Analyst Meeting - listed companyptt.listedcompany.com/misc/PRESN/20170817-ptt-am-2q2017...2017/08/17 · NGV Price/Sales Volume QoQ • Gas cost kept rising, while F/O price dropped

Analyst MeetingQ2/2017 and 1H/2017

PTT Auditorium 17 Aug 2017

Safety and Sustainability:

Personal Safety

1

Q2/2017 Performance

Aspiration = Zero Accident

Road Safety & Oil and Chemical Spill

• Total Recordable Injury Rate• IOGP = International Association of Oil & Gas Producer

Target 2017Contractor = 0.6Employee= 0.5

0.90

0.450.25

0.120

1

2

3

4

2009 2010 2011 2012 2013 2014 2015 2016 Q2/2017

PTT: TRIR-employee PTT: TRIR-contractor IOGP: TRIR employee IOGP: TRIR contractor

Total Recordable Injury Rate (Injuries/Million hrs)

Green Meeting Reward

The No. 1 Brand Thailand 2016-2017 (7th consecutive years)

- Gas Station - Coffee Shop - Engine Oil Car

Human Resource Excellence Award

Zero Accident Campaign 2017

Drive Award 2017

• Marketing Excellence

Asian Excellence Awards 2017

• Asia’s Best CEO

• Best Investor Relations Company

Rewards & Recognitions

2

โดยสถาบันสง่เสรมิความปลอดภัย อาชวีอนามัย สภาพแวดลอ้มในการท างาน

โดยสมาคมนสิติเกา่เอ็มบเีอ คณะพาณชิยศาสตรแ์ละการบัญช ีจุฬาลงกรณ์มหาวทิยาลัย

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Overview

Q2 & 1H/2017 Performance

Outlook 2017

Contents

3

Overview Performance Outlook

Q2/2017 Highlights:

Key Events Update (Q2)

• Established PTTGL (JV of PTT & PTTEP)

• Signed SSPA with Petronas to acquire PL9SB

• LPG liberalization (1st August)

• P&R – Completed transfer petchem assets to PTTGC

• GPSC – COD Bangpa-In Cogeneration phase 2

• LNG Terminal 1 phase 2 – completed & ready to operate

• PTT & PTTEP - Montara Claims• PTTEP – Temporary 23 days

suspend S1 production• PTTGC – major T/A ARO II &

Olefin I4-1 (Planned)

Performance (HoH)

Finance (1H/17)

Repayment (PTT Group)

• ¥ 36 Bn of JPY Bond

• Bt 18.1 Bn of THB Loan/Bond

• USD 270 MM of USD Loan/Bond 4


Business Performance

Upstream PTTEP

Coal

Midstream Gas

Downstream Oil

Trading

Petchem

Refinery

Infrastructure Power

Bond Buy back

• USD 81 MM (PTT)

Loan Drawdown

• Bt 13.5 Bn (IRPC)

0

5

10

15

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17

31

32

33

34

35

36

37


100

300

500

700

900

1100


HDPE-Naphtha Spread PX-Naphtha Spread

10

50

90


NG Prices ($/MMBTU)

* JLC = Japan LNG Cocktail : Landed LNG price in Japan

Key Business Drivers: Gas price remains low while oil price picks up

Note: Figures are average

741

Dubai vs FO ($/BBL)

HDPE and PX spreads($/Ton) FX (USD/THB)

Dubai

FO

HDPE

341

PX

JLC*

56.655.9

Avg. Pooled Price

43.0

36.6

720

346

11.4

8.1

JKM

8.2

33.1

35.9

5

Appreciated (YoY)

1.0 THB/USD (2.8%)

759

5* Naphtha (MOPJ)

9.2

7.4

7.5

30.4

25.8

6.2

7.6

6.5

407

Appreciated

0.8 THB/USD (2.3%)

43.2

39.8

743

421

35.8


673

365

53.1

51.1

QoQ HoH

Dubai 6% 40%

FO 4% 64%

QoQ HoH

HDPE 2% 10%

PX 5% 5%

35.6

QoQ HoH

JLC* 9% 17%

JKM 31% 28%

Avg. Pooled 9% 5%

6.06.7

7.3

4.45.3

6.2

5.85.6

5.443.2

48.3

35.2

47.7

753

684

394 388

35.5

35.0

35.3

5.5

7.7

8.3

49.8

49.0

686

370

34.5

8.4

6.0

5.7

12,362

6,264

6,328

12,986

1,548

7,456

Margin

FX & Derivatives

OPEX* Depre & Amortiza-

tion

Other Income

Int. & CIT exp.& Other**

25,082

34,512

5,405

12,94214,374

19,201

3,687

5,613

5,217

1H/16 1H/17

PTTEP

PTT

Others Affi.

