Leading ASEAN Energy Company...2014/08/14 · Key Events Update • PTT ranked 84th on the Fortune...

Analyst Meeting Q2 and 1H/2014

PTT Auditorium 14 Aug 2014

Leading ASEAN

Energy Company

Safety and Sustainability: PTT implements several safety programs that really improve the safety performance

Aspiration = Zero Accident

Benchmark : 2013 SAM Robeco Sustainability Members Oil & Gas Industry

0

1

2

3

4

2007 2008 2009 2010 2011 2012 2013

Injury Rate (Injuries/Million hrs)

TRIR-employee TRIR-contractor

Benchmark- Employee Benchmark- Contractor

Percent better than peer

23% Employee

Percent better than peer 433%

Contractor

Safety and Sustainability: PTT consistently receives awards on “Safety performance”

• 28 PTT’s Operations and Offices awarded the Best National Safety Site from Ministry of

Labour and Social Welfare • PTT Suratthani Petroleum Terminal has received this award for 18 consecutive years , the

longest since the inception of this award , along with the Best Safety and Health Committee award and 4 Excellent Safety Officers awards

Safety and Sustainability: PTT is ranked among the top companies on “green performance”

In 2014, PTT achieves 136th rank in the World’s Greenest Companies survey conducted by Newsweek, the only Thai company on the list

1. Energy Productivity 2. Carbon Productivity 3. Water Productivity 4. Waste Productivity

8 Criteria

5. Reputation 6. Pay Link 7. Sustainability Themed Committee 8. Audit

Contents

4

Highlights

Performance

2H/2014 Outlook

Strategic Thinking Session (STS) 2014

Highlights Performance 2H/2014 Outlook STS 2014

Operation

(HoH)

• Gas margin increased from better product prices though sales volume decreased

• Oil margin and sales volume increased • Trading margin increased from condensate

business • Power margin and steam sales volume

increased • Refinery better performance from higher

Dubai lead to stock gains and improved GRM/GIM though lower U-rate from many plants T/A

• Lower PTTEP’s performance mainly from Montara despite higher average selling prices and sale volume

• Coal price still on a low side waiting for rebound

• Petchem lower performance mainly from Aromatics pressure and low season

Finance

PTT Group raised fund in a total of 2,836 MMUSD • TOP issued 15,000 MMTHB Bond • PTTEP issued 1,000 MMUSD Hybrid Bonds 19,600 MMTHB Bond • IRPC issued 15,000 MMTHB Bond • BCP issued 10,000 MMTHB Bond

• THB remains weak • Doubtful loan to PTTER, no

effect to PTT’s consolidated bottom line

Highlights 1H/14: Solid from PTT Contribution

5


Key Events

Update

• PTT ranked 84th on the Fortune Global 500 List 2014

• PTT ranked 180th on the Forbes Global 2000 List 2014 as well as

• PTTGC ranked 687th • TOP ranked 1,587th

• PTT’s Board has approved the appointment

of Chairman and Directors • PTTEP’s Zawtika Project began delivering

natural gas to Thailand

• Uncertainty from Energy Reform • Refineries’ major T/A : TOP,

IRPC, SPRC, and BCP • PTTGC’s I4-1 plant shutdown • IRPC fire incident

Sustainability

PTT ranked 136th in Top 500 as “World's Greenest Companies 2014” from PTT won “2014 R&D 100 Award” for the innovation of PTT DIESEL CNG

Still under attack by NGO

Highlights 1H/14 (Cont.)

6


R&D 100 Award


7

R&D 100 History

2014 - PTT won R&D 100 Award, as the 1st company in Thailand, from “PTT DIESEL CNG”

PTT DIESEL CNG (2014)

8


Moving Toward TAGNOC: PTT Innovation

9

9


2

4

6

8

6

10

14

18

22

28

30

32

34

Jan-13 Jul-13 Jan-14

200

400

600

800

Jan-13 Jul-13 Jan-14

HDPE Spread PX Spread

80

100

120 Dubai FO

Avg. 16.5

LNG vs HH ($/MMBTU)

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

Key Business Drivers: PX still in down cycle while THB continues depreciated

10 Note: Figures are monthly average

Avg. 98.3

Avg. 104.5

Avg. 537

Avg. 30.0

Dubai vs FO ($/BBL)

HDPE and PX spreads($/Ton) FX (THB/USD)

Dubai

FO

HDPE

Avg. 599 PX Avg. 32.7

Avg. 105.3

Avg. 97.9

Avg. 607

Avg. 302

Avg. 16.7 JLC* LNG มีบทบาท

ส าคัญในการดึงราคา pool

Avg. 106.6

Avg. 15.7

Avg. 98.1

Avg. 31.7 Avg. 574

Avg. 505

HH

Avg. 4.7

Avg. 3.7 Avg. 3.7

Avg. 16.3

Avg. 15.9

SPOT LNG

Avg. 16.8


Gas Avg. GSP sales vol. decreased 5% Avg. NG gas margin increased 6%

850 3,056

16,107

24,901

20,197

19,721

8,295

6,896

2,042

3,312

1H/2013 1H/2014

9,224 1,453 1,700 297 1,087 1,192

PTTEP

57,886

PTT

Others

Refinery

Petrochem

47,491

22%

62%

17%

2%

55% 260%

1H/14 Performance: Strong PTT performance outweigh soften affiliates’

11

Aromatics : PX & BZ spread drop though Olefins spread improved, U-rate decreased 11%

Sales vol. increased 5% Avg. selling price increased 0.4% Performance decreased mainly from Montara’s operating expenses and depreciation

MMTHB

Avg. A/C GIM increased 8% Aggregate intake decreased 11%

*including petroleum exploration expenses and royalties

Margin

FX gain

OPEX* Share of income Interest

expense & income

taxes

NCI

Oil Vol. increased 2% Oil margin increased 1% Trading Vol. decreased 6% Margin increased 55%

Better performance of other affiliates mainly from PTTLNG


Contents

12


Highlights

Performance

2H/2014 Outlook


Financial Management

E&P Key Highlights in 1H/14

E & P Gas Oil & Trading Refining PetChem Others

Began drilling Maple-East exploration well in Australia Farmed-in to offshore Brazil exploration project Discovery of new hydrocarbon structure in Mozambique’s Rovuma Offshore Area 1

Growth on-track from integration of Hess Thailand Successful Montara production ramp-up Full delivery of Zawtika Gas to Myanmar Secured non-binding LNG Offtake for more than one 5 MMTPA Train for Rovuma Offshore Area 1 Industry’s top quartile safety performance Completed oil sands asset swap and re-establishment as Mariana Oil Sands project

