Investor Update February 2012 - listed companyptt.listedcompany.com/misc/PRESN/20120404-PTT-Investor... · 2012-04-04 · Non- Asia NonAfrica- Asia NonEurope- Asia NonAmericas- Asia

Investor Update February 2012

Investor Update February 2012

Contents

Oil & Gas Balance / PTT Aspiration

Operational Results

Financial Performance

Economic & Market Outlook

Oil & Gas Balance Operational Results Financial Performance Economic & Market Outlook

1

Indigenous (20%)

Imported Refined Petroleum Products 54 KBD

794 KBD (**)

Source: PTIT

Remark : (*)Refined product from refineries= 834 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 98 KBD

(**) Not included Inventory

KBD = Thousand Barrels per day

Crude Export 31 KBD

Import (80%)

Crude/ Condensate 809 KBD

Refined Products 932 KBD*

Domestic

Crude/ Condensate 179 KBD

Supply Supply Production Production Sales Sales

Export

229 KBD

Oil Balance Thailand: Jan - Sep 2011

863 KBD

210 KBD

Adequate refining capacity maintains the stability of supply

Total Refining Capacity in Thailand: 1,099 KBD

PTT’s Associated Refineries : 905 KBD (TOP, PTTGC, SPRC, IRPC, BCP)

Other Refineries : 194 KBD (ESSO, RPC)

Refined Products 198 KBD

2


LNG

9%

Myanmar

91%

Natural Gas Balance: Jan – Sep 2011

Indigenous (77%) 3,286 MMSCFD

Power (61%)

Industry (13%)

NGV (6%)

Petrochemical Feedstock (13%)

Industry Household

Transportation (7%)

Ethane/ Propane/ LPG/NGL

LPG/NGL

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

Total 4,248 MMSCFD

Pipeline 831 MMSCFD

2,456 MMSCFD

Methane 1,586 MMSCFD

Main driver of the Thai economy

Supply Supply Production Production Sales Sales

869 MMSCFD (20%)

6 GSPs Total Capacity

2,680 MMSCFD

964 MMSCFD

Chevron

27%

PTTEP 33%

Others 40%

Import (23%) 964 MMSCFD

3



Our major businesses & activities

E&PE&P

GasGas

PTTEP 65.29% Exploration and Production

Upst

ream

Upst

ream

Oil MarketingOil Marketing

Int’l TradingInt’l Trading

Dow

nst

ream

Dow

nst

ream

Refining &Refining &

PetrochemicalPetrochemical

(Aromatics)(Aromatics)

TOP 49.10% Integrated Complex Refinery & Petrochemical

IRPC 38.52%

SPRC 36.00% Stand alone Complex Refinery

BCP 27.22% Complex Refinery & Retail Stations

PTTGC 48.92% Petrochemical Flagship PetrochemicalPetrochemical

New

N

ew

Busi

ness

Busi

ness

InternationalInternational PTT Inter 100% Overseas investment arm of PTT :

Coal, New energy and related businesses

PTT PLC

• 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

teIn

term

edia

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

4

Business Areas Activities Company PTT’s holding (%)

PTT Aspiration Strategic direction and target to achieve “Big-Long-Strong” aspiration

“Thai Premier Multinational Energy Company”

Big

“Top quartile performance”

Dow Jones Sustainability Indexes

Long

Expand resources Maximize value along

the chain

Balance stakeholder excellence

Big

Long

Strong

Drive functional excellence and synergy

Share best practice and knowledge management

Strong

5


http://www.google.com/imgres?imgurl=http://www.triplepundit.com/wordpress/wp-content/uploads/2009/09/DJSI-logo.jpg&imgrefurl=http://www.triplepundit.com/2009/09/dow-jones-sustainability-index/&usg=__5t4M8CHOSSWRLr75kV-60T-tPmE=&h=222&w=250&sz=7&hl=en&start=1&itbs=1&tbnid=alzGrAdKKDeCjM:&tbnh=99&tbnw=111&prev=/images?q=DJSI+logo&hl=en&gbv=2&tbs=isch:1


2011 PTT Group Strategic Direction Investment priorities by geography and value chain

Upstream P&R

Non-oil Retail

Oil

& G

as

Retail

Upstream Upstream

Upstream Midstream

Upstream Coal

Ad

jace

nt

ind

ustr

y

Trading

Create P&R flagship and internationalize chemical business

Explore opportunities in non-fuel retail

Oth

ers

Internationalization

Gre

en

E

ne

rgy/

ma

teri

als

Infrastructure

Build Green business (ASEAN biohub) Bio-business

Div

ers

ific

ati

on

Non- Asia Europe Non- Asia Africa Non- Asia Americas Non- Asia Middle East

Australia, N. Asia and S. Asia ASEAN

Expand production to 900 kbd

Build LNG business & expand mid-/ downstream gas value chain

Support group inv.

