5th annual UBS Thai Oil and Chemical Field Trip June 9,...
Transcript of 5th annual UBS Thai Oil and Chemical Field Trip June 9,...
5th annual UBS Thai Oil and Chemical Field Trip
June 9, 2014
Contents
1
Overview
Performance
Q2/14 Outlook
Overview Performance Q2/14 Outlook
Indigenous (19%)
Imported Refined Petroleum Products 96 KBD
901 KBD (**)
Source: PTIT
Remark : (*)Refined product from refineries= 859 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 98 KBD
(**) Not included Inventory
KBD = Thousand Barrels per day
Import (81%)
Crude/ Condensate 836 KBD
Refined Products 957 KBD*
Domestic
Crude/ Condensate 213 KBD
Supply Production Sales
Export
165 KBD
Oil Balance Thailand: Jan-Mar 2014
223 KBD
Adequate refining capacity maintains the stability of supply
Total Refining Capacity in Thailand: 1,087 KBD
PTT’s Associated Refineries : 910 KBD
(TOP, PTTGC, SPRC, IRPC, BCP)
Other Refineries : 177 KBD (ESSO)
Refined Products 155 KBD
2
Crude Export 10 KBD
932KBD
Overview Performance Q2/2014 Outlook
Natural Gas Balance: Jan – Mar 2014
Gulf of Thailand (80%)
Power (58%)
Industry (14%)
NGV (7%)
Petrochemical Feedstock
(15%)
Industry Household
Transportation (6%)
Ethane/ Propane/ LPG/NGL
LPG/NGL
Remark: MMSCFD = Million Cubic Feet @ Heating Value 1,000 Btu/ft3
3,555 MMSCFD
Main driver of the Thai economy
Supply Production Sales
3
LNG21%
Myanmar79%
Chevron 32%
PTTEP 26%
Others 42%
Bypass Gas 1,124
MMSCFD
936 MMSCFD (21%)
Methane 1,495 MMSCFD
Onshore (3%)
135 MMSCFD
6 GSPs Total Capacity
2,740 MMSCFD @ Actual Heat
Import (17%)
774 MMSCFD
Overview Performance Q2/2014 Outlook
81%
31% 19%
59%
2001 2013
Revenue
Net Income
Affiliate
PTT
702
3,155
IPO
1 As of 27 March 2014 2 As of March 2014
Note: THB/US$ exchange rate of 31.50
Largest company on Thai Stock exchange
Market cap ~US$27bn1 or ~ THB843bn1
Group companies:16.8%1 of Thai Stock Exchange market
capitalization
Majority owned by Thai government (66%)
51% by Ministry of Finance
15% by Vayupak Fund
Fully integrated and highly diversified over the entire O&G
value chain
International exploration and production business with 846
mmboe2 of proved reserves in 2013
Sole operator and owner of gas transmission pipelines and
GSPs in Thailand
Largest refinery group in Thailand with stakes in 5 of 6
refineries in the country
Largest petrochemical producer group in Thailand with
stakes in 6 of 8 major petrochemical plants
Leading oil marketing business with 1,381 retail stations
and 40% 2 of market share by volume
International oil trading business having traded 15.1 bn
liters 2
Coal business assets in Indonesia,
Madagascar, and Brunei
New Power Flagship (GPSC) to capture opportunity in
neighboring ASEAN countries
PTT is Thailand’s Largest Energy Company
PTT Public Limited Company (“PTT”) Robust revenue and Net Income growth since IPO (MMUSD)
12,553
94,756
International and local recognition
Thailand best borrower award
2014 Best CEO
Best CFO
Best Managed Company
Best Corporate Governance
Best Investor Relations
Best Corporate Social
Responsibility
Best Commitment to Strong
Dividend Policy
SET Awards
Top Corporate
Governance Report
Award 2010 & 2011
Best Corporate Social
Responsibility Awards
2011 & 2012
81st Fortune Global
500 in 2013 95th in 2012
128th in 2011
Platts Top 250 Global
Energy Company
18th Overall Performance
of 2013
144th in 2013 167th in 2012
171th in 2011
Dow Jones Sustainability
Index (DJSI)
DJSI Member 2013-2014
(Listed in 2011)
4
Overview Performance Q2/2014 Outlook
Ministry of Finance holds majority stake in PTT PTT ratings at Thai sovereign level
Thai Ministry of Finance
51%
Vayupak Fund1 15%
Public 34%
Kingdom of Thailand – FC
Baa1 BBB+ BBB+ A-
PTT – FC Baa1 BBB+ BBB+ A-
PTT – LC Baa1 BBB+ A- A
Largest market cap on the Thai Stock Exchange
Note: As of March 2014
• Foreign 17%
• Thai 17%
PTT PTTEP PTTGC TOP IRPC BCP Total Others
Market cap (BNUSD)2 26.7 19.5 10.3 3.4 2.1 1.3 63.3 319.7
% of SET 7.0% 5.1% 2.7% 0.9% 0.6% 0.4% 16.8% 83.2%
Moody’s rating Baa1 Baa1 Baa2 Baa1 Ba1 N.A. - -
S&P rating BBB+ BBB+ BBB BBB BB+ N.A. - -
PTT’s Strategic Importance to Thailand
5
1 The Vayupak Fund is a registered investment management fund in Thailand in which the Government is a major unit holder. The Government has rights of first refusal with respect to
any of our shares to be sold by the fund. Although the fund’s shareholding may be considered to be beneficially owned by the Government under international standards, such shares
are not considered to be owned by the Government for the purposes of Thai law or our compliance with certain of our debt covenants 2 Based on data as of 27 March 2014/ THB/US$ exchange rate of 31.50
Overview Performance Q2/2014 Outlook
Our Major Businesses & Activities
E&P
Gas
PTTEP 65.29% Exploration and Production
Upst
ream
Oil Marketing
Int’l Trading
Dow
nst
ream
Petrochemic
al & Refining
PTTGC 48.89% Petrochemical Flagship
TOP 49.10% Integrated Refinery & Petrochemical
IRPC 38.51% Integrated Refinery & Petrochemical
