16 CLSA Investors’ Forum - listed company€¦ · 16th CLSA Investors’ Forum Hong Kong 21-23...
Transcript of 16 CLSA Investors’ Forum - listed company€¦ · 16th CLSA Investors’ Forum Hong Kong 21-23...
16th CLSA Investors’ ForumHong Kong
21-23 September 2009
22
DisclaimerDisclaimer
The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events and financial performance. 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.
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ContentsContents
2H/2009 Outlook
Financial Performance
About Thailand
Introduction to PTT
Activities & Operational Results
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Population : 66 millionArea (sq.km) : 513,100Climate : Tropical ClimateWeather: 24-37 C
About Thailand
China
Mongolia
Russia
JapanKorea
India
Middle East
Thailand
General Information
GDP (2008) : US$ 272 bnGDP Growth : 2.6%
Economic Information
Total Petroleum Supply : 1,598 KBDCrude Oil : 1,073 KBD- Import (incl. refined prod.) 853 KBD (79%)- Domestic 220 KBD (21%)Natural Gas : 525 KBD- Import 127 KBD (24%)- Domestic 398 KBD (76%)
1H/2009 Energy InformationTotal Petroleum Demand & Export: 1,439 KBD
Domestic Demand : 1,198 KBD- Refined Products 727 KBD (61%) - Natural Gas 471 KBD (39%)Export : 241 KBD- Refined Products 195 KBD (81%)- Crude Oil/Condensate 46 KBD (19%)
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ContentsContents
2H/2009 Outlook
Financial Performance
Introduction to PTT
Activities & Operational Results
About Thailand
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PTT’s Strategic Importance to the Thai EconomyOwnership : Ministry of Finance ‘Direct and Indirect’ ~ 67%, Public ~ 33%
Mkt. Cap (MM Baht) %
PTT has the largest market cap on the SET
Others71%
PTT13%
SETPTT GroupPTTPTTEPPTTCHTOPIRPCPTTARBCPOTHERS
5,646,7311,642,575
752,926483,418122,36694,35185,97578,53616,8468,157
Ministry of Finance
52%Vayupak Fund 1
15%
Public33%
Data as of 16 September 2009
Thailand’s only fully-integrated Oil and Gas Company with leading position in E&P, transmission, refining, marketing & trading of Petroleum and Petrochemical productsKey driver of Thailand’s economic growth and industrial development
100.029.113.38.62.21.71.51.40.30.1
Shareholders’ structure
“Ministry of Finance holds majority stake in PTT”
Affiliates16%
Data as of 10 March, 2009
77
PTT international ratings are comparable to sovereign ratingsPTT international ratings are comparable to sovereign ratings
Recognition: Confidence & CredibilityPTT is widely recognized among business community both local and international
118th/2009 Global 500 The World’s Largest Corporations
(135th/2008,207th/2007, 265th//2006, 373rd/2005)
1st in Thailand / 2nd in Asia in 2006 : The Best Company For CG
The Best For Disclosure & Transparency The Best For Shareholders’ Right &
Equitable Treatment1st : Large-Cap Corporate 2005/2006
2008 : Asia’s Best Managed and Governed Companies Poll 2008
2005 : The Best Managed Companyin Asia/in Thailand/The Oil & Gas Sector
1st : Asia’s Best Companies on Corporate Governance 2006 & 2007
Global Top 40 Executives inChemical by ICIS 2006
Best State Enterprise 2008 Awards1. Best Performance2. Best Board of Directors3. Best Managed company4. Social and Environmental
Commitment
Platts Global Energy Awards 2008 “CEO OF THE YEAR”
Top 250 Global Energy Awards 20081st Fastest Growing Integrated Oil
and Gas in Asia, 4th Fastest Growing Energy Company in Asia, 5th Overall
Performance in Asia
Trusted brands 2009 in oil station
For 2001-2009
205th/2008 Global 2000 The Biggest Listed Companies in The World
(354nd/2007, 372nd /2006425th/2005 & 461st/2004)
1st : Best CEO in Thailand 2004 & 20051st : Best Investor Relations in Thailand
Thailand’s Business Leader of the Year: 2005
1st : Best CFO 2008/20061st : Best Managed Company 2008/2006/20051st : Best IR 2008/20062nd : Best CG 2008/2006/20052nd : Most Committed to a Strong Dividend Policy 2008
Foreign Currency : A3/BBB+/BBB/A- (Moody’s/S&P/Fitch/JCR) Local Currency : A2/BBB+/A-/A+ (Moody’s/S&P/Fitch/JCR)
SET Awards 2008- Best CSR Award- Shareholders AwardSET Awards 20061st : Best CSR 2006 1st : Best IR 2006 and Distinction in Maintaining Excellent CG Report 2006
Board of the Year Awards 2007/2005 & 2006/2003 & 2004/2002
Thailand Corporate Excellence Awards 2007• Leadership Excellence• Corporate Social Responsibility• Overall Corporate Excellence
Business Areas Activities Strategic IntentsMajor Operator (%)
Strategic Intents Drive Specific Sector ActionsFocusing on business management execution through PTT business groups
E&PE&P
GasGas
PTTEPPTTEP 65.53% Exploration and Production
PTT PLCPTT PLCGas Pipeline 100% Sole owner/operator of the
Transmission pipelineS&M 100% Supply & Marketing of Natural GasGSP 100% Extracting Hydrocarbon contents
in NG for Petrochemical’s feedstock
• Maintain growth through- Replicating gas value chain success in adjacent
geographies- Capturing mega trends
• Accelerate growth through M&A• Maintain production plateau • Solidify domestic position & enhance
value via operation excellence• Expand international gas value chain –
supply potential to Thailand• Enter adjacent energy sectors (e.g.,
coal, power)
Ups
trea
mU
pstr
eam
Oil MarketingOil MarketingPTT PLCPTT PLC• Oil Marketing 100% Retail service Stations and
commercial Marketing
• Int’l Trading 100% Import/Export/Out-Out trading of petroleum and petrochemical products
IntInt’’l Tradingl Trading
• Maintain market leader position in retail station and lubricant
• Expand non-oil businesses• Strengthen commercial market• Ensure operational excellence• Take active trading role for PTT Group• Expand out-out/derivative trading and
international footprint• Ensure disciplined risk management to
limit exposure
Dow
nstr
eam
Dow
nstr
eam
Refining &Refining &PetrochemicalPetrochemical
(Aromatics)(Aromatics)
TOPTOP 49.10%
PTTAR PTTAR 48.66%
IRPCIRPC 36.77%
SPRCSPRC 36.00% Stand alone Complex Refinery
BCPBCP 29.75% Complex Refinery & Retail Stations
PTTCH PTTCH 49.30% Gas-based Olefins Chain Petrochemical
Petrochemical
• Capture synergy through cross-refinery integration
• Maximize PTT Group value chain• Enhance value through operational
excellence and capital efficiency
• Grow through Market-back strategy• Develop new businesses & strategic M&A• Enhance value through operational
excellence and capital efficiency
Integrated Complex Refinery& Petrochemical
Mid
stre
amM
idst
ream
Int
Int ’’
ll
InternationalInternational PTT Inter PTT Inter 100% Overseas investment arm of PTT• Capitalize on Group value chain capabilities in
oil, gas & coal• Invest in new energy & related businesses• Expand through partnership and M&A 88
2007 2008 1H/08 1H/09
Others Coal Petrochem PTTEP Gas Int'l Trading Oil Marketing
6894 104
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Unit : MM Baht
Performance Highlights : Revenues
Note : All figures after restatement; Segmentation of Revenues do not include eliminations
1,508,129
24%46%
20%
7%
1H/09 Revenue Breakdown
Petrochem 2%
Gas
PTTEP
US$ 19,642 mm
Lower global oil price impacted revenue
+33% YoY
Oil Marketing
Int’l Trading
2007 2008 %YoY 1H/08 1H/09 %YoYOthers - - - - 398 -Coal - - - - 4,823 -Petrochem 70,749 36,256 -49% 19,400 14,735 -24%PTTEP 94,059 136,752 45% 64,969 54,585 -16%Gas 267,408 312,822 17% 146,630 151,120 3%Int'l Trading 809,602 1,188,523 47% 651,346 355,029 -45%Oil Marketing 417,116 513,151 23% 289,719 182,256 -37%
-36% YoY1,082,559
Crude Dubai (US$/bbl)
Coal 0.6%
+38% YoY-50% YoY
Note : Excluding eliminations
2,000,816
690,565
Others 0.1%
6894 104
51
0
Others Coal Petrochem PTTEP Gas Int'l Trading Oil Marketing
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Unit : MM Baht
145,971
Performance Highlights : EBITDA
Note : All figures after restatement; Segmentation of EBITDA do not include eliminations: Petrochem subsidiaries = PTTPM, PTTPL, PTTAC, HMC, PTT TANK Other subsidiaries = ENCO, PTTICT, BSA
24%63%
1H/09 EBITDA Breakdown
Gas
PTTEP
TM 18%S&M -1%GSP 5%Others 2%
US$ 1,747 mm
Petrochem1%
Others-1%Oil Mkt
9%+7% YoY
Lower EBITDA from decrease in prices
156,133
2007 2008 1H/08 1H/09
2007 2008 %YoY 1H/08 1H/09 %YoYOthers -2,044 -2,081 -2% -1,022 -883 14%Coal - - - - 1,515 -Petrochem 19,751 695 -96% 582 613 5%PTTEP 66,849 97,760 46% 48,799 38,444 -21%Gas 53,232 54,437 2% 29,572 14,809 -50%Int'l Trading 3,030 4,318 43% 2,309 1,326 -43%Oil Marketing 5,151 722 -83% 2,141 5,548 159%
Int’ Trd2%-25% YoY
82,29361,417
Crude Dubai (US$/bbl)
9.7% 7.8% 7.6% 8.9%
EBITDA Margin
Coal2%
-50% YoY+38% YoY
Note : Excluding eliminations
6894 104
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PTT PTTEP Petrochem Affi. Refining Asso. Coal Other Affi.
