PTT Ensures Its Trade Risk Management - Not Seeking Assistance from the Corporate Bond Stabilization Fund
Mr. Chansin Treenuchagron, President and Chief Executive Officer, PTT Public Company Limited (PTT) clarified the concern regarding Hin Leong Trading Pte Ltd. (Hin Leong)’s losses and liquidity caused by its misspeculative profit which posed a doubt whether it may affect PTT. As PTT International Trading Pte Ltd. (PTTT) in Singapore under the supervision of the PTT sold gasoline to Hin Leong through the Platts market with Letter of credit (LC) terms from leading banks, it does not face with payment risk. Furthermore, since mid-April 2020, PTTT has ceased transactions with the company.
Closely monitoring market conditions, PTT has a process for controlling and managing business risk in accordance with international practices and has a confidence that it can manage the impact of the volatile price situation.
"With respect to PTT Group's performance, despite the effect of the COVID-19 pandemic and the oil price slump, PTT Group still has a good credit rating with a strong financial position. We can reassure that PTT can repay PTT's debentures of Baht 27,118 million, which are due this year, without the support from the Corporate Bond Stabilization Fund (BSF). Apparently, in early April 2020, PTT Global Chemical Public Company Limited was able to issue the full debentures of Baht 15 billion," Mr. Chansin said.