Alt. energy Build Thai clean power, monitor opport. in ASEAN

Grow coal mining to large scale

Upstream Power Build Thailand Gas, follow int. gas value chain expansion, opportunistic coal

Expand oil station related business and spin off lubricants

Strengthen integrated hub (e.g. Gr. Marine)

Consolidate petroleum commodities and create value through international transactions

Plantations Develop palm oil, sugar and cassava

Top oil and gas player

Energy conglomerate

Business conglomerate

Priority 1 Priority 3 Priority 2 based on market attractiveness and potential for PTT Group to be distinctive 6

Contents


Operational Results



7


Exploration & Production performance : PTTEP (65.29%)

Product PricesProduct Prices Net Income Net Income ((100100%)%)

Sales VolumeSales Volume Key ActivitiesKey Activities

5.92 5.91 5.49 5.81

108.95 101.67

71.51

102.06

56.28 55.37 44.37

53.68

Q2/11 Q3/11 9M/10 9M/11

Liquid (USD/BBL)

Gas (USD/MMBTU)

Weighted Avg. (USD/BOE)

Q2/11 Q3/11 9M/10 9M/11

250 370

979

Unit: MMUSD

999

2%

32%

185 194

80 76

Q2/11 Q3/11 9M/10 9M11

273 262 265

Liquid

Gas

Unit: KBOED

3%

270

3%

E & P Gas Oil & Trading Petchem Refining Others

8

QoQ • Sales vol. dropped from Arthit, Arthit North, and Bongkot projects • FX loss from MTM of USD loan extended to a Canadian subsidiary

9M • Sales vol. increased mainly from MTJDA-B17, Bongkot, and KKD projects • Net Income declined from increase in tax expenditure and FX loss


Unit: KBOED Total 1,043 MMBOE Total 1,043 MMBOE

Reserves Replacement Ratio 1.33 > 1

Reserve Life Index (year) 9

Policy

45% 55%

Domestic

Overseas

Exploration & Production Roadmap : PTTEP

Target Sales VolumeTarget Sales Volume Proved ReservesProved Reserves

9



2015 2011 CF 2012 2013 2014 2016

BKT South,

Montara

Zawtika Algeria

265 284 330

345

326 324

Thailand

South East Asia

Australia

Middle East & Africa

North America

7% 16%

1,117 1,173

950 900

496 504

837 870

586 546 263 249

Q2/11 Q3/11 9M/10 9M/11

Gas Business performance : PTT

NG Sales VolumeNG Sales Volume EBITDAEBITDA

Customer ProfileCustomer Profile Key ActivitiesKey Activities

2011

2009

2010

3,280

3,606 3,677 3,686

3,802

4,055

4,152

4,148 4,145

4,330 4,249

Q1 Q2 Q3 Q4

Unit: MMSCFD

Q2/11 Q3/11 9M/10 9M/11

Unit: MMTHB

35,506

16,832 18,843

52,315

47%

11%

EGAT (27%)

IPP (22%)

SPP (12%)

GSP (20%)

Industry (13%) NGV (6%)

3% Unit: MMSCFD

4,104 4,330 4,241 4,249

2%

10


QoQ

• Both NG and GSPs sales volume declined as a result

of gas pipeline incident

• LNG receiving terminal commenced operation right

in time to make up for loss volume from the leakage

9M

• Performance increased from increases in both

selling price and sale volume


Product PricesProduct Prices NGV EBIT LossNGV EBIT Loss

GSP Sales VolumeGSP Sales Volume Key ActivitiesKey Activities

PP

HDPE

Naphtha

Unit : USD/Ton

333 333 333 333

904 869

636

869

1,373 1,399

1,209

1,387

1,669 1,606

1,296

1,636

Q2/11 Q3/11 9M/10 9M/11

Domestic LPG

Unit : MMTHB

-5,148 -3,164

-2,327

-7,297 42%

36%

Propane (9%)

NGL (11%)

Ethane (31%)

LPG (49%)

Unit : KTon

701

2,121 163

480

406

1331

111

388

Q2/11 Q3/11 9M/10 9M/11

3,059

1,381 1,472

4,320 41%

6%

Gas Business performance: Gas Separation Plants & NGV

11


Q2/11 Q3/11 9M/10 9M/11

QoQ

• 28 days Ethane Separation Plant (ESP) warranty

turnaround

• GSP 6 reduced utilization as Ethane Cracker of

PTTPE shutdown for 42 days

• More NGV loss QoQ as sales volume increased

9M

• GSP volume increased by 41% from COD of ESP

in Jul 10 and GSP6 in Jan 11


0

2,000

4,000

6,000

2011 2012 2013 2014 2015 2016

Pipeline Capacity

(MMSCFD) 4,380

GSP Production

(MTA)

5,580

7.0 7.0

6,980

7.0

6,980

7.0

New Supply

PTTEP (Bongkot

South)

4th Onshore

PTTLNG

Offshore Compressor

PTTEP (M9) Chevron

(Plathong)

6,980

6.3

Unit : MMSCFD

GSP#6

Power - EGAT

- IPP

- SPP

GSP

Industry NGV

60%

21% 13%

8%

6% 18%

15%

59%

6,980

7.0

Gas Business Roadmap

12



Oil Business performance : PTT

Contribution Margin* Contribution Margin* EBITDAEBITDA


310 694

2,926

9,656

Q2/11 Q3/11 9M/10 9M/11

Oil

Non-Oil

Unit : MMTHB

0.80

0.72 0.77 0.76

Q2/11 Q3/11 9M/10 9M/11

Unit :THB/Liter 11%

8%

3,531 3,236

9,364 10,350

5,286 5,551

15,441 16,232

Q2/11 Q3/11 9M/10 9M/11

Unit : MM Liter 5%

5%

* Exclude non –oil business

13


QoQ

• Volume increased from increased F/O sales to

compensate for NG vol. loss from pipeline leakage

• Lower stock gain

9M

• Diesel volume increased as a result of Government’s

capped price policy

• Fuel oil volume increased from pipeline leakage


International Trading Business performance : PTT

Contribution MarginContribution Margin EBITDA*EBITDA*


362 612

2,232 1,926

Q2/11 Q3/11 9M/10 9M/11

Unit : MMTHB

0.03

0.04

0.05 0.05

Q2/11 Q3/11 9M/10 9M/11

Unit :THB/Liter 14%

69%

16,248 16,098

44,533 45,409

Q2/11 Q3/11 9M/10 9M/11

Unit : MM Liter

1%

2%

* PTT Only

14


QoQ • Improved margins for refined products 9M

• Increase in sales volume of diesel and fuel

oil, as well as margins of gasoline & fuel oil

• Decrease in EBITDA, resulting from lower

other income


Petrochemical Business performance

Product PricesProduct Prices Net Income (Net Income (100100%)%)