31%
29%5%
37%
-3%1%
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Performance Highlights : Net Income
Unit : MM Baht
97,804
1H/09 Net Income Breakdown
US$ 778 mm
1H/09 earnings dropped YoY despite improved 2Q/09 earnings
-47% YoY
51,705
2007 2008 %YoY 1H/08 1H/09 %YoYGain on Divest/Invest 4,859 443 -91% - - -Other Affi. 559 -3,175 n.m. -442 -828 -87%Coal - - - - 141 -Refining Asso. 27,982 -11,692 -142% 15,094 9,996 -34%Petrochem Affi. 10,508 6,180 -41% 6,050 1,323 -78%PTTEP 18,378 27,605 50% 14,581 8,080 -45%PTT 35,517 32,344 -9% 20,734 8,632 -58%
PetrochemAffi. PTTEP
PTT
Other Affi.
RefiningAsso.
2007 2008 1H/08 1H/09
Note : Other Affiliates comprise of Affiliates in Gas (PTTNGD, PTTINTER, etc.), Utilities (DCAP, PTTUT, etc.), Oil (PTTT, PTTRB, PTTGE, etc.), Others (ENCO, PTTICT, etc.)
56,01727,344
-51% YoY
Crude Dubai (US$/bbl)
EPS (Baht per Share)
34.82 18.33 19.88 9.68
+38 YoY-50% YoY
Coal
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Activities & Operational Results- PTTEP- PTT- Petrochemical Associates- Refining Associates
ContentsContents
About Thailand
Introduction to PTT
2H/2009 Outlook
Financial Performance
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PTTEP: The only Exploration and Production Arm of PTT
Proved Reserves 944 MMBOEProved Reserves 944 MMBOEOperations : 41 Projects in 13 Countries
Overseas31%
Domestic69%
Grow in conventional oil & gas in priority countries
By Product By Geography
Gas79%
Liquid21%
North Africa (3)• Algeria• Egypt
Middle East (4)• Oman• Iran• Bahrain
Australasia (4)• New Zealand• Australia
South East Asia (11)• Myanmar• Vietnam•Indonesia• Cambodia•Malaysia
Thailand (19)*
ProjectsExploration 19Development 5Production 17Total 41
Reserves Replacement Ratio 0.98Reserve Life Index (year) 10
*Remark: Including overlapping area
179,767 219,314 207,533 225,119
39.78 49.69 51.6037.13
-100
-50
0
50
100
2007 2008 1H/08 1H/09
Sales Vol. (BOED)Avg. Sales Prices ($/BOE)
90,764
132,621
63,218 52,55865,957
95,054
47,340 37,74128,455 41,67521,902
12,243
2007 2008 1H/08 1H/09
Sales RevenueEBITDANI
14Source: PTTEP analyst meeting
PTTEP: Operating and Financial performance
Sales Volume and Price
Financial Performance
Unit: MM Baht
Potential growth through conventional E&P and M&A opportunities
2008 1H/09%YoY %YoY
+25% -28% +22% +8.5%
2008 1H/09%YoY %YoY
EBITDA +44% - 20%Sales Revenue +46% -17%
Net Income +46% -44%
Success ratio was 12:153 dry wells write-off with total expenditure of Bt 2,001 mmAustralasia (Jabiru/Challis) started sales in 2Q2009 sales volume was approximately 5,900 BBLD
1H/2009 Product Mix
Activities in 1H/2009
Liquid33%Gas
67%Gas59%
Liquid41%
By Volume By Revenue
Gas (US$/MMBTU) 5.41Liquid (US$/bbl) 46.69Avg. sales price (US$/BOE) 37.13
0
50
100
150
200
250
300
350
Note : 2009 expenditures do not include 102 MMUSD cash received from unwinding oil price hedging instrument in Coogee Resources, FX = 36 Baht/US$
PTTEP: Sales Volume and Investment ProfileA substantial oil & gas reserve upside potential with continuous investment
Expected Sales VolumeExpected Sales Volume
15
CAPEX
OPEX
108,172 65,391 69,868 60,481 37,381 341,293
29,989 30,128 28,574 27,112 28,070 143,873
~$9.5 bn
~$4 bn
2009 2010 2011 2012 2013
5-Year CAGR = 6.5%
Others
Bongkot
Arthit North
MTJDA
’000 BOED
219240
300 284
Arthit
Vietnam 16-1
Algeria
M9295 301
Australasia
Vietnam 16-1,BKT South
Algeria M9Arthit North, MTJDAPTTEP AA (Montara)
Q2 09 = 232,957 BOED
2008A
Long Term Upside: Myanmar Projects, Phase II&III of Existing Projects, Exploration Projects in 13 Countries
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PTT: Transmission Pipeline NetworkSole owner and major operator of transmission pipelines in Thailand
Yetagun
YadanaWang Noi
Tha Luang Kaeng Khoi
Rayong
SBKRatchaburi
Thap Sakae
Khanom
BenjamasTantawanPlatong
PRPPailin Arthit
Bongkot
JDA
Erawan
Bang Pakong
Expansion Under Master Plan 3
Karnchanaburi
Power Plant
Gas Field
Puhom
Nampong
Chevron Add.
Arthit FPSO
Pailin Add.