SPRC 36.00% Stand alone Complex Refinery
BCP 27.22% Complex Refinery & Retail Stations
New
Busi
ness
Coal PTT Energy Resources 100% Coal Business
GPSC 30.10% Power Flagship
• Oil Marketing 100% Retail service Stations and commercial Marketing
• Int’l Trading 100% Import/Export/Out-Out trading of petroleum and
petrochemical products
Inte
rmedia
te
PTT PLC
• Gas Pipeline 100% Sole owner/operator of the Transmission pipeline
• S&M 100% Supply & Marketing of Natural Gas
• GSP 100% Extracting Hydrocarbon contents in NG for Petrochemical’s feedstock
6
Business Areas Activities Company PTT’s holding (%)
Power
Overview Performance Q2/2014 Outlook
PTT Aspiration Strategic direction and target to achieve “Big-Long-Strong” aspiration
“Thai Premier Multinational Energy Company”
7
Strong
TOP Quartile ROIC
Listed in DJSI since 2011
Long
Ranked Fortune 81th
Big
Technologically Advanced and Green National Oil Company
Overview Performance Q2/2014 Outlook
1,056 1,234
12,308 13,739
12,602 7,450
6,569
3,516
3,269
1,509
Q1/2013 Q1/2014
2,595
2,852
4,329
487 4,985
4,002
Grossmargin
FX gain OPEX * Share ofincome
Interestexpense
& Incometaxes
NCI
PTTEP
27,448
PTT
Others
Refinery
Petrochem
35,804
23%
54%
46%
41%
12%
13%
Q1/14 Performance: PTT’s Strong Performance offset weaker Affiliates
8
Gas Avg. NG gas margin increased Avg. GSP sales vol. decreased 8% More loss on NGV Oil vol. increased 6% Oil margin increased 2% Trading Margin increased 30%
Overall spread margins drop esp. PX Sales vol. decreased 6% Sales vol. increased 3% Avg. selling price decreased 3%
MMTHB
Better coal performance from cost reduction program
• Total intake decreased 10% • Avg. ACC GRM decreased 30%
Overview Performance Q2/14 Outlook
*including petroleum exploration expenses and royalties
Gross margin FX
gain OPEX*
Share of income
Interest expense & income
taxes
NCI
Contents
9
Overview
Performance
Q2/14 Outlook
Overview Performance Q2/14 Outlook
E&P Key Overview in Q1/14
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
Successful Brazil acreage farm-in
Proceeding with exploration and
appraisal program as planned
Exploration Portfolio
Expansion
Growth-Delivering
Development and
Solid Operations
Montara gradual ramp-up
Zawtika gas delivered to domestic market
Resilient domestic gas demand
Value-Accretive
Portfolio Management
Consolidate domestic leadership through
Hess Thailand acquisition
Rationalizing asset value through Canada oil
Sands asset swap
10
E&P Performance:
Expenses and prices pressured performance
Product Prices
Net Income (100%)
Sales Volume
Key Overview
7.96 7.64* 7.79*
103.74 101.53 100.84
67.03 64.48** 64.92**
Q1/13 Q4/13 Q1/14
Liquid (USD/BBL)
Gas (USD/MMBTU)
Weighted Avg. (USD/BOE)
MMUSD
191 199 198
101 101 101
Q1/13 Q4/13 Q1/14
300
Liquid
Gas
KBOED
292
11
QoQ • Sales volume slightly decreased from Vietnam16-1, S-1 project and Yadana while average prices slightly increased. • Net income increased mainly due to lower exploration expense, G&A and lower income tax. YoY • Sales volume increased mainly from start up of Montara/ MTJDA-
B17 / Natuna Sea A and First Gas sale in March of Zawtika Project. • Net income decreased due to higher loss from non-recurring item,
DD&A and Operating expense of PTT Australasia project
299
1%QoQ
* Gas price, if excludes Vietnam 16-1 retroactive sale recording, is 7.98$ for Q4 13 and 7.97$ for Q1 14
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
** Average selling price, if excludes Vietnam 16-1 retroactive sale recording is 66.4$ for Q4 13 and 65.91$ for Q1 14
44% YoY
3% YoY
3% YoY 1%QoQ
2% YoY 2%QoQ
60% QoQ
680
238
380
Q1/13 Q4/13 Q1/14
3% YoY
0.3% QoQ
* Not-restated *
On target development and exploration progress to achieve solid growth
Focus Areas Q1 14 Q2 14 Q3 14 Q4 14 2015 ~2020
Q1 2014
Analyst Meeting
Zawtika domestic gas delivery
Montara sub-sea wells tie-in
Zawtika gas export to Thailand
Algeria Bir Seba first oil
Mozambique LNG expected FID
Brazil farm-in and first entry
Myanmar M3 appraisal drilling start
= Completed
Zawtika appraisal drilling start
Myanmar PSC-G & EP-2 exploration drilling start
Announce Canada oil sands asset swap
Announce Hess Thailand acquisition
Maple East-1 exploration drilling start
329
KBOED
>10% Growth
~600
KBOED
12 / 12
Pursue M&A strategy and continue to evaluate asset rationalization opportunities
~7% Growth
2013 Actual
Production Volume
• Thornbury
• MZ LNG
• Myanmar M3
Expected
Contribution
E&P Roadmap:
Building Strong Platform to Deliver Growth On target development and exploration progress to achieve solid growth
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
12
4,284
4,507
4,611
4,746 4,695 4,675
4,488 4,462
4,439
Q1 Q2 Q3 Q4
1,380 1,052 1,258
866 896 610
528 660 710
988 911 910
630 635 632
303 308 319
Q1/13 Q4/13 Q1/14
Gas BU Performance:
Better performance from better GSP margin
NG Sales Volume NG Customer Breakdown
2013
2012
2014
MMSCFD
EGAT (28%)
IPP (14%)
SPP (16%)
GSP (21%)
Industry (14%)
NGV (7%)
MMSCFD
4,462 4,695
13
AVG.
