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”
2
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
4
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
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15
HDPE - Naphtha* PX - Naphtha*
0
40
80
120
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15
0
5
10
15
20
25
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15
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
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15
32.59
Appreciate
0.35 THB / USD (1.1%)
Depreciate
1.99 THB/USD (6.0%)
Overview Performance Key takeaways
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%
Overview Performance Key takeaways
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
Overview Performance Key takeaways
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.
Overview Performance Key takeaways
Q2/15
Non-recurring***
Recurring NI
12
E&P :
PTTEP Net Income breakdown 9M/2015
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Key takeaways
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:
Overview Performance Key takeaways
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
E & P Gas Oil & Trading Refining PetChem Others
4,822
Overview Performance Key takeaways
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
E & P Gas Oil & Trading Refining PetChem Others
4,713
32,643
15
Fuel Oil**
Overview Performance Key takeaways
*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
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Key takeaways
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*
E & P Gas Oil & Trading Refining PetChem Others
* 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
Overview Performance Key takeaways
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
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Key takeaways
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
E & P Gas Oil & Trading Refining PetChem Others
Contribution Margin (THB/Liter)
NWS ($/BBL)
47% YoY5% YoY
21% QoQ
9% QoQ
Overview Performance Key takeaways
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%
E & P Gas Oil & Trading Refining PetChem Others
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%
Overview Performance Key takeaways
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)
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Key takeaways
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%
E & P Gas Oil & Trading Refining PetChem Others
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%
Overview Performance Key takeaways
Operating Income
Stock Gain/loss net NRV-PTTGC
Operating NI YoY25%
Operating NI QoQ39%
Petrochemical : Strategic Plans : Major Projects
E & P Gas Oil & Trading Refining PetChem Others
24
Overview Performance Key takeaways
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%
E & P Gas Oil & Trading Refining PetChem Others
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
Overview Performance Key takeaways
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
E & P Gas Oil & Trading Refining PetChem Others
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
Overview Performance Key takeaways
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)
E & P Gas Oil & Trading Refining PetChem Others
27
27
Overview Performance Key takeaways
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%
Overview Performance Key takeaways
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)
Overview Performance Key takeaways
% 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
Overview Performance Key takeaways
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
Overview Performance Key takeaways
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
Overview
Performance
Key takeaways
Contents
Overview Performance Key takeaways
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
Overview Performance 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
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