PTT Auditorium 16 Nov 2018 - ptt.listedcompany.comptt.listedcompany.com/misc/PRESN/20181115-ptt-am-3q2018.pdf · - For Innovation Institute PTT Outstanding Innovation for Economy

PTT Auditorium 16 Nov 2018

Overview

Q3/2018 & 9M/2018 Performance

Outlook 2019

Contents

1

Overview Performance Outlook

Personal Safety

Em

plo

ye

eC

on

tra

cto

r

Process Safety

Health & Safety Performance 2018

Road Safety

LTA (Loss Time Accident) TRIR (Total Recordable Injury Rate)PSE Tier 1 (Process Safety Event Tier 1) TROIR (Total Recordable Occupational Illness)

32

12016 2017 2018*

LTA1 persons

(Target = 0)

TRIR0.057 per 200,000 hrs

0.183 0.088 0.057

2016 2017 2018*

(Target ≤ 0.09)

TROIR0 person

0 0 02016 2017 2018*

(Target = 0.12)

LTA3 persons

5

23

2016 2017 2018*

(Target = 0)

TRIR0.048 per 200,000 hrs

(Target ≤ 0.12)

PSE Tier I1 case

20 1

2016 2017 2018*

(Target = 0)

PSE Tier II0 case

20 0

2016 2017 2018*

(Target = 0)

Truck Accident0.01 cases/

1 MKm

0.074 0.0490.01

2016 2017 2018*

(Target ≤ 0.05)

0.055 0.05 0.048

2016 2017 2018*

Car Accident6 cases

(Target ≤ 0.10)14 13

6

2016 2017 2018*

(Target ≤ 10)

2

Excellent CG Scoring Company(10th consecutive years)

Top Quartile (Companies with over Bt 10 Bn. Market Capitalization)

(7th consecutive years/ 2st time as Leader)

The Shield of FAME for Sustainable

Energy Foundation

• By Ministry of Social Development

and Human Security

Outstanding Forest Resource Management

• By Royal Forest Department

The Shield of Reduce Global Warming

From 3 Projects

• Thailand Voluntary Emission Reduction Program: T-VER

• Low Emission Support Scheme: LESS

• Carbon Neutral Event

Outstanding Ethics

• By The Thai Chamber of Commerce

Outstanding Innovation Organization

- For Innovation Institute PTT

Outstanding Innovation for Economy

- For iPMMS –Integrated Pipeline Maintenance and Monitoring System project

SOE Award• Enterprises of the Year 2018 (3rd consecutive years)• Outstanding Leader• Outstanding disclosure and transparency

(4th consecutive years)• Outstanding CSR• Outstanding of Coopertaion• Consolation Prize of Innovation

Best Public Facility

• Metro Forest Learning Center

SET Sustainability Awards 2018

Labour Management Excellent Award 2018

• For PTT & PTT Group by Department of Labor Protection and Welfare

Prosperity

People

ProsperityPlanet

3

People

ProsperityPlanet

2

4

6

8

10

12

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18

31

32

33

34

35

36

37


500

900

1300

1700


10

40

70

100


NG Prices ($/MMBTU)

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

Key Business Drivers: Escalated oil, gas, and PX prices amid soften HDPE price

Note: Figures are average

1,128

Dubai vs FO ($/BBL)

Petchem ($/Ton) AVG. FX (USD/THB)

Dubai

FO 3.5%

HDPE Price

400

PX-Naphtha Spread

JLC*

36.8

29.9Avg. Pooled Price

45.7

42.8

1,137

6.8

5.9JKM

5.4

35.6

5

& Naphtha (MOPJ)

7.0

5.7

5.5

59.3

33.6

35.3

1,176

357

53.1

50.0

QoQ YoY

Dubai 3% 37%

FO3.5% 6% 35%

QoQ YoY

HDPE 3% 19%

PX-Naphtha 50% 12%

34.5

QoQ YoY

JLC* 5% 20%

JKM 27% 44%

Avg. Pooled 2% 14%

8.38.3

5.5

6.056.3

1,226

1,138

393 388

35.3

5.87.7

5.7

49.8

47.9

1,133

368

33.1

8.4

7.9

50.5

49.15.95.6

8.0

310

Depreciated (QoQ)

1.1 THB/USD (4%)

Appreciated (YoY)

2.1 THB/USD (7%)


63.9

59.0

10.6

6.1

9.1

1,379

380

31.7

72.1

67.7

7.9

6.5

9.7

1,384

346

32.0

10.0

6.6

10.2

74.3

71.7

1,350

517

4

33.1

• PTT

• Transferred Oil BU’s assets to PTTOR

• PTTGC

• Signing SPA for PTA and PET business

• Acquired 49% shares of Revolve Group Limited (RGL); producer of Rotomolding Compound

• IRPC

• BOD approved to invest in Guangzhao Saiju Performance Polymer Ltd. in China (Plastic product e-commerce business)

• PTT

• GSP#3 (Planned T/A 18 days)

• ESP & GSP#6 (turndown)

• PTTGC

• I1 (Planned Major T/A 37 days)

• IRPC

• Hyvahl & RDCC (Planned T/A 1 mth)

Performance (9M/18 vs 9M/17)

Finance(Q3’18)

Activities Highlights :

5

Business Performance

Upstream PTTEP

Coal

Midstream Gas

Downstream Oil

Trading

Petchem

Refinery

Infrastructure Power

Loan Repayment (PTT Group)

• PTTGC & Sub: THB 4,123 MM / USD 12 MM/ EUR 0.1 MM

• TOP: THB 526 MM

• IRPC: THB 5,670 MM/ USD 40 MM

Loan Drawdown

• PTTGC sub: THB 1,250 MM/ USD 0.14 MM /EUR 0.11 MM

• TOP Sub: VND 42,264 MM

• IRPC: USD 200 MM

Key Events Update(Q3’18)

6

ContentsOverview Performance Outlook

Overview


Outlook 2019

6.206.44

5.54

6.24

70.13 69.92

49.87

67.85

46.94 47.67

38.2946.25

Q2/18 Q3/18 9M/17 9M/18

(223)

23

(291)

(81)

336292

596

932

Product Prices

Net Income (100%)

Sales Volume

Key Highlights

Liquid ($/BBL)

Gas($/MMBTU)

Weighted Avg.