13

Increasing operating cash flow base of ~1.8 bn USD

Successful 1 billion USD hybrid bonds and 0.6 billion

USD synthetic bonds issuance Interim dividend of 3 THB/share from solid performance

Exploration

Operations


http://www.google.co.th/url?url=http://www.dreamstime.com/stock-photography-3d-golden-framed-dollar-sign-image3948522&rct=j&frm=1&q=&esrc=s&sa=U&ei=di_XU-GbE4qn8AWs64LwCw&ved=0CDcQ9QEwEQ&usg=AFQjCNFvlJyCCiUt3l-hMNV4N4ubENWYaw

http://www.google.co.th/url?url=http://inhabitat.com/obama-set-to-announce-offshore-oil-drilling-plan/&rct=j&frm=1&q=&esrc=s&sa=U&ei=S3XfU7_BMs6D8gW_l4GoCA&ved=0CBkQ9QEwAg&usg=AFQjCNEFb-g1DCa5qECTTy4__zer_NdJaA

380

560

1,041

940

Q1/14 1H/13

E&P Performance:

High-cost asset pressured performance

Product Prices

Net Income (100%)

Sales Volume

Key Highlights

7.79* 8.11 8.06 7.96*

100.84 104.64 99.36 102.82

64.92** 67.70

66.09 66.35**

Q1/14 Q2/14 1H/13 1H/14

Liquid (USD/BBL)

Gas (USD/MMBTU)

Weighted Avg. (USD/BOE)

MMUSD

198 208 190 203

101 108 102 104

Q1/14 Q2/14 1H/13 1H/14

316

Liquid

Gas

KBOED

299

14

292

4%

* Gas price, if excludes Vietnam 16-1 retroactive sale recording, is 7.97$ for Q1 14 and 8.04$ for 6M 2014


** Average selling price, if excludes Vietnam 16-1 retroactive sale recording is 65.91$ for Q1 14 and 66.84$ for 6M 14

10% HoH

5% HoH

4%

4%

3%

0.4%

1%

307

6% QoQ

47% QoQ

Q2/14 1H/14


QoQ

• Sales volume increased from completion of Hess TH acquisition, Zawtika, and Montara project

• Avg. prices increased from the Contract 4 and Zawtika project as well as there is no inclusion of bitumen prices from KKD project.

• Net income increased mainly due to higher revenue, net gains from the restructuring of ownership in KKD oil sands project and other extra items

HoH • Sales vol. increased mainly from Montara/ Hess TH acquisition/

First Gas sale to Myanmar in March of Zawtika Project. • Net income decreased due to higher DD&A and operating

expense from Montara

Focus

Areas Q3 14 Q4 14 2015 ~2020

Q2 2014

Analyst Meeting

Country

Note : * E&A = exploration and appraisal

Key Projects

Activity(ies) at a given point of time Activity(ies) at a given range of time

First oil

Expected Maple East exploration well drilling result

Ongoing evaluation of value-accretive M&A and

value-unlocking portfolio management options

Exploration &

Appraisal

Development &

Production

Portfolio Management

Barrerinhas AP1

Cash/Maple

Zawtika

M3

PSC-G & EP-2

Seismic + G&G Potential 1st drilling

Australia

Myanmar

Algeria

Mozambique

Canada

Start-up (Exports to Thailand)

Expected FID 1st LNG cargo

FID

First oil

Brazil

Australia

Myanmar

Montara

Zawtika

433a & 416b

Rovuma Off. Area 1

Mariana Oil Sands (formerly KKD)

Steady production and constant monitoring of well performance

Drill 2 exploration wells

Drill 5 appraisal wells

Drill 3 E&A* wells

Construction & commissioning

Winter Evaluation Program 2014-15

E&P Roadmap:


E&P Roadmap: Shifting up gears for high potential drilling prospects and development in key projects Highlights Performance 2H/2014 Outlook STS 2014

4,291

4,515

4,616

4,754 4,704 4,685

4,497 4,469

4,450

4,768

Q1 Q2 Q3 Q41,259 1,334 1,367 1,297

610 826 858 718 710

712 569 711

910 948 970 929

642 635 623 639

319 313 305 316

Q1/14 Q2/14 1H/13 1H/14

Gas BU Performance:

Solid NG volume despite long winter and coup

NG Sales Volume* NG Customer Breakdown

2013

2012

2014

MMSCFD

EGAT (28%)

IPP (16%)

SPP (15%)

GSP (20%)

Industry (14%) NGV (7%)

MMSCFD

4,768 4,450

16

AVG.

4,609

4,544

4,589

4,692


2% HoH

8.87

8.71

8.48

8.79

Q1/14 Q2/14 1H/13 1H/14

2% QoQ

NGV Sales Volume

Unit : Approx. KTon/Day

Vol. MMCFD

319 313 305 316

4% HoH QoQ

• NG volume increased mainly from EGAT seasonal demand

• Lower NGV sales volume due to low season after Songkran festival

HoH

• NG volume decreased mainly due to cold weather at the beginning of this year , dragging demand of natural gas from EGAT

• NGV sales volume increased by 4%

QoQ

• Higher NGV Sales volume due to NGV Station back to normal operation after closed during political demonstratiionon

YOY

• Sales volume increased by 5%, also, feed cost increased

• No Government subsidy, while special discount given to public transportation customers

Key Highlights

SM: GSM, NGR, CHP margin +1.75% no cap for internal use, external cap according to price structure

4,610

7% QoQ

Convention เพ่ิม 2 สถานี Mother Daughter ที่เพ่ิมข้ึนเป็นของเอกชน

* NG Sales Volume include Inter-BA Transaction

Gas BU Performance:

Better performance from GSP#5 back to normal operation

K.Ton/Day


638 667

1,422 1,305 181 185

364 365

476 501

1,076 977

209 204

370 413

Q1/14 Q2/14 1H/13 1H/14

3,232

GSP Sales Volume

LPG (43%)

kTon

1,504 1,557

3,060

4% QoQ

5% HoH

28,582

12,903

5,739

8,520 4,757

-4,736

Gas BU EBITDA

MMTHB

Others

TM

GSP

14,488

Q1/14 Q2/14 1H/13* 1H/14

1,906 5,675

6,886

-8,716

21,552 3% QoQ

S&M

NGV

3,106

Gas BU Performance :

Better performance from better GSP margin

17


QoQ

• EBITDA decreased from higher loss from NGV and higher feed cost of GSPs

HoH

• 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 (13%)

NGL (12%)

Ethane (32%)

