Bangkok--May 13--PTT
Mr. Prasert Bunsumpun, President of PTT Public Company Limited (PTT), revealed this year first quarter earnings of PTT and subsidiaries that despite the recent slow down in the country’s overall economic growth seen earlier this year, demand of petroleum and petrochemical products has increased while the product prices are still inline with the global uptrend. In addition, since the beginning of 2005, PTT has been showing higher revenue resulted from its investment in operation upgrading such as the upgrading of its offshore gas pipeline transmission, the recent completion of Unit V Gas Separation Plant, the completion of High Density Polyethylene (HDPE) Project of National Petrochemical Public Company Limited (NPC), and the completion of production expansion of ethylene of Thai Olefins Public Company Limited (TOC) in late 2004. PTT has supplied petrochemical feedstock to its subsidiaries in which the rising product prices have helped PTT and subsidiaries to show the sale revenue of about Bt191.16 billion in this year first quarter or 39% increased from the same period last year. Earning before interests, taxes, depreciation, and amortization (EBITDA) was Bt24.316 billion or 37% increased from the previous year. Excluding the Bt7.7 billion gained from the debt restructuring of Rayong Refinery Co., Ltd. (RRC), net profit of PTT and subsidiaries rose by 49% to Bt18.258 billion of which PTT accounted for Bt8.241 billion (equivalent to 4% of total revenue), and the subsidiaries and associates accounted for Bt10.017 billion.
PTT President said the Gas Business Group, which operates a fully integrated business and continuously expands its investment in value creation, reported sale revenue of Bt46.915 billion or an increase of 19% year-on-year. PTT has improved its offshore pipeline system to enhance transmission capacity which resulted in an increase of sale by 14% to 2,970 million cubic feet per day (MMcf/d). Also, the recent completion of 530-MMcf/d Unit V Gas Separation Plant in Rayong Province which started its commissioning early this year has helped boost total sales of PTT Gas Separation Plants by 18% to 803,251 tons. At the same time, PTT Exploration and Production Company Limited, a subsidiary of PTT, has contributed Bt2.75 billion net profit to PTT, a rise of 28%. This was largely due to the increase in sale volume of natural gas and condensate of PTTEP from Bongkot, Pailin, and Yentakun Projects, and a rise in product prices.
For the Oil Business Group, total revenue was Bt164.15 billion, 60% higher. Total sale was 28% higher to 13.526 billion liters due largely to the sale increase in international trading while a rise of domestic sale was minimal. However, PTT still maintained its market leading position at 34% market shares (include fuel oil sold to EGAT) with the product sale (fuel oil, diesel, kerosene/jet fuel, gasoline, LPG, and lubricants), rose by 4% to 3.726 billion liters.
For the Petrochemical and Refining Business Group, PTT received Bt5.7 billion worth of net profit from its affiliates due to the higher sale of NPC and TOC together with the continuous rising trend of petrochemical product prices. Moreover, the average refining margins was also in the up cycle.
Mr. Prasert added that an operation improvement for higher efficiency within PTT Group has brought about business synergy including the joint production, joint procurement, and the consideration on business merger in an appropriate market environment. Currently, PTT Group has the highest market capitalization of about one trillion baht or about 22% of total market capitalization in the Stock Exchange of Thailand. PTT alone has the market capitalization of about Bt500 billion or approximately 11% of the total market. As of March 31, 2005, PTT reported 1.5% lower in total assets to Bt480.137 billion from ending of last year. Total liabilities were decreased by 11.3% to Bt268.172 billion, and shareholders’ equity was 14.6% higher to Bt211.965 billion. In 2005, PTT plans to invest Bt60 billion in various projects of which largely on natural gas businesses such as Sainoi-North and South Bangkok Pipeline Transmission Project, the 3rd Master Plan of PTT gas pipeline, and the NGV Pipeline (Suvarnabhumi — Phyathai) Project, etc.
However, since its privatization in 2001, PTT has been and will be maintaining its status as the state enterprise who contributes benefits for the country and shareholders. Under the shareholding structure of PTT, the government sector owns about 74.4% while retail investors own the remaining 25.6%. PTT is committed to the management concept of Good Corporate Governance. The system allows thorough monitors from various involved parties such as investors, analysts, the Stock Exchange of Thailand, and the financial institutions in order to ensure transparent management in PTT. In 2005, PTT has still continuously received recognitions from many world leading organizations as Thailand’s leading firm. PTT was recently awarded Thailand’s Best Corporate Governance and Best Managed Company by international leading finance and banking magazines including Asiamoney, FinanceAsia, and The Asset Magazine. Moreover, PTT was also ranked by Forbes to be listed on the Global 2000 World’s Biggest Public Companies.
Corporate Public Relations Department
PTT Public Company Limited End.