($/BOE)

MMUSD

214 217 205 213

89 88 90 87

Q2/18 Q3/18 9M/17 9M/18

Liquid

Gas

KBOED

7

303

113315

* 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

305

E & P Gas Oil & Trading P&R Others

0.3% QoQ

36% YoY

4% QoQ

13% YoY

2% QoQ

21%YoY

QoQ

• ASP edged up due to rising gas price in Myanmar.

• Sales vol. increased mainly from additional stake in Bongkot.

• NI increased primarily from appreciation of THB, while Recurring NI decreased due to higher DD&A.

YoY

• ASP increased from rising in oil Price.

• Sales vol. increased from Contract 4 and MTJDA projects.

• NI increased from ASP & Vol and 9M/17 had recognition of impairment loss of Marina Oil sand project.

300

305

E&P : Improved performance mainly from ASP and Vol. without impairment


2% YoY1% QoQ

295

179% YoY179% QoQ 851

Q2/18 Q3/18 9M/17 9M/18

Mo

8

E&P: Outlook

Financial Outlook

FY2018

Avg. Sales Vol. (KBOED)

310

Avg. Gas Price ($/MMBTU)

~6.5

Unit Cost($/BOE)

~31

EBITDA margin (% of Sale Rev.)

~70-75

*Based on FY2018 Dubai oil price at 72 $ /BBL

Timeline for the Bidding of Expiring Concessions in GoT



Data Room & Bid preparation

Minimum DCQ

• G1/61: 800MMSCFD,

• G2/61: 700MMSCFD

Facility bonus

G1/61: 350 MMTHB

G2/61: 175 MMTHB

Decommissioning

Gas price formula

Commit under fixed formula in TOR

Mozambique LNG: Stronger path towards FID by 1H2019

Production

Start-up

2023

12 MTPA

• Legal & Contractual Framework, Marine Concessions as well as the development plan approved

• Resettlement Commenced and site preparation underway

• 1.2 MTPA SPA signed with EDF and 0.28 MTPA signed with Tohoku Electric

• Offshore contractor selections

• Project finance: To secure 2/3 leverage (Debt 66.67/Equity33.33)

• Secured sufficient non-binding HOAs to meet target off-take volume

In-Progress

Completed

Geographical: SEA, Middle East and other potential areas

Target: Focus on producing or near-producing Size: 500 – 1,000 MMUSD

Execution of M&A Deal

Fasted Pre-FID Projects

Along with finalizing key terms of other pre-FID candidates

Production

Start-up

Southwest Vietnam

490 MMSCFD

2022

Ubon(Contract 4)

25 -30 KBOED

2022

Algeria(HBR)

50-60 KBPD

2024

G1/61

(Erawan)

G2/61

(Bongkot)

Co

mp

lete

dIn

-P

rog

ress

Mozambique Rovuma offshore Area 1

Must be obligated all infrastructure / facilities both new & transferred

per PSC agreement

PTT EBITDA Breakdown by BU’s

Business Unit Q2/18 Q3/18 QoQ 9M/17 9M/18 YoY

Gas- EBITDA 24,636 24,831 1% 60,764 72,711 20%

• S&M 4,133 5,305 28% 11,549 13,712 19%

• TM 9,271 8,237 11% 25,828 26,802 4%

• GSP 9,763 9,850 1% 20,650 27,821 35%

• NGV (1,314) (1,437) 9% (3,332) (3,563) 7%

• Others1/ 2,783 2,876 3% 6,069 7,939 31%

Oil- EBITDA 3,943 3,528 11% 15,085 13,789 9%

Trading2/ - EBITDA 2,422 1,003 59% 3,491 4,520 29%

Total3/ 31,001 29,362 5% 79,340 91,020 15%

(Unit: MMTHB)

1/ Others include PTTLNG, PTTNGD, and PTTGL (restructured by excluding GPSC, PTTES, PTTDigital and ENCO)2/ MIS3/ Included subsidiaries from all BUs 9


6.2 5.8

5.6 5.4 5.5 6.0 5.8 5.9 6.1 6.5 6.6 160

219

247

296318 304 312

357 374

430 449

100

200

300

400

5

7

9

11

13

15

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18

789 702 797 713

765 733 946 758

1,229 1,242 1,013 1,220

1,047 1,000 982 1,023

760 759 721 759

235 232 263 239

Q2/18 Q3/18 9M/17 9M/18

4,7224,825

%QoQ %YoY

FO 4% 34%

PooledPrice 2% 14%

12.7 13.312.1

12.8

6.10 5.99 6.83

6.20

Q2/18 Q3/18 9M/17 9M/18

Gas BU: Rising pooled price, NG vol. maintained

NG Price VS FO NG Customer Breakdown

$/MMBTU

EGAT (15%)

IPP (16%)

SPP (26%)

GSP (22%)

Industry (16%)

NGV (5%)