4,439
4,537
4,580
4,439
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
0.5% QoQ 5% YoY
8.43
8.57 8.87
Q1/13 Q4/13 Q1/14
NGV Sales Volume
Unit : Approx. KTon/Day
Vol. MMCFD
303 308 319
4% QoQ
5% YoY QoQ
• NG volume decreased mainly from lower demand from EGAT due to cold weather
• Higher NGV Sales volume due to # NGV stations back to normal operation
YoY
• NG volume decreased mainly due to cold weather at beginning of this year dragged demand of Natural Gas from EGAT
• NGV Sales volume increased by 5%
QoQ
• Higher NGV Sales volume due to NGV Station back to normal operation after closed during political demonstration
YOY
• Sales volume increased by 5%, also, feed cost increased
• No Government subsidy, while special discount given to public transportation customers
Key Overview
SM: GSM, NGR, CHP margin +1.75% no cap for internal use, external cap according to price structure
4,008
5,921
5,977
-5,266
1,535 3,135
6,562
4,760
-4,219
Gas BU EBITDA
MMTHB
11,773 Others
TM
GSP
14,488
Q1/13 Q4/13* Q1/14
1,906
5,675
4,757
6,886
-4,736
12,381
17% QoQ 23% YoY
*Not Restated
S&M
NGV
1,741
403 375 338
887 864 858
1,482 1,535 1,555
1,539 1,537 1,562
Q1/13 Q4/13 Q1/14
Gas BU Performance :
Better performance from better GSP margin
14
GSP - Reference Product Prices
PP
HDPE
Naphtha
USD/Ton
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
GSP Cost
QoQ
• EBITDA increased from higher margin of GSPs and resumption of GSP#5
YoY
• Better performance from GSPs due to an decrease in NG feed cost and higher margin on GSPs.
• However, more loss on NGV limit gain on Gas BU performance
Propane (14%)
NGL (12%)
Ethane (32%)
676 648 638
184 173 185
552 509 476
220 177 209
Q1/13 Q4/13 Q1/14
GSP Sales Volume
LPG (42%)
KTon
1,632 1,507
1,508
0.1% QoQ
8% YoY
Key Overview
15
E & P Gas Oil & Trading Refining PetChem New Business
Overview Business & Roadmap Performance Q2/14Outlook
Gas BU:
4th onshore pipeline delay but negligible
4th onshore pipeline project
• Cost 40 Billion THB
• 1 year delayed
• Impact manageable
• Long term gas demand, close to GDP as our major customer is power sector
• Power sector: 60% using gas, in term of vol still growing but for % might be lower
• GSP5 will S/D only 15 days for installation of WHRU in Sep’14
536 643 641
3,879
1,445
4,408
Q1/13 Q4/13** Q1/14
4,415
2,088
5,049
0.90
0.66
0.92
Q1/13 Q4/13 Q1/14
Oil BU Performance :
Margin and inventory gain drive performance
Contribution Margin 1/
Oil BU - EBITDA Key Overview
MMTHB
THB/Liter
1/ Excluded non–oil business
16
QoQ
• EBITDA surged from better margins and sales volume • Strong performance of non-oil despite political unrest
YoY • Better margin mainly from aviation fuel together with stock gain
• Higher sales volume from all products esp. diesel and aviation
• Growing non-oil business performance following branch expansion
Oil
Non-Oil*
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
* EBITDA from Operating ** Not restated
39% QoQ 2% YoY
142% QoQ 14% YoY
5,956 6,031
6,295
Q1/13 Q4/13 Q1/14
Sales Volume 2/
MM Liter
2/ Only PTT and PTTRM
4% QoQ 6% YoY
1,680 1,541
1,940
Q1/13 Q4/13 Q1/14
0.10 0.09
0.13
Q1/13 Q4/13 Q1/14
16,612 16,824
15,113
Q1/13 Q4/13 Q1/14
Trading BU Performance :
FX and lower condensate discount support margin
Contribution Margin*
Trading BU - EBITDA*
Sales Volume
Key Overview
MMTHB
THB/Liter MM Liter
* PTT only : FX Adjustment in compliance with Accounting Standard
17
QoQ
• Higher margins from better spread from crude price and condensate
• Sales volume dropped mainly from SPRC T/A and lower SPOT sales
• YoY • Better margins from lower domestic condensate discount and
petrochemical margin of PTTT • Lower sales volume mainly from out – out transactions
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
** Not restated
10% QoQ 9% YoY
44% QoQ 30% YoY
26% QoQ 15% YoY
• Import parity • Basket price or
reference price
5.45
2.03
4.07 5.41
3.81 3.82
Q1/13 Q4/13 Q1/14
QoQ • Mkt GRM increased due to rising of average petroleum product spread,
esp. ULG95 • Q1/14 has stock loss while Q4/13 had stock gain then A/C GRM stable • PX margin continues declining from low demand and supply addition in
Asia (China) • BZ spread dipped on lacking demand & BZ downstream plants
turnaround started in March
YoY • A/C GRM decreased mainly from lower Mkt GRM & more stock loss • A/C GIM drop from PX and BZ spread tumbled on weak demand &
over supply • Lower utilization rate
Source : PTT, Refining Associates Note: Weighted Avg. GRM of PTT’s associates’ complex refineries (TOP, SPRC, BCP, and IRPC) Weighted Avg. GIM of PTT’s associates’ integrated refineries (TOP and IRPC) Account GRM/GIM = Market GRM/GIM + Hedging Gain/Loss + Stock Gain/Loss
(0.16)
0.95
(0.90)
108.2 106.8 104.5
GRM/GIM Refinery Utilization
Refining Business Performance:
GRM drop following tumbled Crude from China slowdown/QE
18
USD/BBL
A/C GRM
A/C GIM
Mkt GRM
Dubai
7.11 7.36
5.95
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
16% YoY
19% QoQ
1,210
-1,174
3,227
10
2,534
153
784
344
2,197
733
1,565
Q1/13 Q4/13* Q1/14
Net Income (100%)
MMTHB
BCP
IRPC
SPRC
TOP
1,721
6,787
3,269
52% YoY
90% QoQ
U-Rate (%) Q1/13 Q4/13 Q1/14
Aggregated U-Rate
93 93 85
TOP 100 101 105
IRPC 85 81 80
SPRC 101 105 60
BCP 83 84 82
Aggregated Intake (KBD)
732 733 662 10% YoY 10% QoQ
+ Higher U-Rate - Lower Mkt GRM - More Stock loss from soften Dubai - Pressured PX, while stable BZ margin
+ Better A/C GIM from; higher petroleum product spreads & more usage of domestic crude
- T/A 14-23 days (18 Mar – 9 Apr)
- Plant Turnaround: 8 Feb – 17 Mar - Lower A/C GRM
+ Better net marketing margin - Decline in Crude run - Decrease in total GRM