904 869 636

869

1,669 1,606 1,296

1,639

1,373 1,399 1,209

1,387

2,074 1,967

1,552

1,857

2,432

2,041 1,834 2,288

Q2/11 Q3/11 9M/10 9M/11

Unit : MMTHB

HDPE

Light Naphtha

PP

Unit : USD/Ton

BPA

Phenol

Q2/11 Q3/11 9M/10 9M/11

24,183

PTT Phenol

PTTCH

114%

HMC Polymers Others

18%

11,324 8,763 7,200

Q2/11 Q3/11 9M/10 9M/11

87% 78% 81%

84%

Unit : KTon

PTTCH

HMC Polymers

PTT Phenol

626 639

1,367

1,886

2%

38%

15


QoQ • Performance weaken due to the decrease in sales

volume and average selling price, as well as the 42 days turnaround of PTTPE’s Ethane Cracker (1 MTA)

9M • However, 9M performance stronger due to the increase

in sales volume and average selling prices over the period, as well as the commercial operations of

• PTTPE’s Ethane Cracker 1 MTA in Dec 2010 • PTTCH’s HDPE 300 KTA & LDPE 400 KTA in Q1/11 • PTT Phenol’s Bis-Phenol A 150 KTA in Q2/11 • HMC Polymers’s PDH/PP 300/310 KTA in Q1/11

Aggregated Util.


Petrochemical Business Roadmap

2011 2012 2013 2014 2015

PTT 48.92%

Refining 280 KTA

Olefins 2,888 KTA

Aromatics 2,259 KTA

Polymers 1,590 KTA

Specialty 826 KTA

Euro IV

PTT 40.00%

Phenol 200 KTA

Acetone 125 KTA

BPA 150 KTA

Phenol 250 KTA Acetone 154 KTA

PTT 41.44% PP 450 KTA

PP 300 KTA Propylene 310 KTA

PTT 48.50%

AN 200 KTA MMA 70 KTA

PTT 50.00%

PBS 20 KTA

16



101% 102% 98% 97%

-10%

40%

90%

0

100

200

300

400

500

600

700

800

900

1000

Q2/11 Q3/11 9M/10 9M/11

709 681 675

5.56 5.75

4.49

6.49

Q2/11 Q3/11 9M/10 9M/11

GRM/GIMGRM/GIM Net Income (Net Income (100100%)%)

Total IntakeTotal Intake Key ActivitiesKey Activities

Refining Business performance

Q2/11 Q3/11 9M/10 9M/11

5,187

39,142

13,228 16,686

Unit : MMTHB

A/C GRM

135%

61%

A/C GIM

700

Unit : USD/BBL

Mkt GRM 6.66

8.66

6.32 6.13

9.93

5.99

4.60

7.30

Source : PTT, Refining Associates Note: Weighted Avg. GRM of PTT’s associates’ complex refineries (TOP, PTTAR, SPRC and BCP) Weighted Avg. GIM of PTT’s associates’ integrated refineries (TOP, PTTAR and IRPC) Account GRM/GIM = Market GRM/GIM + Hedging Gain/Loss + Stock Gain/Loss

Unit : KBD

BCP

IRPC

SPRC

PTTAR

TOP

BCP

SPRC

PTTAR

TOP

Aggregated Util.

17


QoQ • Mkt GRM improved from high regional demand • For Aromatics, strong demand from new PTA& healthy

polyester mkt • Tight supply due to T/A of S‐Oil, outages of CNOOC (840 KTA)

and concern over Gov. to shut Fujian Dahua (PX=700 KTA) • Weak BZ demand from recession concern & major T/A of SM

plant • Additionally, stock loss pulled down refinery performance 9M • Mkt GRM improved from high demand in relation to the world

economic recovery


2011 2012 2013 2014 2015

PTT 49.10%

Refining Cap. 275 Kbpd PX 489 KTA MX 90 KTA BZ 177 KTA Tol 144 KTA

EURO IV

VLCC 2 MMBBL

PX & BZ Upgrading

• PX 100 KTA

• BZ 100 KTA

Ethanol UBE

400 KLiter/day

HCU Revamp Phase I-PSA

Benzene Derivatives-LAB 100 KTA

Power Plant 110 MW

PTT 38.52%

Refining Cap. 215 Kbpd Aromatic 367 KTA Olefin 728 KTA Polyolefin 615 KTA

Power plant

220 MW

(COD Jun 1)

Propylene Booster

• Propylene

100 KTA

ABS/SAN Expansion

• ABS/SAN 61 KTA

PP Compound and Specialties 100 KTA

Propylene 320 KTA

PTT 27.22%

Bangchak

Refining Cap. 120 Kbpd

EURO IV

*Solar Power Plant Ph I 38 MW (8 MW: COD Aug 2011)