Key Highlights

1,898

-5,280

5,317

6,630

5,529

14,094

33% HoH

-10,016

10,074

13,516

11,204

3,804

*Restated

371 381 393 376

858 876 834 867

1,555 1,569 1,463

1,562

1,562 1,582 1,506 1,572

Q1/14 Q2/14 1H/13 1H/14

333

GSP - Reference Product Prices

PP

HDPE

Naphtha

USD/Ton

GSP Feed Cost

LPG Capped 333 333 333


18

Gas BU:

New Contractor : Expected completion 3rd quarter 2015

• 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

Awarded IHI Corporation and Posco Engineering, Consortium (IHI-PEN) as an EPC contractor

Completed 6.1% of construction phase i.e. completed test pile for LNG tank #3 and offshore soil investigation

Expected completion early 2017

Awarded McConnell Dowell Constructors Thai Ltd. as a new 4th onshore pipeline construction contractor

Completed 69.06% of construction phase

Expected completion by 3rd quarter 2015

LNG Terminal phase II progress

4th Onshore pipeline progress



641 1,381 1,137

2,022

4,408 2,258

6,528 6,666

Q1/14 Q2/14 1H/13 1H/14

5,049

3,639

8,688

7,665

0.92

0.78 0.84 0.85

Q1/14 Q2/14 1H/13 1H/14

Oil BU Performance :

Non-oil business helps supporting overall performance

Contribution Margin 1/

Oil BU - EBITDA Key Highlights

MMTHB

THB/Liter

1/ Excluded non–oil business

19

QoQ

• Margin dropped mainly from aviation • Volume soften mainly from aviation fuel and fuel oil • Non-oil performance jumped during holiday season

HoH

• Margin stable as diesel margin squeezed despite higher gasoline and aviation margin

• Higher sales volume mainly from gasolinel and aviation • Growing non-oil business performance following branch

expansion

Oil

Non-Oil*


* EBITDA from Operating

1% HoH

13% HoH

6,306 6,199

12,267 12,505

Q1/14 Q2/14 1H/13 1H/14

Sales Volume 2/

MM Liter

2/ Only PTT and PTTRM

2% HoH

15% QoQ

2% QoQ

28% QoQ


Oil BU: Going Forward


แด๊ดดี้โด (ประเทศไทย) จ ากัด ร่วมลงนามในสัญญาการให้สิทธิแฟรนไชส์หลัก “แด๊ดดี้โด“ แต่เพียงผู้เดียวในประเทศไทย แก่ ปตท. โดยมีเป้าหมายขยายสาขา 300 แห่ง ภายในเวลา 10 ปี ซ่ึงความร่วมมือในครั้งนี้เป็นส่วนหนึ่งของโครงการ R-20 ของสายงานตลาดค้าปลีก เพ่ือขยายธุรกิจ Non Oil ทั้งใน-นอกสถานีบริการ

PTT Master Franchisor Creating Shared Value (CSV)

First Master “Daddy Dough”

Building up Non-oil business Expanding Non-oil business growth through Franchising or Acquisition

Joining the Royal Project Foundation : • Conservative coffee cultivation for sustainable

development based on the ‘Sufficiency Economy’ philosophy


More Master Franchisor

More Master Franchisor

“โครงการวิจัยและพัฒนาการปลูกและการผลิตกาแฟ ในระบบอนุรักษ์ทรัพยากรธรรมชาติ เพ่ือการพัฒนาที่ย่ังยืน” และ “โครงการซ้ือขายเมล็ดกาแฟดิบ” โดยน้อมน าหลักปรัชญาเศรษฐกิจพอเพียงเป็นแนวทางหลักในการพัฒนาโครงการฯ เพ่ือศึกษาวิจัยและพัฒนาเทคโนโลยีด้านการปลูกและการผลิตกาแฟสายพันธุ์อราบิก้าของมูลนิธิโครงการหลวงที่มีคุณภาพที่ดีตามมาตรฐานในระดับสากล ,ส่งเสริมและสนับสนุนการปลูกกาแฟระบบอนุรักษ์ทรัพยากรธรรมชาติ,พัฒนาและส่งเสริมศักยภาพทักษะอาชีพด้านการปลูกและการผลิตกาแฟที่มีคุณภาพให้กับเกษตรกรชาวเขา, ส่งเสริมให้ชุมชนมีส่วนร่วมในการพัฒนาตนเองเพื่อเป็นต้นแบบของชุมชนเข้มแข็งตามหลักปรัชญาเศรษฐกิจ พอเพียง ที่มีความมั่นคงทางเศรษฐกิจ สังคม และสิ่งแวดล้อมท่ียั่งยืน ในพ้ืนท่ีด าเนินงาน

1,940 2,451

2,923

4,391

Q1/14 Q2/14 1H/13 1H/14

0.13 0.14

0.09

0.14

Q1/14 Q2/14 1H/13 1H/14

17,232 17,035

36,444 34,266

Q1/14 Q2/14 1H/13 1H/14

Trading BU Performance :

Strong margin overcomes soften volume

Contribution Margin*

Trading BU - EBITDA*

Sales Volume

Key Highlights

MMTHB

THB/Liter MM Liter

* PTT only : FX Adjustment in compliance with Accounting Standard

21

QoQ

• Sales volume slightly decreased mainly from reduced import crude to refinery during T/A season

• Higher margins from better spread from crude price and condensate

• EBITDA surged mainly from condensate business HoH • Lower sales volume mainly due to reduced crude import • Margins surged from lower discount rate as well as better margin

from out-out activity


** Not restated

50% HoH

• Import parity • Basket price or

reference price

26% QoQ

55% HoH 8% QoQ 6% HoH

1% QoQ


* PTT only : FX Adjustment in compliance with Accounting Standard

22

Trading BU : Going Forward



285 254

304 270 273

220

511

246

Q1/14 Q2/14 1H/13 1H/14

104.5 106.1

104.5 105.3

4.07 3.36

4.70 3.72 3.82

5.28 3.87 4.54

5.94

7.47 6.20 6.68

Q1/14 Q2/14 1H/13 1H/14

GRM/GIM

Refinery Utilization

Refining Business Performance:

Higher GRM/GIM but lower U-Rate from plants T/A

23

USD/BBL

A/C GRM

A/C GIM

Mkt GRM

Dubai


Highlights Performance 2H/14 Outlook

Net Income (100%)

U-Rate (%) Q1/14 Q2/14 1H/13 1H/14

Aggregated U-Rate

85 82 94 84

TOP 105 94 101 99

IRPC 80 80 86 80

SPRC 60 98 103 79

BCP 82 40 81 61

Aggregated Intake (KBD) 653 644 662

11% HoH 3% QoQ

(38 days)