P&R

TradingPerformance dropped from gain from reversal NRV of gasoil in the last year

OilMargin declined mainly from stock loss Non-oil expansions (Amazon & 7-11)

Gas

GSP margin improved from lower feed cost & higher petchem pricesS&M margin roseIncreased sales volume from GSP with no major T/A in 1H/17

PTTEPImproved ASP from oil price recoveryLower unit costReduced sales volume

1H/2017 Performance: Record high half year performance: Contributed from most businesses

6* including petroleum exploration expenses and royalties** including profit from discontinued operation

48,548

MMTHB

77,485

Net Income

48,548

Operating Performance

72,268

Petrochem & Refining

Better Olefins due to both prices and vol.Aromatics improved from BZ spreads, despite decreased sales volume Stock loss but MKT GRM increased

Div & gain on sales EPIF

Extra Items


38%

139%

52%

34%

PTTNGD : higher FO price & lower feed cost PTTER : Improved coal performance from higher ASP

Others Affi

Extra Items

7

ContentsOverview Performance Outlook

Overview


Outlook 2017

13853

-38

191

211

167 270

378

Q1/17 Q2/17 1H/16 1H/17

52.7948.19

37.61

50.63

38.00 38.0835.84

38.04

Q1/17 Q2/17 1H/16 1H/17

E&P : Positive earnings due to higher ASP, despite soften sales vol.

Product Prices

Net Income (100%)

Sales Volume

Key Highlights

Liquid ($/BBL)

Gas($/MMBTU)

Weighted Avg.

($/BOE)

MMUSD

211 200 223 205

93 81102

88

Q1/17 Q2/17 1H/16 1H/17

Liquid

Gas

KBOED

8

304

569349

220

*** Includes Deferred tax from Functional currency, Current Tax from FX Revaluation, Gain/loss from Financial instruments, Gain/(loss)on FX, H1 incident Insurance Claim, and etc.

Non-recurring***

Recurring NI

281

325

>100% HoH

E & P Gas Oil & Trading P&R Others

10% HoH


9% QoQ

35% HoH

8% QoQ

7% HoH

1% QoQ

6% HoH

37% QoQ QoQ

• ASP maintained as crude price reduced while gas price increased

• Sales vol. dropped from planned S/D in Bongkot, temp. S/D in S1 & Montara (cyclone)

• NI decreased from lower sales vol. & lower FX gain

HoH

• ASP increased from the rise in oil price

• Sales vol. decreased from PTTEP Australasia & MTJDA

• NI rose from the decrease in DD&A, oil hedging gain & FX gain

5.24

5.665.84

5.45

293

8% QoQ

232

MLNG Train 9 - Overview

9

E&P: LNG value chain with PTTOverview Performance Outlook

LNG Value Chain Investment Signed SSPA with Petronas to acquire PL9SB, 10% investment in MLNG Train 9 by PTT Global LNG

Synergy to capture value in the LNG chain

Investment Structure

9


10


PTT EBITDA Breakdown by BU’s:

Business Unit Q1/17 Q2/17 QoQ 1H/16 1H/17 HoH

Gas- EBITDA 22,490 21,884 (3%) 31,537 44,374 41%

• S&M 3,602 4,003 11% 3,393 7,606 124%

• TM 8,737 8,663 (1%) 16,795 17,400 4%

• GSP 7,698 7,041 (9%) 8,379 14,738 76%

• NGV (1,009) (1,271) (26%) (1,846) (2,280) (24%)

• Others 3,462 3,448 (0%) 4,816 6,910 43%

Oil- EBITDA 5,931 4,541 (23%) 12,453 10,472 (16%)

Trading*- EBITDA 1,647 1,258 (24%) 3,488 2,905 (17%)

Total** 30,068 27,683 (8%) 47,478 57,751 22%

(Unit:MMTHB)

*MIS** Included subsidiaries from all BUs 10

842 797 1,078 819

912 952988

932

973 1,002834

987

1,009 1,006 882 1,007

707 725 704 715278 270 290 275

Q1/17 Q2/17 1H/16 1H/17

4,735

8.5 7.9

7.3 6.6

6.2 5.8 5.6 5.4 5.5

6.0

318

607

265

217

160

219

247

296318

304

0

100

200

300

400

5

7

9

11

13

15

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17

4,721%QoQ %HoH

FO 4% 64%PooledPrice 9% 5%

11.9 12.112.4 12.0

7.09 6.68

7.98

6.88

Q1/17 Q2/17 1H/16 1H/17

Gas BU: Pooled gas still low, while NG volume decreased from Power

NG Price VS FO NG Customer Breakdown

$/MMBTU

EGAT (17%)

IPP (20%)

SPP (21%)

GSP (21%)

Industry (15%)

NGV (6%)

MMSCFD

4,752

NGV Price/Sales Volume

QoQ

• Gas cost kept rising, while F/O price dropped

• NG sales volume slightly increased from power and industry

• Continued drop in NGV volume with demand switching to diesel, while prices increased following pooled price

HoH

• Overall NG sales slightly decreased mainly from lower power demand offsetting with GSP major T/A in 1H16