MMSCFD

4,668

NGV Price/Sales Volume

QoQ

• Gas cost and F/O price is in upward trend

• NG sales vol. decreased from power and GSP

• NGV vol. decreased despite rising avg. selling price

YoY

• NG sales vol. maintained from lower power demand offsetting GSP and Industry

• NGV vol. dropped from demand switching to diesel

Key Highlights

ที่เพ่ิมข้ึนเป็นของ

K.Ton/Day

10

$/Ton

Fuel Oil*

* MOPS HSFO 180 CST

Avg. Pooled gas price

0.2%YoY

•

THB/KG

NGV Avg. price

6% YoY

9% YoY2% QoQ

3% QoQ



5% QoQ

4,712

1,103

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

1,133 1,138 1,226

1,379

1,384

1,350

Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18

4,133 5,305 11,549 13,712 9,271 8,237

25,828 26,802

9,763 9,850

20,650 27,821

(1,314) (1,437) (3,332) (3,563)

2,783 2,876

6,069

7,939

Q2/18 Q3/18 9M/17 9M/18

750 900

2,179 2,365 163 155

501 485

612 597

1,720 1,793

247 178

573 671

12 12

32 35

Q2/18 Q3/18 9M/17 9M/18

GSP Sales Volume

LPG (44%)

kTon

1,784

3% QoQ

431 427 420 378 375 386 395 401 407 420

416

309 297 288247 253 262 259 269

282 286 277

60,764

5,349

Propane (12%)

Gas - EBITDA

MMTHB

Others

TM

GSP

24,83124,636

S&M

NGV

7% YoY

Gas BU: Performance improved in almost segments

NGL (9%)

Ethane (34%)

Key Highlights

GSP Feed Cost vs Petchem price

USD/Ton

Feed Cost*

LPG cost of GSP

* Revised feed cost calculation from per sale volume to per GSP production volume

Pentane (1%)

11

HDPE

20% YoY QoQ

• GSP slightly increased from Baht depreciation and increase vol. despite GSP

turnaround

• NGV higher loss from rising feed gas cost

• S&M increased from higher selling price linked to FO price

• GAS EBITDA slightly increased from S&M offsetting with lower TM

YoY

• GSP greatly improved from increased vol. & selling price

• TM increased due to rising demand mainly from SPP

• S&M margin increased from higher avg. selling prices and gas vol.

• NGV higher loss from rising feed gas cost

• PTTLNG recognized revenue from LNG terminal 1 phase 2 since Mar 18

• GAS EBITDA improved mainly from GSP and S&M

1% QoQ

1,842

%QoQ %YoY

HDPE 3% 19%

LPG cost of GSP 1% 8%

Feed Cost 3% 9%



5,005

72,711

40.00

50.00

60.00

70.00

80.00

90.00

100.00

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Jul-18 Aug-18 Sep-18

1,052 970 2,752 3,046

2,891 2,558

12,333 10,743

Q2/18 Q3/18 9M/17 9M/18

0.83 0.78 0.95 0.93

6,579 6,301

Q2/18 Q3/18 9M/17 9M/18

QoQ YoY

Oil 12 % 13%

Non-oil 8% 11%

Total 11% 9%

Oil BU & PTTOR : Soften performance from lower margin despite higher volume

MMTHB

THB/Liter

12

Oil

Non-Oil3

Gross margin1/Sales volume2

MM Liter

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

1,107 -69 840 470

Petroleum Prices

Stock Gain/Loss(MMTHB)

USD/BBL

(Average Prices)

Key Highlights

QoQ

• Sales vol. decreased from

- Aviation fuel due to low season and tumbled Chinese tourists after boat disaster in July

- Diesel & Gasoline from lower seasonal demand

• Lower gross margin & EBITDA from

- Gasoline squeezed margin from increasing oil price trend

- Aviation fuel margin dropped due to pricing structure

YoY

• Sales vol. increased from

- Aviation fuel after ICAO lifts red flag & economic expansion

- Gasoline & Diesel from stations’ expansion

• Lower gross margin mainly from Aviation fuel

• Decreased EBITDA from declining margin and lower stock gain, as well as higher SG&A

3,9433,528

13,789

3/ Domestic only

Oil - EBITDA



2% YoY

15,085

4% QoQ

2% YoY6% QoQ

19,363 19,809

2,422

1,003

3,491

4,520

Q2/18 Q3/18 9M/17 9M/18

19,923 20,980

56,107 59,457

Q2/18 Q3/18 9M/17 9M/18

QoQ

• Sales vol. increased due to higher crude imports mainly from lower

turnaround of Domestic refineries and increased Out –Out Transaction

• Gross margin & EBITDA decreased from higher condensate discount

due to light crude price drop

YoY

• Sales vol. increased due to higher crude & condensate imports mainly

from lower major Turnaround of refineries.

