PTT Reports ฿37.7Bn of NP in 2020, Eyeing a COD of 2 Gas and 1 LNG Projects in 2021-2022

 

In 4Q2020, PTT’s sales revenue was reported at Baht 407,174 million, increased by Baht 23,575 million or 6.1% from 3Q2020 mainly from Petrochemical and Refining business, International trading business, and Oil business due to higher average selling prices and overall sales volume. This resulted from higher oil demand on petroleum and petrochemical products after the improved Coronavirus 2019 (COVID-19) pandemic situations.

 

In 4Q2020 gain on foreign exchange was Baht 8,811 million, increased by Baht 10,024 million from loss on foreign exchange rate of Baht 1,213 million in 3Q2020, mainly due to higher unrealized gain on foreign currency loan (US Dollar loan) as a result of higher Baht appreciation at the end of this quarter compared to the previous quarter. (Thai Baht appreciation in 4Q2020 of Baht 1.62 per dollar, Thai Baht depreciation in 3Q2020 of Baht 0.76 per dollar)

 

However, there was loss on derivatives amounting to Baht 4,584 million, versus gain on derivatives of Baht 1,961 million in 3Q2020, mainly due to loss on oil price hedging instruments from PTTT and PTTEP.

 

Meanwhile, there was the recognition of non-recurring items (PTT’s portion) from the recognition of impairment loss (net tax) on assets amounting to Baht 7,696 million.

 

In this regard, PTT reported net profit in 4Q2020 amounting to Baht 13,147 million, decreased by Baht 973 million or 6.9% from net profit of Baht 14,120 million in 3Q2020.

 

In 2020, PTT reported a net profit of 37,765 million baht, decreased 59.37% from a net profit of 92,950 million baht in 2019. The decrease was in line with the decline of EBITDA and higher depreciation and amortization expenses mainly from Exploration and Production business and Technology and Engineering business due to the business acquisition as aforementioned.

 

For the year 2020, PTT and its subsidiaries reported EBITDA of Baht 225,672 million, dropped by Baht 63,300 million or 21.9% from Baht 288,972 million in 2019. This was primarily due to Exploration and Production business from its lower average selling prices, despite the increase in average sales volume from the Malaysia project and the Partex group after the business acquisition in the second half of 2019.

 

Nonetheless, there was stock gain in 2019 in an approximate amount of Baht 2,800 million. Moreover, the dropped Market GRM from US$ 2.7 per barrel in 2019 to US$ 0.8 per barrel in 2020, was caused by lower spreads of almost all petroleum products resulting in the Accounting GRM sharply declined from US$ 3.0 per barrel in 2019 to US$ (0.8) per barrel in 2020.

 

In 2020, there were non-recurring items (PTT’s portion) from the impairment loss (net tax) on assets amounting to Baht 9,478 million mainly from coal business approximately by Baht 7,700 million, Exploration and Production business approximately by Baht 1,600 million and Petrochemical and Refining businesses approximately by Baht 180 million.

 

As for the planned projects, PTT expected two commercial of date for two pipeline projects this year. The 5th Transmission Pipeline (Rayong – Sai Noi – North/South Bangkok power plants) and the Ratchaburi transmission pipeline project are more than 90% in completion.

 

Currently, PTT has long term LNG contracts with Qatargas, Shell, BP, and Petronas at 5.2 MTA and has a capability to procure LNG in order to fulfill the country’s demand growth in the future. The LNG Receiving Terminal 2 project of 7.5 MTA is 65% completed with a total capacity. The project is expected to launch in 2022.

Meanwhile, the LNG Receiving Terminal 3 is expected to be completed by the year 2025.