Analyst Meeting FY 2016 PTT Auditorium 22 Feb 2017
Analyst MeetingFY 2016PTT Auditorium
22 Feb 2017
1
Safety and Sustainability:
Aspiration = Zero Accident
• Total Recordable Injury Rate• IOGP = International Association of Oil & Gas Producer
1
2016 Performance
Policy and Standard
Process and Platform
Technology and Innovation
People and Culture
0.95
0.25
0
1
2
3
4
2009 2010 2011 2012 2013 2014 2015 2016
Total Recorable Injury Rate (Injuries/Million hrs)
PTT: TRIR-employee PTT: TRIR-contractor
IOGP: TRIR employee IOGP: TRIR contractor
Domestics
• Enterprises of the Year 2016 (MOF)
• Thailand’s Most Admired Brand 2016/Thai Brand (BrandAge)
• Popular Stock (Kaohoon)
• The Prime Minister’s Industry Award 2016
(Department of industrial promotion)
• PTT Business Continuity Management System: BCMS (Management System Certification Institute, MASCI)
Rewards & Recognition
HPO
CG CSR
InternationalAsia’s Best CSR
Domestics
• CSR-DIW Award 2016
(Department of Industrial Works)
• EIT-CSR Awards 2016
(The Engineering institute of Thailand)
• Certified Greenhouse Gas Management Organization
Domestics
• Corporate Governance Report: CGR2016 (IOD)
• CG Award (NACC)
• Sustainability Report Award 2016
(Thai listed companies association)
International
• Corporate transparency
(Transparency International)
• Dow Jones Sustainability Indices (DJSI)
• Strongest Adherence to Corporate Governance & Best Annual Report in Thailand (Alpha Southeast Asia )
International
• CEO of the year/ Corporate Excellence Awards
• Most Organized Investor Relations/ Most Consistent Dividend Policy (Alpha Southeast Asia )
• Asia Best CEO/CFO /Best IR Professionals
2
2016 Year in Review
Q4 & FY16 Performance
Outlook 2017
Contents
3
Overview Performance Outlook
0
10
20
30
40
50
60
70
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Dubai price$ / BBL
Dubai Price(2016 VS 2015)
2016 Year in Review: Global Economy & Energy Sector
Q3 Q4
• Global economic maintained growth momentum (IMF expects 3.1% GDP growth)
• Oil surplus still remain but declined significantly (0.4 MBD) higher demand growth
• OPEC agreed to 1st
oil cut in 8 years
• OPEC/Non-OPEC agreed to cut production 1.8 MBD
31 Dec’16 = US$53.9/bbl
20161 Jan’16 =
US$ 31.8/bbl
2015
4
Q2Q1
Overview Performance Outlook
Iran sanction lifted
Vote for Brexit
26-29 Sep: OPEC plans to cut to 32.5 – 33 MMBD
30 Nov: OPEC agreed to cut production
Jun: OPEC meeting: failed to cut production
Aug: An attempt to rearrange oil freeze talk
Oct: OPEC/Non-OPEC meeting failed on production cut
4
Avg $50.9/bbl
Avg $41.3/bbl
Feb: Saudi & Russia agreed a tentative deal to freeze output
May: Supply disruption from Nigeria, Venezuela, Canada
900
1000
1100
1200
1300
1400
1500
1600
1700
1800
1900
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2016 Year in Review: Thailand
SET Index4 Jan
1,263.41
SET Index
30 Dec1,542.94
Politics
Economics
• Thailand GDP Y2016 growth 3.2% (better than previous year)
• Energy Reform: floated NGV prices
• Foreign Investors returns to Asian markets (SET net buy at 77 MB)
• SET index outperform major stock marketsSET 22% Down Jones 16%FTSE 16%Nikkei 4%Hang Seng 4% STI 2%
SET Index 2016
5
Net Sell Value (Mil.Baht)
Local Institutes Proprietary Trading Foreign Investors Local Investors Total Value
2015 79,054.64 -6,417.68 -154,345.54 81,708.57 9,997,371.75
2016 -8,656.77 25,371.96 77,927.17 -94,642.36 12,259,772.49
*Energy Policy Management Committee
EPMC* float NGV price with condition (21 Jan)
Thai New Constitution Approved in Referendum
(7 Aug)
FED keep rate unchanged, ranged
at 0.25-0.50%(21 Sep)
Brexit vote result(24 Jun)
ECB cuts rates to new low and expands QE (10 Mar)
Royal news
US Election, Trump victory
(9 Nov)
FED raise interest rate, ranged at 0.50 - 0.75%
(14 Dec)
2015
2016
Overview Performance Outlook
Short term sharp decline in oil price & fear of FED’s rate hike
2016 Highlights:
Key Events Update (Q4)
• GSP – No major T/A with U-rate 100%
• Oil – BOD approved the restructuring of PTT oil BU
• Trading – Set up Trading London office
• LNG Terminal 2 of 7.5 MTA approved
• LNG contracts with Shell/BP/Petronas approved
Performance (YoY)
• PTTEP – successful in cost saving
• GAS – improved from lower feed cost
• Oil – increased from stock gain
• Trading – improved from lower domestic condensate
discount
• Refinery – better from stock gain
• Petchem – improved Aromatics margins
• Power – improved from sales volume, lower gas cost and
dividends received
• Coal – Better from lower depreciation & successful cost
reduction
Group productivity improvement ~ Bt 15.6 -17.4 Bn
Impairment Bt 7.2 Bn (100%)
• PTTEP: Yetagun/Natuna (1.7 Bn)
• PTTGC: Myriant (0.7 Bn)
• PTTER: EMG/Coal (4.3 Bn)
• PTTGE: FBP (0.5 Bn)
FinanceLoan drawdown ~ Bt 12 Bn (PTTGC & IRPC)
Repayment ~ Bt 47 Bn (PTT, PTTGC, IRPC & GPSC) and
Bond Buy back USD 177 MM (PTTEP)
Shares resold after treasury stock Bt 32.56 MM (PTTGC)6
Overview Performance Outlook
Business Performance
Upstream PTTEP
Coal
Midstream Gas
Downstream Oil