• NGV vol. dropped from demand switching to gasoline and diesel

Key Highlights

ที่เพ่ิมข้ึนเป็นของ

K.Ton/Day

11

14% HoH


4,776$/Ton

Fuel Oil*

* MOPS HSFO 180 CST

Avg. Pooled gas price LHS

RHS

1% HoH

•

THB/KG

NGV Avg. price

1% QoQ

6% QoQ


3% HoH2% QoQ

44,374

3,396

1,188

1,375

1,234

1,153 1,103

1,153 1,139 1,134 1,176

1,133

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17

443

497 470

440 431 427 420 378 375 386

380 359 352

310 309 297 288247 250 265

3,602 4,003 3,393

7,606

8,737 8,663

16,795

17,400 7,698 7,041

8,379

14,738

(1,009) (1,271)(1,846) (2,280)

3,462 3,448

4,816

6,910

Q1/17 Q2/17 1H/16 1H/17

Propane (12%)

Gas - EBITDA

MMTHB

Others

TM

GSP22,490 21,884

S&M

NGV

718 733 1,341 1,451170 170

344 340

587 594

8971,181

183 219

374

402

11 11

9

22

Q1/17 Q2/17 1H/16 1H/17

GSP Sales Volume

LPG (42%)

kTon

1,727

3% QoQ

15% HoH

Gas BU: Performance improved from most segments mainly from GSP

NGL (10%)

Ethane (35%)

Key Highlights

GSP Feed Cost vs Petchem price

USD/Ton

Feed Cost**

LPG Ex-GSP*

* Effective on February 2, 2015** Revised feed cost calculation from per sale volume to per GSP production volume

Pentane (1%)

1,669

31,537

12

HDPE

41% HoHQoQ

• GSP dropped from higher feed cost and lower petrochemical prices

• More NGV loss from rising gas price

• S&M rose from increased pooled gas price and lower gas quality

adjustment charged

• Gas EBITDA decreased mainly from GSP and NGV

HoH

• GSP highly improved from declined feed cost, higher selling price, and

increased sales volume w/o major T/A

• S&M margin increased

• Gas EBITDA improved in almost all segments, despite NGV

3% QoQ

2,965



%QoQ %HoH

HDPE -4% 2%

LPG Ex-GSP 3% -11%

Feed Cost 6% -15%

LNG Terminal 1 Phase 2 :

- Construction completed

- Initial Acceptance : Jun17

New LNG projects :

1) LNG Terminal 1 phase 2 Extension :

(Capacities expansion from 10 MTA to 11.5 MTA)

- Approved by Cabinet 12 Jul 2016

- Expansion capacity: 1.5 MTA

- Construction completed 49.19% (as of Jun 17)

- COD : 2019

2) LNG Terminal 2 (Onshore LNG Terminal No.2)

- Approved by National Energy Policy Council

(NEPC) 8 Dec 2016

- Capacity: 7.5 MTA

- Preparing for EPC Bidding

- COD : 2022

Additional LNG projects (submitted studies to

CEPA and NEPC on July 2017)

− Myanmar-Thailand LNG Terminal

− FSRUs (domestic)

− Onshore LNG Terminal 3

Gas Business Roadmap

LNG ProjectsNG Country Demand



13

New Project

LNG Ph#2

MajorProject

COD

LNGCapacity

(MTA)

10 10

• Offshore Comp.

• 4th

onshore Midline Comp.

7

• Comp Wangnoi

• Nakhon Ratchasima

LNG Ph#2(Early Sent

Out)

11.5 11.5

LNG Terminal#1 - Extension

11.5

• 5th

Pipeline

Gas Facilities Expansion

914 881 1,669 1,795

5,017 3,660

10,784 8,677

Q1/17 Q2/17 1H/16 1H/17

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Apr-17 May-17 Jun-17

1.06 1.01

0.73

1.05

6,740 6,360

13,235 13,100

Q1/17 Q2/17 1H/16 1H/17

QoQ HoH

Oil 27% 20%

Non-oil 4% 8%

Oil BU : Lower performance from stock loss despite improved margins

MMTHB

THB/Liter

14

Oil

Non-Oil*

Gross margin1/Sales volume2

MM Liter

1/Excluded Non-oil, stock gain/loss, non-recurring item 2/PTT only

44% HoH

1% HoH

-183 -466 4,259 -649

Petroleum Prices

Stock Gain/Loss(MMTHB)

5% QoQ

6% QoQ

Oil - EBITDA

USD/BBL

(Average Prices)

Key Highlights

QoQ

• Gross margin declined mainly from diesel following higher domestic supply & lower seasonal demands

• Sales vol. decreased mainly due to lower aviation & diesel sales from seasonal effect

• EBITDA declined from higher stock loss & lower diesel margin

HoH

• Higher gross margin mainly from diesel, gasoline and aviation fuel

• Lower EBITDA mainly from stock loss vs stock gain in 1H/16 despite higher margins & non-oil performance

4,541

5,931

10,472



* Domestic only

12,453

19,304 17,920

35,789 37,224

Q1/17 Q2/17 1H/16 1H/17

QoQ

• Gross margin decreased from lower domestic crude & condensate margin due to dropped oil price

• Sales volume decreased from lower crude trading due to regional refineries turnaround