BCP
IRPC
TOP
SPRC
T/A (38 days)
T/A (23 days)
* Not restated
YoY
194
-0.16 0.95 -0.90 Stock Gain/Loss
Refineries : Going forward
19
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
CDU-3 Major Turnaround
(165 KBD) : Jun-July
~55 Days
No major turnaround after planned S/D
during 18 Mar-9 Apr
Turnaround Maintenance : 1May- 15 Jun (46 Days)
• Install new CDU (100KBD)
• HCU Revamp
(To produce more diesel/jet at
expense of fuel oil)
-COD : Q2/2014
• CDU-3 Crude Preheat Train
(Reduce fuel usage)
-COD: Q3/2014
•Explore New Geography:
Myanmar & Indonesia: by 2014
•UHV Project on track (Increase Propylene from 412 KTA to 732 KTA) - Upgrading bottom refinery product to high value added for Petrochem feedstock) -COD : Q3/2015 • Delta Project - Benefit : USD 5.6 MM
• Solar: Phase 3
(48 MW PPA)
- COD earlier than plan
(Apr./14)
Turn
arou
nd
Pro
ject
Upd
ates
Petrochemical: Olefins In Good Shape; Aromatics Under Pressured
Source: IHS as of 3 Mar 14
80.7%
79.4%
80.1%
80.8%
79.7%
78%
80%
82%
0
2
4
6
8
2011 2012 2013 2014 2015
Additional Demand
Additional Supply
Op Rate83.4% 84.5% 83.4%
76.6%
71.3%
60%
65%
70%
75%
80%
85%
90%
0
1
2
3
4
5
6
7
2011 2012 2013 2014 2015
Additional Demand Additionl Supply Op Rate
Forecast
72.1% 72.4%
72.7%
71.3%
72.3%
65%
67%
69%
71%
73%
75%
-1
0
1
2
3
2011 2012 2013 2014 2015
Additional Demand
Additional Supply
Operating Rate
86.2%
85.6% 85.8%
87.7%
88.3%
84%
86%
88%
90%
0
2
4
6
8
2011 2012 2013 2014 2015
Additional Demand
Additional Supply
Operating Rate
Global Benzene Demand/Supply Addition Oversupply from Asian refineries
Million Metric Ton Forecast
Global Ethylene Demand/Supply Addition Demand over supply
Global PX Demand/Supply Addition Ample capacity add will knock off margins
Global Propylene Demand/Supply Addition Supply jump from U.S. shale gas will weaken price
Million Metric Ton Forecast
Million Metric Ton Forecast Million Metric Ton
Demand
Supply
Demand
Supply
Demand
Supply
Demand
Supply
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
20
4.37 3.42
4.48 3.73
5.31
4.12
Q1/13 Q4/13 Q1/14
92% 93%
91%
430 346 380
669
502
387
Q1/13 Q4/13 Q1/14
BZ-Cond
PX-Cond
Petrochemical Business Performance: Pressured PX price stumble performance
Net Income (100%)
Aromatics
Unit : MMTHB
12,075
7,420 6,296
Q1/13 Q4/13 Q1/14
6,766
PTTGC
HMC
13,303
21
Others 7,924
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
QoQ • Olefin prices increased due to tight supply • PX price continue falling due to increased supply & soften demand • Utilization decreased from several plants S/D (e.g. I-1, I-4) • FX gain from bath appreciation
YoY • Overall Spread margin tends to drop • Olefin sales volume decreased due to I-1/I-4 S/D • Aromatics sale volume decrease due to many scheduled
turnaround of BZ plants • Variable cost increased from maintenance and several plants S/D • Less FX gain
40% YoY
17% QoQ
521
590
620
Q1/13 Q4/13 Q1/14
Olefins U-Rate
97%
93%
77%
Olefins
HDPE-Naphtha USD/Ton
19% YoY
5% QoQ
BTX U-Rate
101%
103%
101%
Refineries
CDU U-Rate
10% YoY
22% QoQ
Stock G/L
A/C GRM
Mkt GRM
BZ-Cond
PX-Cond
12%
YoY
42%
(0.91)
1.11
(0.69)
S/D P: I-1 (37days) U: I-4/1(23days)
YoY PTTGC + Mkt GRM slightly increased + Olefins spreads improved
- Aromatic spreads
tumbling
- Sales Vol. decreased
due to I-1 & I-4/1 S/D
-0.91 1.11 -0.69 Stock Gain/Loss
Synergy: • Pure H2 via New PSA : COD Q2/2014 • Off gas upgrading at olefins : COD Q4/2014 Debottlenecking & Expansion: 1) BV Project • 75 KTA of Butadiene, 25 KTA of Butene-1 • COD: Q4/13 2) TOCGC Plant Improvement Project • Increases EOE capacity by 90 KTA from 336 KTA to 426 KTA • COD : Q3/15 3) PX Expansion • Increases ARO II capacity from 655 to 770 KTA • COD: Q4/15 4) PTTPE Cracker Debottlenecking • 12% Olefins increase • COD: 2016 5) Phenol 2 • 250 KTA of Phenol, 155 KTA of Acetone • COD: Q3/15
PBS 20 KTA • Start construction in Q1/2013 • Expected COD: 2015
Petrochemical : Going Forward
22
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
2014 Outlook:
Refinery: Capacity additions shift to
2015 make 2014 crack spread still ok
Aromatics: PX down cycle / BZ slightly
weak
Olefins: Ethylene Asian demand
supports margins/ Propylene capacity
addition outpace demand
Phenol/BPA: Oversupply squeezes
margin
76 70
68
50
40 44
Q1/13 Q4/13 Q1/14
8.2
-4.9
9.6
Q1/13 Q4/13 Q1/14
Other Businesses : Coal - SAR (94.58%) Better performance from cost reduction initiatives
Avg. Selling Price & Cash cost
Net Income (100%)
Sales Volume
Key Overview
MMUSD
USD/Ton
1,979 2,272 1,958
493 1,062
941 2,472
3,334 2,899
Q1/13 Q4/13 Q1/14
KTon
Jembayan
Sebuku
23
Selling price
Cash Costs
*Not restated
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
3% QoQ 11% YoY
10% QoQ 12% YoY
296% QoQ
18% YoY
13% QoQ 17% YoY
QoQ • Net income increased mainly from lower depreciation and no
write-off, despite lower sales volume and higher cash cost
YoY • Sales volume slightly increased due to higher production from
Sebuku mine especially from Northern Leases area. • Net income increased as consequence of cost reduction initiatives
and mine plan optimization. *
SAR Project Update
24
Overview Performance Q2/14 Outlook
E & P Gas Oil & Trading Refining PetChem Others
2014 Operational Plan Overview:
• Continue cost reduction initiative program under
downturn market (mainly on mining and logistics)
Target to reduce at least 5% from 2013
• Improve working efficiency through corporate
reorganization and cost reduction program
• Study coal blending to optimize SAR resources
• Market expansion in India and South East Asia region as
well as domestic market in Indonesia.