-0.90 1.05 -1.07 0.07 Stock Gain/Loss

734

(45 days)

(1,174)

1,120 1,602

-54

2,534

2,094 1,678 4,628 344

178

(1,006)

522

1,562 1,258

2,604

2,820

Q1/14 Q2/14 1H/13 1H/14

MMTHB

BCP

IRPC

SPRC

TOP

4,650 3,266

4,878

62% HoH 42% QoQ

7,916

(15 days ++) T/A

Aromatics

95%

79% 84%

87%

Aromatics Production

BZ-ULG95 PX-ULG95

BZ: 11% HoH

PX: 52% BZ: 11%

QoQ

PX: 19%

( 23 days)

QoQ

A/C GIM: 26%

HoH

A/C GIM: 8%

CDU-3 Major Turnaround

(165 KBD) : 15 Jun- End July

~55 Days

T/A : 18 Mar - 9 Apr

Fire Incident on 9 June

(VGOHT Unit Damaged but all other units have

re-commissioned ; DCC since 29 Jun ~60-70%)

T/A : 1May- 15 Jun (46 Days)

• HCU Revamp (To produce more

diesel/jet at expense of fuel oil)

- Completed, fully operate in Aug

• CDU-3 Crude Preheat Train

(Reduce fuel usage)

- Completed, fully operate in Aug

• LAB plant and 2 SPP

- On planned (LAB planned start up

Q4/15, and SPP in 2016)

• UHV Project on plan (Increase Propylene

from 412 KTA to 732 KTA)

- Progress 73% (COD: 3Q15)

- Long - lead items installed, lowering risk of project delay

• Delta Project :

- Larger portion of benefits

expected in 2H14

• Biodiesel Plant #2

(Capacity: 450,000 litre per day)

- Construction start in Sep’14

• Investment: Domestic & Oversea ( To expand business & diversify risk by focusing in Asia)

- Purchase ordinary shares of 85% of

“BCP Bioethanol”

- Set up “BCP Energy” in SG on July’14 (for oversea investment)

- Make all tender offer in “Nido” (Upstream Business in AUS)

Refineries : Going Forward

24


T/A

or S

/D

Pro

ject

Upd

ates

BCP

1. Key Projects update for 2Q2014 and going forward

•Solar Phase 3 (48 MW PPA) – Fully COD in April

2014

•Biodiesel Plant #2 (Capacity: 450,000 litre per day) –

EPC approved and going to start construction in

September 2014

2. Key performance highlights for 2Q2014

•Recognized revenue from Solar Phase 3 (PPA of 48

MW)

•Recognized non-recurring revenue: Insurance

Compensation of Baht 521 Million

3. Major Turnaround/unplanned S/D for 2Q2014 and

year 2014

•Turnaround Maintenance started from 1 May – 15

June 2014

•Installation of the new CDU in 2Q2014

• Biodiesel Plant #2

(Capacity: 450,000 litre per day)

- EPC approved & start

construction in Sep. 2014

• Investment : Domestic & Oversea (Grow

revenue & diversify risk by focusing in Asia)

- Set up “BCP Energy” in SG

(for oversea investment)

- Buy 19.66% stake in Nido

(Upstream Business in AUS)

TOP

•Key Projects update for 2Q2014 and going forward

HCU revamp project was completed and

should be fully operate after July (S/U from

planned MTA)

CDU-3 crude preheat train was also

completed and should be fully operate after

July (S/U from planned MTA)

Progress construction of other 2 key

projects - LAB plant and 2 SPP are on

planned (LAB planned S/U Q4/15 and SPP

in 2016)

•Major Turnaround/unplanned S/D for 2Q2014 and

year 2014

TOP had earlier announced planned MTA

for CDU-3 and related units (55 days starting

from 15 Jun 2014) -> it is likely the planned

MTA will be completed by end-July.

refinery u-rate in Q2/14 dropped from Q1/14

(mainly from planned MTA) BUT will recover

after July


91% 98%

88% 90%

4.48 4.44 3.59

4.46 4.12 5.83

2.72

4.99

Q1/14 Q2/14 1H/13 1H/14

380 369 423

375 386 333

604

360

Q1/14 Q2/14 1H/13 1H/14

BZ-Cond

PX-Cond

Net Income (100%)

Aromatics

Unit : MMTHB

6,296 6,085

16,247

12,381

Q1/14 Q2/14 1H/13 1H/14

PTTGC

HMC

25

Others

7,924



5% HoH

620 618

553

619

Q1/14 Q2/14 1H/13 1H/14

Olefins U-Rate

77% 91%

95%

84%

Olefins

HDPE-Naphtha

USD/Ton

12% HoH 0.3% QoQ

BTX U-Rate 101%

103%

82% 102%

Refineries

CDU U-Rate

A/C GRM Mkt GRM

BZ-Cond

PX-Cond

BZ: 11%

HoH

PX: 40%

S/D P: I-1 (37days) U: I-4/1(23days)

-0.69 0.73 -1.51 0.04 Stock Gain/Loss

QoQ

42%:A/C GRM BZ: 3%

QoQ

PX: 14%

3% QoQ

Petrochemical Business Performance: Low Aromatics spreads pressured performance

7,695

16,408 15,619

HoH

83%:A/C GRM

Petrochemical : Going Forward

26



International Business &

JV

Gain Technology

Knowhow

Build own

R&D

Strategy going forward

NEW GEOGRAPHIES/PRODUCTS THROUGH JV

Objective: To expand business and forward integration into downstream

Vencorex : Restructuring; Convert TDI to HDI for value enhancement

TDI & HDI Technology transfer from Vencorex

( New HDI Derivatives in Thailand : COD:3Q15)

Synergy of Technology & knowledge transfer among PTTGC, Vencorex, and Emery

Transform into World Class Biotechnology R&D Center

Located in Boston,MA fully equipped with R&D resources & facilities

68 64

75

66

45 44

50

45

78 73

90

76

Q1/14 Q2/14 1H/13 1H/14

9.6

-1.6

11.2

7.9

Q1/14 Q2/14 1H/13 1H/14

Other Businesses : Coal - SAR (94.58%) Lower performance amid coal price downturn

Net Income (100%)

Sales Volume

Key Highlights

MMUSD

USD/Ton

1,958 1,669

3,921 3,627 941

731

1,017 1,672 2,899

2,400

4,938 5,299

Q1/14 Q2/14 1H/13 1H/14

kTon

Jembayan

Sebuku

27

ASP

Cash Costs


QoQ

• Sales volume dropped following lower New Castle coal price and low seasonal coal sales

• Net income fell due to lower coal price and extra-ordinary expenses

HoH

• Sales volume increased due to higher production from Sebuku mine

• Net income decreased due to lower selling price outweigh reduction of cash cost

29% HoH

17% QoQ

7% HoH

Avg. Selling Price & Cash cost

Add breakdown expenses (write off, consultant, restructuring)

New Castle

SAR negative profit in Q2 is mainly due to extra expenditure US$ 3.6mn on tax settlement (corporate income tax) of BCS 2012 with Indonesia Tax Office (ITO). BCS is one of SAR subsidiaries in Indonesia, who handle coal sales to Tiger Energy Trading in Singapore.

