| PTT Public Company Limited (“PTT”) would like to submit the company’s financial statements and consolidated financial statements for the 3-month and 9-month period ended 30 September 2024 which have been reviewed by the auditor and approved by PTT’s Audit Committee. The operating results for PTT and its subsidiaries are as follows: |
| Operating results: The first nine-month of 2024 compared with the first nine-month of 2023 |
| In the first nine-month of 2024 (9M2024), sales revenue of PTT and its subsidiaries’ was reported at Baht 2,366,080 million, increased by Baht 28,390 million or 1.2% from the first nine-month of 2023 (9M2023) at Baht 2,337,690 million. The Petrochemical and Refining business’s revenue increased from Petrochemical business, which had higher sales volume and average selling price. The refining business had a drop in revenue following lower sales volume and average selling price of refined products. Sales revenue of the International Trading business increased from higher sales volume mainly from international trading of refined products and LNG. However, the Gas business’s sales revenue declined mainly from the Supply and Marketing (S&M) business, which resulted from the decrease in average selling price according to Pool Gas Price together with Gulf of Thailand’s gas shortfall amounting to Baht 4,300 million calculated to discount Pool Gas Price and the adjustment of the natural gas supply margin rate, defined by the Energy Regulatory Commission (ERC). In addition, selling prices to industrial customers were lower following the reference price, despite the average sales volume increased. While sales revenue of the Gas Separation Plant (GSP) business increased from a higher average selling price in most products and sales volume. Oil and Retail business also declined in sales revenue from lower sales volume. |
| In 9M2024, PTT and its subsidiaries reported Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in an amount of Baht 302,943 million decreased by Baht 35,982 million or 10.6% compared with 9M2023 of Baht 338,925 million mainly from Petrochemical and Refining business’s |
| performance. The refining business had lower performance, mostly from Market Gross Refining Margin (Market GRM) decreased from US$ 7.9 per bbl in 9M2023 to US$ 4.5 per bbl in 9M2024, due to a lower spread of refined product prices over crude oil price, as well as, higher stock loss. PTT and its subsidiaries’ stock loss in 9M2024 was approximately Baht 14,000 million, whereas, in 9M2023, there was a stock gain of approximately Baht 10,000 million. Moreover, sales volume also decreased. The Petrochemical business’ performance increased from higher product spreads in most petrochemical products over feed cost and higher sales volume. International Trading business’s performance declined, due to the recognition of unrealized loss (Mark-to- market) on goods in transit, as well as, a drop in margin per unit due to a narrowing product spread in line with reference global oil prices. Oil and Retail business also experienced a decline in performance, from both lower gross margin per litre and average sales volume. The gas business’s performance decreased mainly from lower GSP business’s gross margin due to higher feed cost according to the implementation of the Single Pool Gas policy this year, despite higher average selling price and sales volume. Nevertheless, the Exploration and Production business’s performance increased from a higher average sales volume, despite a lower average selling price. |
| In 9M2024, the Net Income of PTT and its subsidiaries was Baht 80,761 million increased by Baht 1,502 million or 1.9% from the net profit amounting to Baht 79,259 million in 9M2023 from higher gain on foreign exchange, lower loss on derivatives and lower corporate income taxes, while EBITDA decreased as aforementioned. In addition, there was a gain on recognition of non-recurring items (PTT’s portion) after tax approximately Baht 600 million mainly from the gain on disposal of Alvogen Malta (Out-licensing) Holding Limited (AMOLH), gain on disposal of assets to PE LNG Co., Ltd. (PE LNG) of PTT LNG Co., Ltd. (PTTLNG) despite the share of impairment loss of asset from PTT Asahi Chemical Co., Ltd. (PTTAC) and impairment loss of asset of Vencorex Group of PTT Global Chemical Public Co., Ltd. (GC). While, in 9M2023, the gain on recognition was approximately Baht 200 million mainly from the gain on repurchase of debentures of GC and PTT Exploration and Production Public Co., Ltd. (PTTEP). |
| Operating results: The third quarter of 2024 compared to the third quarter of 2023 |