Ethanol TAE

365 KLiter/day

Solar Power Plant Ph II

32 MW

Ethanol UBE

400 KLiter/day

Solar Power Plant Ph III

48 MW Algae Energy 30,000 Liter/Day

Palm Mill 45 Tons/Hour

Expansion project

* 30 MW expected COD on July ,2012 due to flooding impact

Refining Business Roadmap

18



Q2/11 Q3/11 9M/10 9M/11

Other Businesses : Coal - SAR (45.6%)

Average SAR Selling PriceAverage SAR Selling Price Net Income (Net Income (100100%)%)


Unit : MMUSD

102%

95 94

72

90

Q2/11 Q3/11 9M/10 9M/11

Unit : USD/Ton

39 37 58

117

5%

Q2/11 Q3/11 9M/10 9M/11

2,477

Unit : KTon

2,494

7,650

Jembayan

Sebuku

7,812

1%

2%

19


QoQ • 23% upgrade of JORC reserves leading to

Jembayan reserves increased from 122MTon to 142.3 MTon

• Northern Leases began its operation 9M • Sales volume decreased due to massive

typhoons this year


http://www.straitsasia.com/

http://www.straitsasia.com/

Coal Mining Roadmap

Target Production VolumeTarget Production Volume Resources & ReservesResources & Reserves

20

Unit : MMTon

2008 2009 2010 2011 E 2012 E 2013 E

8.5 9.0

10.7

11.1*

12.0*

14.0*

Jembayan

Sebuku

2%

98%

Sebuku

Jembayan

60%

40%

Jembayan

Sebuku

Resources 1,505 MMTon

Reserves 146 MMTon

* Minimum range of forecasted Volume

20



Contents


Operational Results



21


Dubai (USD/BBL)

EBITDA

Net Income

EPS (THB/Share)

Unit : MMTHB 1%

Revenue

111 107

643,577

648,365

Q2/11 Q3/11

55,054

52,866

Q2/11 Q3/11

4%

32,528 21,599

2Q/11 3Q/11

34%

11.40 7.57

75%

15%

6% 4%

PTT - Oil & Trading

PTT - Gas

Others PTTEP

56% 32%

6%

6% PTT - Oil & Trading

PTT - Gas

Others

PTTEP

55%

24%

15%

10%

-3%

PTT

PetChem

Others

PTTEP

Refining

PTT Consolidated Performance : Q3/11

22

Revenue

EBITDA

Net Income


Unit : MMTHB 30%

76 106

1,405,429

1,832,799

9M/10 9M/11

128,528 159,773

9M/10 9M/11

24%

61,495

88,651

9M/10 9M/11

44%

21.68 31.08

75%

15%

6% 4%

PTT - Oil & Trading

PTT - Gas

Others PTTEP

54% 33%

7%

6% PTT - Oil & Trading

PTT - Gas

Others

PTTEP

45%

23%

13%

18% 1%

PTT

PetChem

Others

PTTEP

Refining

PTT Consolidated Performance : 9M/11

23

Revenue

EBITDA

Net Income

Dubai (USD/BBL)

EBITDA

Net Income

EPS (THB/Share)

Revenue


11.2 12.1

0.4 0.5

1.3

1.6

2010 9M/11

496,661 582,986

368,515

409,776

206,348

261,388 157,585

112,318

557,414 610,232

371,029 407,000

300,666

349,236

Other Liabilities

PP&E

Others Non-

current Assets

Other Current Assets

L/T Liabilities (incl. due within 1 yr)

Total Equity

Unit: MMTHB

Cash & S/T Invest

Increased assets :

• GSP#6

• 40% KKD Oil Sands

• PTTLNG

• WIP of 4th pipeline,

Offshore gas spurlines

Net Debt/EBITDA < 2.0

Net Debt/Equity < 1.0

ICR

Strong Financial Position

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-)

31 Dec10 30 Sep 11

1,229,109 1,366,468

11%

Statement of Financial Position : Solid and Secured

24

Treasury policy


Gas 33%

Oil & Trading

14%R&D / Others 3%

Others 41%

Coal 2%Power 2% LNG 5%

27,16331,831

35,812

16,653 7,611

55,49241,279 32,383

26,880

23,134

R&D / Others

JV & Investment in Subsidiaries

Oil & Trading

Gas

85,484 81,513

Unit: MMTHB

PTT: CAPEX (PTT and wholly owned Subsidiaries) PTT plans to invest ~Bt 358 bn ($12bn) during 2012-2016

91,467

CAPEX Breakdown : 5 Years

By Business Unit

61,148

2012 2013 2014 2015 2016

38,384

JV &

Investment in

Subsidiaries

50%

25


Dividend Policy & Historical Payments

26

PTT’s minimum payout ratioPTT’s minimum payout ratio

PTT is firmly committed to pay dividend at no less than 25% of net income

UNIT : Baht / shareUNIT : Baht / share

7.71 8.75

13.43

22.40

30.57

34.14 34.82

18.33

21.06

29.26

23.52

2.50 2.85 4.006.75

9.2510.50 11.50

8.00 8.5010.25

6.00

25% 25%

32.4% 32.6% 29.8% 30.1% 30.3% 30.8% 33.0%

43.6% 40.4%35.0%

25.5%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1H2011

EPS DPS % Dividend Payout


Contents


Operational Results



27


• Uncertainties surrounding European sovereign debt crisis continues/ exacerbates ?

– EU to save European financial market in time?

– Credit rating downgrade continues to spread?

– Contagious effect ?

• Chinese economy continues to grow at a slower pace from tighten monetary policy.

• IMF projects world economy to grow at 3.6% in Q4/11.

