PTTGC Reports a Net Profit in 3Q19 at ฿2.6bn with Higher Sales Volume and GRM

PTT Global Chemical Public Company Limited (PTTGC) has reported its 3Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

PTTGC recorded net profit for Q3/2019 at 2,663 million baht, increased by 21% from Q2/2019 but decreased by 79% from Q3/2018. The company had sales revenue in Q3/2019 of 105,154 million baht, decreased by 1% from Q2/2019 and by 23% from Q3/2018.

 

Performance improvement in this quarter was due to higher sales volume as a result of increase in utilization rate especially in Aromatics business after a completion of planned maintenance shutdown of Aromatics Plant I in Q2/2019, while products spread of both Refinery products and Aromatics products improved.

For the performance in 9M/2019, PTTGC recorded net profit of 11,308 million baht, decreased by 69% from 9M/2018, mainly due to the decline in petrochemical products price caused by US-China trade tension.

 

In this quarter, Refinery products spread had improvement compared with the previous quarter especially in Diesel over Dubai crude oil spread which benefited from impact from International Marine Organization (IMO) regulation which limits the sulfur content of fuel oil used in ships, while Fuel oil over Dubai crude oil spread also increased. These resulted in Refinery business market GRM increased from 3.46 USD per barrel in Q2/2019 to 4.40 USD per barrel in this period.

 

For Aromatics products spread, Benzene over Condensate spread increased was supported by strong demand from downstream product Styrene monomer which performed at high utilization rate along with the continuously decline of Benzene inventory level in China, while Paraxylene (FECP) over Condensate spread declined as market concerned on new capacities coming into the market, even though there is favorable demand from downstream business which performed at high utilization rate.

However, the change of catalyst in Q2/2019 resulted in improved yield of Paraxylene production. These led to higher Product to Feed margin (P2F) from 75 USD per ton to 136 USD per ton, or 83% increase.

 

For Olefins and Derivative, Polyethylene price has been under pressure from the US-China trade tension and global economic slowdown which led to the decline in Adjusted EBITDA margin of Olefins and Derivative business to 15%.

The company Adjusted EBITDA in Q3/2019 was 7,441 million baht, decreased by 2% from Q2/2019 and by 56% from Q3/2018.

 

In this period, PTTGC realized foreign exchange gain by 436 million baht from appreciation of Thai baht, however, due to the fluctuation in Dubai crude oil price and product spread, the company had loss from Stock loss net Reversal of NRV of 372 million baht.