• EBITDA decreased in line with lower gross margin & sales volume

HoH

• Gross margin slightly decreased from slimmer margin per unit due to market downturn compensated by volume expansion

• Sales volume improved from expansion of crude trading to China & Intra-America

• EBITDA decreased mainly from lower net reversal value (NRV) of gasoil inventory and slimmer margin per unit

0.11

0.07

0.11 0.09

Q1/17 Q2/17 1H/16 1H/17

1 PTT Trading BU + trading subsidiaries: FX Adjusted + derivatives

1,647

1,258

3,488

2,905

Q1/17 Q2/17 1H/16 1H/17

Trading BU: Performance declined from lower margin per unit due to market downturn

Gross Margin1

Trading – EBITDA1

Sales Volume2

Key Highlights

MMTHB

MM Liter

17% HoH

Gross Margin (THB/Liter)

4% HoH

24% QoQ

18% HoH36% QoQ

7% QoQ



2 PTT Trading BU + trading subsidiaries

15

1 PTT Trading BU + trading subsidiaries: FX Adjusted + derivatives

5.55 4.94

4.33 5.22

5.95

3.40

5.02 4.59

Q1/17 Q2/17 1H/16 1H/17

QoQ HoH

A/C GRM 43% 9%

7,075 3,249

12,479 10,324 2,365

1,229

6,720 3,594

13,182

6,603

9,632 19,785 977

1,880

2,652

2,857

1,314

1,214

(98)

2,528

-

Q1/17 Q2/17 1H/16 1H/17

QoQ HoH

43% 25%

458

338

253

398 420 383 410 402

Q1/17 Q2/17 1H/16 1H/17

78%66%

87% 72%

16

Net Income (100%)

P&R BU : Performance improved from Olefins & Aromatics, despite stock loss

24,913

14,175

IRPC

TOP

Unit : MMTHB

16

31,385

Aromatics

BZ-CondPX-Cond

USD/Ton



PTTGC

HMCOthers

BTXU-Rate

53.1 49.836.8

51.4

GRM

USD/BBL

A/C GRM*Mkt GRM

Dubai

0.60 -1.34 1.15 -0.44StockGain/Loss

*A/C GRM nclude effect from hedging gain/(loss)

1,176 1,133 1,128

1,155 1,159

1,114

1,006

1,137

Q1/17 Q2/17 1H/16 1H/17

Olefins

Olefins U-Rate

95% 89% 83%92%

USD/Ton

HDPEPrice

PPPrice

QoQ HoH

BZ 26% 57%

PX 9% 2%

QoQ HoH

HDPE 4% 2%

PP 4% 13%

327 196 211 265ACC P2F

40%QoQ

26%HoH

39,088

HDI Thailand

AssetsInjection

PP Expansion &

PP Compounding

Gasoline Maximization

mLLDPEME

plants2

UHV CatalystCooler

PO/Polyols

MTP Retrofit

CFP

CapacityHDI

Derivatives(12 KTA)

HMC (PP 750

KTA)

PTTAC(AN 200

KTA,MMA 70

KTA,AMS 160

KTA)

PTTMCC (PBS 20

KTA)

PPE +160 KTAPPC +140 KTA

To capture domestic market gasoline deficit

mLLDPE(400 KTA)

Hexane -1 (34 KTA)

Methyl Ester

(200 KTA)

Flexibility of crude

selection & fully

optimizedUHV

operation

PO (200 KTA)

Polyols (130 KTA)

Ethylene (500 KTA)

Propylene (250 KTA)

Upgrade to higher value product and

able to process

heavier crude

CAPEX 44 MUSD766

MUSD236 MUSD 1,100 MB 288 MUSD 47 MUSD 1,390 MB TBA TBA TBA

COD 2017 Q3/2017PPE Aug 2017PPC Sept 2017

End 2017 2018 2018 1H/2019 2020 2020 2022

P&R : Upcoming Projects

17



2017 2018 2019 2020

HDI Derivatives Thailand

Assets Injection

Gasoline Maximization UHV Catalyst Cooler

PP Expansion & PP Compounding

mLLDPE

ME plants2)

PO/Polyols

MTP Retrofit

2022

CFP

PTTGC

IRPC

TOP

19.0

27.6

2.8

46.6

Q1/17 Q2/17 1H/16 1H/17

68 68

43

68

5043

36

47

82 80

51

81

Q1/17 Q2/17 1H/16 1H/17

Other Businesses : Coal - SAR Better performance from higher market coal price

Net income

Sales Volume

Key Highlights

MMUSD

USD/Ton

1,752 1,925

3,599 3,677 71 -

1,031 71

1,823 1,925

4,630

3,748

Q1/17 Q2/17 1H/16 1H/17

kTon

Jembayan

SebukuAvg.

