 70 T/H (up to 390 MW,

900 T/H)

Investment: <4,000 THB MM

SCOD: Later Q1/2018

COD

Approximately

in November

2015

23,746

(26,582)

84,485

19,748 19,903 9,039

82,874

50,438

Q2/15 Q3/15 9M/14 9M/15

47%

17%

6%

13%

16%1%

PTT - Oil &

TradingPTT - Gas

Others

PTTEP

61.3 49.7104.0

54.3

PTT Consolidated Performance: 9M/2015

Dubai (USD/BBL) 9M/159M/14

36%

44%

14%

3%3%

46%

14%6%

15%

17%2%

PTT - Oil & Trading

PTT - Gas

Others

PTTEP

536,678 505,066

2,039,086

1,557,327

Q2/15 Q3/15 9M/14 9M/15

-120%

98%

42%

50%

30%

PTT

PetChem

Others

PTTEPRefining

Net Income

Unit : MMTHB

EBITDA

Net Income

RevenueRevenue

EBITDA

53%

13%

6%

12%

16%0%

56%

19%

5%

15%

3%2%

Revenue

EBITDA

Net Income

87,61059,730

240,277 219,079

Q2/15 Q3/15 9M/14 9M/15

28

PetChem

Refining

PetChem

Refining

24%

6%

32%

9%

Recurring NI39%


Total NI212%

19% 48%

Recurring net income = Net Income adjusted one-time transactions

Recurring NI 55% Total NI

77%

Recurring Net Income

Net Income

PTT Group Performance : 9M/2015 (YoY)


% share

9M/2014

(Restated)9M/2015 YoY

9M/2014

(Restated)9M/2015 YoY

PTT Net operating Income 37,119 19,241 -48% 37,119 19,241 -48%

E&P - PTTEP 45,905 -36,284 -179% 65.29% 30,265 -23,688 -178%

- PTTGC 20,152 15,812 -22% 48.89% 9,851 7,454 -24%

- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 4,369 2,231 -49% 40-50% 2,027 920 -55%

Petrochemical 24,521 18,043 -26% 11,878 8,374 -29%

- TOP 2,304 8,432 266% 49.10% 1,152 4,085 255%

- IRPC 544 8,955 1546% 38.51% 336 3,146 836%

- BCP 3,201 1,933 -40% 27.22% 872 553 -37%

Refining 5,782 25,702 345% 2,321 9,906 327%

Inter - PTTER, PTTGE -2,284 -4,074 -78% 100% -2,284 -4,086 -79%

Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 4,108 4,162 1% 50-100% 2,991 3,659 22%

Utilities -GPSC/ TP/ DCAP 2,069 2,653 28% 20-30% 578 752 30%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 2,144 5,850 173% 33-100% 1,617 5,590 246%

Others Business 6,037 8,591 42% 2,902 5,915 104%

Shared of Net Income from Affiliates 82,245 16,052 -80% 47,366 507 -99%

PTT Conso. Net Income 119,364 35,293 -70% 84,485 19,748 -77%

Equity Method % PTTPerformance 100%

Unit : MMTHB

29

0.39 0.35

1.401.38

0.00

0.50

1.00

1.50

2.00

(0.1)

0.1

0.3

0.5

0.7

0.9

2014 Q3/15

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 1,130,082

441,067 424,685

387,484 358,668

316,757 312,745

1,054,694 1,087,773

697,000 663,779

498,761 474,628

1 2 3 4 5

1%

2,226,1802,250,455

30 Sep 1531 Dec 14

Assets slightly declined :

• Drop in trade A/R primarily from international

trading and oil business

• Drop in inventory mainly from legal reserve volume

of finished product

• Decrease in L-T investment from disposal of BCP and

capital reduction of SPRC

30


Free Cash flow

73,740 45,052

Investing9M/14

(130,855)9M/15

(158,930)

CAPEX (PP&E, Intangible asset) (126,123) (129,116)