Trading
Petchem
Refinery
Infrastructure Power
7
Group Productivity Improvement 2016 ~ Baht 15.6 -17.4 Bn
cost -300 MB
cost -547 MB
cost -637 MB
cost -250 to -300 MMUSD
cost -246 MB
cost -527 MBmargin +257 MB
cost -50 MMUSD (~20%)
EBIT +2,311 MB
• Procurement Synergy• GSP Debottleneck• GTM Strategic Sourcing Management
• SAVE to be SAFE & SPEND SMART
• Project MAX
• Orchestra• Transcendence
• Productivity Improvement Program
• Everest
Overview Performance Outlook
7
Program
0
5
10
15
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16
LNG (JLC) JKM Spot Avg. Pooled Gas10
50
90
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16
31
32
33
34
35
36
37
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16
100
300
500
700
900
1100
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16
HDPE-Naphtha Spread PX-Naphtha Spread
NG Prices ($/MMBTU)
* JLC = Japan LNG Cocktail : Landed LNG price in Japan
Key Business Drivers: Oil price started to pick up while NG continued to fall
Note: Figures are average
741
Dubai vs FO ($/BBL)
HDPE and PX spreads($/Ton) FX (USD/THB)
Dubai
FO
HDPE
341
PX
JLC*
56.6
55.9Avg. Pooled
43.0
36.6
720
346
11.4
8.1
JKM
8.2
33.1
35.9
8
Depreciated
1.07 THB/USD (3.1%)
759
8* Naphtha (MOPJ)
9.2
7.4
7.5
30.4
25.8
6.2
7.6
6.5
407
Depreciate
0.6 THB/USD (1.7%)
35.8
43.2 43.2
35.239.8
743 753
394421
35.535.0
Avg. 2015 = 34.4 THB/USD
Avg. 2016 = 35.47 THB/USD
Overview Performance Outlook
684
365
48.3
47.7
2015 2016
Dubai 50.9 41.3 -19%
FO 47.4 37.1 -22%
2015 2016
HDPE 739 735 -1%
PX 345 397 15%
35.6
2015 2016
JLC* 10.3 6.9 -33%
JKM 7.8 5.6 -28%
Avg. Pooled 7.5 5.6 -25%
6.06.7
7.3
4.45.3
6.2
5.8
5.6
5.4
30,316
53,227
9,785
8,607
18,869
28,590
3,232 6,898
9,268
(49,164)
(5,083)
2015 2016
PTTEP
PTT
Others Affi.
P&R
BCP & SPRC
TradingMargin increased from domestic condensateVol. decreased from out-out/import
OilVol. increased from demand due to lower retail prices Margin improved from stock gain
Gas
GSP & Industrial customer margin improved from lower feed cost Increased TM performance NGV loss decreased Decreased sales volume from power customers
PTTEPLower ASP from the slump in oil & gas priceImproved NI from cost saving & less impairment
Margin
FX & Derivatives
OPEX* Depre & Amortiza-
tion
Other Income
Int. & CIT exp.& Other**Impair17,778 8,534
14,602
65,670
4,255
24,410
FY2016 Performance: Improved performance in most PTT Group Businesses
9* including petroleum exploration expenses and royalties** including profit from discontinued operation
19,936
MMTHB
94,609
Net Income
69,100
Operating Performance
99,692
Extra Items
Petrochem & Refining
Aromatics improved from spreads margin and volume increase Stock gains despite soften Market GRM
Lower Impairment on E&P & mining assets
Extra Items
Overview Performance Outlook
3,246
90%
76%
34%
12%
29%
PTTER : Improved coal performance
Others Affi
10
ContentsOverview Performance Outlook
2016 Overview
Q4 & FY16 Performance
Outlook 2017
81
(139) (94)
75123
718
(1,572)
466
43.1546.80
50.05
41.17
36.32 35.65
45.29
35.91
Q3/16 Q4/16 2015 2016
E&P : Improved NI by successful cost reduction effort
Product Prices
Net Income (100%)
Sales Volume
Key Highlights
Liquid ($/BBL)
Gas($/MMBTU)
Weighted Avg.
($/BOE)
MMUSD
217 222 224 221
94 94 98 98
Q3/16 Q4/16 2015 2016
Liquid
Gas
KBOED
11
311
372156
(16)
*** Includes Deferred tax from Functional currency, Current Tax from FX Revaluation, Gain/loss from Financial instruments, Gain/(loss)on FX, H1 incident Insurance Claim, and etc.
2% QoQ
Non-recurring***
Recurring NI
7% QoQ
22% YoY
119
2% QoQ
21% YoY
316 322 319
(854)
144% YoY
Q3/16 Q4/16 2015 2016
E & P Gas Oil & Trading P&R Others
8% QoQ
18% YoY
1% YoY
QoQ
• ASP remained low from the declining in gas price
• Sales volume increased mainly from Zawtika
• NI dropped from FX loss and impairment of 47 M$
YoY
• ASP drop significantly from slump in oil & gas prices
• Sales volume decreased from divestment Oman project
• NI improved from less impairment and cost saving program
Overview Performance Outlook
5.565.15
7.20
5.60
110% QoQ
12
E&P Strategy:Overview Performance Outlook
Financial Outlook
12
Path to re-tendering of expiring concessions in the Gulf of Thailand
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Legislation of Petroleum Act and associated laws
Tendering Process (preliminary expectation)
Terms of Reference (TOR)
Process: Indicative target for dataroomin August concession award within 2017
TOR: under drafting by the MoE and approval process by the Cabinet
Associated Laws: under drafting by MoE
Petroleum Act & PITA: Under the National Legislative Assembly’s review
2017
Exploration Portfolio• Known area• Acceptable risk• Quick Commercialization
Interest Production Expected Start-up
Mozambique Area 1
8.5% 12 MMTPA 2022/23
Contract 4 (Ubon)
60% 25-30 KBPD 2021
Algeria HBR 24.5% 50 KBPD 2023
Growth Opportunities
Q1’17 FY2017
Avg. Sales Vol. (KBOED)
~310 ~312
Avg. Gas Price ($/MMBTU)
~5.1 ~5.3
Unit Cost(USD/BOE)
~31 ~30-31
EBITDA margin (% of Sale Rev.)