South Bongkot
MYANMARLAOS
CAMBODIA
Existing 2nd Pipeline
TTM Pipeline
Existing 1st Pipeline
COD : Commercial Operation Date
Current Capacity of 4,380 mmscfdCurrent Capacity of 4,380 mmscfd
Current pipeline length: 3,498 km
- Onshore: 1,402 km
- Offshore: 2,096km
Gas Transmission PipelinesGas Transmission Pipelines
Key projects are strategically linked Key projects are strategically linked
and timely corresponding to meet and timely corresponding to meet
demanddemand
1,040 1,013 985 1,097
847 968 987 824
462 459 463 447
572 583 610 600
328 346 352 353 23 74 53 122
2007 2008 1H/08 1H/09
EGAT IPP SPP GSP Industry NGV
3,280
3,606
3,346
3,554
3,655
3,216 3,167
3,319 3,3183,284
3,016
3,1053,138
3,075
2,9703,013
3,061
2,940
2009 2008 2007 2006 2005
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1Q 2Q 3Q 4Q
2005 avg. 2,996
2006 avg. 3,084
2007avg. 3,272
Customer ProfileGas Sales Volumes (mmscfd) @ heat 1,000
Better performance from pipeline tariff adjustment despite flat demandPTT : Transmission Pipeline
2008avg. 3,443
+2% YoY+10% QoQ +5% YoY
Existing pipeline’s capacity ~ 4,380 mmscfd
1H/2009avg. 3,443
3,2723,450
The increased volume from EGAT and NGV was offset by the decreased volume from IPPs, SPPs and GSPReceipt Pipeline tariff adjustment of ~2 Bt/mmbtu (Td & Tc) or ~10% starting from Apr. 1, 2009 Expected natural gas demand for the year 2009 to be flat
-0.2% YoY
3,4433,443
32%
24%
13%
17%
10%4%
18
PTT: Gas Separation Plants
GSP #4
GSP #1-3 & #5
5 existing gas separation plants with
production capacity of ~4.1 MTA
GSP products price linked to world
market priceRayongRayong
NakornsriNakornsrithammaratthammarat
Gas Separation PlantGas Separation Plant
Production Capacity MTA
- Ethane 1.1- Propane/LPG 2.6- Natural gasoline 0.4
Total 4.1
GSP is designed to extract higher product value from natural gas
1,350 1,536
1,643
1,039 1,331 1,535 1,624
1,001 625 740
871
423608
777 845
426
221 250 243 253
2007 2008 1H/08 1H/09
2,253 2,3841,230 1,196
521 534
280 259
929 968
531 520
241 180
88 135
2007 2008 1H/08 1H/09
Propane
Ethane
NGL
LPG
93 97 96 94
Product Prices ($/ton)
19
PTT : Gas Separation Plants
Note: 1/ SEA Spot 2/ Contract Price (CP 50:50) 3/ MOP’S
Feedstock (NG)
LPG2/
Naphtha3/
HDPE1/
PP1/
Performance dropped from lower selling prices
Price2008%YoY
HDPEPPNaphthaLPG-CPFeedstock(NG)
+14%+15%+18%+28%+13%
1H/09%YoY
-37%-38%-51%-50%+4%
Sales Vol. 2008
%YoY
TotalPropaneEthaneNGLLPG
+3%-25%+4%+2%+6%
1H/09%YoY-1%
+53%-2%-8%-3%
3,944
-1% YoY
57%
12%25%6%
4,066
2,129 2,110
+3% YoY
% Utl
34,497 39,09720,303 20,145
4,407 4,855
2,428 2,923
2,229 2,102
1,079 1,020
6,273 7,936
3,791 4,241
47,40653,990
27,601 28,329
2007 2008 1H/08 1H/09
Refined Product PetrochemCondensateCrude
2,518 1,704 1,073 675
5,263 5,797 3,312 2,908
1,481 1,397
770 635
2,027 2,008
975 1,147
2,989 3,275
1,615 1,151
2007 2008 1H/08 1H/09
LPGGasolineJet/IKDieselFuel Oil
20
PTT : Oil BusinessMarket leader in oil retails at 34% market share with 1,069 gas stations nationwide (excl. PTTRM)
Unit : million liters
Source : Department of Energy Business, Note : Excluded supply sales and LPG sold to Petrochem
Oil Marketing : sales volume ~226 KBOE/d
Int’l Trading : trade volume ~984 KBOE/dUnit : million liters
Source : PTT, Note : excluded inter company volume
34%
8%12%
12%
12%
19%3%
PTT
BCPESSO
Shell
Caltex
Others
Gross Margin Gross Margin –– Oil Mktg.Oil Mktg.
Trading MarginTrading Margin
Unit : Baht/Litre20072007
20072007
ThailandThailand’’s Market Shares Market ShareAs of June 2009As of June 2009
Source : Department of Energy Business
-16% YoY
1H/081H/08
1H/081H/08
PTTRM(Jet)
14,278 14,181
7,7466,516
20082008
1H/091H/09
20082008
1H/091H/09
-1% YoY
+3% YoY
+14% YoY
0.06
0.80
0.10
0.10
0.33
0.08
0.42
0.54
23,308
42,73753,182
19,61014,063
3,252
861
3,580
1,925
1,4321,465
1,478
17,137
22,614
25,811
13,956
8,567
9,671
263
1,765
1,597
1,087
801
748
HO&OthersJVOilGas
2121
CAPEX 2009 - 2013 229,340
CAPEX 2009 70,696
24,89615,148
2009 2010 2011 2012
82,515
Unit: MM Baht
PTT: CAPEX (Company Only)
Sources : PTT (Board approval on 22 Dec 2008) ; FX = Baht 34 per USD
PTT plans to invest ~Bt 230 bn ($6.8bn) during 2009-2013, mostly into gas business expansion
36,085
58% of total investment goes to Gas Business Group: Ethane Plant, GSP#6 and Pipeline#4.
Most of JV investment go to LNG Terminal and new opportunities
5 Years CAPEX BreakdownBy Business Unit
2013
70,696
41,569
1H/09A
JV24%
Gas58%
HO &Others2%
Oil4%
JV-LNG12%
22
Major Projects Update : All projects are on track
LNG Receiving Terminal Phase I
Onshore Gas Pipeline #4
Gas Separation Plant Unit6
Ethane Separation Plant
Location : Map Ta Phut, RayongProj Cost : US$780 mm Capacity : 1,840 KTACommissioning : 1Q/2010Progress : 96% (as of July 09)
Location : Map Ta Phut, RayongProj Cost : US$560 mmCapacity : 763 KTACommissioning : 1Q/2010Progress : 96% (as of July 09)
Location : Map Ta Phut, RayongProj Cost : US$880 mmCapacity : 5 MTACOD : 3Q/2011Progress : 34% (as of July 09)Facilities : Tank, Jetty,
Regasification
Location : Rayong - KangkoiProj Cost : US$ 1,040 mmCapacity : 1,400 MMCFDCOD : Phase I 2Q/2011
Phase II 2012Phase III 2014
Progress : 98% of EngineeringDesign (as of July 09)
EIA : Approved in Jun 09
0
1,000
2,000
3,000
4,000
5,000
6,000
2008 2009 2010 2011 2012 2013
2323
Gas Demand OutlookGas Demand Outlook
Strategic Roadmap : Core Value Creators
Industry 20%
GSP 22%
Power 58%
CAGR (2008-2013) ~ 7%
Infrastructure is under expansion to enhance capability to meet future gas demand
71%
17%12%
Unit : mmscfd
PipelinePipeline
Project Completed
~4,380
~4.1 GSPGSP
~4,380
~6.7
~5,580
~6.7
~6,980
~6.7
~6,980
~6.7
Additional Additional Source Source
of Supplyof SupplyArthit North JDA B17 Bongkot South
GSP#6 Ethane Plant
4th Onshore Pipeline ph 2
Pipeline Capacity
~4,380 mmscfd
Project Completed
3rd Pipeline ph2
Production Capacity~4.1 mta
Note : Pipeline capacity include onshore pipeline to Namphong field of 140 mmscfd
LNG
Offshore Compressor &4th Onshore Pipeline ph1
ArthitJDA A18
25,343 20,258
16,014
5,931
19,167
11,739 10,994
1,747
85% 84% 93% 92%
93% 99% 102% 112%
2007 2008 1H/08 1H/09EBITDA NI
2,419 2,084
1,248 1,473
2,265
1,380 964 1,068
85% 87% 89% 98%
2007 2008 1H/08 1H/09EBITDA NI
1,079 952
1,355
501
1,350 1,536
1,643
1,039 1,178 1,193 1,311
685
625 740
871
423
2007 2008 1H/08 1H/09 HMC (PTT 41.44%) PP 450 KTA
Petrochemical Affiliates
PTTCH (PTT 49.30%)Unit : MM Baht
Lower product prices impacted performance
1,1511,320 1,408
734
1,331 1,535
1,624
1,001
625 740
871
423
2007 2008 1H/08 1H/09
Product Prices
HDPE1/
Propylene1/
Ethylene1/
Naphtha3/
Note : 1/ SEA spot 2/ NEA Spot 3/MOP’S Source : ICIS
MEG2/
Naphtha3/
24
PP1/
Unit : US$/Ton HDPE % UtlOlefins % Utl
% Utl
2525
201120112010201020092009
Ethylene 1,276 KTAPropylene 437 KTAHDPE : PTTCH 250 KTAHDPE : BPE 250 KTAPS : TSCL 90 KTAMEG : TOCGC 395 KTAEthoxylates : TEX 50 KTAME/FAOH/ 331 KTAGlycerin : TOLFAOH/Fatty Acids/ 962 KTAGlycerin/Specialty:(50% COM)VCM : (25% VNT) 481 KTA
PP 450 KTA
New businesses are under development to utilize assets, enhance competitiveness, and diversify risks
1,135
190
180
603
2,1082,108
55--year year CAPEXCAPEX
Propylene 50 KTA Ethylene 100 KTA
Ethanolamines 50 KTA
Phenol 200 KTAAcetone 124 KTA
EO DerivativesEO Derivatives $51MM$51MM
Debot I4Debot I4--22 $57MM$57MM
PhenolPhenol
Ethylene 1,000 KTA
LDPE 300 KTA
LLDPE 400 KTA
Propylene 310 KTAPP 300 KTA
PDH/PPPDH/PP
$1,300MM$1,300MM
: BPEHDPE 250 KTA
Petrochemical: Strategic Roadmap - Integrated Value Enhancers
20122012--20132013
HDPE Expansion: PTTCH (I-1)HDPE 50 KTA
Ethane CrackerEthane Cracker
LDPE/LLDPE LDPE/LLDPE
$15MM$15MM
BisBis--PhenolPhenol--AA
$636MM$636MM
$283MM$283MM $251MM$251MM
Grand Total
$168MM$168MM
BPA 150 KTA
AN 200 KTAMMA 70 KTA
AN/MMAAN/MMA $760MM$760MM
MPR 14 KTA(Fatty Alcohol Derivatives)
Unit : MM USDUnit : MM USD
Note : FX = 34 Baht/US$
(49.30%)
(40.00%)
(41.44%)
(48.50%)
Company (PTT Stake)
$19MM$19MM
Note : Data as of 31 Dec 2008
PTT Group represents 36% of total refining capacityPTT Group represents 36% of total refining capacity by equity portionby equity portion
TOP (275 kbpd)(PTT 49.10%)
ESSO (177 kbpd)
RPC (17 kbpd)
BCP (120 kbpd)(PTT 29.75%)
IRPC (215 kbpd)(PTT 36.77%)
SPRC (150 kbpd)(PTT 36.00%)
PTTAR (280 kbpd)(PTT 48.66%)
• TOP/SPRC/PTTAR – complex refineries with potential for upgrade & expansion.