294 251
312
Q4/13* Q1/14(Before TFRIC#4)
Q1/14(After TFRIC#4)
15%QoQ
Net Income (100%) Sales Volume
Key Overview
MMBaht KMWh
25
QoQ • Lower power sales volume from Sriracha plant S/D • Lower steam sales volume due to customers’ S/D
6% QoQ
Other Businesses : Power - GPSC (30.10%)
Better performance as a result of TFRIC#4
2,126
1,413 1,214 1,111
Q4/13 Q1/14
KTon
34% QoQ (Power)
8% QoQ (Steam)
E & P Gas Oil & Trading Refining PetChem Others
Overview Performance Q2/14 Outlook
Moving Forward (Capacity*) MW
18%
1,521 1,559 1,793
32 32 78
2013 As of Q1/2014 Next Step**
Renewable
Conventional
*Power only (excludingSteam) According to Business Plan 2014-18 (@ 4 Mar 2014 (To be revised) ** By year-end 2014
2%
1,553 1,591 1,871
*Not restated
Power
Steam
GPSC Project Update
26
Overview Performance Q2/14 Outlook
E & P Gas Oil & Trading Refining PetChem Others
Update Progress (Q1-2014)
Completed transfer shares of 5 power assets from PTT
Combined Heat and Power Producing Company Limited (CHPP)
Bang Pa-In Cogeneration Company Limited (BIC)
Thai Solar Renewable Company Limited (TSR)
Natee Synergy Company Limited (NSC)
NavaNakorn Electricity Generating Company Limited (NNEG)
Credit facility Signed between GPSC and KTB, BAY, TISCO, MIZUHO
and GSB in the amount of 8,600 MTHB on Mar 20,2014
Highlight Planned Activities 2014
Transfer shares of the remaining 2 power assets from PTT/PTTER
Ratchaburi Power Company Limited (RPCL)
Nam Lik 1 Power Company Limited (NL1PC)
GPSC Initial Public Offering Preparation
699,864
749,995 716,571
Q1/2013 Q4/2013* Q1/2014
50%
27% 13%
6% 4%
PTT
PetChem
Others
PTTEP
Refining
Net Income
Unit : MMTHB
108.2 106.8 104.5
57,335 58,983
64,492
Q1/2013 Q4/2013 Q1/2014
35,804
15,392
27,448
Q1/2013 Q4/2013 Q1/2014
12.52 5.32 9.60
PTT Consolidated Performance: Q1/2014
27
Dubai (USD/BBL)
EBITDA
Net Income
EPS (THB/Share)
Revenue
Q1/14
72%
16%
8% 4%
PTT - Oil & Trading
PTT - Gas
Others PTTEP
65%
23%
8% 4%
PTT - Oil & Trading
PTT - Gas
Others
PTTEP
Revenue
EBITDA
2% YoY
Overview Performance Q2/14 Outlook
* Not restated
23% YoY
9% QoQ
4% QoQ
78% QoQ
12% YoY
*
*
739,785 675,705
541,946
525,963
363,206
379,137
160,370 198,574
824,626 846,451
471,395 465,864
509,287 467,065
Other Liabilities
PP&E
Others Non-
current Assets
Other Current Assets
L/T Liabilities (incl. due within 1 yr)
Total Equity
MMTHB
Cash & S/T Invest
Decreased assets :
• A/R due to lower sales volume
31 Dec 13 31 Mar 14
1,805,308 1,779,380
Statement of Financial Position
28
Overview Performance Q2/14 Outlook
1.4%
Decreased PP&E:
• Reclassification of related PP&E as non-
current assets held-for-sales of PTTEP
PTT Ratings at Sovereign Level
− FC : Moody’s (Baa1), S&P (BBB+),
JCR (A-), FITCH (BBB+)
− LC : Moody’s (Baa1), S&P (BBB+),
JCR (A), FITCH (A-)
12.8 12.6
13.6
0.4 0.4 0.3
1.3 1.4 1.2
0.00.51.01.52.02.53.03.54.04.5
Q1/13 Q4/13 Q1/14
Net Debt/EBITDA ≤ 2.0
Net Debt/Equity≤ 1.0
ICR*
*ICR = EBITDA/Interest Expense
7.71 8.75
13.43
22.40
30.5734.14 34.82
18.3321.06
29.58
. 36.64
33.07
2.50 2.85 4.006.75
9.25 10.50 11.508.00 8.50
10.2513.00 13.00 13.00
32.4%32.6% 29.8% 30.1% 30.3% 30.8% . 43.6% 40.4% 34.7% 34.9% 35.5% 39.3%
1 1 11 1 1
Dividend Policy & Historical Payments
29
PTT’s minimum payout ratio
PTT is firmly committed to pay dividend at no less than 25% of net income
Baht / share
EPS
DPS
Dividend payout
Overview Performance Q2/14 Outlook
Gas 42%
Oil & Trading 17%
R&D, Others 3%
M&A and
Investment Oversea 24%
LNG 14%
29,903 22,826 17,17730,103
37,839
11,7539,319
11,925
11,50310,4156,888
3,206765
45744
38,404
17,563 29,04318,733
18,709
2014 2015 2016 201 201
Investment in Joint Venture and Its subsidiaries
Head Office and Others
Oil and International Trading
Natural Gas
Unit: MMTHB
PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 327bn ($10bn) during 2014-2018
CAPEX Breakdown : 5 Years
By Business Unit
JV &
Investment in
Subsidiaries
38%
30
, 1 , ,
86,
, 1
4th pipeline & extension
LPG import facility
LNG, M&A and Investment Oversea
Overview Performance Q2/2014 Outlook
Contents
31
Overview
Performance
Q2/14 Outlook
Overview Performance Q2/2014 Outlook
: - US Economics Recovery
: - IMF forecast ASEAN-51 GDP growth in 2014 around 4.9%
: - Risk of Capital Outflow and rising interest rate
32
Economic Outlook : Challenges ahead
US Market : shows signs of stronger recovery
: - Fed to keep QE tapering on course
EU market: keep an eye on political issue : - EU Economy tends to recover from recession
: - Ukraine and Russia political tension tend to escalate
China market: conservative growth : - IMF Raise Chinese GDP Forecast to 7.5% in Y2014
Thailand market: Prolonged Politcal Turmoil : - Export growth according to global economies recovery
: - How long Thailand can have election - Risk of Thailand Credit Rating Downgrade