| For the third quarter of 2024 (3Q2024), sales revenue of PTT and its subsidiaries was reported at Baht 761,858 million, decreased by Baht 40,864 million or 5.1% from the third quarter of 2023 (3Q2023) at Baht 802,722 million mainly from International Trading business, Oil and Retail business, Petrochemical and Refining business, and Exploration and Production business, as a result of lower average selling prices following global oil prices. In addition, the Gas business’s sales revenue declined mainly from the S&M business due to lower sales volume primarily from the power plant customers, which imported more electricity from hydropower plants, the LNG imported by new gas supply and wholesale licensees (New Shipper) for electricity generation in this quarter, lower average selling price following pool gas price, and the adjustment of the natural gas supply margin rate by the resolution of the ERC which effective from 1 March 2024. While GSP business’s sales revenue rose from a higher average selling price in most products following petrochemical reference prices, even lower sales volume. Moreover, the Transmission pipeline (TM) business’s sales revenue increased following higher pipeline reserve volume. |
| In 3Q2024, the EBITDA of PTT and its subsidiaries was reported at Baht 68,892 million, decreased by Baht 73,400 million or 51.6% from 3Q2023 at Baht 142,292 million. This decline was mainly from the decline in the Petrochemical and Refining business’s performance, which Refining business’s performance decreased due to an increase in stock loss. PTT and its subsidiaries’ stock loss in 3Q2024 was approximately Baht 20,000 million, whereas, in 3Q2023, there was an approximately stock gain of Baht 20,000 million. Additionally, Market GRM decreased from US$ 11.3 per bbl in 3Q2023 to US$ 2.9 per bbl in 3Q2024, mainly from the lower spread of most refined product prices over crude oil prices. Nevertheless, the Petrochemical business’s performance increased from higher product to feed spread. International Trading business’s performance declined, primarily due to the Mark-to-market losses on goods in transit. The oil and Retail business’s performance also declined due to lower average gross margin per litre and sales volume. Moreover, the Gas business’s performance decreased from the GSP business due to the higher cost of sales resulting from the start of implementation of the Single Pool Gas policy for gas price calculation this year, along with a decrease in sales volume, despite higher average selling price. In addition, the performance of subsidiaries in the gas business group declined mainly from PTTLNG due to the reduction of its shareholding in the LNG Terminal 2 project (LMPT2). Meanwhile, S&M and Natural Gas for Vehicles (NGV) businesses experienced an increase in gross profit due to lower gas costs following Pool gas prices. Moreover, TM business’s performance increased following higher pipeline reserve volume. |
| In 3Q2024, the Net income of PTT and its subsidiaries was reported at Baht 16,324 million, decreased by Baht 14,973 million or 47.8% from 3Q2023 at Baht 31,297 million following the decline in EBITDA as aforementioned. Moreover, there was a loss on recognition of non-recurring items (PTT’s portion) after tax at approximately Baht 9,500 million in 3Q2024 mainly from a share of impairment loss of asset from PTTAC at approximately Baht 4,300 million and impairment loss of asset of Vencorex Group of GC at approximately Baht 3,800 million. While, in 3Q2023, there were gains on recognition of non-recurring items (PTT’s portion) after tax at approximately Baht 40 million mainly from the gain on repurchase of debentures of GC even though gain on the foreign exchange rate and gain on derivative increased as well as income taxes decreased. |
| Operating result: The third quarter of 2024 compared to the second quarter of 2024 |
| In 3Q2024, sales revenue of PTT and its subsidiaries was reported at Baht 761,858 million, decreased by Baht 60,085 million or 7.3% from the second quarter of 2024 (2Q2024) at Baht 821,943 million. This decrease was mainly from a decrease in sales revenue of the International Trading business and Petrochemical and Refining business, due to lower average selling prices and even higher sales volume. |
