PTTGC Expects More M&A Overseas in 2021, Signaling Sales to Expand 10%

PTTGC received Kaohoon’s “Popular Stock in Industrial-Product Sector” award for the 7th consecutive year, signaling its sales to expand 8-10% in response to the increase in production capacity. Meanwhile, the outlook in the petrochemical market is better, which would increase its selling price. The company expects more M&A overseas and to look for more partners to invest in a petrochemical complex in the U.S.

 

Mr. Kongkrapan Intrajang, Chief Executive Officer of PTT Global Chemical Public Company Limited (PTTGC) stated that the operating outlook has basically bottomed out in 2Q20 and 3Q20, and sales volume would improve approx. 8-10% in coming year, driven by an increase in production capacity generating from 3 projects including Olefins Reconfiguration project (ORP), Propylene Oxide project (PO) and Polyols project.

 

Selling price is expected to recover in 2021 as the polymer price has increased to $1,070 per ton. For refinery business, it will remain stable compared to 2020, therefore PTTGC has adjusted production by increasing Diesel production. For Aromatics products, Paraxylene over Naphtha spread, in 2021, is expected to stabilize as well. 

 

PTTGC still maintains its plan to merge and acquire (M&A) more businesses overseas and expects to complete the deals within 2021.