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
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
Overview Performance Outlook
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
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17
100
300
500
700
900
1100
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17
HDPE-Naphtha Spread PX-Naphtha Spread
10
50
90
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17
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
Overview Performance Outlook
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
Overview Performance Outlook
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
Q2 & 1H/2017 Performance
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
Overview Performance Outlook
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
E & P Gas Oil & Trading P&R Others
10
Overview Performance Outlook
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
$/MMBTU
EGAT (17%)
IPP (20%)
SPP (21%)
GSP (21%)
Industry (15%)
NGV (6%)
MMSCFD
4,752
NGV Price/Sales Volume
QoQ
• Gas cost kept rising, while F/O price dropped
• NG sales volume slightly increased from power and industry
• Continued drop in NGV volume with demand switching to diesel, while prices increased following pooled price
HoH
• Overall NG sales slightly decreased mainly from lower power demand offsetting with GSP major T/A in 1H16
• NGV vol. dropped from demand switching to gasoline and diesel
Key Highlights
ที่เพ่ิมข้ึนเป็นของ
K.Ton/Day
11
14% HoH
E & P Gas Oil & Trading P&R Others
4,776$/Ton
Fuel Oil*
* MOPS HSFO 180 CST
Avg. Pooled gas price LHS
RHS
1% HoH
•
THB/KG
NGV Avg. price
1% QoQ
6% QoQ
Overview Performance Outlook
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
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
%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
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
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
Overview Performance Outlook
E & P Gas Oil & Trading P&R Others
* 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
Overview Performance Outlook
E & P Gas Oil & Trading P&R Others
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
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
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
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
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
Overview Performance Outlook
15%
45% QoQ
E & P Gas Oil & Trading P&R Others
18
0%
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
E & P Gas Oil & Trading P&R Others
QoQ HoHPower 6% 8%Steam 10% 3%
Overview Performance Outlook
*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
Overview Performance Outlook
E & P Gas Oil & Trading P&R Others
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
Overview Performance Outlook
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
Overview Performance Outlook
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
Overview Performance Outlook
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 (~ $10bn1) during 2017-2021
By Business Unit
Investment in
Wholly Owned
Subsidiaries
40%
102,282
34,327
58,093
83,661
60,486
22017 budget revision approved by BOD on 16 Jun 17
5th pipeline & extension
JV & Investment in 100% owned subsidiaries
Unit: MMTHB
PTT 5-Years CAPEX Plan ̴Bt 339 bn
Overview Performance Outlook
24
CAPEX revision Y2017:
• CAPEX increased by ~ THB 10.3 bn mainly from
Head Office: LNG value chain opportunistic investment
Wholly owned subsidiaries: Land purchase for LNG Terminal 2
93,9992
1FX rate = Baht 34/$
25
Contents
Overview
Q2 & 1H/2017 Performance
Outlook 2017
Overview Performance Outlook
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
Overview Performance Outlook
- 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)
Overview Performance Outlook
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
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
Overview Performance Outlook
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