News

  Today (May 11, 2020), Mr. Chansin Treenuchagron, President and Chief Executive Officer, PTT Public Company Limited (PTT) said that in the midst of the global epidemic of the COVID-19, economic activity around the world has been disrupted. Due to the disagreement among OPEC members to cut production resulting in oversupply, the oil price dropped from US $ 67.3 per barrel at the beginning of Q1 2020 to $ 23.4 a barrel by the end of Q1 of 2020. Consequently, the operating result of the petrochemical and refining business group suffered. The oil stock loss stood at Baht 35,695 million following the sharp decline in crude oil prices and the sudden lower spread of petrochemical products i.e. both olefins and aromatics and raw materials, which directly affects the energy business. As a result, the overall performance of PTT in the first quarter of 2020 decreased compared to the same period of the previous year. However, PTT believes that it can cope with the crisis through its highly efficient management throughout the business chain and fittingly adjusted operational model. 

  In the first quarter of 2020, PTT and its subsidiaries sales and service revenues totaled Baht 483,567 million, a decrease of Baht 67,307 million, 12.2% down when compared to the operating results for the quarter of 1/2019. The operating profit of EBITDA of Baht 32,385 million, representing a decline of 59.8 percent from Q1/2019, mainly due to lower performance of the petrochemical and refining business that was dramatically affected by the high losses on oil stocks as mentioned above. As for the natural gas business, the performance was down as a result of the price and sales volume of gas separation plants and the sale price based on the fuel oil in the industry. With respect to the oil business, the performance was also down from rising stock losses and lower sales volumes. This is in the same direction as the global energy industry, which has been impacted by the shutdown measures of many countries affecting the demand for oil in travel and transportation. 

  On the other hand, the operations of the technology and engineering businesses proved favorable which results from the acquisition of Glow Energy Public Company Limited (GLOW) by Global Power Synergy Public Company Limited (GPSC), as well as an increase of sales revenue from the petroleum exploration and production business i.e. Murphy Oil Corporation and Partex Holding B.V. of PTT Exploration and Production Company Limited (PTTEP). 

  Despite external factors that adversely affected the PTT performance in the first quarter, PTT group is confident about the organization's ability to rapidly adapt to mitigate the effects of the COVID-19 situation and the price war of oil as we deploy various measures to control expenses according to the "reduce and postpone" policy to manage the business for maximum efficiency throughout the business chain. We strictly manage financial liquidity, price risk on demand, supply and inventory as well as corporate expenses and budgets. In addition, PTT has also conducted a test for the ability to accept crises and challenges in various forms (Stress Test) and mitigation plans. PTT Group Vital Center team is also set up to plan and manage the group during the crisis situations. We are ready to modify the operating model so that the PTT Group can prepare for every situation in the future in order to ensure all sectors confidence in our capability in driving the country's economy to uninterruptedly move forward.