• Thai economy will significantly contract due to Country’s worst flood. NESDB estimates Q4/11 GDP to minus 3.7% and average 2011 growth at 1.5%

Economic Outlook : Q4/11

28


Positive Factors Negative Factors Price

Outlook

Crude

• Strong seasonal demand (winter) • Global inventory drawdown

• European crisis uncertainties • Global economic slowdown • Increase supply from resume of Libyan crude production

Refining

• Continuing demand from China • Japanese Demand for power generation and heater

• Refineries resume from maintenance

Aromatics

• Start up of New PTA plants in China, Taiwan and Korea

• Global economic slowdown

Olefins

• New Ethylene supply delay (Exxon 1,000 KTA shifted its COD to Q3/12)

• Global economic slowdown • De-stocking ahead of year

ended holiday • Operation resume from S/D

Industry Outlook : Q4/11

29


Thank you

PTT Public Company Limited – Investor Relations Department Tel. +66 2 537-3518, Fax. +66 2 537-3948, E-mail: [email protected]

http://www.pttplc.com, http://www.twitter.com/PTTIR

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 Disclaimer

mailto:[email protected]

http://www.pttplc.com/

http://www.twitter.com/PTTIR

Highlights

31

EconomyEconomy

OperationsOperations

• Potential Greece’s sovereign debt default resulting in fear of European/World’s economic slowdown

• Prolonged China tight monetary policy

• Frequent typhoons & monsoons hit Asia since June 2011 causing great flood in Thailand from September 2011. Q3/11 Thai GDP growth at 3.5% (prior forecasted at 4.2%)

• Estimated cost of flood at THB 600 Bn. to 1.1 Trillion, according to Board of Trade of Thailand. About 1,000 factories in 7 industrial estates were seriously affected

• 52 days offshore gas distribution pipeline leakage (25 Jun – 15 Aug 2011)

• 28 days planned shutdown of Ethane Separation Plant

• 42 days planned shutdown of Ethane Cracker of PTTPE

• NEPC approved - NGV price increase at THB 0.50 per KG per month and

- LPG price for transportation sector increase at THB 0.75 per KG per month, both from Jan – Dec 2012

Highlights

32

InvestmentsInvestments

Key Key PerformancePerformance

• Successfully merged PTTCH & PTTAR, to create “PTT Global Chemical Plc.” on 19 Oct. 2011, with market cap of THB 301 billion (#6 on SET as at 14 Nov. 2011)

• Invested 25% in Bangpa-in Cogeneration Co,.Ltd. (119 MW) with registered capital of THB 1,370 mm

Q3/11

• Avg. Dubai price of 107 $/bbl, falling from 111 $/bbl in Q2/11, resulting in refineries’ stock losses

• Notwithstanding pipeline leakage incident, natural gas sales volume decreased merely by 2% QoQ

• Consolidated net income of THB 22 bn. (-34% QoQ), mainly caused by operational FX loss at a subsidiary

9M/11

• Nonetheless, 9M/11 Consolidated net income stands at THB 89 bn., increased by 44% from last year

33

76.69

73.48

77.31

83.59

76.3

74.0 72.49

74.09

75.12

80.2

83.7

89.1 92.5

100.2

108.7 116.0

108.4

107.8 110.0

105.0

106.3

95.2

93.3

94.7 100.2

100.8 98.8

96.2

89.4

94.7 97.3

107.0

119.5

130.0 127.1

126.6

122.3

119.4 119.8

121.1 120.7

123.3

10.1

9.7

10.6

10.9

11.3

10.6 11.2

11.3

11.1 11.0

11.1

11.0

11.5 12.2

12.5 13.1

13.7 14.5

16.1 16.5

16.5

Jan-10 Apr-10 Jul-10 Oct-10 Jan- 11 Apr-11 Jul-11

LNG

($/MMBTU)

Dubai

crude

($/BBL)

Coal

($/Ton)

Prices Movement

Q1 Q2 Q3 Q1 Q2 Q3 Q4

2010 2011

33

0

0.5

1

1.5

2

2.5

3

3.5

4

27

28

29

30

31

32

33

34

Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11

Interest Rate and FX movement

34

6MTHBFIX

FX THB/USD

THB % Q1 Q2 Q3 Q4 Q1 Q2 Q3

30.13 30.28 30.53

1.91% 3.17% 2.96% 30.09 30.89 32.40 32.48

0.97% 1.02% 1.28% 1.25%

2010 2011

% share

Unit : MMTHB Q2/11 Q3/11 QoQ Q2/11 Q3/11 QoQ

PTT Company Only 19,888 24,890 25% 19,888 24,890 25%

Less: Dividend Received 5,134 13,182 157% 5,134 13,182 157%

Gain (Loss) on sales of investments in Associates989 0 m.n. 989 0 m.n.

Others adjusting 0 3 m.n. 0 3 m.n.

PTT Net operating Income 13,765 11,705 -15% 13,765 11,705 -15%

E&P - PTTEP 11,170 7,450 -33% 65.29% 7,704 5,176 -33%

Petro Business 8,763 7,200 -18% 4,077 3,278 -20%

- PTTCH 6,433 4,970 -23% 49.14% 3,023 2,327 -23%

- HMC/PPCL/PTTPL/PTTPM/PTTAC

/ PTTME/PTTTANK2,330 2,230 -4% 40-48% 1,054 951 -10%

Refining Business 13,228 5,187 -61% 6,438 2,135 -67%

- TOP 3,245 2,518 -22% 49.10% 2,705 1,220 -55%

- IRPC 2,981 -177 -106% 38.52% 846 -275 -132%

- PTTAR 2,141 1,251 -42% 48.45% 1,165 679 -42%

- SPRC 1,840 991 -46% 36.00% 800 339 -58%

- BCP 3,021 604 -80% 27.22% 922 172 -81%

Others Buiness 640 -106 -117% -26 -695 m.n.