• BCP is undertaking “Product Quality Improvement” project to enhance product mix.
Total refining capacityTotal refining capacity~ 1,234 kbpd~ 1,234 kbpd
Refinery Business in ThailandPTT as the strong leadership position, ensures stable supply to downstream and related businesses
26
27
Refining Associates’ GRM & GIMLower market GRM & GIM from decelerated oil demand
0
3
5
8
10
13
1Q/08 2Q/08 3Q/08 4Q/08 1Q/09 2Q/09
GRM ($/bbl)
Market GRM *
5.85.8
2008 (avg)
4.24.24.54.5
9.39.3
3.63.6
5.95.9
2.22.2
3.23.2
1H/2009 (avg)
$/bbl 2008 1H/08 2H/08 1H/09
Market GRM 5.8 6.8 4.7 3.2
Note: Weighted Average Market GRM of PTT’s associates’ complex refineries(TOP, PTTAR and SPRC)
5.8
10.2
4.2
2.3
5.8 5.3
0
3
5
8
10
13
1Q/08 2Q/08 3Q/08 4Q/08 1Q/09 2Q/09
GIM ($/bbl)
Note: Weighted Average Market GIM of PTT’s associates’ integrated refineries(TOP, PTTAR and IRPC)
$/bbl 2008 1H/08 2H/08 1H/09
Market GIM 5.9 8.0 3.3 5.5
Market GIM *
5.95.9
2008 (avg)
5.65.6
1H/2009 (avg)
17,415
(7,098)12,051
7,322 12,236
(5,446)8,395
4,774
10187 97 106
2007 2008 1H/08 1H/09
EBITDA NI %Utl
26,588
(3,833) 10,023 11,91618,018
(8,465) 5,591 5,956
91 8797 100
2007 2008 1H/08 1H/09
14,132
(13,234)9,054
5,868 13,683
(18,262)6,754 4,044
81 81 8561
2007 2008 1H/08 1H/09
28,959
7,949 23,058
13,935 19,118
224
14,420 8,473
96 100 102 101
2007 2008 1H/08 1H/09
28
PTTAR 280 kbpd (PTT 48.66%)
Refining Associates
TOP 275 kbpd (PTT 49.10%)
IRPC 215 kbpd (PTT 36.77%)
Unit : MM Baht
Declined performance from lower GRM despite better P2F margin
3,977 530
4,324 7,046
1,764 (750)
2,697 4,293
55 62 60 69
2007 2008 1H/08 1H/09
SPRC 150 kbpd (PTT 36%)
BCP 120 kbpd (PTT 29.75%)
177
29
Grand Total
274~ 215,000 bpdPropylene BoosterProject Cost $ 88 MMPower Plant 216 MW
Project Cost $ 220 MM
HDPE CompoundProject Cost $ 13 MMIR
PC
IRP
C
2013201320102010 20112011 20201212
New businesses are under development to utilize assets, enhance competitiveness, and diversify risks
127~ 120,000 bpd EURO IVProject Cost $40 MM
Ethanol Project200 k.litre/Day
(Project Cost $ 68 MM)(BCP 40%)
BC
PB
CP
55--year year CAPEXCAPEX(MM$) (MM$)
1,021Note :FX=35 Baht/US$
Refining Strategic Roadmap : Integrated Value Enhancers
PQI ProjectVDU 35 KBDHCU 25 KBD
Project Cost $378 MMBio diesel Project (JV)
300,000 Litre/DayProject Cost $30 MM
(BCP 70%)
TOP
TOP Ethanol Project (JV)
200,000 Litre/DayProject Cost $60 MM
(TOP 30%)
TLB Specialties-TDAEProject Cost $25 MM
EURO IVProject Cost $30 MM
~ 275,000 bpd
Refining CapacityRefining Capacity
~ 280,000 bpd
PTT
AR
PTT
AR
GT Nox + Bio-diesel + VRUProject Cost $ 73 MM
428DHDS (EURO IV)Project Cost $ 221 MM
20092009
Synergy Project - PSA Project Cost $ 35MM
Efficiency ImprovementProject + MRU
Project Cost $12MM
30
PTT International : An Overseas Investment Arm of PTTPTT holds 100%
PTT
PTT Inter
100%
EMG
25%
PTT APMthrough Lints
60%
SAR
47.1%
East Mediterranean Gas Company S.A.E. (EMG )
Performance
Own an export terminal in Egypt, offshore NG pipeline from Egypt to Israel (~677 mmcfd capacity) and a receiving terminal in IsraelEMG buys NG from Egypt and sells to end-users in Israel under 15 yrs agreementStart delivery of NG to Israel since Jul 1, 2008, current gas flow ~205 mmcfd.
162 140 176
265315
62 65 62100
126
38 36 2158 57
2Q/08 1Q/09 2Q/09 1H/08 1H/09
Revenue EBITDA NI
Sales Volume and Price
2,162 1,652 2,101
4,197 3,753
2Q/08 1Q/09 2Q/09 1H/08 1H/09
Unit : MM US$77 85 85
6485
Note: The average selling price is FOB basis
Unit : KT
Average Selling Price US$/Ton
31
ContentsContents
2H/2009 Outlook
Financial Performance
Introduction to PTT
About Thailand
Activities & Operational Results
32
Financial Highlights
Unit : MM Baht 2007 2008 %YoY 1H/08 1H/09 %YoY
Sales & Services 1,508,129 2,000,816 33% 1,082,559 690,565 (36%)
Cost of sales (excl. DD&A) 1,328,906 1,801,702 36% 994,856 627,160 (37%)
EBITDA 145,971 156,133 7% 82,293 61,417 (25%)
Depreciation, depletion and amortization 28,840 32,170 12% 14,628 19,595 34%
Shared income(loss) from assoc. 31,080 (6,251) (120%) 21,093 10,432 (51%)
Financial Charges 10,459 10,528 1% 5,433 6,313 16%
Gain (loss) from FX. 5,392 (1,982) (137%) 1,226 2,225 81%
Tax Expense 38,655 43,333 12% 22,806 17,110 (25%)
-PTT 13,144 9,909 (25%) 6,187 4,526 (27%)
-PTTEP 22,946 32,879 43% 16,296 11,472 (30%)
-Others 2,565 545 (79%) 323 1,112 244%
Net Income Before Gain 92,945 51,262 (45%) 56,017 27,344 (51%)
Gain on Divestment/Investment 4,859 443 (91%) - - -
Net Income 97,804 51,705 (47%) 56,017 27,344 (51%)
EPS (Baht/share) 34.82 18.33 (47%) 19.88 9.68 (51%)
33
Net Income (Equity Method)
Unit : MM Baht 2007 2008 %YoY 1H/08 1H/09 %YoYNet Income (Cost Method) 63,225 59,994 (5%) 37,367 17,498 (53%)Less: Dividend Received (19,434) (27,616) 42% (16,633) (8,866) 47%
Gain from Investment Disposal (8,274) (34) (100%) - - -Net Operating Income 35,517 32,344 (9%) 20,734 8,632 (58%)E&P - PTTEP 18,378 27,605 50% 14,581 8,080 (45%)Petrochem - PTTCH 9,734 5,689 (42%) 5,601 918 (84%)
- HMC, PPCL, PTTPL, PTTPM, etc . 774 491 (37%) 449 405 (10%)10,508 6,180 (41%) 6,050 1,323 (78%)
Refinery - TOP 9,272 119 (99%) 6,131 3,873 (37%)- PTTAR 9,583 (3,315) (135%) 2,877 1,545 (46%)- SPRC 4,360 (1,858) (143%) 2,504 2,022 (19%)- IRPC 4,269 (6,427) (251%) 2,773 1,315 (53%)- BCP 498 (211) (142%) 809 1,241 53%
27,982 (11,692) (142%) 15,094 9,996 (34%)Gas & Utilities - TTM, PTTNGD, PTTINTER, etc . 889 (1,652) (286%) (101) (1,491) n.m.Coal - PTTAPM - - - - 141 -Oil & Others - PTTRB, PTTT, PTTGE, etc. (330) (1,523) 362% (341) 663 294%Total Share of Net Income from Affiliates/JV 57,427 18,918 (67%) 35,283 18,712 (47%)Gain on Divestment/Investment 4,859 443 (91%) - - -Net Income (Equity Method) 97,804 51,705 (47%) 56,017 27,344 (51%)
315,143 374,614 453,962
261,563 267,165
293,535
233,628 152,595
198,549 81,190 90,819
96,434
398,652 430,536 460,235
220,999 239,126
323,766
271,873 215,531
258,479
• 3rd pipeline started commissioning
• De-conso. PTTCH
3434Note : Figures after restatement at ending periods
Other Liabilities
PP&E
Others Non-
currentAssets
OtherCurrentAssets
L/TLiabilities(incl. due within 1 yr)
Shareholders’Equity
Unit : MM Baht
--1%1%
Cash & S/T Invest
Balance Sheets : Maintain Liquidity & Financial Strength
2007 2008 1H/09
• Completion ofArthit-MTJDA Pipeline
• 100% Coogee acquisition by PTTEP
• 60% SBI acquisition
+18%+18%
891,524 885,193
1,042,48014.0 14.8
10.8
0.4 0.4 0.5 0.6 0.6
0.7 1.0 1.0
2.0
2007 2008 1H/09
Net Debt/EBITDANet Debt/EBITDA
Net Debt/EquityNet Debt/EquityIBD/EquityIBD/Equity
ICRICR
Strong Financial Position
• Expected higher Net Debt/EBITDA due to economic crisis.