• Gross margin & EBITDA increased from domestic condensate and Out

–Out transaction

0.16

0.07 0.10 0.11

Q2/18 Q3/18 9M/17 9M/18

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

Gross Margin1

Trading – EBITDA3

Sales Volume2

Key Highlights

MMTHB

MM LiterGross Margin (THB/Liter)

2 PTT Trading BU + trading subsidiaries

13

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

Trading BU: Improved performance mainly from Domestic Condensate



6% YoY5 % QoQ

29% YoY

59% QoQ

10% YoY56% QoQ

QoQ

•

•

•••

94% 94%75%

93%

1,384 1,350

1,149

1,371 1,301 1,288

1,141

1,287

Q2/18 Q3/18 9M/17 9M/18

104% 98% 93%101%

4,795 4,558

17,929 14,961 4,049 2,561

6,841 9,362

10,827 12,793

29,740 36,009

-

91 95

5,480 282

Q2/18 Q3/18 9M/17 9M/18

QoQ YoY

HDPE 3% 19%

PP 1% 13%

14

4.39 4.74 5.81

4.76

8.34

5.79 5.94 6.47

Q2/18 Q3/18 9M/17 9M/18

QoQ YoY

A/C GRM 31% 9%

354

501

388 412

212 214

372

248

Q2/18 Q3/18 9M/17 9M/18

15

Net Income (100%)

P&R BU : Strong performance from refinery and Olefins

19,762 20,007

IRPC

TOP

Unit : MMTHB

59,990

Aromatics

BZ-Cond

PX-Cond

USD/Ton

PTTGC

Others

BTXU-Rate

72.1 74.351.1

70.1

GRM

USD/BBL

A/C GRM*

Mkt GRM

Dubai

3.87 1.06 0.33 1.71StockGain/Loss

*A/C GRM and A/C GIM include effect from hedging gain/(loss)

Olefins

Olefins U-Rate

USD/Ton

HDPEPrice

PPPrice

QoQ YoY

PX 42% 6%

BZ 1% 33%



1% YoY

1% QoQ

60,614

On Jul 3, 2017 PTT transferred HMC/PTTPL/PTTPM/PTTAC/PTTMCC and the Projects’ Study Results of PTTPMMA to PTTGC

7684

69

80

5258

4756

105

118

85

108

Q2/18 Q2/19 9M/17 9M/18

Other Businesses : Coal - SAR Performance declined from one-off tax penalty despite better coal price

Net income

Sales Volume

Key Highlights

USD/Ton

2,126 1,826

5,764 5,959

8 93

71 156

2,134 1,919

5,835 6,115

Q2/18 Q3/18 9M/17 9M/18

kTon

Jembayan

Sebuku

Avg. Selling Price

Total Cash Costs

Avg. Selling Price1/ & Cash cost1/

New Castle

QoQ

• ASP rose following coal price, Cash cost increased from higher mining rate and royalties linked with Newcastle

• Sales vol. drop from lower demand in coal market

• Performance declined mainly from lower sales vol. despite higher ASP

YoY

• Cash cost increased from royalties following coal price

• Sales vol. increased from higher contracted vol. and Sebuku mud slide in 9M/17

• Better margin from higher price & vol., despite higher cash cost

• Performance declined from tax issue, despite better margin

1/Average Calorific value ~ 5,450 kcal/kg

16%

27%

19%

YoY 5% YoY

15

10% QoQ

QoQ

12%

11%



12%

21 22

62 679 3

15

(12)

MMUSD17% QoQ

77

Operating NI

NI 2530

29% YoY

Non-recurring items2/

Q2/18 Q3/18 9M/17 9M/18

55

2/Non-recurring items include the settlement of past’s tax lawsuit

http://www.straitsasia.com/


Hydro Electricity85%

Cogen: SPP15%

1,508 1,543

3,472

4,257

1,659 1,585

4,713 4,936

Q2/18 Q3/18 9M/17 9M/18

Combine Cycle : IPP

60%

Cogen: SPP 36%

Renewable4%

Combined heat : VSPP

0%

1,052 899

2,453

2,873

Q2/18 Q3/18 9M/17 9M/18

QoQ YoY

Power 2% 23%

Steam 5% 5%

Net Income (100%)Sales Volume*

Key Highlights

MMTHBGWh

‘000 Ton

Committed Capacity

PowerSteam

ELECTRICITY1,940 MW (operate 1,410 MW)

STEAM 1,585 T/H(operate 1,446 T/H)

INDUSTRIAL WATER2,080 Cu.m./H

CHILLED WATER12,000 RT

Operating1,530 MW

Underconstruction

410 MW

Present 2020


*sales vol. of Sriracha, Rayong, IRPC-CP, ISP1 power plants


Other Businesses : Power - GPSC Enhanced performance mainly from full operation of IRPC-CP

QoQ 15% YoY 17%

QoQ

• Sales volume of power increased from Sriracha Plant regarding EGAT dispatch instruction.

• NI decreased mainly from Rayong and IRPC-CP due to rising gas price while Ft rate was flat, and lower Availability Payment of Sriracha Plant from seasonal effect.

YoY

• Sales volume increased from full phase operation in 2018 of IRPC-CP and ISP1 which was COD in Nov’17 and Dec’17 respectively.

• NI increased from the full operation of IRPC-CP and ISP1 together with an increase in Ft rate.

16





Committed Capacity SCOD in 2020E & P Gas Oil & Trading P&R Others


Xayaburi Power Company Limited (XPCL)

Capacity: 1,220 MWProgress: 96%

Nam Lik 1 Power (NL1PC)Capacity: 63.8 MW

Progress: 95%

CUP4 Expansion ProjectCapacity: Power 45 MW

and Steam 70 TPH (Phase1)Progress: 40%

NNEG Expansion Project Capacity: Power 60 MW

and Steam 10 TPHProgress: EPC contractor has been awarded on 30 September 2018

Other Businesses : Power - GPSC Future Growth

GPSC Strategic Direction and Growth Strategy

17

43,003

18,5057,232 3,990

7,545

12,868

29,543

49,722 48,152

19,359 18,660

29,001 29,921

8,657 10,235

(6,923) (6,822)

9M/18 Performance: New high record 9M performance from most businesses


PTTEPHigher tax expenseImproved ASP & Sales Vol. from oil price recovery

9M/17: - Marina Oil Sand Impairment

+ Dividends from mutual fund (EPIF)9M/18- Tax effect from oil business transferred - Loss on Montara divestment

Extra Items

Petrochem & Refining Higher stock gain Better Olefins from product price & sale vol.Aromatics decreased from BZ spreadsWeaken Mkt. GRM from higher crude premium

OilSlimmer margin and lower stock gainHigher vol. from aviation & station expansionNon-oil expansion

Gas

GSP increased vol. and LPG marginS&M margin roseTM increased from TDC vol.