32
AEC market : effect from Capital Out Flow
1 Indonesia, Malaysia, Philippines, Thailand, and Vietnam.
: - Chinese Credit Controls : slower sustainable growth
Overview Performance Q2/14 Outlook
PTT Performance: Better performance from professional management : - Better Performance under political uncertainty
: - Hanging Issue: on LPG and NGV Pricing Cap
Ukraine and Russia political tension remains
US and EU Economics Improved
33
89.2
90.4
91.6
88.7
90.1
91.8
0
1
2
3
4
5
6
7
8586878889909192939495
2012 2013 2014
MBD MBD
World oil Demand(LHS) World Oil Supply(LHS) OPEC Spare Capacity*(RHS)
“OPEC spare capacity rises in 2014. OPEC will play an important role to balance global oil demand/supply to maintain oil price of $1 /barrel”
Dubai $109/bbl
Dubai $105/bbl Dubai
$104/bbl
Source: EIA report Apr ’14, OPEC World Oil Outlook, (PTT Group) Estimated (28.04.2014)
Revised
Crude Oil Outlook: Limited Demand on Refinery Turn Around
Overview Performance Q2/14 Outlook
102.6 102.8 103.3 103.7
103.8 103.8 104.3 104.5
Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14WTI Brent Dubai Dubai Forecast (PTT Group PRISM)
2013 Dubai $105.5/bbl
2014 Q1 Dubai $104.4/bbl
Dubai Forecast 2014 Range $102-$104/bbl
Asia Pacific Refineries turnaround season in Q2/2014
Easing Libyan supply disruption
Chinese economy grows more conservative
Crude Oil Price Forecast range bound 102-104 $/bbl
Psychology level @ 100 USD/BBL
Factors to watch
World Oil Demand/Supply Balance
Factors to watch
US LNG Export Terminal Projects
Source : Short term 2014 Outlook, April 2014 EIA, Street Research, Bloomberg and PTT
Henry Hub Natural Gas Price Forecast
Henry Hub / JKM Price Outlook: US Gas in Surplus due to Significant Production Growth /Korean ample supply to pressure JKM Price
34
• As of 1st May 2014, 7 LNG Export Projects, total capacity 70 MTPA, have been approved by DOE to transport
US gas to NON-FTA countries (Sabine Pass LNG, Freeport LNG, Lakes Charles LNG, Cove Point LNG, Freeport
Expansion, Cameron LNG, Jordan Cove). However only 1 LNG Projects which is Sabine Pass LNG has been
approved by both DOE and FERC. Others are still waiting for FERC approval to construct Liquefaction Plants
to export US LNG.
• More than $ 70 Billion is expected to invest and to rejuvenate US Petrochemical industry as result of
affordable gas price and feedstock.
• Shale and other unconventional gas supplies should keep US gas balances in surplus for the foreseeable
future until LNG export projects as well as petrochemical complexes have been built and started production
in 2016 onward.
Overview Performance Q2/14 Outlook LNG Global Demand/Supply
Uncertainty of Japan Nuclear Policy
to restart Nuclear Power Plant
Japan-Korea Market Price Forecast
Excess Supply expected in L-T
JKM Price in 2014 is approx. 16-17 USD/MMBTU
EIA’s projected HH Price in 1 is . USD/MMBTU
Higher US Gas Demand from Cold Snap Lowest
Inventory lowest in 5-year average
US gas balances in surplus from shale gas asset
Factors to watch
Kogas has faced High LNG Inventory as result of mild weather in Korea
35 Source: FACTS, DB, KBC, Reuters , IEA, Reuters, Thaioil and PRISM Estimated (April 2014)
-15
-10
-5
0
5
10
15
20
25
Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14
Asia-Pacific Refineries turnaround in 2Q/2014
US stockpiling ahead of driving season
Stockpiling in the Muslim countries ahead for Ramadan
Forecast
GO
Mogas
FO Impact from Jubail Refinery (400KBD) run full operation
Off-peak traveling season
Singapore GRM Forecast to be around 6-7 $/bbl Factors to watch
“Seasonal Peak Refinery maintenance in Asia-Pacific during Q2 limits crude oil demand but supports to petroleum product
market .”
“Expected supportive GRM in 1 due to limited net capacity addition as refinery closure in Japan, Australia &
project postponement in China”
Refinery Margin Outlook : Firm GRM in Q2-14 due to tight supply during refinery maintenance
Overview Performance Q2/14 Outlook
Refinery Maintenance in Asia-Pacific Area CDU Additional Vs Additional Demand –AP&ME
V Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14
Demand Growth Supply Growth
0
200
400
600
800
J a n - 1 3 A p r - 1 3 J u l - 1 3 O c t - 1 3 J a n - 1 4 A p r - 1 4 J u l - 1 4 O c t - 1 4
Spread HDPE Spread PP Y 2014
Unit :USD/TON Olefins Product Spread
Tighten supply from Propylene Plant T/A
US and EU Economics Recovery
Factors to watch
• HDPE-Naphtha expected to be around 540-640 USD/TON
• PP-Naphtha expected to be around 560-660 USD/TON
Uncertainty on PP demand in Indonesia Market
More spot available from middle east when UAE’s Borouge Start up ethane cracker in early Jun.
Petrochemical Outlook : Olefin spread to move slightly upward from cracker T/A
Overview Performance Q2/14 Outlook
Asia Ethylene Supply/Demand Balance Asia Propylene Supply/Demand Balance
Source: PRISM Estimated, PTTGC
Million Metric Tons
2.0
2.5
3.0
3.5
4.0
4.5 Million Metric Tons
2.0
2.5
3.0
3.5
4.0
4.5 Note: Domestic demand excludes export volume *Non-steam cracking availability includes
production from metathesis, PDH and FCC Splitter
36
0
200
400
600
800
J a n - 1 3 A p r - 1 3 J u l - 1 3 O c t - 1 3 J a n - 1 4 A p r - 1 4 J u l - 1 4 O c t - 1 4
Spread BZ Spread PX
Petrochemical Outlook : Weak Downstream Demand Weighs Down PX Market
37 Source: PRISM Estimated, Thaioil
Overview Performance Q2/14 Outlook
Aromatics Product Spread
Factors to watch
• Bz-Naphtha forecasted to be around 300-400 USD/TON
• PX-Naphtha forecasted to be around 240-290 USD/TON
Light feed in US to Support BZ Market in Asia Pacific
PX producers run cut and PX plants maintenance
Y 2014
Asia PX Supply/Demand Balance Asia Benzene Supply/Demand Balance
AP/ME PX Capacity* and Supply AP/ME Benzene Capacity* and Supply
Capacity Demand Capacity Demand Remark:* Normalized capacity to start up period
Remark:* Normalized capacity to start up period
PX Supply overwhelm from New Capacity in South Korea, Chin and Saudi Arabia
Soft PTA and Polyester demand
Unit :USD/TON
Thank you PTT 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
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.