• PTT international ratings are comparable to sovereign ratings− FC : Moody’s (A3), S&P (BBB+),
JCR (A-), FITCH (BBB)
− LC : Moody’s (A2), S&P (BBB+),
JCR (A+), FITCH (A-)
35
140,253 138,770 160,723 159,523 159,121
226,289
45,094 58,564 56,846 53,945 70,527
79,226
6,893 8,966
8,238 6,893 8,966
8,238
2007 2008 1H/09 2007 2008 1H/09
THBUSDYen
Note : Data as of 30 Jun 2009 (THB/USD = 34.1693, THB/JPY = 0.358174) Excluding liabilities from finance leases; Cost of debts includes withholding tax
Debt portfolio is structured to natural hedge and minimize financial risks
Debt Profile : Control Cost & Manage Risk
Consolidated debt ~Bt314 bn ($9.2 bn)Consolidated debt ~Bt314 bn ($9.2 bn)Debt PortfolioDebt Portfolio
PTT72%
PTTEP18%
Others10%
8,637 14,93857,394
79,7541,685 2,982
13,968
38,2118,238
< 1Yr 1-2 Yr 2-5 Yr > 5 YrPTT JPY PTT USD PTT THB
: PTT Inter 3.0%: TTM 3.0%: Enco 1.6%: HMC 1.4%: PTTAC 0.5%: DCAP 0.2%
ConsolidatedConsolidatedPTT OnlyPTT Only: Cost of debts ~ 5.0%: % fixed-rate ~ 83%: Avg. debt life ~ 6.6 years
: Cost of debts ~ 5.4%: % fixed-rate ~ 91%: Avg. debt life ~ 7.3 years
~44% of total debt (Bt100 bn) will be repaid within 5 years.
Unit : Bt mm
(3%)
(72%)(73%)
(23%)
238,614
192,240
(25%)
10,322 17,920
71,362
126,203
(67%)
(29%)(5%)
(67%)
(28%)
(4%)PTT’s repayment schedule (Company Only)PTT’s repayment schedule (Company Only)206,300
220,361
(4%)
225,807
313,753
(4%)
(25%)
(3%)
(25%)
(71%)
(72%)
36
ContentsContents
2H/2009 Outlook
Financial Performance
Introduction to PTT
About Thailand
Activities & Operational Results
3737
2H/2009 Outlook
Crude oil price has strengthened from $36/bbl at end-December 2008 to
$72/bbl at end-June 2009 with average of $51/bbl for 1H/2009, partly due
to the perception that global economy is starting to recover. For 2H/2009,
crude oil price is expected to move in the $60-$70/bbl range with
enormous uncertainty surrounding ; pace of global economic recovery,
OPEC’s production, countries’ inventory levels etc.
Market GRM is expected to weaken to ~$2-$4/bbl.
To cope with oil price fluctuation, PTT enhances risk management
programs across the Group, i.e. oil price hedging, crack spread hedging etc.
Petrochemical price in 2H/2009 is expected to weaken due to the addition
of significant new production capacity, especially in the Middle East.
3838
Thank youThank you
PTT Public Company Limited – Capital Market & Investor Relations DepartmentTel. +66 2 537-2792, Fax. +66 2 537-2791, Email: [email protected], http://www.pttplc.com/
39
Create Value Through Business ChainPTT Group has strong presence in various sectors throughout the hydrocarbon value chain
4040
Others
Subsidiaries ConsolidatePTT Exploration & Production Plc. PTTEP 65.53%PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00%PTT LNG Co., Ltd. PTTLNG 100.00%Combined Heat and Power producing Co., Ltd CHPP 100.00%PTT International Co., Ltd. PTTINTER 100.00%
Joint Ventures ProportionateTrans 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%
Associates EquityThai Oil Power Co., Ltd. TP 26.00%Independent Power (Thailand) Co., Ltd. IPT 20.00%PTT Utility Co., Ltd. PTTUT 40.00%
Others CostRatchaburi Power Co., Ltd. RPCL 15.00%
Subsidiaries ConsolidatePTT (Cambodia) Co., Ltd. PTTCL 100.00%Subic Bay Energy Co., Ltd. SBECL 100.00%PTT Retail Business Co., Ltd. PTTRB 100.00%PTT Green Energy Pte. Ltd PTTGE 100.00%Retail Business Alliance Co., Ltd. RBA * 49.00%Business Service Alliance Co., Ltd. BSA * 25.00%
Associates EquityKeloil-PTT LPG Sdn. Bhd. KPL 40.00%Thai Lube Blending Co., Ltd. TLBC 48.95%Vietnam LPG Co., Ltd. VLPG 45.00%Thai Petroleum Pipeline Co., Ltd. THAPPLINE 33.19%PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00%
Others CostPTT Mart Co., Ltd. PTT Mart 49.00%PetroAsia (Huizhou) Co., Ltd. PA(Huizhou) 25.00%PetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00%PetroAsia (Shantou) Co., Ltd. PA(Shantou) 15.00%Intoplane Services Co., Ltd. IPS 16.67%Fuel Pipeline Transportation Co., Ltd. FPT 2.76%
Others Fair ValueBangkok Aviation Fuel Services Plc. BAFS 7.06%
Petrochemical Subsidiaries ConsolidatePTT Polymer Marketing Co., Ltd. PTTPM 50.00%PTT Polymer Logistics Co., Ltd. PTTPL 100.00%PTT Tank Terminal Co., Ltd. PTTTANK 100.00%
Associates EquityPTT Chemical Plc. PTTCH 49.30%PTT Phenol Co., Ltd. PPCL 40.00%IRPC Plc. IRPC 36.77%PTT Maintenance and Engineering Co., Ltd. PTTME 40.00%
Joint Ventures ProportionateHMC Polymers Co., Ltd. HMC 41.44%PTT Asahi Chemical Co., Ltd. PTTAC 48.50%
Refining Associates EquityThaioil Plc. TOP 49.10%PTT Aromatics and Refining Plc. PTTAR 48.66%Star Petroleum Refining Co., Ltd. SPRC 36.00%Bangchak Petroleum Plc. BCP 29.75%
Others Fair ValueDhipaya Insurance Plc. TIP 13.33%
Subsidiaries ConsolidateEnergy Complex Co., Ltd. EnCo 50.00%
International Trading Business GroupSubsidiaries ConsolidatePTT International Trading Pte. PTTT 100.00%
* Remark : Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies.Data as of 30 June 2009
Petrochemicals & Refining Business Group
Associates EquityPTT ICT Solutions Co., Ltd. PTTICT 20.00%
E&P and Gas Business Group Oil Business Group
Energy consumption forecast (CAGR during 2009-2020): Total ~ 4%: Gas ~ 4%: Oil ~ 2%: Coal ~ 4%: Hydro ~ 12%
41
0
500
1,000
1,500
2,000
2,500
2000 2003 2006 2009 2012 2015 2018
kboed
Source : EPPO (Exclude Renewable Energy)/PTT
OilOil
GasGas
CoalCoal
Hydro/OthersHydro/Others
39%39% 31%31%
40%40%
45%45%
19%19%
18%18%
6%6%
2%2%
51%51%
33%33%
14%14%
2%2%
1,1441,144
1,6241,624
2,4102,410
Oil and gas are major sources of energy and likely to remain so for many years
Energy Consumption : Growing along with Economic Expansion
4242
Natural Gas : Strong and Increasing Demand over Long TermNatural gas is a fuel of choice for power producers and increasingly transportation industry
0
1,000
2,000
3,000
4,000
5,000
6,000
2000 2003 2006 2009 2012 2015 2018 2021
mmscfd
Source : PDP 2007 (Revision 2)
PowerPower
GSPGSP
IndustryIndustry
77%77%
17%17%
8%8%
1,9701,970
3,4433,443
10%10%
20%20%
13%13%
71%71%
62%62%
Gas demand forecast (CAGR during 2008Gas demand forecast (CAGR during 2008--2021)2021): Total ~ 4%: Total ~ 4%: Power ~ 3%: Power ~ 3%: GSP ~ 5%: GSP ~ 5%: Industry ~ 6%: Industry ~ 6%: NGV: NGV ~ 11%~ 11%
15%15%
NGVNGV5%5%
2%2%
43