TradingVol. increased from lower refineries shutdown

Margin slightly increased from rising oil price

Higher CIT

Others Affi.

* including petroleum exploration expenses and royalties

99,816

MMTHB

100,146Net Income

Extra Items

0.3%

9M/17 9M/18

PTTEP

PTT

P&R 3%

4%

1%

3%

18

HO

Margin

FX & Derivatives

OPEX*Depre & Amortiza-

tionOther

Income

Int. & CIT exp.&

Other

Impair

18%

PTTOR from oil business transferredPTT NGD from higher FO priceHigher revenue from LNG Terminal 1 Phase 2Coal business from tax penalty

Others Affi

72.1 74.3

51.170.1

20

18%

48%

30%

4%

578,787 606,980

1,463,763

1,718,738

Q2/18 Q3/18 9M/17 9M/18

PTT

P&R

OthersPTTEP

Net Income

Unit : MMTHB

EBITDA

Revenue

Revenue

100,699 96,138

251,182286,953

Q2/18 Q3/18 9M/17 9M/18

19

32%

25%6%

33%

4%

EBITDA

P&R

PTT - Gas

Others

PTTEP

PTT - Oil

& Trading

Net Income

5%

13%

50%

31%

1%

Revenue

PTT - Oil

& Trading

PTT - Gas

OthersPTTEP

P&R

17% YoY

14% YoY

5% QoQ

PTT Consolidated Performance: 9M/2018

Avg. Dubai (USD/BBL) 9M/189M/17

3% QoQ 37% YoY


Net Income

EBITDA

5%QoQ

30,029 30,329

99,816 100,146

Q2/18 Q3/18 9M/17 9M/18

1% QoQ

5%

15%

48%

31%

1%

31%

24%6%

35%

4%

7%

55%

29%

9%

0.3% YoY

0.11 0.10

0.39

0.33

2017 9M/18

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

20

Assets/Liabilities increased :

• Increased in inventory from rising oil price.

• Increased in asset from acquisition Bongkot

stake at 22.22%

AP & Other Liabilities

PPE

Others Non-

currentAssets

AR & OtherCurrentAssets

L/TLiabilities(incl. due within 1 yr)

TotalEquity

Cash & S/T Invest

31 Dec 13 30 Sep 14

1,805,041

1,076,906 1,102,215

373,238 387,377

386,330451,642

395,840

404,435

1,248,556 1,294,054

511,353495,770

472,405555,845

1 2 3 4 5

2,232,314

2,345,669

30 Sep 1831 Dec 17

Net Debt/EBITDA ≤ 2.0

Net Debt/Equity ≤ 1.0

5%

Free Cash flow

103,115 199,401

Ending Cash & Cash Equivalents

195,453 277,518

Ending cash incl. S/T investment

395,840 404,434

Beginning Cash and Cash Equivalents

215,566 166,189

Cash In/(Out)

(20,113) 111,329

Adjustment

(10,459) 813

Statements of Consolidated Cash Flows : 9M/2018

21

Operating9M/2017 9M/2018

205,951 176,137

Net Income 99,816 100,146

Changes in assets & liabilities (19,582) (70,265)

Income Tax (32,545) (43,608)

Non-Cash Adjustment 158,262 189,864

Investing9M/2017 9M/2018

(102,836) 23,264

CAPEX (PP&E, Intangible asset) (77,069) (76,825)

Investment (Sub. & Affiliates & others) (23,905) (21,239)

Current investment (5,185) 109,632

Dividend/Interest Received 12,634 10,031

Others (9,311) 1,665

Financing (112,769) (88,885)

Repayment Loans (62,029) (93,325)

Interest paid (23,237) (20,191)

Dividend paid (73,320) (61,354)

Received from share issue 3,056 52

Received from loans/Bonds 12,366 95,135

Others 30,395 (9,202)

22

Contents

Overview


Outlook 2019


Global Economic Outlook: Global Growth Plateauing, as Economic Risks Become More Significant

Eurozone economy: Healthy, If Moderate, Growth

Bull : - Accommodative monetary policy & improving labor market support growth

Bear : - Less expansionary fiscal stance in several economies weigh on growth- Uncertain political scene weigh on growth

Bear : - High household debt constrain domestic demand- Potential de-stocking from a huge increase in inventories in 1H/2018 weigh on

Bull : - Continuous expansion in exports and tourism stimulate growth- More clarity on public investment projects stimulate growth

Thai economy: Robust Growth Seen Continuing, despite Slowdown

Bull : - Proactive fiscal & prudent monetary policies support and stabilize growth- Easing credit campaign help counter trade dispute impact & support growth

Bear : - Difficult trade problems with the US weigh on growth- Ongoing reforms in China, specifically tight pollution rules weigh on growth

China economy: Steady Slowdown in Growth

Bull : - Strong labor market support consumer spending

- Fiscal package e.g. Tax cut stimulate economic activity

US economy : Robust Growth to Continue, Though at a Softer Pace

Bear : - Fed’s rate hike higher borrowing costs- Trade tensions with trading partners weigh on growth

23


near-term growth

GDP = $20,510 Bn24% of World GDP



GDP = $490 Bn0.6% of World GDP

Summary: Outlook 2019

Business 9M/2018 2019 (Forecast)

Reasons

Gas Price ($/mmbtu)

- Henry Hub- JKM

2.859.67

Range

2.7 – 3.2

8.8 – 9.8

HH:

• Availability of low-cost dry gas resources and abundance of associated

gas from the oil fields in Permian basin

JKM:

• Expected new supply, from the start-up of US, Australian, and Russian

LNG projects during end of 2018 - 2019

Oil Price ($/bbl)

Dubai Price 70.1

Range

70 – 80

Geopolitical risks: U.S. sanction on Iran, crisis in Venezuela, unrest in

Libya, Nigeria, etc.

