PTTGC Opportunity Day Q Performance

Transcription

1 PTTGC Opportunity Day Q Performance 22 August

2 Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. PTTGC has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forwardlooking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forwardlooking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and PTTGC 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. 2

3 Vision and Mission 3

4 PTTGC Sustainable Development 4

5 Agenda Q Financial Results Strategic Direction 5

6 Agenda Q Financial Results Strategic Direction 6

7 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 (Estimated) Q4/2018 (Estimated) Million Baht Q Highlight Revenue Net Profit JV Contribution Operating rate 128,923 Million Baht +26% YoY +7% QoQ 10,828 Million Baht +64% YoY -13% QoQ 1,515 Million Baht +410% YoY -25% QoQ Olefins 104% Polymer 107% Aromatics 94% Refinery 101% Noted : NI 12,216 MB, excluding inventory loss. Project progress MAX Benefit & Reliabilities ORP 21% VS plan at 18% PO 16% VS plan at 13% Polyols 18% VS plan at 18% 10,000 8,000 6,000 4,000 2,000 0 Expected 2018 : ~5,000 MB* 2017 : 2,919 MB *Noted : This is cash in after fees and tax (equivalent to EBIT 5,900 MB) 1H Improvement in unplanned downtime 7

8 Overview of business unit performance (Unit: Million Baht) Q2/2017 (Restate)* Note: * Restatement to include Assets injection of 6 companies, retrospect to 1 January 2016 ** Adjusted EBITDA refers EBITDA excluding impact of oil stock value *** Reported only portion attributable to the Company and actual realization after the Asset injection Q1/2018 Q2/2018 YoY % +/(-) QoQ % +/(-) 6M/2017 (Restate)* 6M/2018 Sales Revenue 102, , ,923 26% 7% 213, ,862 17% EBITDA 11,831 16,308 18,574 57% 14% 30,892 34,883 13% EBITDA Margin (%) 12% 13% 14% 3% 1% 14% 14% -1% Share of profit of investments in JV and Associates 1,573 2,024 1,515-4% -25% 2,995 3,540 18% (Profits attributable to Owners of the Parent)*** 297 2,024 1, % -25% 781 3, % Net Profit 6,603 12,388 10,828 64% -13% 19,785 23,215 17% EPS (Baht/Share) % -13% % Adjusted EBITDA** 12,935 16,319 15,902 23% -3% 31,485 32,221 2% Adjusted EBITDA Margin (%) 13% 13% 12% 0% -1% 15% 13% -2% YoY % +/(-) Operating Rate Q2'17 Q2'18 Market GRM $/bbl BTX Margin $/T OLE & Derivative EBITDA (%) Olefins 89% 104% % Polymer 108% 107% % Aromatics Refinery 66% 94% 103% 101% 0% 50% 100% 150% Q2'17 Q2'18 Q2'17 Q2'18 Q2'17 Q2'18 Q2 18 net profit increased 4,223 MB or 64% YoY mainly from; 1. Operating profit increased by 1,267 MB mainly from OLE&Derivatives and Phenol 2. Share of gain from JV&Associates: increased 1,218 MB mainly from asset injection and improvement of Natureworks performancefrom higher sales volume and price. 3. Stock gain/(loss) increased 3,997 MB (Q2 18 gain of 2,908 MB vs. Q2 17 loss of (1,089) MB) 8

9 Olefins & Derivatives Aromatics Refinery Main BUs Performance (Unit: USD/bbl) Q2/2017 Q1/2018 Q2/2018 YoY QoQ YoY 6M/2017 6M/2018 % +/(-) % +/(-) % +/(-) Dubai Crude Oil % 13% % Gasoline-Dubai % -12% % Jet-Dubai % -5% % Diesel-Dubai % -1% % Fuel Oil-Dubai % 10% % Market GRM % 1% % Adjusted EBITDA (%) 6% 5% 5% -1% 0% 6% 5% -1% (Unit: USD/ton) Q2/2017 Q1/2018 Q2/2018 YoY QoQ YoY 6M/2017 6M/2018 % +/(-) % +/(-) % +/(-) Condensate % 10% % Paraxylene(TW) Condensate % -10% % Paraxylene(FECP) Condensate % -7% % Benzene-Condensate % -33% % Naphtha-Condensate % 39% % Market P2F % -22% % Adjusted EBITDA (%) 11% 6% 3% -8% -3% 17% 4% -13% (Unit: USD/ton) Q2/2017 Q1/2018 Q2/2018 YoY QoQ YoY 6M/2017 6M/2018 % +/(-) % +/(-) % +/(-) Naphtha (MOPJ) % 10% % Ethylene (SEA) 990 1,243 1,222 23% -2% 1,040 1,232 18% Propylene (SEA) ,003 35% 2% % HDPE Naphtha % -7% % LLDPE Naphtha % -13% % LDPE Naphtha % -12% % PP Naphtha % -4% % MEG Ethylene % 6% % Adjusted EBITDA (%) 26% 32% 29% 3% -3% 29% 30% 1% 9