~70
*Based on FY2017 Dubai oil price at 49 $/BBL
M&A• Thailand, SEA, Middle East• Focus on producing or
near-producing
LNG Value Chain• Corporation with PTT in
LNG opportunities
FID Candidates
12
13
Overview Performance Outlook
PTT EBITDA Breakdown by BU’s:
Business Unit Q3/16 Q4/16 QoQ 2015 2016 YoY
Gas- EBITDA 20,072 20,472 2% 47,832 72,082 51%
• S&M 3,458 2,277 (34%) 9,286 9,128 (2%)
• TM 8,154 7,717 (5%) 25,096 32,666 30%
• GSP 6,454 8,301 29% 15,233 23,134 52%
• NGV (1,173) (935) 20% (10,175) (3,954) 61%
• Others 3,179 3,112 (2%) 8,392 11,108 32%
Oil- EBITDA 6,413 4,448 (31%) 15,133 23,677 56%
Trading*- EBITDA 1,026 348 (66%) 4,405 5,677 29%
Total** 27,511 25,268 (8%) 67,370 101,436 51%
(Unit:MMTHB)
*MIS** Included subsidiaries from all BUs 13
8.6 9.2
8.6 8.5 8.5
7.9 7.3
6.6 6.2 5.8 5.6
5.4
610 607591
437
318377
265
217
160
219247
296
-
100
200
300
400
500
600
700
5
7
9
11
13
15
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16
%QoQ %YoY
FO 20% 22%PooledPrice 4% 25%
11.7 11.712.3 11.9
7.47 7.30
8.45 7.68
Q3/16 Q4/16 2015 2016
875 873 1,151 975
1,000 912995 972
902 905740 869
1,000 1,017 961 946
732 714 669 715279 281 312 285
Q3/16 Q4/16 2015 2016
Gas BU: Pooled gas cost continued to fall, though NG volume slightly declined
NG Price VS FO NG Customer Breakdown
$/MMBTU
EGAT (21%)
IPP (20%)
SPP (18%)
GSP (20%)
Industry (15%)NGV (6%)
MMSCFD
4,702
NGV Price/Sales Volume
QoQ
• Pooled gas cost continued to decline, while F/O price surged
• NG sales volume dropped from seasonal low demand in Q4, despite GSP’s higher U-rate (100%)
• Lower NGV volume, though NGV prices slightly drop, due to demand switching to persistently-low-price gasoline
YoY
• Overall NG sales declined from power customers and NGV
• NGV volume decreased, as a result of lower demand
Key Highlights
4,762
ที่เพ่ิมข้ึนเป็นของ
K.Ton/Day
14
9% YoY
E & P Gas Oil & Trading P&R Others
4,788
$/Ton
Fuel Oil*
* MOPS HSFO 180 CST
Avg. Pooled gas price
LHS
RHS
1% YoY
•
THB/KG
NGV Avg. price
1% QoQ 3% YoY
4,828
2% QoQ
2% QoQ
Overview Performance Outlook
1,556 1,569 1,604
1,449 1,188
1,375
1,234 1,153 1,103
1,153 1,139
1,134
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16
333 333 333 333
443 497
470 440 431
427 420
378
389 394 391 382380
359352
310 309 297 288 247
3,458 2,277
9,286 9,128 8,154
7,717
25,096 32,666
6,454 8,301
15,233
23,134
(1,173) (935) (10,175)(3,954)
3,179 3,112
8,392
11,108
Q3/16 Q4/16 2015 2016
Propane (13%)
Gas - EBITDA
MMTHB
Others
TM
GSP
47,832
20,472
S&M
NGV
730 723
2,738 2,794190 187
695 721
552 610
2,199 2,059
237 246
765 856
9 6
26 25
Q3/16 Q4/16 2015 2016
GSP Sales Volume
LPG (43%)
kTon
1,772
3% QoQ
1% YoY
Gas BU: Performance improved from almost segments
NGL (11%)
Ethane (32%)
Key Highlights
GSP Feed Cost vs Petchem price
USD/Ton
Feed Cost**
LPG Ex-GSP*
* Effective on February 2, 2015** Revised feed cost calculation from per sale volume to per GSP production volume
Pentane (1%)
1,718
20,072
15
HDPE
51% YoYQoQ
• S&M margin decreased from extra expenses in Q4/16 and declining gas price while industrial sales up following rising F/O price
• GSP margin improved from lowered feed cost with higher U-rate
• Gas BU’s EBITDA raised mainly from GSP, Industrial customers, and NGV
YoY
• Gas price dropped decreased S&M margin, though Industrial customers improved
• GSP’s margin increased from feed cost decline more than selling price
• TM performance increased from higher TDC volume
• Subsidies on LPG & NGV removed
• Gas BU’s EBITDA improved in almost all segments, despite S&M
6,423
2% QoQ
6,455
72,082
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
%QoQ %YoY
HDPE -0.4% -8%
LPG Ex-GSP -10% -10%
Feed Cost -14% -19%
16
Gas Business Roadmap
LNG ProjectsNG Country Demand
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
16
LNG Terminal 1 Phase 2 :
- Construction completed 99.03%
- COD : 2H2017
New LNG projects :
1) LNG Terminal 1 phase 2 Extension :
(Capacities expansion from 10 MTA to 11.5 MTA)
- Approved by Cabinet 12 Jul 2016
- Expansion capacity: 1.5 MTA
- COD : 2019
2) LNG Terminal 2 (Onshore LNG Terminal No.2)
- Approved by National Energy Policy Council
(NEPC) 8 Dec 2016
- Capacity: 7.5 MTA
- COD : 2022
Additional LNG projects needed for further
studies before submitting for CEPA and
NEPC to consider
− Myanmar-Thailand LNG Terminal
− FSRUs (domestic)
− Onshore LNG Terminal 3
New Project
LNG Ph#2
MajorProject
COD
LNGCapacity
(MTA)
10 10
• Offshore Comp.
