PTTGC Faces a Plummet of Profit by 80% in 2Q19 to Record at ฿2.2bn from Lower Revenue

PTT Global Chemical Public Company Limited (PTTGC) has reported its 2Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

PTTGC’s net profit for 2Q19 reported at THB 2,202 million, decreased 79.66% YoY, mainly due to the decrease of of THB 106,748 million or 17% YoY from sales revenue.

Operating profit (excluding Stock gain, Net Realizable Value, and realized on new regulation about employee benefit under Labor Protection Act) at THB 4,388 million, decreased 47% from 2Q18, resulted from soften overall products price driven by the decline in Dubai crude oil price, slowdown in global economic impacted from the trade war between the United States and China and sale volume decrease from planned maintenance shutdown of Aromatics Plants I in this quarter along with the employee benefit of THB 784 million in May 2019.

Even though Diesel spread declined, Refinery business had an increased gross refinery margin (GRM) at 3.46 USD per barrel due to increase in by-product spread in Naphtha and Reformate. For Aromatics business, even there was supportive factors from high operating rate of downstream products, concerning about new supply in the region in the second half of this year has put the pressure on Aromatics price and consequently reflected to lower products spread which BTX P2F recorded at 75 USD per ton.

For Olefins and Derivatives business, Polyethylene price was pressured by the trade war between the United States and China while Ethylene Oxide had improvement from fully operates after maintenance shutdown. Hence, the adjusted EBITDA margin of Olefins & derivatives remained at 18% in this period.