Disclaimer
Petroleum Reserves and Resources Information
In this presentation, the Company discloses petroleum reserves and resources that are not included in the Securities Exchange
and Commission of Thailand (SEC) Annual Registration Statement Form 56-1 under “Supplemental Information on Petroleum
Exploration and Production Activities”. The reserves and resources data contained in this presentation reflects the Company’s
best estimates of its reserves and resources. While the Company periodically obtains an independent audit of a portion of its
proved reserves, no independent qualified reserves evaluator or auditor was involved in the preparation of reserves and resources
data disclosed in this presentation. Unless stated otherwise, reserves and resources are stated at the Company’s gross basis. This
presentation may contain the terms “proved reserves”, “probable reserves”, and/or “contingent resources”. Unless stated
otherwise, the Company adopts similar description as defined by the Society of Petroleum Engineers.
Proved Reserves - Proved reserves are defined as those quantities of petroleum which, by analysis of geological and engineering
data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known
reservoirs and under current economic conditions, operating methods, and government regulations.
Probable Reserves - Probable reserves are defined as those unproved reserves which analysis of geological and engineering data
suggests are more likely than not to be recoverable.
Contingent Resources – Contingent resources are defined as those quantities of petroleum which are estimated, on a given date,
to be potentially recoverable from known accumulations, but which are not currently considered to be commercially recoverable.
The reasons for non commerciality could be economic including market availability, political, environmental, or technological.
Debt Profile : Control Cost & Manage Risk
Debt Portfolio
Managed debt according to financial risk and policy
Consolidated PTT Only Unit : MMTHB
39
: Cost of debts ~ 4.63 %
: % fixed-rate ~ 81.91 %
: Avg. debt life ~ 8.32 years
: Cost of debts ~ 4.42 %
: % fixed-rate ~ 76.97 %
: Avg. debt life ~ 7.57 years
188,102 181,399 180,892 221,201 208,298 207,434
100,069 125,972 124,708
215,507 259,665 254,931 288,171 307,371 305,600
436,708 467,963 462,365
31 Dec 12 31 Dec 13 31 Mar 14 31 Dec 12 31 Dec 13 31 Mar 14
USD
THB
(35%)
(65%)
(41%)
(59%)
(41%)
(59%)
(49%)
(51%)
(55%)
(45%)
(55%)
(45%)
Note : Data as of 31 Mar 14 (THB/USD = 32.5814 THB/JPY = 0.31838) Excluding liabilities from finance leases; Cost of debts includes withholding tax.
40
PTT Group Performance : Q1/14 (YoY)
Overview Performance Q2/14 Outlook
% share
Unit : MMTHB Q1/13 Q1/14 YoY Q1/13 Q1/14 YoY
PTT Net operating Income 12,308 13,739 12% 12,308 13,739 12%
E&P - PTTEP 20,246 12,435 -39% 65.29% 12,602 7,450 -41%
Petro. Business 13,303 7,924 -40% 6,569 3,516 -46%
- PTTGC 12,075 6,296 -48% 48.89% 5,852 2,722 -53%
- HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/
PTTME/PTTMCC/PMMA1,228 1,628 33% 40-50% 717 794 11%
Refining 6,787 3,269 -52% 3,269 1,509 -54%
- TOP 3,227 2,534 -21% 49.10% 1,258 1,303 4%
- IRPC 153 344 n.m. 38.51% 949 125 -87%
- SPRC 1,210 -1,174 n.m. 36.00% 452 -335 n.m.
- BCP 2,197 1,565 -29% 27.22% 610 416 -32%
Others Business
Inter - PTTER, PTTGE -740 -589 20% 100% -799 -555 31%
Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 1,019 1,429 40% 50-100% 1,100 1,018 -7%
Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 987 544 -45% 20-30% 280 148 -47%
Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others 520 834 60% 33-100% 475 623 31%
Shared of Net Income from Affiliates 42,122 25,846 -39% 23,496 13,709 -42%
PTT Conso. Net Income 54,430 39,585 -27% 35,804 27,448 -23%
Performance 100% Equity Method % PTT
41
Free Cash flow
69,963 45,089
Investing
2013 -95,364
Q1/2014 -27,757
CAPEX(PP&E, Intangible asset) -114,457 -28,504
Investment (Sub. &Affiliates) -11,256 -
Dividend/Interest Received 18,488 583
Others 11,861 164
Operating
2013 165,327
Q1/2014 72,846
Net Income 94,652 27,448
Changes in assets & liabilities -25,592 11,426
Income Tax -45,822 -2,931
Non-Cash Adjustment 126,342 32,925
Interest-net 15,747 3,978
Ending Cash & Cash Equivalents
157,683 195,728
Beginning Cash and Cash Equivalents
136,924 157,683
Cash In/(Out)
20,759 38,045
Adjustment
6,586 -973
41
Financing -55,790 -6,071
Repayment Loans -76,726 -3,100
Interest paid -20,089 -4,463
Dividend paid -46,367 -18
Received from share issue 280 -
Received from loans/Bonds 87,112 1,510
Statements of Consolidated Cash Flows
Overview Performance Q2/14 Outlook
42
Free Cash flow
59,573 21,504
Financing -43,214 -2,459
Repayment Loans -55,754 -644
Interest paid -13,472 -2,766
Dividend paid -37,116 -4
Received from share issue - -
Received from loans/Bonds 63,128 955
Investing
2013 16,981
Q1/2014 -2,629
CAPEX (PP&E, Intangible asset) -22,912 -6,557
Investment (Sub. &Affiliates) -4,281 -7
Dividend/Interest Received 37,880 803