Selling Price

Total Cash Costs

6% QoQ

Avg. Selling Price* & Cash cost*

New Castle

19% HoH

>100% HoH

2%

58%

58%

30%

QoQ HoH

QoQ

• Cash cost dropped from higher discount after contract renegotiation

• Sales volume increased as plan

• Performance improved from

- cost reduction from new mining rates

- increase in sales volumes

HoH

• Cash cost increased from Newcastle linked variable cost

• Sales volume declined mainly from mud slide in Sebuku

• Performance improved mainly from higher market coal price

*Calorific value ~ 5,500 kcal/ton


15%

45% QoQ


18

0%

http://www.straitsasia.com/


1,456 1,365

2,613 2,821

1,484 1,632

3,214 3,116

Q1/17 Q2/17 1H/16 1H/17

Combine Cycle : IPP

64.5%

Cogen : SPP32.5%

Renewable2.6%

Combined heat : VSPP

0.4% Hydro Electricity

68%

Cogen: SPP 28%

Renewable4%

750 815

1,557 1,565

Q1/17 Q2/17 1H/16 1H/17

Net Income (100%)Sales Volume*

Key Highlights

MMBahtGWh

Other Businesses : Power - GPSC Performance improved as customer recovery from maintenance shutdown

‘000 Ton

Committed Capacity

Power Steam

19

Operating1,410 MW

Underconstruction

512 MW

1% HoH9% QoQ

Present 2019


QoQ HoHPower 6% 8%Steam 10% 3%


*sales vol. of Sriracha, Rayong & IRPC-CP phase 1 plants

QoQ

• Lower power sales vol. due to lower dispatch vol. to EGAT

• Higher steam sales vol. from Rayong & IRPC-CP phase 1 Plant as major customer recovery from S/D in Q1’17

• Better NI from higher SPP sales vol. & received insurance claim

HoH

• Higher power sales vol. from higher dispatch to EGAT but lower steam vol. from SPP due to S/D of industrial customers

• NI slightly increased due to rise in selling price despite customer S/D in Q1’17





Other Businesses : Power – GPSC



Project Type Capacity COD Construction Progress

as of Q2/17

Bangpa-In Cogeneration Company Limited (BIC) Phase 2 (SPP)

Gas-Fired Power Plant

• Electricity: 117 MW• Steam: 20 T/h

29 Jun’17 100%

IRPC-CP Phase 2 (SPP) Gas-Fired

Power Plant• Electricity: 240 MW• Steam: 180-300 T/H

Q4’17 99%

Ichinoseki Solar Power 1GK (ISP1) Solar • Electricity: 20.8 MW Q4’17 43%

Project Highlight: COD: 1 project in Q2’17 & 2 projects in 2H17

20

17%

51%

25%

7%

46,168 31,317

48,548

77,485

41,858 30,397

48,548

72,255

Q1/17 Q2/17 1H/16 1H/17

53.149.8

36.8

51.4

PTT Consolidated Performance: 1H/2017

Avg. Dubai (USD/BBL) 1H/171H/16

509,797 478,788

806,817

988,585

Q1/17 Q2/17 1H/16 1H/17

PTT

P&R

Others

PTTEP

Net Income

Unit : MMTHB

EBITDA

Net Income/Operating Performance

RevenueRevenue

EBITDA89,261

74,910

153,357 164,171

Q1/17 Q2/17 1H/16 1H/17

21

32%

27%6%

33%

2%

EBITDA

P&R

PTT - Gas

Others

PTTEP

PTT - Oil

& Trading

Net Income


HoH60%49%

6% QoQ

5%

15%

49%

30%

1%

Revenue

PTT - Oil

& Trading

PTT - Gas

OthersPTTEP

P&R

QoQ32%27%

7% HoH

16% QoQ

40% HoH

23% HoH

6% QoQ

6%

19%

45%

29%

1%

37%

20%10%

32%

1%

11%

52%

30%

7%

PTT Ratings at Sovereign Level

− FC : Moody’s (Baa1), S&P (BBB+),

FITCH (BBB+)

− LC : Moody’s (Baa1), S&P (BBB+),

FITCH (BBB+)

MMTHB

Statement of Financial Position

22


Assets/Liabilities slightly decreased :

• Decreased in PPE due to depreciation expenses in period

• Decreased in cash and cash equivalent and S/T

investment from dividend payment and debt repayment

• Decrease in A/R due to lower sales vol. & avg. selling

prices.

AP & Other Liabilities

PPE

Others Non-

currentAssets

AR & OtherCurrentAssets

L/TLiabilities(incl. due within 1 yr)

TotalEquity

MMTHB

Cash & S/T Invest

31 Dec 13 30 Sep 14

1,805,041 1,818,746

1,116,170 1,095,391

374,577 371,985

349,204326,617

392,380380,468

1,171,597 1,210,325

583,323 547,266

477,411 416,870

1 2 3 4 5

2.6%

2,232,3312,174,461

30 Jun 1731 Dec 16

0.19 0.17

0.71

0.63

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

(0.1)

0.1

0.3

0.5

0.7

0.9

YE16 1H/17

Net Debt/EBITDA ≤ 2.0

Net Debt/Equity ≤ 1.0

Free Cash flow

23,720 78,400

Investing1H/2016

(107,256)1H/2017(41,569)

CAPEX (PP&E, Intangible asset) (58,938) (51,347)

Investment (Sub.& Affiliates & Others) (522) (8,009)