Inter- PTTI group(PTTAPM,EMG,PTTML,FLNG)

,PTTGE-31 -445 m.n. 100% -31 -445 m.n.

Gas &

Utilities-TTM/PTTNGD/IPT/TP/DCAP/CHPP 1,073 853 -21% 20-100% 439 269 -39%

Oil & Oth.- PTTRB/PTTT/SBECL/THAPPLINE/

/PTTCL/TLBC/ICT/EnCo-402 -514 -28% 33-100% -434 -519 -20%

Shared of Net Income from Affiliates 33,801 19,731 -42% 18,193 9,894 -46%

Add Gain (Loss) on sales of investments in Associates570 0 m.n. 570 0 m.n.

PTT Conso. Net Income 48,136 31,436 -35% 32,528 21,599 -34%

Performance 100% Equity Method % PTT

PTT Group Performance : Q3/11

35

Highlights Operational Results Financial Performance Economic & Market Outlook Flood

36

PTT Group Performance : 9M/11

% share

Unit : MMTHB 9M/10 9M/11 YoY 9M/10 9M/11 YoY

PTT Company Only 44,934 64,406 43% 44,934 64,406 43%

Less: Dividend Received 16,826 23,782 41% 16,826 23,782 41%

Gain (Loss) on sales of investments in Associates989 m.n. 989 m,n.

PTT Net operating Income 28,108 39,635 41% 28,108 39,635 41%

E&P - PTTEP 32,324 29,598 -8% 65.29% 21,212 20,123 -5%

Petro. Business 11,324 24,183 114% 5,204 11,226 116%

- PTTCH 7,479 17,581 135% 49.14% 3,594 8,273 130%

- HMC/PPCL/PTTPL/PTTPM/PTTAC

/ PTTME/PTTTANK3,845 6,602 72% 40-48% 1,610 2,953 83%

Refining 16,686 39,431 136% 6,701 16,503 146%

- TOP 5,378 12,991 142% 49.10% 2,514 6,450 157%

- IRPC 3,870 6,302 63% 38.52% 1,367 2,031 49%

- PTTAR 2,520 8,371 232% 48.45% 1,239 4,109 232%

- SPRC 3,208 6,718 109% 36.00% 1,095 2,513 129%

- BCP 1,710 5,049 195% 27.22% 486 1,400 188%

Others Business 983 2,370 141% 270 594 120%

Inter- PTTI group

(PTTAPM,EMG,PTTML,FLNG),PTTGE-2,034 -1,061 48% 100% -2,033 -1,061 48%

Gas &

Utilities-TTM/PTTNGD/IPT/TP/DCAP/CHPP 2,162 2,758 28% 20-100% 1,281 1,057 -17%

Oil & Oth.- PTTRB/PTTT/SBECL/THAPPLINE/

/PTTCL/TLBC/ICT/EnCo855 673 -21% 33-100% 1,022 598 -41%

Shared of Net Income from Affiliates 61,317 95,582 56% 33,387 48,446 45%

Add Gain (Loss) on sales of investments in Associates0 570 m.n. 0 570 m.n.

PTT Conso. Net Income 89,425 135,787 52% 61,495 88,651 44%

Performance 100% Equity Method % PTT

Highlights Operational Results Financial Performance Economic & Market Outlook Flood

9M10 9M11 9M10 9M11

Operating 101,527 102,861 CAPEX & Investment -71,341 -134,571

EBITDA & Non-Cash Adjustment 94,888 127,049 CAPEX (PP&E, Intangible asset) -65,597 -83,384 Changes in assets & liabilities 6,638 -24,188 Investment (Sub. &Affiliates) -2,749 -77,117

Dividend/Interest Received 9,154 15,495 Others -12,150 10,434

Free Cash Flow Finance -6,550 -17,749

30,185 -31,711 Issued Loans/Bonds 60,073 46,819 Repayment Loans -19,919 -3,924 Redemption Bonds -8,000 -8,000 Interest Paid -10,264 -13,840 Share Issued 2,868 1,981 Dividend Paid -31,308 -40,784 Adjustment -5,468 10,699 Effect of FX on Cash & Cash Equivalent -5,095 685 Currency Translation Differences -373 10,014

Ending Cash & Beginning Cash &

Cash Equivalents Cash in (Out)

Cash Equivalents 122,199 97,040 104,033 135,801 18,166 -38,761

Statements of Consolidated Cash flows for Sep. 30, 2011 & 2010

Unit : MMTHB

37

Debt Profile : Control Cost & Manage Risk

Debt Portfolio

Managed debt according to financial risk and policy

ConsolidatedConsolidated PTT OnlyPTT Only Unit : MMTHB

193,454 197,877 183,226

258,991 255,860 242,042

63,979 68,30876,022

84,147114,442

164,244

31 Dec 09 31 Dec 10 30 Sep 11 31 Dec 09 31 Dec 10 30 Sep 11

USD THB

343,138

266,185 257,443

370,302

(25%)

(75%)

(26%)

(74%)

(31%)

(69%)

(25%)

(75%)

(29%)

(71%)

(40%)

(60%)

38

259,248

406,286

: Cost of debts ~ 4.39 %

: % fixed-rate ~ 82.9 %

: Avg. debt life ~ 6.1 years

: Cost of debts ~ 5.06 %

: % fixed-rate ~ 90 %

: Avg. debt life ~ 7.2 years

Note : Data as of 30 Sept 2011 (THB/USD = 31.3072 THB/JPY = 0.4109 ) Excluding liabilities from finance leases; Cost of debts includes withholding tax.