Investment (Sub. &Affiliates) (28,135) 13,993

Current investment (3,734) (60,522)

Dividend/Interest Received 14,900 12,135

Others 12,237 4,580

Operating9M/14

204,5959M/15

203,982

Net Income 84,485 19,748

Changes in assets & liabilities (8,452) 14,867

Income Tax (49,630) (40,969)

Non-Cash Adjustment 178,192 210,336

Ending Cash & Cash Equivalents

226,314 169,678

Beginning Cash and Cash Equivalents

196,854 234,212

Cash In/(Out)

29,460 (64,534)

Adjustment

(1,767) 11,972

Financing (42,513) (121,558)

Repayment Loans (110,635) (102,588)

Interest paid (23,735) (25,338)

Dividend paid (52,542) (43,332)

Received from share issue - 9,901

Received from loans/Bonds 144,756 39,799

Others (357) -

Statements of Consolidated Cash Flows : 9M/2015

31


34,885 29,97219,398

33,876 40,008 36,751

9,1498,827

4,708

7,0402,882

2,777

3,3112,780

5,763

2,214 1,1771,222

24,416

12,041

9,034

19,432 16,906 18,169

5,519

2,043

22

19 157

Gas 55%

Oil &Trading

R&D, Others

5%

M&A and

Investment Oversea

1

LNG

8

Infrastructure 2%

Unit: MMTHB

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%

32

32

* 2015-2019 budget approved by NESDB at YE2014

Revised

38,92560,988 58,926

77,28062,58155,663

2015 2015 2016 2017 2018 2019

Infrastructure

Investment in JV & Sub.

R&D and Others

Oil & Intl Trdg

Natural Gas

PTT 5-Years CAPEX Plan ̴Bt 299 bn

2015 Estimated Spending**

50,969

** 8 Months Actual + 4 Months Estimated

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

Key takeaways

Contents


33

34

9M/2015

• Released overhang issues of impairment

• Oil price remains low

• Gas feed cost gradually lower

• Await further NGV price adjustment

• Solid Oil margins despite stock loss

• Squeezed Trading margin

• Refinery performance still resilient

• Olefins prices under pressured but still high

• Aromatic prices remain low

Looking Forward

• Moderate growth in most economies

• Dubai ~ 50-60 $/bbl

• Refinery margins remain strong

• LNG price remain low

• Olefins margins to be softer but still ok

• Aromatics margins remain pressured

• SPRC: Target 1st trade in Dec’ 15

Key Takeaways


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.

35

35

mailto:[email protected]

http://www.pttplc.com/

36

Free Cash flow

59,687 49,440

Financing (47,378) (63,745)

Repayment Loans (15,815) (23,268)

Interest paid (9,547) (9,076)

Dividend paid (22,849) (31,401)

Received from share issue - -

Received from loans/Bonds 833 -

Investing9M/1413,420

9M/151,346

CAPEX (PP&E, Intangible asset) (21,639) (27,881)

Investment (Sub. &Affiliates) 1,034 12,067

Current investment 1,366 (8,047)

Dividend/Interest Received 29,749 23,724

Others 2,910 1,483

Operating9M/1446,267

9M/1548,094

Net Income 49,963 43,355

Changes in assets & liabilities (9,247) 10,966

Income Tax (1,983) (4,589)

Non-Cash Adjustment 7,534 (1,638)

Ending Cash & Cash Equivalents

76,235 43,741

Beginning Cash and Cash Equivalents

63,927 58,018

Cash In/(Out)

12,308 (14,277)

Adjustment

(1) 28

Statements of Cash Flows (PTT Only) : 9M/2015

36

PTT Group Performance : Q3/2015 (QoQ)

37

% share

Q2/15 Q3/15 QoQ Q2/15 Q3/15 QoQ

PTT Net operating Income 9,019 3,584 -60% 9,019 3,584 -60%

E&P - PTTEP 1,312 -46,212 -3622% 65.29% 866 -30,170 -3584%

- PTTGC 8,974 1,207 -87% 48.89% 3,973 797 -80%

- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 740 214 -71% 40-50% 301 -1 -100%