• 4th
onshore Midline Comp.
7
• Comp Wangnoi
• Nakhon Ratchasima
LNG Ph#2(Early Sent
Out)
11.5 11.5
LNG Terminal#1 - Extension
11.5
• 5th
Pipeline
Gas Facilities Expansion
20.00
50.00
80.00
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Oct-16 Nov-16 Dec-16
0.96
0.71
0.98
0.78
6,621 6,608
25,268 26,464
Q3/16 Q4/16 2015 2016
956 955 3,243 3,757
5,457 3,493
11,890
19,920
Q3/16 Q4/16 2015 2016
QoQ YoY
Oil 36% 68%
Non-oil 0.1% 16%
Oil BU : Better overall performance mainly from stock gain
MMTHB
THB/Liter
17
Oil
Non-Oil*
* EBITDA from Operating
Gross margin1/Sales volume2
MM Liter
1/Excluded Non-oil, stock gain/loss, non-recurring item 2/PTT only
20% YoY
5% YoY
42 1,382 (4,770) 5,682
Petroleum Prices
Stock Gain/Loss(MMTHB)
26% QoQ
0.2% QoQ
Oil - EBITDA
USD/BBL
(Average Prices)
Key Highlights
Gasoline
Diesel
Dubai
QoQ
• Lower margin mainly
- aviation fuel (pricing structure: Buy M, sell M-1)
- diesel intense competition in Q4 2016
• EBITDA decreased mainly from
- absence of refund of oil fund in Q4 2016
- lower aviation & diesel margins as abovementioned
YoY• Sales volume increased mainly from higher demand following
lower product prices
• Lower gross margins mainly from
- higher diesel imports during PTTGC T/A in 1H’16
- aviation & diesel margins as abovementioned
• Higher EBITDA mainly from stock gains & higher sales volumes
4,4486,413
15,133
23,677
Overview Performance Outlook
E & P Gas Oil & Trading P&R Others
Aviation
19,463 19,375
81,367 74,627
Q3/16 Q4/16 2015 2016
QoQ
• Gross margin and EBITDA declined mainly from lower domestic condensate margin
YoY• Gross margin improved mainly from higher domestic condensate
margin following higher demands
• Sales volume declined from less
- out-out trading volume supplied to Indonesia (policy change)
- crude import as PTTGC shutdown in May-June'16
- LPG import from lower demand & increased domestic refinery
production
- Higher EBITDA from better domestic condensate margins
0.10
0.05 0.06
0.08
Q3/16 Q4/16 2015 2016
*FX Adjusted
1,026
348
4,405
5,677
Q3/16 Q4/16 2015 2016
Trading BU: Performance improved from better domestic condensate margin
Gross Margin*
Trading - EBITDA*
Sales Volume
Key Highlights
MMTHB
MM Liter
18
* PTT only : FX Adjusted
29% YoY
Gross Margin (THB/Liter) 8% YoY
66% QoQ
33% YoY50% QoQ
0.5% QoQ
Overview Performance Outlook
E & P Gas Oil & Trading P&R Others
TRADING BU & PTTT: KEY ACHIEVEMENTS in Q4 – 2016
“A BIG STEP TOWARDS WESTERN CORRIDOR”
“1st Term Supply Petroleum Products to LATAM”
Awarded 1 year term (2017) tender cargoes of Gasoline & Gasoil to LATAM
Total Volume approx. 4,300 KBBL
“The 1st Storage Tank in ARA area”
Period: 2 Year (Jan’17 - Dec’18)
Total Capacity : approx. 75,000 MT
“1st Term Supply of Sulfuric Acid to PTT Asahi ”
Successfully secure 3 - year (2017 – 2019) term supply Sulfuric Acid for PTT Asahi
Total Volume 90,000 MT
“ GROWTH ”
Overview Performance Outlook
E & P Gas Oil & Trading P&R Others
19
2,941 5,802
12,181 21,222
1,307 1,694
9,402
9,721
6,225 9,745
20,503
25,602
1,557
1,072
4,592
5,281
640
(73) (1,646)
239
8,356 1,933
Q3/16 Q4/16 Y2015 Y2016
253 288
238 262
402 358 383 395
Q3/16 Q4/16 Y2015 Y2016
75%82%
74%82%
20
Net Income (100%)
P&R BU : Improve performance from stock gain and Aromatics margins
55,321
12,67018,240
IRPC
TOP
SPRCBCP
Unit : MMTHB
20
62,065
44%
QoQ YoY12%
Aromatics
BZ-Cond
PX-Cond
USD/Ton
14%
3%
10%
QoQ YoY
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
PTTGC
HMC
Others
11%
181 211 217 185AromaticsMKT P2F
15%
BTXU-Rate
17%
3.62
5.60 6.34
4.49 3.37
6.97 4.87
5.13 6.92
10.04
7.42 8.86
Q3/16 Q4/16 2015 2016
43.2 48.3 50.9 41.3
GRM/GIM
USD/BBL
A/C GRM*
A/C GIM*
Mkt GRM
Dubai
-0.03 2.62 -1.81 1.26StockGain/Loss
*A/C GRM and A/C GIM include effect from hedging gain/(loss)
QoQ YoY
A/C GIM45% A/C GIM
19%
1,139 1,134
1,238
1,132 1,090 1,085
1,155
1,046
Q3/16 Q4/16 Y2015 Y2016
Olefins
Olefins U-Rate 93%
100% 94%
90%
USD/Ton
HDPEPrice
PPPrice
0.4%
0.5%
8%
9%
QoQ YoY
P&R : Key Achievement and project update
Linear Alkyl Benzene (LAB)
• Successfully COD on 25 Feb 2016
TOP SPP (2blocks of SPP)
• Successfully COD 1st block on 1 April 16
• Successfully COD 2nd block on 1 June 16
21
E & P Gas Oil & Trading P&R Others
Overview Performance Outlook
UHV project
• RDCC COD in Q2/2016
• Propylene +320 KTA
Everest Project
• Incremental Margin Organization Health
Fully integrated PP
• Expected COD: 2017
• PP Expansion +160KTA
• PP compounding +140KTA
Orchestra
• Cost Management
Transcendence
• Process Improvement
Sustain Core
Project MTP retrofit
Project MAX
Project Asset Injection
Accelerate Growth Levers
International hub
Performance chemicals
Green business
Balance Business & Social Value
• Sustainable development
7 11 20
(5) (5)
47
5454
47
36
34
45
36
67
95
59 66
Q3/16 Q4/16 2015 2016
Other Businesses : Coal - SAR Better performance from lower impairment, depreciation and cost, despite lower coal price
Net income
Sales Volume
Key Highlights
MMUSD
USD/Ton
2,040 2,233
5,417
7,872
384 527
1,848
1,942
2,760
7,265
Q3/16 Q4/16 2015 2016
kTon
Jembayan
SebukuAvg.