PTT We Care

39

Flood Impact to PTT Group : Worst crisis, Limited impact

Tentative Q4/11 Volume Impact

Remarks

E&P 5%

• 13,000 BOED loss from flood

PTT

Gas Business 10%

• Sales vol. decreased from 4,249 mmscfd (Avg. Q3/11) to 3,794 mmscfd (Last week avg. of Oct)

Oil Business 15%

• 185 out of 1,311 gas stations closed • Currently 51 gas stations reopened • Sales vol. decreased from 60 ML/D (Avg. Q3/11)

to 51 ML/D (Last week avg. of Oct)

Petrochemical 10%* • Excess supplies exported

Refining No Impact • Sales volume shifted to upcountry • Demand expected to rebound post-flooding

40 *Impact from feedstock reduction due to decrease utilization rate of GSP

PTT’s Contribution : Towards Nation Restoration

41

Natural Gas : Strong and Increasing Demand over Long Term Natural gas is a fuel of choice for power producers and transportation industry

0

1,000

2,000

3,000

4,000

5,000

6,000

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

mmscfd

Source : PTT

PowerPower

GSPGSP

IndustryIndustry

7777%%

2121%%

88%%

11,,970970

1313%%

1717%%

1818%%

6060%% 5757%%

Gas demand forecast (CAGR during Gas demand forecast (CAGR during 20112011--20302030)) : Total ~ : Total ~ 11%% : Power : Power ~ ~ 11%% : GSP ~ : GSP ~ 00%% : Industry : Industry ~ ~ 33%% : NGV: NGV ~ ~ 33%%

1515%%

NGVNGV 88%%

66%%

55,,493493

42

91.1

116.8 113.3

52.744.1

59.1

67.975.4 75.9 78.0 73.9 84.4

100.5

110.7 107.1

0

20

40

60

80

100

120

140

160

Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11

Dubai FO ULG95 MOP'S HSD MOP'S

Dubai 91.1 116.8 113.3 52.7 44.1 59.1 67.9 75.4 75.9 78.0 73.9 84.4 100.5 110.7 107.1

FO 74.6 92.6 102.6 45.1 39.0 53.4 64.9 70.9 72.8 71.4 69.1 76.1 93.3 102.1 105.4

Gasoline MOP'S 105.1 129.8 119.6 56.7 54.8 68.8 76.8 80.5 88.2 87.5 82.5 95.0 113.1 125.0 125.9

HSD MOP'S 114.4 154.5 139.5 70.5 53.2 66.4 74.9 81.6 85.2 89.5 86.3 96.0 118.7 130.8 125.8

Oil Prices Movement: Our Key Value Driver

Price (USD/BBL)

43

Dubai 2010 avg. = $78/bbl




Oil prices

Dubai FO Gasoline Diesel

Q3/11 vs Q2/11 -3% 3% 1% -4%

Q3/11 vs Q3/10 45% 53% 53% 46%

44

Aromatics prices

$/Ton $/Ton

LPG Naptha PP HDPE

Q3/11 vs Q2/11 -8% -3% -3% 2%

Q3/11 vs Q3/10 37% 59% 27% 25%

Benzene Paraxylene

Q3/11 vs Q2/11 -2% 4%

Q3/11 vs Q3/10 34% 71%

832 841

854953

1,510

1,6061,607

1,399

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

LPG Naphtha PP HDPE

Petrochemical prices

1,051 1,118

1,169

1,567

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Benzene PX

Source: PLATTS & ICIS 44

Petrochemical Market Reference Prices: Driven by Crude Oil Price

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% PTT Green Energy Pte. Ltd PTTGE 100.00% Retail Business Alliance Co., Ltd. RBA* 49.00% Associates Equity Keloil-PTT LPG Sdn. Bhd. KPL 40.00% Vietnam LPG Co., Ltd. VLPG 45.00% Thai Petroleum Pipeline Co., Ltd. THAPPLINE 33.19% PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00% Others Cost PetroAsia (Huizhou) Co., Ltd. PA(Huizhou) 25.00% 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 2.76% Others Fair Value Bangkok Aviation Fuel Services Plc. BAFS 7.06%

45

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% Combined Heat and Power producing Co.,Ltd CHPP 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% Independent Power (Thailand) Co., Ltd. IPT 20.00% PTT Utility Co., Ltd. PTTUT 40.00% B.Grimm BIP Power Co., Ltd. B.Grimm BIP 23.00% Nava Nakorn Electricity Generation Co.,Ltd NNEG 30.00% Bangpa-in Cogeneration, Ltd BIC 25.00% 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 Tank Terminal Co., Ltd. PTTTANK 100.00% Associates Equity PTT Chemical Plc. PTTCH 49.14% PTT Phenol Co., Ltd. PPCL 40.00% PTT Maintenance and Engineering Co., Ltd.PTTME 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. PMBC 50.00% Refining Associates Equity Thai Oil Plc. TOP 49.10% PTT Aromatics and Refining Plc. PTTAR 48.45% IRPC Plc. IRPC 38.52% Star Petroleum Refining Co., Ltd. SPRC 36.00% Bangchak Petroleum Plc. BCP 27.22% PTT Energy Solutions Co., Ltd. PTTES 40.00%