Others 6,294 3,132
Operating
2013 42,592
Q1/2014 24,133
Net Income 63,988 21,586
Changes in assets & liabilities -12,063 5,269
Income Tax -2,276 -741
Non-Cash Adjustment -15,199 -3,911
Interest - net 8,142 1,930
Ending Cash & Cash Equivalents
63,927 82,971
Beginning Cash and Cash Equivalents
47,642 63,927
Cash In/(Out)
16,285 19,044
Adjustment
-74 -1
42
Statements of Cash Flows: Q1/2014 & FY2013 (PTT Only)
Subsidiaries Consolidate PTT (Cambodia) Co., Ltd. PTTCL 100.00% Subic Bay Energy Co., Ltd. SBECL 100.00% PTT Retail Business Co., Ltd. PTTRB 100.00% Thai Lube Blending Co., Ltd. TLBC* 48.95% PTT Tank Terminal Co., Ltd. PTTTANK 100.00% PTT Oil Myanmar Co., Ltd. PTTOM 100.00% Associates Equity Keloil-PTT LPG Sdn. Bhd. KPL 40.00% Thai Petroleum Pipeline Co., Ltd.THAPPLINE 36.44% PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00% Others Cost PetroAsia (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 0.00024% Others Fair Value Bangkok Aviation Fuel Services Plc. BAFS 7.06%
43
Others
Subsidiaries Consolidate PTT Exploration & Production Plc. PTTEP 65.29% PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00% PTT LNG Co., Ltd. PTTLNG 100.00% Joint Ventures Proportionate Trans 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 Equity Thai Oil Power Co., Ltd. TP 26.00% Global Power Synergy Co., Ltd GPSC 30.10% Others Cost Ratchaburi Power Co., Ltd. RPCL 15.00%
Petrochemical Subsidiaries Consolidate PTT Polymer Marketing Co., Ltd. PTTPM 50.00% PTT Polymer Logistics Co., Ltd. PTTPL 100.00% PTT PMMA Co., Ltd. PTTPMMA 100.00% Associates Equity PTT Global Chemical Plc. PTTGC 48.89% PTT Maintenance and Engineering PTTME 40.00% PTT Energy Solutions Co., Ltd. PTTES 40.00% Joint Ventures Proportionate HMC Polymers Co., Ltd. HMC 41.44% PTT Asahi Chemical Co., Ltd. PTTAC 48.50% PTT MCC Biochem Co., Ltd. PTTMCC 50.00% Refining Associates Equity Thai Oil Plc. TOP 49.10% IRPC Plc. IRPC 38.51% Star Petroleum Refining Co., Ltd. SPRC 36.00% Bangchak Petroleum Plc. BCP 27.22% Others Fair Value Dhipaya Insurance Plc. TIP 13.33%
Subsidiaries Consolidate Energy Complex Co., Ltd. EnCo 50.00% Business Service Alliance Co., Ltd. BSA * 25.00% PTT Regional Treasury Center Pte. Ltd. PTTRTC 100.00%
International Trading Business Group
Subsidiaries Consolidate PTT 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.
Petrochemicals & Refining Business Group
Associates Equity PTT ICT Solutions Co., Ltd. PTTICT 20.00%
E&P and Gas Business Group Oil Business Group
Data as of 31 Mar 2014
International Investment
Subsidiaries Consolidate PTT Energy Resources Co., Ltd. PTTER 100.00%
PTT Green Energy Pte. Ltd PTTGE 100.00%
44
Natural Gas Price Structure : Jan-Mar 2014
Customers1 Sales Price Structure
Gas Pool Price Supply Margins Pipeline Tariffs + +
Power Producers 58%
: EGAT 28%
: IPP 14%
: SPP 16%
Average Purchased Gas Price
1.75%
1.75%
9.33%
21.9 Bt/MMBtu
GSP 21% Charged at the same price structure of power producers
Petrochemicals Feedstocks
Reference to Saudi Aramco’s contract price
Industry 14% Charged at prices comparable to fuel oil
Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns.
NGV 7% Capped at 10.5 Baht/Kg
Ethane, Propane, LPG Profit-sharing mechanism based on market prices of petrochemicals
NGL Reference to Naphtha market price
Local Cooking Gas
Export Cooking Gas
Capped at 333 USD/ton
• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions
1 As at Apr, 2014
Natural Gas : Strong and Increasing Demand over Long Term Natural gas is a fuel of choice for power producers and transportation industry
45 Source : PTT
Power
GSP
Industry
78%
21%
8%
2,635 14%
13%
12%
59% 67%
Gas demand forecast (CAGR during 2013-2030) : Total ~ 2% : Power ~ 3% : GSP ~ -1% : Industry ~ 2% : NGV ~ 3%
14%
NGV
8%
6%
6,462 MMscfd
Thailand’s Projected Energy Demand
46
Commercial Primary Energy Consumption
Source : EPPO/ PDP 2010 Revised 3 (June 2012)/ PTT analysis as of 27 Mar 2014
0
500
1000
1500
2000
2500
3000
3500
4000
2003
2004
2005
2006
200
200
2009
2010
2011
2012
2013
2014
2015
2016
201
201
2019
2020
2021
2022
2023
2024
2025
2026
202
202
2029
32%
38%
15%
13%
Oil
Natural Gas
Coal/Lignite
Hydro/Import
KBD
28%
35%
19%
4% 13%
Renewable
2%
3,728
3,306
2,862
2,321
1,917
32%
41%
13%
12% 2%
28%
39%
17%
3%
13%
29%
41%
14%
3% 13%
1% Nuclear
Gas Business Generates Stable Returns
Sole owner and operator of entire
gas transmission pipelines in
Thailand (3,678 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
Overview Gas transmission pipeline capacity
Phu Hom
Nam Phong
Thailand
Ban I Tong
Ratchaburi
Nakhon Sawan
SBK
NBK
The Luang
Nakhon Ratchasima
Kaong Khoi
Samut Prakan
ESB
Bang Pakong
Khanom
Songkhla
Sadao
Yadana
Yetagun
Chon Buri
Rayong
Wang Noi
Thai-Malaysia
(JDA)
Arthit
Arthit–FPSO Erawan
Pailin Bongkot
South Bongkot
Chevron–Additional
Platong
Tantawan
Benchamas
Natural gas fields
Power plants Gas separation plant
1,2,3,5,6 in Rayong
Gas separation unit 4
in Nakhon Si Thammarat
Existing pipeline
Future pipeline
Andaman Sea
47