PTT: Natural Gas Sales Customer Breakdown During 1998 - 2008
Power producers are still major buyers of NG supply (~70%)EGAT proportion is decreasing while IPP and SPP is increasingIndustrial usage proportion, with higher margin, is increasing
9%
69%
16%
7%
13%
30%
17%
12%
28%
1,013
968
459
583
420
1,083
104
135248
EGAT
IPP
SPP
GSPIndustry
EGAT
IPP
SPP
GSP
Industry
CAGR 8%
By Unit By percentagemmscfd
3,443
1,570
ปรับ
4444
Natural Gas Price Structure
CustomersCustomersSales Price StructureSales Price Structure
Gas Pool PriceGas Pool Price Supply MarginsSupply Margins Pipeline TariffsPipeline Tariffs+ +
Power Producers ~ 69%Power Producers ~ 69%
: EGAT ~ 32%: EGAT ~ 32%
: IPP ~ 24%: IPP ~ 24%
: SPP ~ 13%: SPP ~ 13%
Average Purchased Average Purchased Gas PriceGas Price
1.75%1.75%
1.75%1.75%
9.33%9.33%
~ 21.7 Bt/MMBtu~ 21.7 Bt/MMBtu(Td 20.6553 +(Td 20.6553 +
Tc 1.1112)Tc 1.1112)
GSP ~ 17%GSP ~ 17% Charged at the same price structure of power producersCharged at the same price structure of power producers
Petrochemicals Feedstocks:
Reference to Saudi Aramco’s contract price
Industry ~ 10%Industry ~ 10% Charged at prices comparable to fuel oilCharged at prices comparable to fuel oil
Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns
NGV NGV ~ 4%~ 4% Charged at prices competitive to dieselCharged at prices competitive to diesel
• Thailand's Energy Regulatory Commission has approved an increase in pipeline tariff (Td+Tc) from 19.7 to 21.7 Bt/MMBtu effective on 1 April, 2009.
Note : 2Q/2009 data
Ethane, Propane, LPG Profit-sharing mechanism based on market prices of petrochemicals
NGL Reference to Naphtha market price
Local Cooking Gas
Export Cooking Gas
Ex-refinery price being capped at Bt 10.996/kg or ~315 USD/ton
• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions
45
Performance Highlights in 2Q/2009
PTT• On July 31, 2009, PTT issued Baht debentures in the total amount of Bt 35,000 mm.• At the end of July 2009, The Office of the Council of State issued an opinion that the
relevant government authorities may issue permits or licenses if operators (including PTT & its affiliates) have complied with the existing laws and regulations (i.e. guidelines for EIA preparation & approval process)
45
Oil Business
• The government agreed to reimburse PTT the differences between PTT's LPG imported costs and the cap price. The amount incurred by PTT in 2008 was ~Bt 7.9 bn. Up until August 17, 2009, PTT has received ~Bt 2.45 bn and will receive ~ Bt 400 mm per month from September 2009. For those of 2009, PTT will receive < Bt 500 mm per month.
• From Jan – July, 2009, PTT imported ~240,000 tons of LPG and the outstanding account receivables – Oil Fund (imported LPG) as of August 17, 2009 was ~Bt 6,443 mm
46
Performance Highlights in 2Q/2009 (Continued)
PTTEP• On May 29, 2009 ,PTTEP issued Baht debentures in the total amount of Baht 40,000 mm.
• Entered into “Zero Collar” oil price hedging at $55 - $86/bbl (Brent) for 20,000 bpd in 2H/2009, with total volume of 3.6 million barrels.
• BOD approved an interim dividend payment at 1.48 Bt/share or 40% payout to be paid on August 28, 2009.
Gas Business• Energy Regulatory Commission approved pipeline tariff adjustment of Bt 2.0218/mmbtu
(Td & Tc) from Bt 19.7447/mmbtu to Bt 21.7665/mmbtu, up ~10%, effective on April 1, 2009 onward.
46
4747
Performance Highlights in 2Q/2009 (Continued)
Refining BusinessPTTAR
• On April 30, 2009, PTTAR issued 5-year debentures in the total amount of Bt 15,000 mm with 5.5% p.a. interest rate.
• During April 26 – May 2, 2009, the Hydrocracking Unit “HCU” at the refinery (AR1) was shutdown to fix the leakage at the reboiler of the HCU.
BCP • On May 21, 2009, the HCU, a part of the PQI Project, was shutdown to repair the pumping
and valves’ control system, damaged during the commissioning process.
Coal Business• On June 15, 2009, Lints has completed the Mandatory General Offer for all the remaining
shares of Straits Asia Resources (SAR). The Offer has not become unconditional in accordance with the terms of the Offer, thus the total numbers of SAR shares owned and controlled by Lints remains unchanged.
2Q/08 1Q/09 2Q/09 1H/08 1H/09
Others Coal Petrochem PTTEP Gas Int'l Trading Oil Marketing
11744 59
10451
48
Unit : MM Baht
589,451
Performance Highlights : Revenues
Note : All figures after restatement; Segmentation of Revenues do not include eliminations
1,082,559
Higher revenue QoQ from increased prices and volume
-34% YoY+28% QoQ
303,509
2Q/08 1Q/09 2Q/09 %YoY %QoQ 1H/08 1H/09 %YoYOthers - 207 190 - -9% - 398 -Coal - - 4,823 - - - 4,823 -Petrochem 10,554 6,783 7,952 -25% 17% 19,400 14,735 -24%PTTEP 37,798 26,018 28,567 -24% 10% 64,969 54,585 -16%Gas 76,897 72,472 78,648 2% 9% 146,630 151,120 3%Int'l Trading 360,748 147,673 207,356 -43% 40% 651,346 355,029 -45%Oil Marketing 156,893 86,503 95,753 -38% 11% 289,719 182,256 -37%
387,056
-36% YoY
690,565
Crude Dubai (US$/bbl) -50% YoY+34% QoQ -50% YoY
23%49%
18%7%
2%1%
2Q/09 Revenue Breakdown
Petrochem
Gas
PTTEP
US$ 11,114 mm
Oil Marketing
Int’l Trading
Others
Note : Excluding eliminations
Coal
11744 59
10451
0
Others Coal Petrochem PTTEP Gas Int'l Trading Oil Marketing
49
Unit : MM Baht
45,661
Performance Highlights : EBITDA
Note : All figures after restatement; Segmentation of EBITDA do not include eliminations: Petrochem subsidiaries = PTTPM, PTTPL, PTTAC, HMC, PTT TANK Other subsidiaries = ENCO, PTTICT, BSA
26,361
2Q/09 EBITDA Breakdown
-23% YoY+33% QoQ
Improved EBITDA QoQ from higher margins & volume and started recognition of new coal assets
35,056
2Q/08 1Q/09 2Q/09 1H/08 1H/09
2Q/08 1Q/09 2Q/09 %YoY %QoQ 1H/08 1H/09 %YoYOthers -523 -316 -567 -8% -79% -1,022 -883 14%Coal - - 1,515 - - - 1,515 -Petrochem 245 248 365 49% 47% 582 613 5%PTTEP 28,915 18,069 20,375 -30% 13% 48,799 38,444 -21%Gas 16,070 5,594 9,215 -43% 65% 29,572 14,809 -50%Int'l Trading 794 690 637 -20% -8% 2,309 1,326 -43%Oil Marketing 178 2,063 3,484 1857% 69% 2,141 5,548 159%
-25% YoY82,293
61,417
Crude Dubai (US$/bbl)
7.7% 8.7% 9.1% 7.6% 8.9%
EBITDA Margin
-50% YoY+34% QoQ -50% YoY
26%59%
Gas
PTTEP
TM 15.8%S&M 0.4%GSP 8%Others 2%
US$ 1,007 mm
Petrochem1%
Others-2%Oil Mkt
10%Int’ Trd2%
Coal4%
Note : Excluding eliminations
PTT PTTEP Petrochem Affi. Refining Asso. Coal Other Affi.