Selling Price
Total Cash Costs
14% QoQ
Avg. Selling Price* & Cash cost*
New Castle
35% YoY
108% YoY
42%
6%
13%
12%
20%
22
QoQ YoY
QoQ
• Selling price increased following the rise in market coal price as a result of China coal capacity control
• Sales volume increased mainly from improve marketing strategy
• Performance improved mainly from the price increase
YoY
• Cash cost from productivity improvement program, including successful negotiation with mining contractor
• Sales vol. increased following the increase in coal production, improved marketing strategy and improved market condition
• Performance improved mainly from
- successfully implementing productivity improvement program
- decreasing in extraordinary items i.e. impairment
- improving coal market condition
*Calorific value ~ 5,500 kcal/ton
Overview Performance Outlook
15%
14% QoQ
E & P Gas Oil & Trading P&R Others
Q3/16 Q4/16 2015 2016
(179)
(149)
(30)Impairment
Operating NI
NI 1567
2,424
9,814
0
Combine Cycle : IPP
65.9%
Cogen : SPP
31.1%
Renewable2.7%
Combined heat : VSPP
0.4%
599 581
2,099 2,3771,492 1,467
4,802
5,754
Q3/16 Q4/16 2015 2016
Hydro Electricity
64%
Cogen: SPP 32%
Renewable4%
724419
1,906
2,700
Q3/16 Q4/16 2015 2016
Net Income (100%)Sales Volume
Key Highlights
MMBahtGWh
Other Businesses : Power - GPSC Outstanding performance supported by dividend income from its affiliates
‘000 Ton
Committed Capacity
Power
Steam
23
QoQ YoY
Operating1,381 MW
Underconstruction
541 MW
Overview Performance Outlook
QoQ
• Lower electricity sales vol. from both IPP & SPP due to lower vol. dispatched to EGAT and industrial customers.
• Lower NI mainly due to an impairment of fixed assets of SPP for 100 MB and no dividend income from RPCL in Q4’16.
YoY
• Higher sales vol. due to increase in demand of electricity & steam from industrial customers also, COD of IRPC-CP in Q4/15.
• Higher NI due higher sales of SPP, more efficient production cost management and full operating year of IRPC-CP Phase 1 and COD of NNEG in Jun’16.
2% 13%
20%
42% YoY
42% QoQ
Present 2019
E & P Gas Oil & Trading P&R Others
3%
Other Businesses : Power – GPSC
Overview Performance Outlook
E & P Gas Oil & Trading P&R Others
Project Type Capacity SCOD Construction Progress
as of Q4/16
CHPP Solar Cooperatives(VSPP) Solar • Electricity: 5 MW Successfully COD in Dec’16
Bangpa-In Cogeneration Company Limited (BIC) Phase 2(SPP)
Gas-Fired Power Plant
• Electricity: 117 MW• Steam: 20 T/h
Jun’17 84%
IRPC-CP phase 2 (SPP) Gas-Fired
Power Plant • Electricity: 240 MW• Steam: 180-300 T/H
Q4’17 92%
Ichinoseki Solar Power 1GK (ISP1) Solar • Electricity: 20.8 MW Q4’17 15%
Project Highlight: 4 Projects to COD in 2017
24
9%
55%
31%
5%
26,974 19,087 19,936
94,609
26,44624,544
69,100
99,692
Q3/16 Q4/16 2015* 2016
43.1648.31 50.91
41.27
PTT Consolidated Performance: FY2016
Avg. Dubai (USD/BBL)
FY16FY15
435,172 476,857
2,025,552
1,718,846
Q3/16 Q4/16 2015* 2016
PTT
P&R
Others PTTEP
Net Income
Unit : MMTHB
EBITDA
Net Income/Operating Performance
Revenue Revenue
EBITDA
75,701 83,469
286,214 312,526
Q3/16 Q4/16 2015* 2016
25
15% YoY
* Restated **Included gain on BCP divestment and IRPC reverse allowance for doubtful debt
34%
23%8%
33%
2%
EBITDA
P&R
PTT - Gas
Others
PTTEP
PTT - Oil
& Trading
Net Income
Overview Performance Outlook
10% QoQ
9% YoY
12% QoQ
YoY>100%44%
19% YoY
6%
17%
46%
30%
1%
Revenue
PTT - Oil
& Trading
PTT - Gas
Others PTTEP
P&R
6%
18%
47%
28%
1%
46%
17%
6%
30%
1%
-104
142%
119%
-57%
QoQ29%7%
10% QoQ
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 (BBB+)
MMTHB
Statement of Financial Position
26
Overview Performance Outlook
0.290.19
1.09
0.71
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
(0.1)
0.1
0.3
0.5
0.7
0.9
YE15 YE16
Net Debt/EBITDA ≤ 2.0
Net Debt/Equity ≤ 1.0
Assets/Liabilities slightly increased :
• Increase in Cash and S/T investment mainly from
effective cost saving program within PTT group
• Increase in inventory from higher avg. product
prices
Other Liabilities
PPE
Others Non-
currentAssets
OtherCurrentAssets
L/TLiabilities(incl. due within 1 yr)
TotalEquity
MMTHB
Cash & S/T Invest
31 Dec 13 30 Sep 14
1,805,041 1,818,746
1,118,677 1,098,230
375,617 392,610
332,977 349,111
346,725392,380
