Bangkok: PTT Public Company Limited is moving forward with a new strategy, “PTT is strong together with Thai society and grows sustainably on a global level,” preparing to sell shares in the refinery and petrochemical groups, looking for partners to strengthen the group.
Mr. Kongkrapan Intarajang, Chief Executive Officer and President of PTT Public Company Limited (PTT), revealed that the PTT board has approved a new strategy under the vision of ‘PTT, Strong Together with Thai Society and Growing Sustainably on a Global Level’ or ‘TOGETHER FOR SUSTAINABLE THAILAND, SUSTAINABLE WORLD’ by accelerating the creation of strength and increasing competitive potential in the Hydrocarbon business, which is PTT’s core business with expertise, along with reducing greenhouse gases and reducing non-profitable assets.
For Hydrocarbon and Power Business, it is divided into Upstream Business Group, namely PTT Exploration and Production Public Company Limited (PTTEP) must accelerate the expansion of exploration and produc
tion sources, together with partners, to have competitive costs, including pushing for the development of the overlapping sea area between Thailand and Cambodia (OCA) to help strengthen the country’s energy security. For PTT in the gas business (GAS), it is increasing its efficiency to have competitive costs and working together with the government sector, while LNG is seeking new growth opportunities, defining a clear role to create maximum synergy. For the electricity generation business, Global Power Synergy Public Company Limited (GPSC) has a mandate to enhance reliability and decarbonize the PTT Group, create an appropriate energy mix, and find growth opportunities abroad.
For the downstream business, it must adjust and strengthen itself together with its partners. PTT is preparing to reduce its investment proportion. It is currently in talks to find partners to jointly invest in the refinery and petrochemical business, including Thai Oil Public Company Limited (TOP), IRPC Public Company Limited (IRPC),
and PTT Global Chemical Public Company Limited (GC). However, PTT is still a major shareholder and will strengthen its subsidiary. Such partners must be strong and have expertise in the business group. They may use production bases from Thailand to Europe and America.
The oil and retail businesses must focus on the Mobility Partner of Thais, adjust the investment portfolio to be strong, including maintaining market leadership, along with operating the Non-Hydrocarbon business. This business will be evaluated from 2 perspectives: 1. The business must be attractive and 2. PTT has the Right to Play or has strengths that can be further developed in that business and has strong partners. The
investment approach in the Non-Hydrocarbon business in terms of EV will focus on the business of electrifying electricity for electric vehicles (EV charging stations) because of the strengths of PTT Oil and Retail Public Company Limited (OR) which has gas stations nationwide. There may be a logistics business. PTT will focus
only on businesses related to PTT’s Core Business and already have Captive Demand, adhering to the Asset-light principle and having strong partners. And the Lie Science business, PTT must be able to be financially self-sufficient (Self-funding) and create Goodwill for society.
‘The clarity of the entire plan is underway. Whether or not to withdraw from the EV production joint venture is still under consideration in all details. Meanwhile, PTT’s current liquidity is around 100 billion baht, and if including the whole group, it is around 450 billion baht, which is a budget that is prepared to manage if there is an impact from the global crisis, including a budget that is ready to find investment opportunities. It is admitted that the petrochemical business is currently affected by cheap products from China that have hit the Thai market, causing less plastic pellet usage and dumping prices from abroad,’ said Mr. Kongkrapan.
For the first half of 2024, PTT and its subsidiaries had a net profit of 64,437 million
baht, an increase of 16,475 million baht or 34.4% compared to the first half of 2023 from the increased operating results, mainly from the operating results of subsidiaries in the refining business, which had increased operating results, mostly from increased oil stock profits. The petrochemical business also had an increase in operating results from higher product and raw material price spreads. The petroleum exploration and production business had an increase in operating results from higher average sales volume, even though the average selling price decreased, along with the recognition of increased profits from the sale of investments and disposal of assets, while there was an increase in losses from exchange rates and derivatives. PTT Group aims for sustainable global growth, with 92% profit from the Hydrocarbon business and 8% from the Non-Hydrocarbon business. The Company’s Board of Directors has resolved to approve the payment of an interim dividend for the first half of 2024 operating results at 0.80
baht per share, when combined with income tax for PTT and its subsidiaries. The total amount of 35,684 million baht will be transferred to the government, which will be a part of developing Thai society and economy. In addition, it will also help alleviate the impact of the energy price crisis since 2020, totaling more than 24,000 million baht, to reduce the cost of living for the people.
Source: Thai News Agency