Current investment (50.499) 10,817

Dividend/Interest Received 4,791 9,997

Others (2,088) (3,027)

Operating1H/2016130,976

1H/2017119,969

Net Income 48,548 77,485

Changes in assets & liabilities (7,970) (25,761)

Income Tax (23,209) (23,200)

Non-Cash Adjustment 113,607 91,445

Ending Cash & Cash Equivalents

198,786 214,472

Ending cash incl. S/T investment

356,032 380,468

Beginning Cash and Cash Equivalents

239,978 215,566

Cash In/(Out)

(41,192) (1,094)

Adjustment

(5,615) (5,312)

Financing (59,297) (74,182)

Repayment Loans (39,342) (38,657)

Interest paid (16,129) (15,210)

Dividend Paid (22,107) (42,670)

Received from share issue 100 3,056

Received from loans/Bonds 18,511 20,391

Others (330) (1,092)

Statements of Consolidated Cash Flows : 1H/2017

23


Infrastructure, 43%

Gas, 4%Oil & Trading, 12%

Other Wholly

Owned Sub. , 4%

Capital Restructuring,

22%

LNG, 14%

Others, 1%

2017 2017(revised)

2018 2019 2020 2021

4,566 3,792 3,887 2,382 2,066 2,304 10,376 9,350 9,036 7,265 7,785 6,736

867 6,410 510

556 597 620

47,215 57,635

51,975

14,313 13,944 7,551

20,637

16,812 36,874

35,970

9,935 40,882

Infrastructure

Investment in whollyowned subsidiaries

Head Office andOthers

Oil and InternationalTrading

Natural Gas

PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 339bn (~ $10bn1) during 2017-2021

By Business Unit

Investment in

Wholly Owned

Subsidiaries

40%

102,282

34,327

58,093

83,661

60,486

22017 budget revision approved by BOD on 16 Jun 17

5th pipeline & extension

JV & Investment in 100% owned subsidiaries

Unit: MMTHB

PTT 5-Years CAPEX Plan ̴Bt 339 bn


24

CAPEX revision Y2017:

• CAPEX increased by ~ THB 10.3 bn mainly from

Head Office: LNG value chain opportunistic investment

Wholly owned subsidiaries: Land purchase for LNG Terminal 2

93,9992

1FX rate = Baht 34/$

25

Contents

Overview


Outlook 2017


Bear : - Weak but improving private investment drag on growth- Ongoing flooding disrupt economic activities in the Northeast- New foreign labor law possible adverse impact on SMEs

Bull : - Government spending & Tourism sector support growth

- Recovering goods exports following an improvement in global trade

Bull : - Continued fiscal stimulus to ensure stable growth in the run-up to the Communist Party Congress in November

Bull : - Strong labor market support household consumption

- Turnaround in business investment amid stronger global backdrop

Global Economic Outlook : Global Recovery on Firmer Footing

US economy : Continued Strong Growth

Bear : - Uncertainty of fiscal tax policy drag on growth

Euro Area economy: Strengthening and More Broad-Based Recovery

Bull : - QE and low interest rate support growth- More stable political environment spur growth

Bear : - Unsettled Brexit’s terms slowdown growth

Thai economy: Growth at Moderate Pace

Bear : - Renew housing restrictions weigh on real estate investment- Less accommodative monetary policy control credit growth

China economy: Slowdown in Growth


- Higher borrowing cost weigh on economic activity

26

Summary: Outlook 2017

Business 1H 2017 2017 (Forecast)

Reason

Gas Price ($/mmbtu)- Henry Hub- JKM

3.106.29

Range 2.9 – 3.66.1 – 6.9

• US LNG export capacity & NG pipeline export to Mexico

• High US domestic supply• Strong LNG demand (SEA & SA). New energy

policies in Korea to change from coal-to-gas.

Oil Price ($/bbl)Dubai Price 51.4

Range50-55

• OPEC/Non-OPEC maintain production-cut deal amid strong demand

• Pressure from U.S. shale oil production

Refinery Margin ($/bbl)Singapore GRM

6.42Range6.4-6.9

Gasoline: • Tight regional supply from ADNOC’s Ruwaisand Shell’s Pernis refinery shutdown

FO:• Healthy bunker demand• Lower Russia exports following refinery

upgrading

Petrochemical ($/ton) - Olefins (HDPE, PP)

- Aromatics (PX, BZ)

HDPE-Naphtha =682

PP –Naphtha = 640

PX-Naphtha = 380BZ-Naphtha = 373

HDPE-Naphtha = 680-690PP –Naphtha = 630-640

PX-Naphtha = 370-380BZ-Naphtha = 325-335

Olefin:- Improving demand from China (2H17)- Potential increase PE supply (India) &

PP (China and Thailand) Aromatics:- Improving PX demand from PTA sector- More supply from new PX & BZ capacity

(India, Saudi Arabia)


27

1H/2017

Improved performance in most PTT Group Businesses

• Gas price remained low though started to pick

up while oil price increased

• PTTEP – ASP improved but lower sales vol.