21%7%
35%37%
-1%1%
50
Performance Highlights : Net Income
Unit : MM Baht
29,885
2Q/09 Net Income Breakdown
US$ 571 mm
Earnings surged 167% QoQ contributed by all businesses
-33% YoY+167% QoQ
19,895
7,449
2Q/08 1Q/09 2Q/09 %YoY %QoQ 1H/08 1H/09 %YoYOther Affi. -988 -697 -131 87% 81% -442 -828 -87%Coal - - 141 - - - 141 -Refining Asso. 10,404 2,649 7,347 -29% 177% 15,094 9,996 -34%Petrochem Affi. 3,007 -31 1,354 -55% 4468% 6,050 1,323 -78%PTTEP 8,573 3,787 4,293 -50% 13% 14,581 8,080 -45%PTT 8,898 1,741 6,891 -23% 296% 20,734 8,632 -58%
PetrochemAffi. PTTEP
PTT
Other Affi.
RefiningAsso.
2Q/08 1Q/09 2Q/09 1H/08 1H/09
Note : Other Affiliates comprise of Affiliates in Gas (PTTNGD, PTTINTER, etc.), Utilities (DCAP, PTTUT, etc.), Oil (PTTT, PTTRB, PTTGE, etc.), Others (ENCO, PTTICT, etc.)
56,017
27,344
-51% YoY
Crude Dubai (US$/bbl)
EPS (Baht per Share)
10.60 2.64 7.04 19.88 9.68
-50% YoY+34% QoQ -50% YoY
Coal117
44 59104
51
1,059 1,052 1,143 985 1,097
1,002 741
907 987 824
458 442
452 463 447
622 586
613 610 600
353 341
365 352 353
60 118
126 53 122
2Q/08 1Q/09 2Q/09 1H/08 1H/09
EGAT IPP SPP GSP Industry NGV
3,280
3,606
3,346
3,554
3,655
3,216 3,167
3,319 3,3183,284
3,016
3,1053,138
3,075
2,9703,013
3,061
2,940
2009 2008 2007 2006 2005
51
1Q 2Q 3Q 4Q
2005 avg. 2,996
2006 avg. 3,084
2007avg. 3,272
Customer ProfileGas Sales Volumes (mmscfd) @ heat 1,000
Demand recovery with pipeline tariff adjustmentPTT : Transmission Pipeline
2008avg. 3,443
+2% YoY+10% QoQ
+2% YoY+10% QoQ
Existing pipeline’s capacity ~ 4,380 mmscfd
1H/2009avg. 3,443
3,5543,280 3,450
2Q/2009 demand increased QoQ from all customer groupsReceipt Pipeline tariff adjustment of ~2 Bt/mmbtu (Td & Tc) or ~10% starting from Apr. 1, 2009 Expected natural gas demand for the year 2009 to be flat
-0.2% YoY
3,4433,606
32%
25%
13%
17%
10%3%
32%
24%
13%
17%
10%4%
1,679934
1,144
1,643
1,039
1,738
8871,116
1,624
1,001
948
375
470
871
423857 448
405
845
426
243 262 243 243 253
2Q/08 1Q/09 2Q/09 1H/08 1H/09
Product Prices ($/ton)
52
PTT : Gas Separation Plants
Note: 1/ SEA Spot2/ Contract Price (CP 50:50) 3/ MOP’S
Feedstock (NG)LPG2/Naphtha3/
HDPE1/
PP1/
Higher product prices, lower feedstock cost reflected better GSPs’ performance QoQ
Price2Q
%QoQ %YoY
HDPEPPNaphthaLPG-CPFeedstock(NG)
+22%+26%+25%-10%-7%
-32%-36%-50%-53%
0%
1H%YoY
-37%-38%-52%-50%+4%
Sales Vol. 2Q
%QoQ %YoY
TotalPropaneEthaneNGLLPG
+5%-7%
+12%+9%+2%
-2%+67%+3%-8%-7%
1H%YoY-1%
+53%-2%-7%-3%
1,030
-1% YoY
1,101
57%
12%
25%
6%
1,080
2,129 2,110-2% YoY+5% QoQ
97 95 93 96 94% Utl
649 591 6051,230 1,196147 124 135
280 259
266245 275
531 520
39 70 65
88 135
2Q/08 1Q/09 2Q/09 1H/08 1H/09
Propane
Ethane
NGL
LPG
36,93125,167 27,391
63,21852,558
28,15717,662 20,078
47,34037,741
12,9975,746 6,496
21,90212,243
2Q/08 1Q/09 2Q/09 1H/08 1H/09
Sales RevenueEBITDANI
232,634 217,194 232,957 207,533 225,119
54.23
37.04 37.2151.60
37.13
-40
-20
0
20
40
60
80
2Q/08 1Q/09 2Q/09 1H/08 1H/09
Sales Vol. (BOED)Avg. Sales Prices ($/BOE)
53Source: PTTEP analyst meeting
PTTEP: Operating and Financial performance
Sales Volume and Price
Financial Performance
Unit: MM Baht
Success ratio was 7:92 dry wells write-off with total expenditure of Bt 807 mmAustralasia (Jabiru/Challis) sales volume in 2Q/09 was approximately 5,900 BBLD
2Q/2009 Product Mix
Activities in 2Q/2009
Better oil price, higher volume, full Quarter realization of PTTEP AA (Coogee)’s performance
2Q 1H%QoQ %YoY %YoY
+0.5% -31.4% -28% +7.3% +0.1% +8.5%
2Q 1H%QoQ %YoY %YoY
Liquid33%Gas
67%Gas54%
Liquid46%
By Volume By Revenue
Gas (US$/MMBTU) 4.99Liquid (US$/bbl) 51.88Avg. sales price (US$/BOE) 37.21
EBITDA +14% -29% - 20%Sales Revenue +9% -26% -17%
Net Income +13% -50% -44%
9,686 9,899 10,24620,303 20,1451,348 1,312 1,611
2,428 2,923
519 498 522
1,079 1,020
1,843 1,754 2,487
4,211 4,241
13,396 13,463 14,866
27,601 28,329
2Q/08 1Q/09 2Q/09 1H/08 1H/09
Refined Product
Petrochem
Condensate
Crude
564 338 337 1,073 675 1,766 1,520 1,389
3,312 2,908 341
338 297
770 635
485 601 546
975 1,147
857 561 590
1,615 1,151
2Q/08 1Q/09 2Q/09 1H/08 1H/09
LPGGasolineJet/IKDieselFuel Oil
54
PTT : Oil BusinessMarket leader in oil retails at 34% market share with 1,069 gas stations nationwide (excl. PTTRM)
Unit : million liters
Source : Department of Energy Business, Note : Excluded supply sales and LPG sold to Petrochem
Oil Marketing : sales volume ~218 KBOE/d
Int’l Trading : trade volume ~1,028 KBOE/d
Unit : million liters
Source : PTT, Note : excluded inter company volume
34%
8%12%
12%
12%
19%3%
PTT
BCPESSO
Shell
Caltex
Others
Gross Margin Gross Margin –– Oil Mktg.Oil Mktg.