12% HoH (ASP) 6% QoQ (ASP)


117% QoQ

http://www.straitsasia.com/


SAR Project Update

28


1H/14 Operational Highlights:

• Continued cost reduction initiative program under downturn market. Mining contracts at Sebuku and Jembayan were reviewed and renegotiated with contractors SAR’s cash cost has reduced 17% HoH.

Any other update??? Refinance ขอ ST loan จาก RTC 100mmusd เอาไปคืนเงินกู้ bank

Bridge loan bod approved repay all LT loan RTC will take

1H/14 Operational Highlights:

• Continue cost reduction initiative program under downturn market. Mining contract at

Jembayan was reviewed and negotiated with contractor PAMA. SAR cash cost has

reduced 17% HoH.

• Operation ปรับ

• Logistic cost ขนถ่านผ่านแม่น ้า (ใช้เวลานาน) แล้วค่อยออกทะเล หาทางล่นระยะทาง ตัดถนน เพื่อลดระยะทาง ลด

ค่าใช้จ่าย study ตัดถนน ตรงเหลือแค่ 40กม. (ซื อที่เพิ่มเพื่อตัดถนน) สร้างท่าเรือ 140กม.ทางน ้า ศึกษาแล้วท้าคนเดียวไม่คุ้ม

ทุน ก้าลังหา partner (replace water transportation with land transportation)

• per distance อันไหนถูกกว่า feul and time consumption

• In consideration of adjacent

• ราคาที่ break even

• Study coal blending to optimize SAR resources and seek opportunity for joint

operation with neighboring mines to maximize capacity and lowering cost. Conclud shipment กับลูกค้า เจรจากับผู้ซื้อเรื่อง spec and selling price

• Market expansion in India and increase sales to Indonesia’s domestic market. ของล้น

ตลาดอยู่ ราคาก็ลง ก็เลยยังทรง

• ผู้ผลิตรายเล็กๆก้าลังประสบปัญหา ต้นทุนต่้า คุณภาพใกล้เคียง opportunity จากกลาง เล็ก เริ่มประสบปัญหา

Mining •Negotiate contractor rate •Reduce dumping distance

Processing •Rent heavy equipment •Reduce fuel consumption

Logistics •Renew barging contract •Reduce vessel demurrage

SG&A

Site support •Reduce workforce and downsize office in Indonesia

•Reduce audit/ tax/legal fee • Improve group IT to reduce cost

Cost

Reduction

Initiative

Program


http://www.sakariresources.com/our-business/jembayan-mine/

251

647 698

898

Q1/14 Q2/14 1H/13 1H/14

Net Income* (100%) Sales Volume

Key Highlights

MMBaht GWh

29

29% HoH

Other Businesses : Power - GPSC (30.10%)

Higher margin drives performance

1,413

2,091

3,790 3,504

1,111 1,346

2,114

2,457

Q1/14 Q2/14 1H/13 1H/14

kTon


Moving Forward (Capacity*)

MW

1,200 1,238 1,448 1,448

321 321 321 345 32 32 32 78 1,553 1,591

1,801 1,871

2013 As of Q1/14 As of Q2/14 Next step

Renewable

Conventional

*Power only (excludingSteam) According to Business Plan 2014-18 (@ 4 Mar 2014 (To be revised) ** By year-end 2014

8% HoH (Power)

21% QoQ (Steam)

48% QoQ (Power)

16% HoH (Steam)

*Power only (excluding Steam)

Hydro

158% QoQ

QoQ

• Power sales volume rose from Sriracha plant S/D in Q1/14 and higher EGAT demand during summer

• Higher steam sales volume due to PPCL S/D in Q1/14 and less self-steam production of PTTGC and TOCGC

• Higher net income from higher Ft

HoH

• Power sales volume decreased from longer maintenance period of Sriracha plant during 1H/14 while steam sales volume rose

• Higher net income due to higher margin from sales to EGAT and higher Ft

ลูกค้าหลัก egat ราคาขายดีสุดคือช่วง Q2 Q2 หน้าร้อนคนใช้ไฟเยอะ ปรับค่า factor ตัวคูณ margin margin q2 เยอะสุด และขายเยอะข้ึนเพราะราคาดีสุด ระยอง เลือกได้ว่าจะขาย egat ม้ย ไม่ได้ commit แต่ห้ามส่งเกิน maximum ที่ก าหนดในสัญญา แต่ศรีราชาเลือกไม่ได้ ค่าความพร้อม ช่วง SD จะถือว่าไม่มีความพร้อม ช่วงหน้าหนาวต้นทุนเราถูกลง

margin H1/14 ที่ขาย egat ได้เยอะข้ึน Ft (ราคา ขายต่อหน่วย) ส าหรับการขายลูกค้าอุต เพ่ิมข้ึน ปีนี้ศรีราชาซ่อมน้อยกว่าปีก่อน ยอดขายของศรีราชาลดลง ศรีราชา minor mainta หยุดเดินเครื่องนานกว่าปีที่แล้ว minor

To be confirmed ตัวเลข adjust บอกว่าก าไร 2013 ทั้งปีลดลงจากท่ีเคย present แต่ Q1/13 restated higher แสดงว่า 2H/13 ต้องแย่มากๆใช่ป่าว

Script รอ confirm ตัวเลข adjust ก าไรปี 2013 ทั้งปีว่าลดลงจากท่ีเคย present หรือไม่ – คาดว่าจะได้ข้อมูลวันที่ 6 สิงหาคมค่ะ

*Adj.TFRIC 4




30

• To build on GPSC’s unique experience in Project Financing for Laos domestic project (Nam Lik 1) by developing more such projects

• Invest in larger projects when opportunities become available

• Start small and aim for long-term mega projects • Focus on gas in immediate term , coal and hydro in medium to

long term • Go with international partners • Leverage from PTT’s presence in Myanmar

30

Other Businesses : Power – GPSC (30.10%) Project update & overseas opportunities

Transfer shares of the remaining power asset from PTTER : Nam Lik 1 Power Company Limited (NL1PC)