• Gas – Improved margins and increased volume

mainly from GSP and S&M

• Oil – Performance declined from stock loss

• P&R - Improved performance from petchem

despite soften refinery

• GPSC – Better NI from industrial customer

Looking Forward (2017)

• Firm Global growth

• Oil price in 2017 to be around 50-55 $/bbl

• Feed gas cost expected to maintain

• Petrochemical spreads slightly soften

• Expect for bidding process of expiring

concessions within this year

Key Takeaways

28

Thank youPTT Public Company Limited – Investor Relations Department

Tel. +66 2 537-3518, Fax. +66 2 537-3948, E-mail: [email protected] Website: http://www.pttplc.com

Disclaimer

The information contained in our presentation is intended solely for your personal reference only. Please do not circulate this material. If you are not an intended recipient,

you must not read, disclose, copy, retain, distribute or take any action in reliance upon it. In addition, such information contains projections and forward-looking statements

that reflect our current views with respect to future events, financial performance and result of PTT’s activities. These views are based on assumptions subject to various

risks and uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ

materially from those projected.

The information contained in this presentation is subject to change without notice and PTT does not undertake any duty to update the forward-looking statements, and the

estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

29

29

mailto:[email protected]

http://www.pttplc.com/

3030

PTT Group Performance : 1H/2017 (HoH)

30

PTT Group Performance : Q2/2017 (QoQ)

31

Statements of Cash Flows (PTT Only) : 1H/2017

32

Operating1H/2016 1H/2017

36,730 26,920

Net Income 40,930 59,300

Changes in assets & liabilities (2,526) (18,547)

Income Tax (1,870) (5,253)

Non-Cash Adjustment 196 (8,580)

Investing1H/2016 1H/2017

(26,556) (5,689)

CAPEX (PP&E, Intangible asset) (11,865) (11,649)

Investment (Sub.& Affiliates & Others) (39) (28,111)

Current investment (28,526) 9,865

Dividend/Interest Received 16,196 25,181

Others (2,322) (975)

Free Cash Flow

10,174 21,231

Financing (28,322) (29,712)

Repayment Loans (9,704) (18,294)

Interest paid (7,194) (6,493)

Dividend paid (11,424) (28,563)

Received from loans/Bonds

- 23,638

Adjustment

(55) (638)

Beginning Cash and Cash Equivalents

67,524 62,648

Cash In/(Out)

(18,203) (9,119)

Ending Cash & Cash Equivalents

49,321 53,529

Ending cash incl. S/T investment

112,727 102,121


33

ConsolidatedPTT OnlyUnit : MMTHB

: Cost of debts ~ 4.74%: % fixed-rate ~ 70%: Avg. debt life ~ 8.48 years

: Cost of debts ~ 4.44%: % fixed-rate ~ 65%: Avg. debt life ~ 7.08 years

184,091147,592 142,594

368,733325,524 323,072

81,15481,245 63,965

256,588

250,968217,995

265,245228,837

206,559

625,321576,492

541,067

31 Dec 15 31 Dec 16 30 Jun 17 31 Dec 15 31 Dec 16 30 Jun 17

USD&Other

THB

(31%)

(69%)

(31%)

(69%)

(41%)

(59%)

(40%)

(60%)

Note : Data as of 30 Jun 17 (THB/USD = 34.1483 THB/JPY = 0.30714) Excluding liabilities from finance leases; Cost of debts includes withholding tax.

Cost of debts, % fixed rate, and avg. debt life took into account the derivative transactions. Debt outstanding is reconciled with accounting.

(36%)

(64%)

(44%)

(56%)

Debt Profile : Control Cost & Manage RiskManaged debt according to financial risk and policy

Debt Portfolio

33

Subsidiaries ConsolidatePTT (Cambodia) Co., Ltd. PTTCL 100.00%PTT Oil & Retail Business Co., Ltd. PTTOR 100.00%Thai Lube Blending Co., Ltd. TLBC** 48.95%PTT Oil Myanmar Co., Ltd. PTTOM 100.00%

Associates EquityKeloil-PTT LPG Sdn. Bhd. KPL 40.00%Thai Petroleum Pipeline Co., Ltd.THAPPLINE 40.40%PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00%

Others CostPetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00%PetroAsia (Sanshui) Co., Ltd. PA(Sanshui) 25.00%Intoplane Services Co., Ltd. IPS 16.67%Fuel Pipeline Transportation Co., Ltd.FPT 0.0000090%

Others Fair ValueBangkok Aviation Fuel Services Plc. BAFS 7.06%

Others

Subsidiaries ConsolidatePTT Exploration & Production Plc. PTTEP 65.29%PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00%PTT LNG Co., Ltd. PTTLNG 100.00%Thai Oil Power Co., Ltd.* TP 26.00%Global Power Synergy Co., Ltd* GPSC 22.58%

Joint Ventures EquityTrans Thai-Malaysia (Thailand) Co., Ltd. TTM (T) 50.00%Trans Thai-Malaysia (Malaysia) Sdn. Bhd. TTM (M) 50.00%District Cooling System and Power Plant DCAP 35.00%PTT Global LNG Co., Ltd PTTGL 50.00%