Trading MarginTrading Margin
Unit : Baht/Litre2Q2Q//0808
2Q/082Q/08
ThailandThailand’’s Market Shares Market ShareAs of June 2009As of June 2009
Source : Department of Energy Business
2Q/092Q/09
-16% YoY
0.06
0.80
0.10
0.42
0.01
0.96
0.10
0.63
0.09
0.25
1H/081H/08
2Q/092Q/09
1H/081H/08
PTTRM(Jet)
3,733 3,358 3,159
7,7466,516
1Q1Q//0099
1H/091H/09
1Q/091Q/09
1H/091H/09
-21% YoY-6% QoQ
+3% YoY
+11% YoY+10% QoQ
8,496
2,000 3,931
8,007 5,931 5,280
(393)2,140
5,497
1,747
94% 89% 94% 93% 92%
107% 114% 109% 102% 112%
2Q/08 1Q/09 2Q/09 1H/08 1H/09EBITDA NI
1,257
615 600
1,355
608
1,679
934 1,144
1,643
1,039
1,385
627 743
1,311
685 948
375 470
871
423
2Q/08 1Q/09 2Q/09 1H/08 1H/09
491 587 887 1,248 1,473
424 309 759 964 1,068
83% 97% 99% 89% 98%
2Q/08 1Q/09 2Q/09 1H/08 1H/09
EBITDA NI
HMC (PTT 41.44%) PP 450 KTA
Petrochemical Affiliates
PTTCH (PTT 49.30%)Unit : MM Baht
Better performance from higher margins
1,522
672 797
1,408
734
1,738
887 1,116
1,624
1,001
948
375 470
871
423
2Q/08 1Q/09 2Q/09 1H/08 1H/09
Product Prices
HDPE1/
Propylene1/
Ethylene1/
Naphtha3/
Note : 1/ SEA spot 2/ NEA Spot 3/MOP’S Source : ICIS
MEG2/
Naphtha3/
55
PP1/
Unit : US$/Ton
HDPE % UtlOlefins % Utl
% Utl
9,929 3,812
9,929 12,051 7,322 6,428
2,266 2,508
8,395 4,774
88 105 106 97 106
2Q/08 1Q/09 2Q/09 1H/08 1H/09
EBITDA NI %Utl
7,281 4,754 7,162 10,023 11,916
4,104 1,742 4,214 5,591 5,956
88103 97 97 100
2Q/08 1Q/09 2Q/09 1H/08 1H/09
6,920 2,568 3,300 9,054 5,868
5,126 1,621 2,423 6,754 4,044
85
52
71 8561
2Q/08 1Q/09 2Q/09 1H/08 1H/09
17,252 5,283 8,653
23,058 13,935 10,546
2,283 6,189 14,420
8,473
105 103 98 102 101
2Q/08 1Q/09 2Q/09 1H/08 1H/09
56
PTTAR 280 kbpd (PTT 48.66%)
Refining Associates
TOP 275 kbpd (PTT 49.10%)
IRPC 215 kbpd (PTT 36.77%)
Unit : MM Baht
Better performance QoQ from stock gain & higher P2F margin
2,765 3,026 4,021 4,324 7,046
1,846 1,591 2,704 2,697 4,293
70 68 70 60 69
2Q/08 1Q/09 2Q/09 1H/08 1H/09
SPRC 150 kbpd (PTT 36%)
BCP 120 kbpd (PTT 29.75%)
5757
Cash Flow (Company Only) : 1H/2009
OperatingOperating 2,7422,742
Net Income & nonNet Income & non--cashcashAdjustmentAdjustment
18,787*18,787*
Changes in assets Changes in assets & liabilities& liabilities
(16,972)(16,972)
CAPEX & INVESTMENTCAPEX & INVESTMENT (28,879)(28,879)
CAPEX (PP&E)CAPEX (PP&E) (22,122)(22,122)Investment in AffiliatesInvestment in Affiliates (16,447)(16,447)
Free Cash FlowFree Cash Flow
(26,137)(26,137)
FinanceFinance 9,1479,147
Bond & LoanBond & Loan
OthersOthers 3,7913,791
29,35429,354
Share IssuedShare Issued 123123
REPAYMENTREPAYMENT (8,793)(8,793)
Cash in (Out)Cash in (Out)
(16,990)(16,990)
Beginning Cash & Beginning Cash & Cash Equivalents Cash Equivalents
38,15038,150
Ending Cash & Ending Cash & Cash EquivalentsCash Equivalents
21,16021,160
Unit : MMBaht
OthersOthers (5,888)(5,888)
Note : * Including effect of exchange rates on cash and currency transtation differences
Dividend receivedDividend received 8,8998,899
Dividend paidDividend paid (5,648)(5,648)
+
+
+=
5858
7.71 8.75
13.43
22.40
30.57
34.14 34.82
18.33
9.68
2.50 2.85 4.006.75
9.25 10.50 11.50
8.00
4.00
25%
32.4% 32.6% 29.8% 30.1% 30.3% 30.8% 33.0%
43.6% 41.3%
2001 2002 2003 2004 2005 2006 2007 2008 1H/09
EPS DPS % Dividend Payout
Dividend Policy & Historical Payments
PTTPTT’’s minimum payout ratios minimum payout ratio
PTT is firmly committed to pay dividend at no less than 25% of net income
UNIT : Baht / shareUNIT : Baht / share
5959
Reference : Product Prices
1/ Source : PLATT'S SARUS2/ Source : ICIS (http://www.icislor.com/)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2QFX – THB/USD (@ end period) 35.1354 34.6679 34.3851 33.8850 31.6229 33.6588 34.1752 35.0824 35.6629 34.1693 6% -4%FX – THB/USD (Daily Average) 35.7077 34.8077 34.1736 34.0588 32.5591 32.4159 34.0160 34.9645 35.4906 34.8246 9% -2%Crude (US$/bbl)/1
: WTI 57.99 64.90 75.49 90.66 97.94 123.98 118.06 59.06 42.97 59.71 -65% 39% : Dubai (@ end period) 63.09 66.12 76.69 89.32 97.41 136.33 87.86 36.40 46.70 71.54 -66% 53% : Dubai (Daily Average) 55.42 64.79 70.08 83.19 91.10 116.50 113.62 52.70 44.10 59.30 -62% 34%Refined Products (US$/bbl) : HSD – MOP’s 70.05 81.26 86.48 102.58 114.36 154.47 139.53 70.48 53.18 66.35 -66% 25% : ULG 95 – MOP’S 68.33 85.68 81.67 95.79 105.12 129.84 119.59 56.70 54.80 68.84 -58% 26% : ULG 91 – MOP’S 67.19 84.83 80.58 94.50 104.29 128.64 118.15 54.86 52.59 66.40 -59% 26% : Fuel Oil – MOP’S 45.07 54.01 59.58 73.20 74.57 92.62 102.63 45.05 38.98 53.42 -58% 37%Refined Products (retail : HSD 23.18 25.17 25.87 28.50 29.72 36.99 36.14 32.06 19.95 24.39 -46% 22% : ULG 95 26.20 29.56 29.26 31.75 33.37 37.86 - - - - : ULG 91 25.28 28.76 28.46 30.85 32.21 36.78 37.83 34.27 25.52 30.97 -31% 21% : Gasohol 24.70 26.06 25.76 26.25 29.37 33.75 31.35 29.69 21.22 27.17 -37% 28%Feedstocks (US$/ton) : LPG (Saudi Aramco’s CP) 527 569 583 756 833 857 874 543 448 405 -48% -10% : Naphtha (MOP’S) 527 619 621 735 793 948 905 312 375 470 -60% 25% : Condensate (ATC) 504 593 621 761 809 1,026 966 422 397 464 -61% 17%Petrochemicals (US$/ton)2/
: Ethylene (SP CFR SEA) 1,222 1,140 1,203 1,156 1,237 1,385 1,379 770 627 743 -55% 19% : Propylene (SP CFR SEA) 1,181 1,142 1,128 1,164 1,293 1,522 1,572 893 672 797 -56% 19% : LDPE (Film/SP CFR SEA) 1,293 1,342 1,502 1,582 1,711 1,801 1,793 1,219 946 1,126 -47% 19% : LLDPE (Film/SP CFR SEA) 1,274 1,289 1,354 1,424 1,605 1,693 1,719 1,138 954 1,117 -44% 17% : HDPE (Film/SP CFR SEA) 1,266 1,299 1,383 1,462 1,607 1,679 1,709 1,149 934 1,144 -44% 22% : MEG (SP FOB NEA) 900 963 1,020 1,433 1,164 1,083 910 492 465 538 -57% 16% : PP (SP CFR SEA) 1,264 1,298 1,373 1,394 1,510 1,738 1,805 1,087 887 1,116 -49% 26% : Benzene (SP FOB Korea) 978 1,084 1,006 1,008 1,051 1,215 1,209 700 406 661 -67% 63% : Paraxylene (SP FOB Korea) 1,047 1,176 1,111 1,068 1,169 1,420 1,394 881 853 1,057 -40% 24%
20092007 2008%YoY %QoQ