10 Performance comparison YoY Unit : MB 6,603 Operating Profit from main BUs 1,267 1,302 Sharing from Subsidiaries, JV & Associate Q2 18 = 1,374 Q2 17 = 72 3,997 Stock Gain/ (loss) & NRV & Commodity Hedge Q2 18 = 2,908 Q2 17 = (1,089) 953 FX Gain/ (loss) Q2 18 = (682) Q2 17 = 271 1,388 Loss from GGC s Inventory (72.29%) net DTA Q2 18 = (1,388) 10,828 Q2-17 (A) Q2-18 (A) Overall operating profit from main BUs in Q2 18 was higher than Q2 17, mainly from o OLE & Derivatives increased from higher Olefins and PE price. In addition, sales volume for olefins & derivative also increased as utilization rate improved in Q2 18. o ARO performance decreased as a result of lower P2F on BTX by 82 $/T from decreasing in PX, BZ and by product spread, while sales volume increased due to higher utilization rate in Q2 18, as there was T/A in Q2 17. o Refinery performance decreased from higher crude premium and depreciation of THB. o Sharing from JV & Associate was increased from performance of asset injection company, especially HMC and PTTAC, and higher performance from NatureWorks from higher sales volume and selling price 10

11 Performance comparison QoQ Unit : MB Operating Profit from main BUs 12,388 1, Sharing from Subsidiaries, JV & Associate Q2 18 = 1,374 Q1 17 = 2,142 2,975 Stock Gain/ (loss) & NRV & Commodity Hedge Q2 18 = 2,908 Q1 17 = (67) 1,351 FX Gain/ (loss) Q2 18 = (682) Q1 17 = 669 1,388 Loss from GGC s Inventory (72.29%) net DTA Q2 18 = (1,388) 10,828 Q1-18 (A) Q2-18 (A) Overall operating profit from main BUs in Q2 18 was lower than Q1 18, mainly from o o o OLE & Derivatives decreased from lower product price while sales volume increased as utilization rate is improved ARO performance decreased from lower BTX s P2F margin by 37$/T from lower BZ spread. REF though market GRM higher by 0.05$/Bbl offset with higher tax due to stock gain. Sharing from JV&Associate was decreased but mainly from depreciation of Thai baht. 11

12 Polymer Olefins Aromatics Refinery 2018 Performance Outlook Operating rate Price & Spread No S/D plan and expected full operating rate with 101% Middle distillate gain benefit from demand and low inventory, while ULG has pressure from high inventory No S/D plan and expected operating rate at 89%, improved from T/A of ARO 2 in 2017 Support from downstream demand but pressure from entering of new capacity 1 month T/A for OLE 1 in September and expected operating rate at 100% Support from downstream demand and price, while gaining momentum from surging in oil price With new 400KTA capacity of LLDPE. Operating rate is expected at 100% Delay of new capacity and incremental demand from China, banning recycle process, help to maintain price 12

13 Agenda Q Financial Results Strategic Direction 13

14 Strategic Development : PTA & PET On 8 Aug, GC and TOCGC have signed SPA to acquire share, direct & indirect, in Siam Mitsui PTA (SMPC) and Thai PET Resin (TPRC), which make GC group to hold 74% of share in both company. Shareholding SMPC : GC Group 74% : Mitsui Chemical (MCI) 26% TPRC : GC Group 74% (Direct & Indirect) : Mitsui Chemical (MCI) 26% Capacity SMPC is one of key players in PTA production with capacity of 970 KTA* TPRC is one of key players in PET bottle production with capacity of 147 KTA* Closing date Q Upstream Intermediate & Downstream Investment ~4,148 MB Crude Oil/ Condensate Aromatics/ Naphtha Paraxy lene Ethylene PTA MEG PET Valuation * Based on 100% capacity Discount Cash Flow 14

15 Strategic Direction : Consistent volume growth Committed investment project ME Plant 2 (200 KTA) (COD Q3/18) : Construction completed SMPC PTA (970 KTA) TPRC PET (147 KTA) PO/Polyols (330 KTA) : 16% & 18% progress Olefins Reconfiguration (750 KTA) : 21% progress mlldpe (434 KTA) (COD 1 st Mar) Digitalization Potential investment and project under study EO-Based Derivatives i.e. HOA in Softanol Performance Chemical in C4 Chain i.e. JV in PA9T, Performance Material in Olefins chain Expansion Olefins & derivatives i.e. Signed HOA on US Biocomplex i.e. HOA of GGC HSBC petrochemical project 15

16 Enhance product offering and value chain integration 16

17 Thank You 1 Thitipong Jurapornsiridee VP-Corporate Finance & IR Thitipong.j@pttgcgroup.com Jittasak Soonthornpan IR Manager Jittasak.s@pttgcgroup.com Nattchanon Chawinsittangkul IR Analyst Nattchanon.c@pttgcgroup.com Pantaree Nantanakom IR Analyst Pantaree.n@pttgcgroup.com Jinthip Prakobwit IR Analyst Jinthip.p@pttgcgroup.com Preeyapa Asarangchai IR Analyst Preeyapa.a@pttgcgroup.com