Others Fair Value Dhipaya Insurance Plc. TIP 13.33%

Subsidiaries Consolidate PTT International Co., Ltd. PTTI 100.00%

Energy Complex Co., Ltd. EnCo 50.00% Business Service Alliance Co., Ltd. BSA * 25.00%

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 September 2011

PTT 10.8%

PTTEP 6.9%

PTTGC 3.3%

TOP 1.4%

IRPC 1.0%

BCP & Others 0.4%

Others 76.1%

PTT Group 23.9%

59.9 46.2

59.9

139

2008 2009 2010 2020

Revenue (Billion USD)

46

PTT’s Strategic Importance to the Thai Economy

PTT has the largest market cap on the SET

Data as of 9 September 2011

Ministry of Finance holds majority stake in PTT Ministry of Finance holds majority stake in PTT

Thai Premier Multinational Energy Company

SET Market Cap = Baht 8.5 trillion

Data as of 4 January 2012

Remark: * DJSI = Dow Jones Sustainability Index

Rev.of 100th company in Fortune Global 500 (Billion USD)

Fortune Global 500 Ranking

6464..99 6565..00 6868..11

118118

155155

128128

100100

Need new initiatives

Vayupak Fund 15% Public

34%

Ministry of

Finance 51%

Coal

Power Palm Plantation

Pipeline

8.5 9 10.7 11.1-11.312.0-12.5

14.0-14.5

2008 2009 2010 2011 2012 2013

Jembayan Sebuku

Future Growth of PTT

PTT International

Unit : MM Ton

2011 Xayaburi Hydro 1,285 MW

2012 Onwards

Expanding in neighboring

countries

SAR

PTT Green Energy

EMG (Egypt)

• 225,877 Ha land acquired

• 12,335 Ha planted

o Additional 15,785 Ha has been

prepared in 2011.

• 45 T/Hr CPO Mill has been completed

• Acquired Izin Prinsip for the Northern Leases at Sebuku

• Potential reserves in Brunei & Madagascar projects

• Investing 25% in EMG

• Offshore natural gas pipeline system

from Egypt to Israel

• 2010 Sales volume = 2.1 BCM/y

• 2011 Average sales volume target up to 0.8

BCM/y

47

Thailand’s projected energy demand

Source : EPPO/ PDP 2010/ PTT team analysis 48

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Commercial Primary Energy Consumption

38%

33%

14%

13%

Oil

Natural Gas

Coal/Lignite

Hydro/Import

KTOE

27%

33%

17%

6%

15%

Renewable

2%

163,299

145,162

127,145

106,939

87,651

32%

38%

14%

13% 3%

29%

35%

16%

5%

14%

31%

37%

15%

4% 13%

2%

1% Nuclear

49

Natural Gas Price Structure

CustomersCustomers Sales Price StructureSales Price Structure

Gas Pool PriceGas Pool Price Supply MarginsSupply Margins Pipeline TariffsPipeline Tariffs + +

Power Producers Power Producers 6161%%

: EGAT : EGAT 2828%%

: IPP : IPP 2121%%

: SPP : SPP 1212%%

Average Purchased Average Purchased Gas PriceGas Price

11..7575%%

11..7575%%

99..3333%%

2121..8 8 Bt/Bt/MMBtuMMBtu

GSP GSP 2121%% Charged at the same price structure of power producersCharged at the same price structure of power producers

Petrochemicals Feedstocks

Reference to Saudi Aramco’s contract price

Industry Industry 1212%% Charged at prices comparable to fuel oilCharged at prices comparable to fuel oil

Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns.

NGV NGV 66%% Capped at Capped at 88..5 5 Baht/Kg*Baht/Kg*

* Government will increase NGV retail price Baht 0.50 /kg per month from January 16, 2012 until January 15, 2013

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

Recognition: Awards 2010-2012 PTT is widely recognized among business communities both international and local

Best CEO 2010 Best CFO 2010 Best Managed Company 2010 Best Corporate Governance 2010 Best Investor Relations 2010 Best Corporate Social Responsibility 2010 Best Commitment to Strong Dividend Policy 2010

Asian Corporate Director Recognition Awards 2011 & 2012

• Asia’s Best CEO • Asia’s Best CFO • Best IR Website/Promotion • Best Environmental Responsibility • Best Investor Relations • Best Investor Relations Professional

Thai BMA Best Bond Awards 2010 • Deal of the Year • Most Creative Issue • Best Investor Relations Issuer

SET Awards • Top Corporate Governance Report Award

2010 & 2011 • Best Corporate Social responsibility

Awards 2011

Trusted Brand 2011 • Thailand’s Top Brand in Platinum Award

for service station

Outstanding State Enterprise Award 2010 • Best State Enterprise of the Year, Best

of the Best • Outstanding Leadership Award • Outstanding Innovation Award

50

Asia Talent Management 10th Asia Business Leaders Award 2011

7th Top Asia Energy Companies of 2010 35th Top Global Energy Companies of 2010

128th Fortune Global 500 of 2011 (155th in 2010 / 118th in 2009)

171th The Biggest Listed Companies in the World 2011 (196th in 2010 / 244th in 2009)

http://www.forbes.com/2004/03/24/04f2000land.html

Documents

Investor Update February 2012 - listed companyptt.listedcompany.com/misc/PRESN/20120404-PTT-Investor... · 2012-04-04 · Non- Asia NonAfrica- Asia NonEurope- Asia NonAmericas- Asia