GPSC Initial Public Offering Preparation

Overseas Opportunities

Australia

Indonesia

Myanmar

Lao

Japan • Opportunity to develop or invest in Solar Power Plant due to

high feed-in tariff

• To Invest in coal-fired power plant • Synergy with PTTER’s coal business for fuel supply

• Opportunity to invest in Power plant in the mature market

Ratchaburi Power (RPCL) Completed transfer shares of RPCL from PTT

Thai Solar Renewable (TSR) Full COD

Navanakorn (NNEG) Expected to COD - Q3/2016

Nam Lik (SLIN) Expected to COD - Q3/2017

Xayaburi Construction Progress as of June is 30.85% Expected to COD - October 2019



Progress Update (Q2/14) Highlight Planned Activities 2014

104.5 106.1

104.5 105.3

27,448 30,438

47,491 57,886

Q1/14 Q2/14 1H/13 1H/14

PTT Consolidated Performance: 1H/14

31

Dubai (USD/BBL)

1H/14 1H/13

34%

42% 16%

5% 3%

67%

21%

8% 4%

PTT - Oil & Trading

PTT - Gas

Others

PTTEP

716,571 716,692

1,369,407 1,433,262

Q1/14 Q2/14 1H/13 1H/14

64,492 68,627

113,208 133,119

Q1/14 Q2/14 1H/13 1H/14

43%

34% 12%

6% 5%

PTT

PetChem

Others

PTTEP

Refining

Net Income

Unit : MMTHB

EBITDA

Net Income

Revenue

71%

17%

8% 4%

PTT - Oil & Trading

PTT - Gas

Others PTTEP

Revenue

EBITDA

0.02%

6%

5%

18%

11%

22%

72%

17%

7% 4%

71%

19%

6% 4%

Revenue

EBITDA

Net Income


39%

40% 11% 6%

4%

70%

18%

8% 4%

69%

20%

7% 4%

Revenue

EBITDA

Net Income

2Q/14

62%

26%

10% 2%

EBIT

32

PTT Group Performance : 1H/14 (HoH)

% share

Unit : MMTHB 1H2013 1H2014 HoH 1H2013 1H2014 HoH

PTT Net operating Income 16,107 24,901 55% 16,107 24,901 55%

E&P - PTTEP 30,932 30,621 -1% 65.29% 20,197 19,721 -2%

- PTTGC 16,247 12,381 -24% 48.89% 8,101 5,366 -34%

- HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/

PTTME/PTTMCC/PMMA161 3,238 1911% 40-50% 194 1,530 689%

Petrochemical 16,408 15,619 -5% 8,295 6,896 -17%

- TOP 1,678 4,628 176% 49.10% 290 2,381 721%

- IRPC -1,006 522 152% 38.51% 503 187 -63%

- SPRC 1,602 -54 -103% 36.00% 525 -38 -107%

- BCP 2,604 2,820 8% 27.22% 724 782 8%

Refining 4,878 7,916 62% 2,042 3,312 62%

Inter - PTTER, PTTGE -1,177 -1,335 -13% 100% -1,600 -1,301 19%

Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 1,771 2,714 53% 50-100% 1,581 1,977 25%

Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 622 1,546 149% 20-30% 270 443 64%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others 1,107 1,643 48% 33-100% 599 1,937 223%

Others Business 2,323 4,568 97% 850 3,056 260%

Shared of Net Income from Affiliates 54,541 58,724 8% 31,384 32,985 5%

PTT Conso. Net Income 70,648 83,625 18% 47,491 57,886 22%

Performance 100% Equity Method % PTT

* Excluded non-recurring item “Doubtful Loan-PTTER (EMG)” of THB 16,259 MM posted in Q2’14; however, this amount is eliminated in PTT Consolidated

* *


33

Free Cash flow

14,900 33,051

Investing

1H/2013 -46,578

1H/2014 -54,758

CAPEX(PP&E, Intangible asset) -59,555 -53,095

Investment (Sub. &Affiliates) -946 -14,041

Dividend/Interest Received 10,887 9,346

Others 3,036 3,032

Operating

1H/2013 61,478

1H/2014 87,809

Net Income 47,491 57,886

Changes in assets & liabilities -23,121 -10,846

Income Tax -35,813 -41,075

Non-Cash Adjustment 65,173 72,634

Interest-net 7,748 9,210

Ending Cash & Cash Equivalents

110,378 187,946

Beginning Cash and Cash Equivalents

136,924 157,683

Cash In/(Out)

-26,546 30,263

Adjustment

1,335 -575

33

Financing -42,781 -2,213

Repayment Loans -41,423 -16,644

Interest paid -10,690 -10,019

Dividend paid -27,383 -27,320

Received from share issue - 32,557

Received from loans/Bonds 36,715 19,213

Statements of Consolidated Cash Flows


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 :

• Petroleum exploration and production

assets due to asset swap of Canada Oil

Sands KKD project of PTTEP

31 Dec 13 30 June 14

1,805,041 1,800,393

Statement of Financial Position

34

0.3% 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-)

12.5 12.1

0.4 0.3

1.4 1.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2013 30-Jun-14

Net Debt/EBITDA ≤ 2.0

Net Debt/Equity≤ 1.0

ICR*

*ICR = EBITDA/Interest Expense


739,785 695,841

541,680 601,664

363,206 312,447

160,370 190,441

824,359 893,948

471,395 472,335

509,287 434,110

1 2 3 4 5

29,903 26,638 22,826 17,17730,103

37,839

11,7538,548 9,319

11,925

11,50310,4156,888

6,0523,206

765

45744

38,404

14,25917,563 29,043

18,73318,709

2014Revised* 2015 2016 2017 2018

Investment in Joint Venture and Its subsidiariesHead Office and OthersOil and International TradingNatural Gas

Gas 42%

Oil & Trading 17%

R&D, Others 3%

M&A and

Investment Oversea 24%

LNG 14%

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%

35

52,914 60,796

67,007

86,948

58,910

4th pipeline & extension

LPG import facility

LNG, M&A and Investment Oversea

55,497**

Revised

* 2015-2018 budget are subjected to be approved by NESDB at YE2014


Contents

36


Highlights

Performance

2H/2014 Outlook


: - US Economics Recovery - Fed maintain QE tapering

: - IMF forecast ASEAN-51 GDP growth in 2014 around 4.6%

: - Risk of Capital Outflow and rising interest rate

37

Economic Outlook : Challenges Ahead

US Market : Economy Expands at Moderate to Modest Pace

: - Russian Sanction

EU market: Geopolitical Conflict tend to escalate : - EU Economy fragile recovery