1,087,687 1,171,597
632,834583,323
453,475477,411
1 2 3 4 5
3%
2,173,996 2,232,331
31 Dec 1631 Dec 15
Free Cash flow
160,295 91,520
InvestingY2015
(133,043)Y2016
(178,915)
CAPEX (PP&E, Intangible asset) (162,487) (109,199)
Investment (Sub. &Affiliates) 30,893 (7,136)
Current investment (24,202) (68,185)
Dividend/Interest Received 17,498 10,580
Others 5,255 (4,975)
OperatingY2015
293,338Y2016
270,435
Net Income 19,936 94,609
Changes in assets & liabilities 34,706 (13,147)
Income Tax (42,137) (30,609)
Non-Cash Adjustment 280,833 219,582
Ending Cash & Cash Equivalents
239,978 215,566
Ending cash incl. S/T investment
346,725 392,380
Beginning Cash and Cash Equivalents
234,212 239,978
Cash In/(Out)
5,766 (24,412)
Adjustment
9,284 271
Financing (163,813) (116,203)
Repayment Loans (135,646) (70,943)
Interest paid (35,303) (32,618)
Dividend paid (43,811) (44,590)
Received from share issue 10,208 102
Received from loans/Bonds 42,843 26,684
Others (2,104) 5,162
Statements of Consolidated Cash Flows : Y2016
27
Overview Performance Outlook
2017 2018 2019 2020 2021
4,556 3,887 2,382 2,066 2,304
10,376 9,036 7,265 7,785 6,736
817 510 556 597 620
47,265 51,975
14,313 13,944 7,551
20,647 36,874
35,970
9,935 40,882
Infrastructure
Investment in JV andits subs
Head Office andOthers
Oil and InternationalTrading
Natural Gas
Infrastructure, 43%
Gas, 4%Oil & Trading, 12%
Other Sub. & JV, 4%
Capital Restructuring,
22%
LNG, 14%
Others, 1%
PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 339bn ($8bn) during 2017-2021
By Business Unit
JV &
Investment in
Subsidiaries
40%
102,282
34,327
58,093
83,661
60,486
* 2017-2021 budget approved by BOD on 16 Dec 16
5th pipeline & extension
JV & Investment in 100% owned subsidiaries
Unit: MMTHB
PTT 5-Years CAPEX Plan ̴Bt 339 bn
Energy Infrastructure
55%
Green, 1%
By Strategy
Overview Performance Outlook
Value-added 44%
28
29
Contents
2016 Overview
Q4 & FY16 Performance
Outlook 2017
Overview Performance Outlook
Bull : - Continue stimulus policy support growth
Bull : - Strong labor market Rising household spending
- Expansionary fiscal policy boost growth
30
Global Economic Outlook : Greater Growth Momentum amid Wider Dispersion of Risks
US economy : Growth Picking Up Pace
Bear : - Higher borrowing cost weigh on economic activity
Euro Area economy: Gradually Improving GrowthBull : - QE and low interest rate support growth
Bear : - Unsettled Brexit’s terms slowdown growth
Thai economy: Growth to Proceed at a Moderate PaceBull : - Strong government spending & Tourism Growth
- Rising commodity price & better global economy Goods exports recovering
Bear : - Private investment remains weak slowdown growth- High household debt weigh on private consumption
Bear : - Renew housing restrictions weigh on growth- Slow progress in addressing rising corporate debt risk of a sharper slowdown
China economy: Steady Slowdown in Growth to a More Sustainable Path
30
Overview Performance Outlook
- Protectionism threat to growth
- New Elections in EU Policy risks following US Election
Summary: Outlook 2017
Business 2016 2017 (Forecast)
Reason
Gas Price ($/mmbtu)- Henry Hub- JKM
2.555.72
Range 3.2 – 3.86.3 – 7.0
• Increase in US LNG export capacity & domestic consumption (coal-to-gas switching)
• Higher Oil Price & Strong LNG demand from Southeast & South Asia.
Oil Price ($/bbl)Dubai Price 41
Range50-55
• OPEC and Russia’s attempts to comply with an output-cut agreement
• A price-response of U.S. shale oil producers in ramping up output
Refinery Margin ($/bbl)Singapore GRM 6.12
Range6.3-7.0
• Gasoline: Higher regional refineries T/A (most postponed from last year) lower supply
• FO: lower arbitrage from the West & Russia (as most refineries will upgrade FO into lighter components)
- higher bunker demands
Petrochemical ($/ton) - Olefins (HDPE, PP)
- Aromatics (PX, BZ)
HDPE-Naphtha =734
PP –Naphtha = 627
PX-Naphtha = 396BZ-Naphtha = 242
HDPE-Naphtha = 640-650PP –Naphtha = 590-600
PX-Naphtha = 365-375BZ-Naphtha = 280-290
Olefin• New PE capacity from US & Saudi• New PP capacity from China (PP)• High naphtha price squeezed
Aromatics• PX New capacity from India & Saudi • BZ healthy downstream derivative
demand (SM, MEG).