Rising OPEC’s oil production to offset Iranian and Venezuelan oil

supply loss and surging Non-OPEC output, especially U.S. and Russia

Expected economic slowdown due to trade war concerns

High oil price may dampen demand amid currency depreciation

Refinery Margin ($/bbl)

Singapore GRM 6.38

Range

6.8 – 7.2

Light & middle distillates

High middle distillate crack amid tight supply and stock buildup in

2H2019 ahead of IMO Implementation

Light distillate crack will increase in 2H2019 due to lower supply from

shifting refinery yield to maximize middle distillate

FO

Tend to decline in 2H2019 ahead of IMO implementation

Petrochemical ($/ton)

- Olefins (HDPE, PP)

- Aromatics (PX, BZ)

HDPE = 1,371PP = 1,269

PX-Naphtha = 413BZ-Naphtha = 234

HDPE = 1,311 PP = 1,314

PX-Naphtha = 370-380BZ-Naphtha = 205-215

Economic slowdown and weak local currencies may dampen demand.

Olefins:

Higher crude oil and naphtha prices in 2019 comparing to prices in

2018.

More US PE cargoes will divert to SE Asia due to the start-up of new

units and US-China trade tariff

PP demand is expected to remain healthy from durable goods &

automobile

New PP capacities from Malaysia in 2H/2019 (RAPID)

Aromatics:

There will be more BZ, PX supply from Petro Rabigh, Nghi Son, TPPI24


9M/2018

• Gas price continue to increase following oil price

• PTTEP – Higher prices & vol. with no impairment

• Gas –Improved performance from higher product

prices

• Oil – Soften performance due to high competition

• P&R – Better from stock gain and Olefins margin,

despite lower Aromatics

• GPSC – Higher performance from fully operations

of IRPC-CP and ISP1

• Coal – Weaken from tax issue, despite better

operating income

Outlook 2019

• Global economic growth to expand at a slower

pace

• Risk of trade war between U.S. and China

• One -time use plastic trend

• Thai General Election

• New PDP launch

• Expected bidding expiring concession to

conclude by the end of 2018

• Higher oil price will translate into higher gas cost

• Refinery margin improved

• Weaken Olefins & Aromatics

Key Takeaways

25

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.

27

26

mailto:[email protected]

http://www.pttplc.com/

Statements of Cash Flows (PTT Only) : 9M/2018

27

Free Cash Flow

52,209 117,781

Adjustment

111 (268)

Beginning Cash and Cash Equivalents

62,648 38,692

Cash In/(Out)

(23,675) 65,954

Ending Cash & Cash Equivalents

38,973 104,646

Ending cash incl. S/T investment

106,748 133,197

Operating9M/2017 9M/2018

54,602 46,640

Net Income 83,768 153,147

Changes in assets & liabilities (11,924) (21,555)

Income Tax (9,240) (12,000)

Non-Cash Adjustment (8,002) (72,952)

Investing9M/2017 9M/2018

(2,393) 71,141

CAPEX (PP&E, Intangible asset) (16,484) 106,950

Investment (Sub.& Affiliates & Others) (34,224) (119,104)

Current investment (20,618) 45,554

Dividend/Interest Received 39,912 36,374

Others 29,021 1,368

Financing (75,995) (51,559)

Repayment Loans (18,520) (11,431)

Interest paid (8,579) (6,924)

Dividend paid (51,413) (34,258)

Received from loans/Bonds 2,517 1,054

PTT Group Performance : Q3/2018 (QoQ)

28** Since Feb 21,2018, PTT hold 48.05% in IRPC

1/ On Jul 3, 2017 PTT transferred all stake in HMC/PTTPL/PTTPM/PTTAC/PTTMCC and the Projects’ Study Results of PTTPMMA to PTTGC2/ Including BSA, PTT TCC and RTC

% PTT

holding

Q2/18 Q3/18 QoQ Q2/18 Q3/18 QoQ

PTT Net operating Income 15,423 13,534 -12% 15,423 13,534 -12%

E&P - PTTEP 3,590 10,401 >100% 65.29% 2,352 6,792 >100%

Petrochemical 10,918 12,888 18% 5,663 6,259 11%

- PTTGC1/ 10,827 12,793 18% 48.65% 5,573 6,164 11%

- PTTTANK and others 91 95 4% 90 95 6%

Refining 8,844 7,119 -20% 3,866 3,518 -9%

- TOP 4,795 4,558 -5% 48.91% 2,287 2,078 -9%

- IRPC 4,049 2,561 -37% 46.27% 1,579 1,440 -9%

Others Business 5,730 7,633 33% 3,941 5,896 50%

Inter - PTTER/PTTGE/PTTGM 911 872 -4% 100% 876 796 -9%

Gas - PTTLNG/PTTNGD/PTTGL/TTM(T)/TTM(M) 2,102 2,340 11% 1,802 1,764 -2%

Utilities - GPSC/TP/DCAP/PTTES/PTTDIGITAL/ENCO 1,550 1,457 -6% 385 372 -3%

Oil & Oth. - PTTT/PTTOR/THAPPLINE/Others2/ 1,167 2,964 >100% 878 2,964 >100%

Shared of Net Income from Affiliates 29,082 38,041 31% 15,822 22,465 42%

Tax adjustment for gain on disposal of investment and asset (1,216) (5,670) >(100%) (1,216) (5,670) >(100%)