- ECB have stimulus package

: - Ukraine and Russia political tension tend to escalate China market: conservative growth

: - IMF Raise Chinese GDP Forecast to 7.5% - Government plan to have stimulus package in Y2014

Thailand market: Resolve Political Conflict : - NCPO approve Mega-projects to spur Economy, expedite 2014

disbursement, and complete planning budget 2015 : - Fed policy will effect Thai Baht depreciate

37

AEC market : effect from Capital Out Flow

1 Indonesia, Malaysia, Philippines, Thailand, and Vietnam.

: - Concern on shadow banking and slump on property sector

PTT Performance: Tend to have clearer Business Direction : - PTT have new BOD

: - Uncertainty on Energy Reform


0

100

200

300

400

500

600

700

800

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

mm

t

Speculative

Planned

Under Construction

In Operation

LNG Demand

Mild Weather across US during summer season

Higher-than-expected shale gas production

Factors to watch

US LNG Export Terminal Projects

Source : Short term 2014 Outlook, July 2014 EIA, Street Research, Bloomberg and PTT

Henry Hub Natural Gas Price Forecast

Henry Hub / JKM Price Outlook: Gas price tends to move up in short term from winter season

38

LNG Global Demand/Supply

PNG LNG Project started up LNG production

earlier than market anticipation

Japan-Korea Market Price Forecast

Excess Supply expected in L-T

Expected JKM price 2014 = 15.40 $/MMBtu

EIA’s projected HH Price in 2014 is 4.17 USD/MMBTU

Factors to watch

Kogas has faced High LNG Inventory as result of mild weather in Korea

Average JKM price 2013 = 16.54 $/MMBtu

High LNG Demand in winter season which is approaching soon

Average HH price 2013 = 3.73 $/MMBtu

Average HH price 2014 = 4.59 $/MMBtu

Source: FGE, PTT


91.48

92.61

94.21

91.83

93.31

95.02

0

1

2

3

4

5

6

7

8

89

90

91

92

93

94

95

96

2013 2014 2015 World oil Demand(LHS) World Oil Supply(LHS) OPEC Spare Capacity*(RHS)

106.2 106.3

105.6 105.7 106.0

Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14WTI Brent Dubai Dubai Forecast (PTT Group PRISM) Column2

2013 Dubai $105.5/bbl

2014 1H Dubai $105.3/bbl

Dubai Forecast 2H 2014 Range $105-$107/bbl

Unrest in Ukraine/Russia Tension

Entering Hurricane Season in US

39

“OPEC spare capacity trend to rises in 2014 However, Geopolitical risk will support oil price”

Dubai $105/bbl

Dubai $105/bbl

Dubai $103/bbl

Source: EIA report July ’14, OPEC World Oil Outlook, (PTT Group) Estimated (21.07.2014)

Revised

Crude Oil Outlook: Political tension uplifts oil price

Easing Libyan supply disruption

Lower Oil demand from people concern on Airlines crash

Crude Oil Price Forecast range bound 105-107 $/bbl

Psychology level @ 100 USD/BBL

Factors to watch

World Oil Demand/Supply Balance

Surplus 0.35

Surplus 0.70

Surplus 0.81

Source: PIRA Energy Group (25.07.2014)

Geopolitics


40 Source: FACTS, DB, KBC, Reuters , IEA, Reuters, Thaioil and PRISM Estimated (July 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

Global Gasoline Seasonal demand during Jul-Aug

More Demand in Agricultural Sector

Forecast

GO

Mogas

FO Higher export gasoil cargo from China

Refinery return from turn around season

More Concern on Air Travel will effect Jet demand

Singapore GRM Forecast to be around 5-6$/bbl Factors to watch

“Refineries return from maintenance period and will ramp up

their run in Q4 for winter demand .”

“Expected supportive GRM in 2014 due to limited net capacity addition as refinery closure in Japan, Australia &

project postponement in China”

Refinery Margin Outlook : Refinery margin remains stable during harvest season

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

AAsia-Pacific Refinery

Maintenance & Outages

(KBD)


0

200

400

600

800

Ja

n-1

3

Ju

l-1

3

Ja

n-1

4

Ju

l-1

4

Spread HDPE Spread PP

US

D/T

on

Olefins Product Spread

Petrochemical Outlook : Olefin spread stable from higher demand after Ramadan

Source: IHS and PRISM 41

Asia Ethylene Supply/Demand Balance Asia Propylene Supply/Demand Balance

Higher Demand after Ramadan season

US and EU Economics Recovery

Factors to watch

• HDPE-Naphtha expected to be around 580-680 USD/TON

• PP-Naphtha expected to be around 580-680 USD/TON

More Propylene cargoes from ME and surplus stock from Singapore

Y 2014

60%

70%

80%

90%

100%

110%

2.0

2.5

3.0

3.5

4.0

4.5

Jan

-14

Fe

b-1

4

Ma

r-1

4

Ap

r-14

Ma

y-1

4

Jun

-14

Jul-

14

Au

g-1

4

Se

p-1

4

Oct-

14

Nov-1

4

Dec-1

4

Domestic Ethylene Demand Monthly Ethylene Production

Plant Availability

Millio

n M

etr

ic T

on

s

Av

ailab

ilit

y

60%

70%

80%

90%

100%

110%

2.0

2.5

3.0

3.5

4.0

4.5

Jan

-14

Fe

b-1

4

Ma

r-1

4

Ap

r-14

Ma

y-1

4

Jun

-14

Jul-

14

Au

g-1

4

Se

p-1

4

Oct-

14

Nov-1

4

Dec-1

4

Domestic Propylene Demand Monthly Propylene Production

Plant Availability


Petrochemical Outlook: Expect PX margin to recover, PX high cost producer still cut run

42

Expect PX margin recover due to PX High cost producer still run cut

Arbitrage window for Asia Benzene to US is wide open

Concern on Polyester and PTA demand

Asia Paraxylene Supply/Demand Balance

Aromatics Product Spread

Factors to watch

• Bz-Naphtha forecasted to be around 350-450 USD/TON

• PX-Naphtha forecasted to be around 380-480 USD/TON

0

200

400

600

800

Ja

n-1

3

Ju

l-1

3

Ja

n-1

4

Ju

l-1

4

Spread BZ Spread PX

Source: IHS and PRISM

Y 2014

US

D/T

on

60%

70%

80%

90%

100%

110%

0.0

0.5

1.0

1.5

2.0

2.5

Jan

-14

Fe

b-1

4

Ma

r-1

4

Ap

r-14

Ma

y-1

4

Jun

-14

Jul-

14

Au

g-1

4

Se

p-1

4

Oct-

14

Nov-1

4

Dec-1

4

Domestic PX Demand Monthly PX Production

Plant Availability

Millio

n M

etr

ic T

on

s

Av

ailab

ilit

y

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-4

No

v-1

4

Dec

-14


Contents

43

Highlights

Performance

2H/2014 Outlook



PTT Group STS 2014

44

50th year anniversary

Toward Knowledge based Organization


PTT Group STS 2014 Highlights Performance 2H/2014 Outlook STS 2014

Key Takeaways

46

1H/2014 • Full resumption of GSP#5

• Better PTT’s performance offsets affiliates’ slowdown

• Aromatics spread tumbled from additional supply & lower demand

• Progress on 2 major projects (4th Onshore & LNG Terminal)

2H/2014 Outlook

• Keep an eye on Energy Reform

• Awaiting benefit of LPG/NGV price lifting

• Zawtika Project begins delivering natural gas to Thailand

• Continued Aromatics pressure esp. PX would slow down operation

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

Disclaimer

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.