31
Overview Performance Outlook
Y2016
Improved performance in most PTT Group Businesses
• Oil price started to pick up while NG continued
to fall
• Gas – lower feed costs improved in almost
segments
• Oil –Better performance mainly from stock gain
• Trading – Improved domestic condensate
margin
• P&R - Improve performance from stock gain
offset lower GRM with better Aromatics margins
• Power - improved from sales volume & dividend
income
• PTT Group- successful productivity improvement
Looking Forward (2017)
• Global growth slightly increase
• Oil price gradually improve to be 50-55 $/bbl
• Approval of Petroleum Act and Oil fund Act
• Re-tendering of expiring concessions in the
Gulf of Thailand
• Feed gas cost expected to slightly increase
• Major T/A for IRPC
• Petrochemical prices tend to be weaken
Key Takeaways
32
Thank youPTT 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. Please do not circulate this material. If you are not an intended recipient,
you must not read, disclose, copy, retain, distribute or take any action in reliance upon it. In addition, such information contains projections and forward-looking statements
that reflect our current views with respect to future events, financial performance and result of PTT’s activities. 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.
The information contained in this presentation is subject to change without notice and PTT does not undertake any duty to update the forward-looking statements, and the
estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.
33
33
3434
PTT Group Performance : 2016 (YoY)
*SPRC before disposed = 36%, **BCP divested in April 2015 34
Unit : MMTHBPerformance 100%
% PTT holding
Equity Method % PTT
Y2015* Y2016 YoY Y2015* Y2016 YoY
PTT Net operating Income 28,285 52,307 85% 28,285 52,307 85%
E&P - PTTEP -31,590 12,860 141% 65.3% -20,618 8,391 141%
Petrochemical 23,449 31,122 33% 10,879 14,870 37%
- PTTGC 20,503 25,602 25% 49.3% 9,710 12,443 28%
- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 2,946 5,520 87% 1,169 2,427 108%
Refining 31,872 30,943 -3% 12,764 14,022 10%
Refining (Excluded SPRC & BCP) 21,583 30,943 43% 9,532 14,022 47%
- TOP 12,181 21,222 74% 49.1% 6,123 10,162 66%
- IRPC 9,402 9,721 3% 38.5% 3,409 3,860 13%
- SPRC 8,356 - N/A 5.41%* 2,679 - N/A
- BCP 1,933 - N/A 0%** 553 - N/A
Others Business -7,437 10,491 241% -11,375 5,019 144%
Inter - PTTER, PTTGE -22,433 -4,969 78% 100% -22,729 -4,986 78%
Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 6,073 6,042 -1% 5,146 5,236 2%
Utilities -GPSC/ TP/ DCAP 3,175 4,361 37% 878 1,070 22%
Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 5,748 5,057 -12% 5,331 3,699 -31%
Shared of Net Income from Affiliates
16,294 85,416 424% -8,349 42,302 607%
PTT Conso. Net Income 44,579 137,723 209% 19,936 94,609 375%
PTT Group Performance : Q4/2016 (QoQ)
*SPRC before disposed = 36%, **BCP divested in April 2015 35
Unit : MMTHBPerformance 100%
% PTT holding
Equity Method % PTT
Q3/16 Q4/16 QoQ Q3/16 Q4/16 QoQ
PTT Net operating Income 14,985 12,240 -18% 14,985 12,240 -18%
E&P - PTTEP 5,446 -872 -116% 65.3% 3,558 -572 -116%
Petrochemical 8,422 10,744 28% 4,030 5,206 29%
- PTTGC 6,225 9,745 57% 49.3% 3,074 4,674 52%
- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 2,197 999 -55% 956 532 -44%
Refining 4,248 7,496 76% 2,092 3,421 64%
Refining (Excluded SPRC & BCP) 4,248 7,496 76% 2,092 3,421 64%
- TOP 2,941 5,802 97% 49.1% 1,537 2,793 82%
- IRPC 1,307 1,694 30% 38.5% 555 628 13%
Others Business 3,833 -2 -100% 2,309 -1,208 -152%
Inter - PTTER, PTTGE -158 -4,109 -2701% 100% -157 -4,110 -2518%
Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 1,601 1,798 12% 1,277 1,587 24%
Utilities -GPSC/ TP/ DCAP 1,173 819 -30% 322 167 -48%
Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 1,217 1,490 22% 867 1,148 32%
Shared of Net Income from Affiliates 21,949 17,366 -21% 11,989 6,847 -43%
PTT Conso. Net Income 36,934 29,606 -20% 26,974 19,087 -29%
Statements of Cash Flows (PTT Only) : Y2016
36
OperatingY2015 Y2016
81,812 97,063
Net Income 9,555 70,808
Changes in assets & liabilities 27,819 15,688
Income Tax (5,036) (5,388)
Non-Cash Adjustment 49,474 15,955
InvestingY2015 Y2016
4,971 (21,848)
CAPEX (PP&E, Intangible asset) (35,398) (23,807)
Investment (Sub. &Affiliates) 25,064 (550)
Current investment (15,058) (24,558)
Dividend/Interest Received 27,939 27,513
Others 2,424 (446)
Free Cash Flow
86,783 75,214
Financing (77,272) (79,785)
Repayment Loans (35,157) (37,045)
Interest paid (13,765) (14,432)
Dividend paid (31,402) (28,561)
Received from share issue
- -
Received from loans/Bonds
3,052 253
Others - -Adjustment
(4) (306)
Beginning Cash and Cash Equivalents
58,018 67,524
Cash In/(Out)
9,507 (4,876)
Ending Cash & Cash Equivalents
67,525 62,648
Ending cash incl. S/T investment
102,433 121,841
37
Debt Profile : Control Cost & Manage Risk
Debt Portfolio
Managed debt according to financial risk and policy
ConsolidatedPTT OnlyUnit : MMTHB
: Cost of debts ~ 4.72%: % fixed-rate ~ 69%: Avg. debt life ~ 8.64 years
: Cost of debts ~ 4.5%: % fixed-rate ~ 68%: Avg. debt life ~ 7.28 years
204,560 184,091147,592
384,548 368,733325,524
83,98581,154
81,245
305,127256,588
250,968
288,545265,245
228,837
689,675
625,321576,492
31 Dec 14 31 Dec 15 31 Dec 16 31 Dec 14 31 Dec 15 31 Dec 16
USD&Other
THB
(29%)
(71%)
(36%)
(64%)
(44%)
(56%)
(44%)
(56%)
Note : Data as of 31 Dec 16 (THB/USD = 36.0025 THB/JPY = 0. 311335) Excluding liabilities from finance leases; Cost of debts includes withholding tax.