| Furthermore, the Gas business’s sales revenue decreased, mostly due to S&M business from lower average sales volume following a reduction in demand of power plant customers due to seasonal factors despite higher average selling prices. In addition, GSP business’s sales revenue also decreased from both lower average selling prices for almost all petrochemical products following reference petrochemical market prices and sales volume decreased driven by the reduction in customer demand for propane products. Besides, the Exploration and Production business’s sales revenue decreased from a lower average sales volume despite higher average selling prices. |
| In 3Q2024, PTT and its subsidiaries reported EBITDA in an amount of Baht 68,892 million, decreased by Baht 46,442 million or 40.3% as compared to the 2Q2024 of Baht 115,334 million. This decrease was mainly from the Petrochemical and Refining business where the Refining business’s performance decreased due to higher stock loss. PTT and its subsidiaries’ stock loss in 3Q2024 was approximately Baht 20,000 million, whereas, in 2Q2024, there was an approximately stock gain of Baht 3,000 million. Additionally, Market GRM decreased from US$ 3.0 per bbl in 2Q2024 to US$ 2.9 per bbl in 3Q2024, mainly from the lower spread of diesel and gasoline prices over crude oil prices, despite higher sales volume. International Trading business’s performance declined, primarily due to the Mark-to-market losses on goods in transit and a narrowing spread of domestic crude oil and condensate in line with reference oil prices. Furthermore, the Exploration and Production business’s performance decreased from the lower average sales volume. However, the Gas business’ performance was improved mainly due to an increase in gross profit from the GSP business, as the cost of sales decreased following the 6-month impact of the adoption of the Single Pool Gas policy in 2Q2024. While the performance of subsidiaries in the gas business group declined mainly from PTT Natural Gas Distribution Co., Ltd. (PTTNGD) due to higher gas costs following the Pool gas price and lower average selling price following the reference price, as well as PTTLNG from the reduction of its shareholding in the LMPT2 project. |
| Net income of PTT and its subsidiaries in 3Q2024 was Baht 16,324 million, which decreased by Baht 19,145 million or 54.0% from 2Q2024 at Baht 35,469 million from the decline in EBITDA as aforementioned, together with losses on recognition of non-recurring items (PTT’s portion) after tax at approximately Baht 9,500 million in 3Q2024. While, in 2Q2024, there were gains on recognition of non-recurring items (PTT’s portion) after tax at approximately Baht 5,400 million mainly from gain on disposal of assets from PTTLNG to PE LNG and gain on repurchase of debentures of GC and Thai Oil Public Co., Ltd. (TOP) despite gain on foreign exchange and derivative increased together with the decrease in corporate income taxes. |
| PTT and its subsidiaries’ consolidated financial position as of 30 September 2024 |
| As of 30 September 2024, PTT and its subsidiaries had total assets amounting to Baht 3,314,274 million, decreased by Baht 146,188 million or 4.2% from 31 December 2023 which had total assets amounting to Baht 3,460,462 million. This decrease was mainly from the decrease in property, plant, and equipment (PPE) mainly from the disposal of assets of PTTLNG to PE LNG and impairment loss of assets of Vencorex Group of GC. Furthermore, trade accounts receivable and inventories decreased from both volume and price factors as well as a decrease in other accounts receivable mainly from PTTEP and PTT. Meanwhile, long-term lending increased from lending to Renewable Energy Seagreen Holdco Limited (RESH) by PTTEP and PE LNG by PTT Treasury Center Co., Ltd. (PTT TCC). The total liabilities as of 30 September 2024 were at Baht 1,716,440 million, decreased by Baht 119,046 million or 6.5% from 31 December 2023 at Baht 1,835,486 million due to a decrease in interest-bearing debts, mainly from decreases in long-term borrowings due to the repayment of loans and debentures and trade accounts payable which decreased from lower purchase volume and prices. Moreover, the total shareholders’ equity as of 30 September 2024 was Baht 1,597,834 million, decreased by Baht 27,142 million or 1.7% from 31 December 2023 at Baht 1,624,976 million from decreases in other components of shareholders’ equity, primarily from exchange rate differences on translation following the appreciation of Thai Baht, and non-controlling interests due to dividend payments of subsidiaries and exchange rate differences on translation, offsetting with net income of PTT and its subsidiaries in 9M2024, while there were dividend payments from the operating results of the second half of 2023 (2H2023) and the first half of 2024 (1H2024). |
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