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.

mailto:[email protected]

http://www.pttplc.com/



48

Free Cash flow

21,022 36,176

Financing -28,274 -30,907

Repayment Loans -29,517 -2,288

Interest paid -6,748 -6,401

Dividend paid -22,839 -22,851

Received from share issue - -

Received from loans/Bonds 30,830 633

Investing

1H/2013 12,158

1H/2014 7,938

CAPEX (PP&E, Intangible asset) -9,782 -14,004

Investment (Sub. &Affiliates) -1,217 -1,652

Dividend/Interest Received 20,461 17,551

Others 2,696 6,043

Operating

1H/2013 8,864

1H/2014 28,238

Net Income 37,376 25,147

Changes in assets & liabilities -19,896 -8,544

Income Tax -1,112 -1,388

Non-Cash Adjustment -11,705 8,771

Interest - net 4,201 4,252

Ending Cash & Cash Equivalents

40,319 69,196

Beginning Cash and Cash Equivalents

47,641 63,927

Cash In/(Out)

-7,322 -5,269

Adjustment

-70 -

48

Statements of Cash Flows (PTT Only)

49

PTT Group Performance : Q2/14 (QoQ)


% share

Unit : MMTHB Q1/14 Q2/14 QoQ Q1/14 Q2/14 QoQ

PTT Net operating Income 13,739 11,162 -19% 13,739 11,162 -19%

E&P - PTTEP 12,435 18,186 46% 65.29% 7,450 12,271 65%

- PTTGC 6,296 6,085 -3% 48.89% 2,722 2,644 -3%

- HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/

PTTME/PTTMCC/PMMA1,628 1,610 -1% 40-50% 794 736 -7%

Petrochemical 7,924 7,695 -3% 3,516 3,380 -4%

- TOP 2,534 2,094 -17% 49.10% 1,303 1,078 -17%

- IRPC 344 178 -48% 38.51% 125 62 -50%

- SPRC -1,174 1,120 -195% 36.00% -335 297 -189%

- BCP 1,562 1,258 -19% 27.22% 416 366 -12%

Refining 3,266 4,650 42% 1,509 1,803 19%

Inter - PTTER, PTTGE -591 -744 26% 100% -555 -746 34%

Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 1,430 1,284 -10% 50-100% 1,018 959 -6%

Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 507 1,039 105% 20-30% 148 295 99%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others 795 848 7% 33-100% 623 1,314 111%

Others Business 2,141 2,427 13% 1,234 1,822 48%

Shared of Net Income from Affiliates 25,766 32,958 28% 13,709 19,276 41%

PTT Conso. Net Income 39,505 44,120 12% 27,448 30,438 11%

Performance 100% Equity Method % PTT

* Excluded non-recurring item “Doubtful Loan-PTTER (EMG)” of THB 16,259 MM posted in Q2’14; however, this amount is eliminated in PTT Consolidated

* *

Debt Profile : Control Cost & Manage Risk

Debt Portfolio

Managed debt according to financial risk and policy

Consolidated PTT Only Unit : MMTHB

50

: Cost of debts ~ 4.61 %

: % fixed-rate ~ 81.82 %

: Avg. debt life ~ 8.11 years

: Cost of debts ~ 4.43 %

: % fixed-rate ~ 77.28 %

: Avg. debt life ~ 7.67 years

188,102 181,399 179,385 221,201 208,298 213,426

100,069 125,972 124,894

215,507 259,665 255,495 288,171

307,371 304,279

436,708 467,963 468,921

31 Dec 12 31 Dec 13 30 Jun 14 31 Dec 12 31 Dec 13 30 Jun 14

USD

THB

(35%)

(65%)

(41%)

(59%)

(41%)

(59%)

(49%)

(51%)

(55%)

(45%)

(55%)

(45%)

Note : Data as of 30 Jun 14 (THB/USD = 32.5986 THB/JPY = 0.323299) Excluding liabilities from finance leases; Cost of debts includes withholding tax.

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%

51

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%

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 30 June 2014

International Investment

Subsidiaries Consolidate PTT Energy Resources Co., Ltd. PTTER 100.00%

PTT Green Energy Pte. Ltd PTTGE 100.00%

Indigenous (20%)

Imported Refined Petroleum Products 102 KBD

898 KBD (**)

Source: PTIT

Remark : (*)Refined product from refineries= 862 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 99 KBD

(**) Not included Inventory

KBD = Thousand Barrels per day

Import (80%)

Crude/ Condensate 826 KBD

Refined Products 961 KBD*

Domestic

Crude/ Condensate 217 KBD

Supply Production Sales

Export

177 KBD

Oil Balance Thailand: Jan-May 2014

229 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 165 KBD

52

Crude Export 12 KBD

928KBD

Natural Gas Balance: Jan – Jun 2014

Gulf of Thailand (77%)

Power (59%)

Industry (14%)

NGV (7%)

Petrochemical Feedstock

(14%)

Industry Household

Transportation (6%)

Ethane/ Propane/ LPG/NGL

LPG/NGL

Remark: MMSCFD = Million Cubic Feet @ Heating Value 1,000 Btu/ft3

3,526 MMSCFD

Main driver of the Thai economy

Supply Production Sales

53

LNG25%

Myanmar75%

Chevron 34%

PTTEP 25%

Others 41%

Bypass Gas 1,058

MMSCFD

962 MMSCFD (20%)

Methane 1,506 MMSCFD

Onshore (3%)

142 MMSCFD

6 GSPs Total Capacity

2,740 MMSCFD @ Actual Heat

Import (20%)

945 MMSCFD

54

Natural Gas Price Structure : Jan-Jun 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

55 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

56

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

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

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

Highlights 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

57

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