Petrochemical Subsidiaries ConsolidatePTT Polymer Marketing Co., Ltd. PTTPM 50.00%PTT Polymer Logistics Co., Ltd. PTTPL**50.00%PTT Global Chemical Plc.* PTTGC 49.42%PTT Maintenance and Engineering* PTTME 40.00%PTT Energy Solutions Co., Ltd.* PTTES 40.00%PTT Tank Terminal Co., Ltd. PTTTANK 100.00%

Joint Ventures EquityHMC Polymers Co., Ltd. HMC 41.44%PTT Asahi Chemical Co., Ltd. PTTAC 50.00%PTT MCC Biochem Co., Ltd. PTTMCC 50.00%

Refining Subsidiaries ConsolidateThai Oil Plc.* TOP 49.10%IRPC Plc.* IRPC 38.51%

Others Fair ValueStar Petroleum Refining Co., Ltd. SPRC 5.41%

Others Fair ValueDhipaya Insurance Plc. TIP 13.33%

Subsidiaries ConsolidateEnergy Complex Co., Ltd. EnCo 50.00%Business Service Alliance Co., Ltd. BSA * 100.00%PTT Regional Treasury Center Pte. Ltd. PTTRTC 100.00%PTT Digital Solutions Co., Ltd.* PTT DIGITAL 20.00%

International Trading Business Group

Subsidiaries ConsolidatePTT International Trading Pte. PTTT 100.00%PTT International Trading London Ltd PTTTLDN 100.00%

Remark : *The companies have changed their status to subsidiaries due to impact from PACK5** Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies.

Petrochemicals & Refining Business GroupE&P and Gas Business Group Oil Business Group

Data as of 31 Jun 2017

International Investment

Subsidiaries ConsolidatePTT Energy Resources Co., Ltd. PTTER 100.00%PTT Green Energy Pte. Ltd PTTGE 100.00%PTT Global Management Co., Ltd. PTTGM 100.00%

34

3535

Natural Gas Price Structure : Jan-Jun 2017

CustomersSales Price Structure

Gas Pool Price Supply Margins Pipeline Tariffs+ +

Average Purchased Gas Price

1.75%

1.75%

9.33%

21.9 Bt/MMBtu

Charged at the same price structure of power producers

Reference to Saudi Aramco’s contract price

Charged at prices comparable to fuel oil

Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns.

Profit-sharing mechanism based on market prices of petrochemicals

Reference to Naphtha market price

At GSPs cost (adjusted every 3 months)

• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions

*

*

*

GSP 22%

Petrochemicals Feedstocks

Industry 15%

Ethane, Propane, LPG

NGL

Local Cooking Gas

Export Cooking Gas

Power Producers 58%

: EGAT 18%

: IPP 19%

: SPP 21% * EGAT IPP and SPP Supply Margins not more than 2.1525 and 11.4759 respectively

NGV 5%

35

• 21 Jan -15 Jul 2016: Capped at 13.50 Baht/Kg. If cost is less than 13.50 Baht/Kg, retail price will be set to reflect the cost.

• Since 16 Jul 2016 : The retail price is set to reflect the cost.• NGV retail Price as of 30 Jun,17 = 13.03 Baht/Kg.

Thailand Gas DemandReplace :coal (3,340 MW), AE and EE 30%

Natural Gas : Growth of natural gas upon Government fuel diversification policy for power generation

36

Thailand Gas demand forecast (CAGR during 2017-2031): Total ~ 1%: Power ~ 3%: GSP ~ -5%: Industry ~ 1%: NGV ~ -5%

New Plan

Thailand’s Projected Energy Demand

37

Primary Energy Consumption

Sources : Ministry of Energy (Thailand Energy Outlook 2016)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

KBD

Oil

Natural Gas

Coal/Lignite

Hydro/Import

Renewable

28%

34%

16%

3%

18%

3,853

2,812

33%

44%

11%

10%

2%

2,714

32%

46%

11%

9%2%

0.7%

0.3%

4.6%

2.9%

3.6%

Gas Business Generates Stable Returns

Sole owner and operator of entire

gas transmission pipelines in

Thailand (~ 4,000 km), a regulated

business

• IRROE ranges between

12.5% - 18% for transmission

pipeline investment

Supply & marketing of natural gas

provides fixed margin with long-term

contracts of 25-30 years

6 Gas Separation Plants; Total

production 6.7 MTA; are on

petrochemical market price-linked

profit sharing basis

38

Overview Gas transmission pipeline capacity

Gas Separation Plant Capacity

Unit 1 420 MMcf/d

Unit 2 and 3 820 MMcf/d

Unit 4 170 MMcf/d

Unit 5 570 MMcf/d

Unit 6 840 MMcf/d

Documents

Analyst Meeting - listed companyptt.listedcompany.com/misc/PRESN/20170817-ptt-am-2q2017...2017/08/17 · NGV Price/Sales Volume QoQ • Gas cost kept rising, while F/O price dropped