Petrochemical 9,714 1,421 -85% 4,274 796 -81%

- TOP 6,228 -2,294 -137% 49.10% 2,963 -1,095 -137%

- IRPC 4,236 887 -79% 38.51% 1,528 47 -97%

- BCP 896 - -100% 27.22% 280 - -100%

Refining 15,750 -2,016 -113% 6,342 -1,176 -119%

Inter - PTTER, PTTGE -1,681 -1,863 -11% 100% -1,721 -2,018 -17%

Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 1,618 1,471 -9% 50-100% 1,355 1,262 -7%

Utilities -GPSC/ TP/ DCAP 724 978 35% 20-30% 171 276 61%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 3,508 940 -73% 33-100% 3,440 864 -75%

Others Business 4,169 1,526 -63% 3,245 384 -88%

Shared of Net Income from Affiliates 30,945 -45,281 -246% 14,727 -30,166 -305%

PTT Conso. Net Income 39,964 -41,697 -204% 23,746 -26,582 -212%

Equity Method % PTTPerformance 100%

Unit : MMTHB

38

Debt Profile : Control Cost & Manage Risk

Debt Portfolio

Managed debt according to financial risk and policy

ConsolidatedPTT OnlyUnit : MMTHB

: Cost of debts ~ 4.62%: % fixed-rate ~ 75%: Avg. debt life ~ 8.34 years

: Cost of debts ~ 4.44%: % fixed-rate ~ 70%: Avg. debt life ~ 7.40 years

181,399 204,560 191,998 208,298

384,548 387,935

125,972 83,985 81,861

259,665

305,127 268,304

307,371 288,545 273,859

467,963

689,675656,239

31 Dec 13 31 Dec 14 30 Sep 15 31 Dec 13 31 Dec 14 30 Sep 15

USD THB

(35%)

(65%)

(29%)

(71%)

(30%)

(70%)

(49%)

(51%)

(44%)

(56%)

(41%)

(59%)

Note : Data as of 30 Sep 15 (THB/USD = 36.5344 THB/JPY = 0.306478) Excluding liabilities from finance leases; Cost of debts includes withholding tax.

38Cost of debts, % fixed rate, and avg. debt life took into account the derivative transactions. Debt outstanding is reconciled with accounting.

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**50.00%PTT PMMA Co., Ltd. PTTPMMA 100.00%PTT Global Chemical Plc.* PTTGC 48.91%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 September 2015

International Investment

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

39

39

40

Natural Gas Price Structure : Jan-Sep 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 13.50 Baht/Kg from Sep 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

40

*

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

*

*

Power Producers 60%

: EGAT 24%

: IPP 21%

: SPP 15%

GSP 20%

Petrochemicals Feedstocks

Industry 14%

NGV 6%

Ethane, Propane, LPG

NGL

Local Cooking Gas

Export Cooking Gas

Natural Gas : Increasing natural gas in power demand over long term by replacing Coal, EE and AE

41Source : PTT

Gas demand forecast (CAGR during 2015-2030): Total ~ 1%: Power ~ 2%: GSP ~ -3%: Industry ~ 2%: NGV ~ -1%

Thailand’s Projected Energy Demand

42

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

Sin Phu Hom

Nam Phong

Thailand

Ban I Tong

Nakhon Sawan

NBK

Tha Luang Nakhon Ratchasima

Kaong Khoi

Samut Prakan

ESB

BPK

Khanom

Songkhla

Sadao

Chon Buri

Rayong

Wang Noi

Thai-Malaysia

(JDA)

Arthit

Erawan

N.Pailin

Bongkot

South Bongkot

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

43

Yadana

Yetagun

Zawtika

Platong 2

S.Pailin

Ratchaburi SBK

Map Ta Phut LNG Terminal

Documents

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