37Cost of debts, % fixed rate, and avg. debt life took into account the derivative transactions. Debt outstanding is reconciled with accounting.
(31%)
(69%)
(41%)
(59%)
Subsidiaries ConsolidatePTT (Cambodia) Co., Ltd. PTTCL 100.00%PTT Oil & Retail Business Co., Ltd. PTTOR 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 EquityKeloil-PTT LPG Sdn. Bhd. KPL 40.00%Thai Petroleum Pipeline Co., Ltd.THAPPLINE 40.40%PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00%
Others CostPetroAsia (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 0.0000090%
Others Fair ValueBangkok Aviation Fuel Services Plc. BAFS 7.06%
Others
Subsidiaries ConsolidatePTT Exploration & Production Plc. PTTEP 65.29%PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00%PTT LNG Co., Ltd. PTTLNG 100.00%Thai Oil Power Co., Ltd.* TP 26.00%Global Power Synergy Co., Ltd* GPSC 22.58%
Joint Ventures EquityTrans 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%
Petrochemical Subsidiaries ConsolidatePTT Polymer Marketing Co., Ltd. PTTPM 50.00%PTT Polymer Logistics Co., Ltd. PTTPL**50.00%PTT PMMA Co., Ltd. PTTPMMA 100.00%PTT Global Chemical Plc.* PTTGC 49.42%PTT Maintenance and Engineering* PTTME 40.00%PTT Energy Solutions Co., Ltd.* PTTES 40.00%
Joint Ventures EquityHMC Polymers Co., Ltd. HMC 41.44%PTT Asahi Chemical Co., Ltd. PTTAC 48.50%PTT MCC Biochem Co., Ltd. PTTMCC 50.00%
Refining Subsidiaries ConsolidateThai Oil Plc.* TOP 49.10%IRPC Plc.* IRPC 38.51%
Others Fair ValueStar Petroleum Refining Co., Ltd. SPRC 5.41%
Others Fair ValueDhipaya Insurance Plc. TIP 13.33%
Subsidiaries ConsolidateEnergy Complex Co., Ltd. EnCo 50.00%Business Service Alliance Co., Ltd. BSA * 100.00%PTT Regional Treasury Center Pte. Ltd. PTTRTC 100.00%PTT ICT Solutions Co., Ltd.* PTTICT 20.00%
International Trading Business Group
Subsidiaries ConsolidatePTT International Trading Pte. PTTT 100.00%PTT International Trading London Ltd PTTTLDN 100.00%
Remark : *The companies have changed their status to subsidiaries due to impact from PACK5** 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 GroupE&P and Gas Business Group Oil Business Group
Data as of 31 Dec 2016
International Investment
Subsidiaries ConsolidatePTT Energy Resources Co., Ltd. PTTER 100.00%PTT Green Energy Pte. Ltd PTTGE 100.00%
38
3939
Natural Gas Price Structure : Jan-Dec 2016
CustomersSales Price Structure
Gas Pool Price Supply Margins Pipeline Tariffs+ +
Average Purchased Gas Price
1.75%
1.75%
9.33%
21.9 Bt/MMBtu
Charged at the same price structure of power producers
Reference to Saudi Aramco’s contract price
Charged at prices comparable to fuel oil
Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns.
Profit-sharing mechanism based on market prices of petrochemicals
Reference to Naphtha market price
At GSPs cost (adjusted every 3 months)
• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions
*
*
*
GSP 20%
Petrochemicals Feedstocks
Industry 15%
Ethane, Propane, LPG
NGL
Local Cooking Gas
Export Cooking Gas
Power Producers 59%
: EGAT 21%
: IPP 20%
: SPP 18% * EGAT IPP and SPP Supply Margins not more than 2.1525 and 11.4759 respectively
• 21 Jan -15 Jul 2016: Capped at 13.50 Baht/Kg. If cost is less than 13.50 Baht/Kg, retail price will be set to reflect the cost.
• Since 16 Jul 2016 : The retail price is set to reflect the cost.• NGV retail Price as of 31 Dec,16 = 12.54 Baht/Kg.
NGV 6%
39
Power
GSP
Industry
78%
21%
8%
2,635
14%
19%
15%
60% 63%
14%
NGV3%
5%
5,770
MMscfd
4,345
Business Plan
Thailand Gas DemandReplace :coal (3,340 MW), AE and EE 30%
PTT Gas demand forecast (CAGR during 2017-2031): Total ~ -1%: Power ~ -1%: GSP ~ -3%: Industry ~ 1%: NGV ~ -5%
Thailand Gas demand forecast: Total ~ 1%: Power ~ 2%: GSP ~ -3%: Industry ~ 1%: NGV ~ -5%
Natural Gas : Growth of natural gas upon Government fuel diversification policy for power generation
40
Thailand’s Projected Energy Demand
41
Primary Energy Consumption
Sources : Ministry of Energy (Thailand Energy Outlook 2016)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
KBD
Oil
Natural Gas
Coal/Lignite
Hydro/Import
Renewable
28%
34%
16%
3%
18%
3,853
2,812
33%
44%
11%
10%
2%
2,714
32%
46%
11%
9%2%
0.7%
0.3%
4.6%
2.9%
3.6%
Gas Business Generates Stable Returns
Sole owner and operator of entire
gas transmission pipelines in
Thailand (~ 4,000 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
42
Overview Gas transmission pipeline capacity