PTT Conso. Net Income 43,289 45,905 6% 30,029 30,329 1%

Unit : MMTHB

Performance 100% Equity Method % PTT

3030

PTT Group Performance : 9M/2018 (YoY)

29

1/ On Jul 3, 2017 PTT transferred all stake in HMC/PTTPL/PTTPM/PTTAC/PTTMCC and the Projects’ Study Results of PTTPMMA to PTTGC2/ Including BSA, PTT TCC and RTC3/ PTT Tank and others

% PTT

holding

9M/17 9M/18 YoY 9M/17 9M/18 YoY

PTT Net operating Income 54,982 48,152 -12% 54,982 48,152 -12%

E&P - PTTEP 11,138 27,372 >100% 65.29% 7,278 17,871 >100%

Petrochemical 35,220 36,290 3% 17,394 18,172 4%

- PTTGC1/ 29,740 36,008 21% 48.65% 14,759 17,889 21%

'- PTTTANK/HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA1/ 5,480 282 -95% 2,635 283 -89%

Refining 24,770 24,323 -2% 11,607 11,749 1%

- TOP 17,929 14,961 -17% 48.91% 8,672 7,215 -17%

- IRPC 6,841 9,362 37% 46.27% 2,935 4,534 54%

Others Business 13,705 22,801 66% 8,645 11,272 30%

Inter - PTTER/PTTGE/PTTGM 1,658 7,258 >100% 100% 1,603 853 -47%

Gas - PTTLNG/PTTNGD/PTTGL/TTM(T)/TTM(M) 5,593 6,330 13% 4,401 5,055 15%

Utilities - GPSC/TP/DCAP/PTTES/PTTDIGITAL/ENCO 4,118 4,401 7% 1,050 1,106 5%

Oil & Oth. - PTTT/PTTOR/THAPPLINE/Others2/ 2,336 4,812 >100% 1,591 4,258 >100%

Shared of Net Income from Affiliates 84,833 110,786 31% 44,924 59,064 31%

Tax adjustment for gain on disposal of investment and asset (90) (7,070) >(100%) (90) (7,070) >(100%)

PTT Conso. Net Income 139,725 151,868 9% 99,816 100,146 0%

Unit : MMTHB

Performance 100% Equity Method % PTT

3/

31

Debt Profile : Control Cost & Manage Risk

Debt Portfolio

Managed debt according to financial risk and policy

ConsolidatedPTT OnlyUnit : MMTHB

: Cost of debts ~ 5.25%: % fixed-rate ~ 71%: Avg. debt life ~ 8.59 years

: Cost of debts ~ 4.46%: % fixed-rate ~ 65%: Avg. debt life ~ 6.99 years

147,592 129,279 129,265

325,524 311,317 336,02681,245

45,088 34,583

250,968

194,284 154,640

228,837

174,367 163,848

576,492

505,601 490,666

31 Dec 16 31 Dec 17 30 Sep 18 31 Dec 16 31 Dec 17 30 Sep 18

USD&Others

THB

(36%)

(64%)

(21%)

(79%)

(44%)

(56%)

(32%)

(68%)

Note : Data as of 30 Sep 18 (THB/USD = 32.5767 THB/JPY = 0.289234 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.

(26%)

(74%)

(38%)

(62%)

30

Gas3% Transmission

17%

Oil & Trading3%

P&R6%

HO & Others7%

Capital restructure

47%

Other JV & wholly owned subsidiaries

17%

2018 2019 2020 2021 2022

159,573

Capital restructure

Other JV and wholly owned subs

Natural Gas

Transmission

Oil and International Trading

Petrochemical & Refinery

HO & Others

45,88021,369

5,599

246,613

22,501

Unit: MMTHB

JV & wholly owned subs

64%

87,040

PTT: Committed CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 342bn* ($10bn) during 2018-2022

Additional Provisional CAPEX = Baht 245 bn

• Business expansions

• Prepare for the future ( New S-Curve )

* 2018-2022 budget approved by BOD on 22 Dec 17

PTT 5-Years Committed CAPEX Plan ̴Bt 342 bn

31

7.718.75

13.43

22.40

30.57

34.14 34.82

18.33

21.06

29.58

37.24 36.58

32.52

20.34

6.73

32.68

46.74

2.432.50 2.85 4.00

6.75

9.2510.50

11.50

8.00 8.5010.25

13.00 13.00 13.0011.00 10.00

16.00

20.00

0.80

25%25%

32.4% 32.6% 29.8% 30.1% 30.3% 30.8% 33.0% 43.6% 40.4% 34.7% 34.9% 35.5% 40.0% 54.1%

148.6%

49.0% 42.8% 32.9%

-900.00%

-600.00%

-300.00%

0.00%

0.00

10.00

20.00

30.00

40.00

50.00

60.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H/2018

PTT’s minimum payout ratioBaht / share

EPS

DPS

Dividend payout

32

Dividend Policy & Historical PaymentsPTT is firmly committed to pay dividend at no less than 25% of net income

Split par*

* Spilt par value from 10 to 1 Baht/share since 24 April 2018

Subsidiaries ConsolidatePTT Oil & Retail Business Co., Ltd. PTTOR 100.00%

Others CostPetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00%PetroAsia (Sanshui) Co., Ltd. PA(Sanshui) 25.00%

