22 February 2019Strengthening infrastructure, developing new businesses, raising competitive edge, along with improving people’s quality of life and conserving environment, PTT grants 82.220 billion Baht of its revenues to the government as its tax payment.
Mr. Chansin Treenuchagron, President & Chief Executive Officer, PTT Public Company Limited, reported that in 2018, there were recession of global economic situation at 3.7%, especially in Eurozone and China, USA-China trade dispute, the lower growth rate of Baht appreciation, as well as a significant decrease of oil price in the fourth quarter of last year. Therefore, downstream business performance decreased in both petrochemical and refining business and oil business. The performance of aromatics and olefins in petrochemical business also dropped owing to a reduction in price margin between of products and raw materials at the end of 2018, although the total sales volume increased due to a rise in demand of plastic products.
In addition, tax expenses were risen in line with an increase in performance of petroleum exploration and production and the restructuring of oil business. Whereas the term of BOI tax privileges had just ended.
However, upstream business group showed a positive factor, allowing its performance to rise. Petroleum exploration and production business performance increased in regards to a growth in its average of selling prices and sales volume. Natural gas business group performance was also higher in both businesses operated by PTT and PTT Group subsidiaries, except NGV which had to attain fixed retail price for public transportation. Moreover, International trade business gross profit also increased.
Following all these factors, PTT gained 1.4 trillion Baht from its sales and 59.160 billion Baht in profits. Therefore, PTT and its affiliates financial report was totally at 2.3 trillion Baht (a 17% increase from the previous year), and net profit was at 119.684 billion Baht (an 11% decrease from the previous year) that can be calculated as 4.15 Baht per share. PTT’s Board of Directors approved the dividend of 2 Baht per share. The Ministry of Finance, a major shareholder, and Vayupak Fund will receive their dividend of 36.258 billion Baht in total. Meanwhile, PTT and PTT Group’s tax expenses are at 45.962 billion Baht. In 2018, therefore, PTT Group will contribute 82.220 billion baht to the government. The profits after the payment of dividends will be allocated to invest in key projects in line with the company’s sustainability strategies focusing on 3Ps; i.e. development of human resource, community and society (People), conservation of natural resources, and environment (Planet) and sustainable business (Prosperity).
For People aspect, PTT focuses on stakeholder engagement, improvement of people’s quality of life and creating public economic wealth. The company jointly enhance Thailand’s science and technology education through Kamneotvidya Science Academy (KVIS) whose 18 out of 71 first graduation students won scholarship to continue their study in science and technology abroad. Additionally, Vidyasirimedhi Institute of Science and Technology (VISTEC) announced that its first 13 Master-degree students successfully graduated, as well as opened two more faculties, which are Biomecular Science and Engineering (BSE) sponsored by Kasikorn Bank and Information Science and Technology (IST) sponsored by Siam Commercial Bank. VISTEC also opens new study center sponsored by Bangchak Corporation. Furthermore, PTT provides job opportunities to underprivileged people through the social enterprise businesses, including Café Amazon for Chance that allows hearing impaired people to work as baristas. These job creations express the company’s commitment to leaving no one behind.
For Planet aspect, PTT has continuously developed alternative and clean energy such as NGV, gasohol and biodiesel in an attempt to reduce pollution. Last year, PTT also supported the government policy of lowering the PM2.5 dust level in the air by providing B20 diesel to public buses operated by Bangkok Mass Transit Authority (BMTA), The Transport Co., Ltd. (BorKorSor), and other public transport firms. Besides, the company provides dry ice to Royal Rain Project to produce artificial rain. In the meantime, PTT aims to cultivate public awareness on natural resources and environment conservation through PTT Green in the City in Bangkok and Wang Chan Forest Learning Center in Rayong under PTT Reforestation Institute. The company also joins hands with public and private sector to develop and implement OUR Khung Bang Kachao project.
Mr. Chansin added that for Prosperity aspect, PTT is committed to creating national energy security along with corporate governance and balancing all stakeholders. In 2018, the company invested in preparation for the rising of natural gas demand and infrastructure expansion by expanding LNG Receiving Terminal, which can receive an additional 1.5 million tons per year of LNG hence its total capacity will be up to 11.5 million tons per year. The investment also included an expansion of gas pipeline network in Nakhon Ratchasima in Phase 2, increase in production capability of Gas Separation Plant 5, an extension of pipeline network to expand natural gas market to industrial sector. The extension pipeline will be completed in 2021 which is a key to link natural gas network between the eastern and western region and ensure the country’s continuity of natural gas supply. Furthermore, the company decided to sell LNG to private partners, who will distribute the product to industrial plants located outside gas pipeline areas.
Aside from the investment in infrastructure, PTT has added more value to petroleum products by turning into environmental-friendly specialty and engineering plastics such as Bio chemical. The international trading business has followed the company’s mission to create national energy security, seeking for partners, expanding its business in regions across the world, while improving Commodity Trading and Risk Management System (CTRM) to be ready for its business growth. Oil Business has been spun off to be PTT Oil and Retail Business Public Company (PTTOR), which will expand its oil and non-oil business in Thailand and AEC countries.
PTT, the national energy company, is committed to support the country’s development policy of “Thailand 4.0” an investment in infrastructure in Eastern Economic Corridor of Innovation (EECi) to promote as research, technology and innovation hub for the nation.
“For the special occasion of PTT 40th year in 2018, PTT would like to express gratitude to all stakeholders who give a continuous support to the company. Amid challenges, PTT will continuously increase its operation efficiency in all aspects with an attempt to propel the organization, increase competitive edge, expand business domestically and internationally, as well as invest in key projects in EEC, especially in technology and innovation. This is a preparation to handle changes placed upon the business in the future. PTT is relentlessly committed to undertaking business along with development of community and society, natural resource conservation, and corporate governance, which will result in a healthier and sustainable nation,” Mr. Chansin said.