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%PTT Global LNG Co., Ltd PTTGL 50.00%

Joint Ventures EquityTrans Thai-Malaysia (Thailand) Co., Ltd. TTM (T) 50.00%Trans Thai-Malaysia (Malaysia) Sdn. Bhd. TTM (M) 50.00%

Petrochemical Subsidiaries ConsolidatePTT Global Chemical Plc.* PTTGC 48.65%PTT Tank Terminal Co., Ltd. PTTTANK 100.00%

Refining Subsidiaries ConsolidateThai Oil Plc.* TOP 48.91%IRPC Plc.* IRPC 46.27%

Subsidiaries ConsolidatePTT Digital Solutions Co., Ltd.* PTT DIGITAL 20.00%PTT Energy Solutions Co., Ltd.* PTTES 40.00%Energy Complex Co., Ltd. EnCo 50.00%Business Service Alliance Co., Ltd.* BSA 100.00%PTT Regional Treasury Center Pte. Ltd. PTTRTC 100.00%PTT Treasury Center Co. Ltd PTT TCC 100.00%

International Trading Business Group

Subsidiaries ConsolidateGlobal Power Synergy Co., Ltd* GPSC 22.58%Thai Oil Power Co., Ltd.* TP 26.00%

Joint Ventures EquityDistrict Cooling System and Power Plant DCAP 35.00%

Remark : * 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 30 Sep 2018

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%

Others CostSarn Palung Social Enterprise Company Ltd. SPSE 20.00%Baania (Thailand) Company Ltd. Baania 3.57%

Others Fair ValueDhipaya Insurance Plc. TIP 13.33%

33

Power Business Group

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

3535

Natural Gas Price Structure : Jan-Sep 2018

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

*

*

*

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

34

• Since 16 Jul 2016 : The retail price is set to reflect the natural gas cost but operating cost is still regulated.

• Since 5 Sep 2017 : Allowance to adjusted +0.46 Baht/Kg. for gas quality improvement cost

• Since 16 May 2018 : Allowance to adjusted the retail price of NGV public bus to 10.62 Baht/Kg.

• NGV retail Price as of 30 Sep 18 = 15.13 Baht/Kg.

GSP 22%

Petrochemicals Feedstocks

Industry 16%

Ethane, Propane, LPG

NGL

Local Cooking Gas

Export Cooking Gas

Power Producers 57%

: EGAT 15%

: IPP 16%

: SPP 26%

NGV 5%

Gas Business Roadmap

LNG Projects

35



Country: Projected Gas Volume

New Project

LNG Ph#2

MajorProject

COD

LNGCapacity

(MTA)

10 10

• 4th

onshore Midline Comp.

• Comp Wangnoi

• Nakhon Ratchasima

11.5 11.5

LNG Terminal#1 - Extension

11.5

• 5th

Pipeline

• RA#6-RatchburiPipeline

Gas Facilities Expansion

19.0

LNG Terminal#2

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 100%

- COD : 2019

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

- Approved by Cabinet 11 Apr 2017

- Capacity: 7.5 MTA

- COD : 2022

• Additional LNG projects (submitted studies to

CEPA and NEPC on July 2017)

− Myanmar-Thailand LNG Terminal

− FSRUs (domestic)

− Onshore LNG Terminal 3

P&R : Upcoming Projects

21

2018 2019 2020

UHV Catalyst Cooler

PTA & PET ME plants2

PO/Polyols

MTP Retrofit

ME plants2

PTA & PET UHV

Catalyst CoolerPO/

Polyols

MTP Retrofit(Olefins

Reconfiguration)

CFP(Clean Fuel

Project)

MARS (Maximize Aromatics)

Objective/Capacity

• Methyl Ester (200 KTA)

• Signed SPA to acquire share in SMPC (PTA) & TPRC (PET) businesses

• Enhance product portfolio & polymer business

• PTA (970 KTA)

• PET bottle(147 KTA)

• Flexibility of crude selection

• Lower utility cost from cracking heavy crude

• Create value added in Polyurethane chain

• PO (200 KTA)

• Polyols (130 KTA)

• Ethylene (500 KTA)

• Propylene (250 KTA)

• Upgrade lower value product higher

value product

• Ability to process heavier (cheaper) crude oil

• Utilize excess Naphtha/ Toluene/ Xylene as feedstock to maximize PX & BZ products

• Paraxylene(1,000-1,300 KTA)

• Benzene(300 - 500 KTA)

• Other Products(200 KTA)

CAPEX 47 MMUSD4,148 MB

(125 MMUSD)1,320 MB

(32 MMUSD)888 MMUSD 985 MMUSD 4,825 MMUSD 1.0-1.1 Bn.USD

COD Q4/18Begin of 2019(Closing Date)

Q1/192020

(FID Aug’17)2H/20

(FID Jan’18)Q1/23

(FID Jul’18)Q1/23

2023

CFP



Maximize Aromatics

36

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

37

Thailand Gas DemandReplace :Coal กระบี่ (800 MW), EE 30%

Thailand Gas demand forecast (CAGR during 2018-2032): Total ~ 0.1%: Power ~ 2%: GSP ~ -7%: Industry ~ 1%: NGV ~ -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 6 880 MMcf/d

Documents

PTT Auditorium 16 Nov 2018 - ptt.listedcompany.comptt.listedcompany.com/misc/PRESN/20181115-ptt-am-3q2018.pdf · - For Innovation Institute PTT Outstanding Innovation for Economy