PTT Group Opportunity Day 5 March 2014

Transcription

1 PTT Group Opportunity Day 5 March 2014

2 1 Contents Overview Performance 2014 Outlook

3 Oil Balance Thailand: Jan Dec 2013 Adequate refining capacity maintains the stability of supply Supply Production Sales Import (80%) 945KBD Imported Refined Petroleum Products 77 KBD Crude/ Condensate 868 KBD Total Refining Capacity in Thailand: 1,087 KBD Refined Products 1006 KBD* Domestic Indigenous (20%) 238 KBD Crude/ Condensate 212 KBD PTT s Associated Refineries : 910 KBD (TOP, PTTGC, SPRC, IRPC, BCP) Refined Products 212 KBD 861 KBD (**) Export Other Refineries : 177 KBD (ESSO) Crude Export 26 KBD 238 KBD Source: PTIT Remark : (*)Refined product from refineries= 1006 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 102 KBD (**) Not included Inventory KBD = Thousand Barrels per day 2

4 Natural Gas Balance: Jan Dec 2013 Main driver of the Thai economy Gulf of Thailand (75%) Others 41 Supply Production Sales Chevron 32% PTTEP 27% Onshore (3%) Overview Performance Outlook 3,468 MMSCFD Bypass Gas 1,039 MMSCFD 6 GSPs Total Capacity 2,740 Actual Heat 113 MMSCFD Ethane/ Propane/ LPG/NGL 930 MMSCFD (21%) LPG/NGL Methane 1,499 MMSCFD Petrochemical Feedstock (15%) Industry Household Transportation (6%) Import (22%) Myanmar 80% LNG 20% 1,021 MMSCFD Power (59%) Industry (14%) NGV (6%) Remark: MMSCFD = Million Cubic Heating Value 1,000 Btu/ft 3 3

5 PTT is Thailand s Largest Energy Company PTT Public Limited Company ( PTT ) Largest company on Thai Stock exchange Market cap ~US$27bn 1 or ~ THB817bn 1 Group companies:18.1% 1 of Thai Stock Exchange market capitalization Majority owned by Thai government (66%) 51% by Ministry of Finance 15% by Vayupak Fund Fully integrated and highly diversified over the entire O&G value chain International exploration and production business with 846 mmboe 2 of proved reserves Sole operator and owner of gas transmission pipelines and GSPs in Thailand Largest refinery group in Thailand with stakes in 5 of 6 refineries in the country Largest petrochemical producer group in Thailand with stakes in 6 of 8 major petrochemical plants Leading oil marketing business with 1,381 retail stations and 39% 2 of market share by volume International oil trading business having traded 67.2 bn liters in 2013 Coal business assets in Indonesia, Madagascar, and Brunei New Power Flagship (GPSC) to capture opportunity in neighboring ASEAN countries 1 As of 27 December As of December 2013 Note: THB/US$ exchange rate of Robust revenue and Net Income growth since IPO (MMUSD) Revenue Net Income 12, % 81% 3,155 59% 31% IPO International and local recognition 144th in th in th in 2011 Thailand best borrower award 2013 Best CEO 2012 Best CFO 2012 Best Managed Company 2012 Best Corporate Governance 2012 Best Investor Relations 2012 Best Corporate Social Responsibility 2012 Best Commitment to Strong Dividend Policy 2012 Platts Top 250 Global Energy Company 18th Overall Performance of 2013 SET Awards Top Corporate Governance Report Award 2010 & 2011 Best Corporate Social Responsibility Awards 2011 & ,756 Affiliate PTT 81 st Fortune Global 500 in th in th in 2011 Dow Jones Sustainability Index (DJSI) DJSI Member (Listed in 2011) 4

6 PTT s Strategic Importance to Thailand Ministry of Finance holds majority stake in PTT PTT ratings at Thai sovereign level Public 34% Foreign 18% Thai 16% Thai Ministry of Finance 51% Kingdom of Thailand FC Baa1 BBB+ BBB+ A- PTT FC Baa1 BBB+ BBB+ A- Vayupak Fund 1 15% PTT LC Baa1 BBB+ A- A Note: As of December 2013 Largest market cap on the Thai Stock Exchange PTT PTTEP PTTGC TOP IRPC BCP Total Others Market cap (BNUSD) % of SET 7.1% 5.7% 3.1% 1.0% 0.6% 0.3% 18.1% 81.9% Moody s rating Baa1 Baa1 Baa2 Baa1 Ba1 N.A. - - S&P rating BBB+ BBB+ BBB BBB BB+ N.A The Vayupak Fund is a registered investment management fund in Thailand in which the Government is a major unit holder. The Government has rights of first refusal with respect to any of our shares to be sold by the fund. Although the fund s shareholding may be considered to be beneficially owned by the Government under international standards, such shares are not considered to be owned by the Government for the purposes of Thai law or our compliance with certain of our debt covenants 2 Based on data as of 27 December 2013 THB/US$ exchange rate of

7 New Business Downstream Intermediate Upstream Our Major Businesses & Activities Business Areas Company PTT s holding (%) Activities E&P PTTEP 65.29% Exploration and Production Gas PTT PLC Gas Pipeline 100% Sole owner/operator of the Transmission pipeline S&M 100% Supply & Marketing of Natural Gas GSP 100% Extracting Hydrocarbon contents in NG for Petrochemical s feedstock Oil Marketing Int l Trading Oil Marketing 100% Retail service Stations and commercial Marketing Int l Trading 100% Import/Export/Out-Out trading of petroleum and petrochemical products Petrochemic al & Refining PTTGC 48.89% Petrochemical Flagship TOP 49.10% Integrated Refinery & Petrochemical IRPC 38.51% Integrated Refinery & Petrochemical SPRC 36.00% Stand alone Complex Refinery BCP 27.22% Complex Refinery & Retail Stations Coal PTT International 100% Coal Business Power GPSC 30.10% Power Flagship 6

8 PTT Aspiration Strategic direction and target to achieve Big-Long-Strong aspiration 7 Thai Premier Multinational Energy Company Strong TOP Quartile ROIC Big Long Ranked Fortune 81 th Listed in DJSI since 2011 Technologically Advanced and Green National Oil Company

9 8 Net Income Performance: 2012 vs 2013 Unit : MMTHB 104,608 8,788 18,578 Refinery Petrochem 10% 94,652 8,649 16,956 Total intake increased 5% Avg. ACC GRM increased 9% THB depreciated 7% Better spread margins Sales vol. increased 5% THB depreciated 7% 36,168 PTTEP 37,139 Avg. selling price increased 1% Sales vol. increased 6% 45,229-4,155 PTT Others 29,166 2, NG sales vol. increased 1% Oil vol. increased 3% Avg. GSP sales vol. decreased 4% Avg. NG gas cost increased 5% Oil margin decrease 11% More loss on NGV No loss on impairment of investment or asset

10 9 Contents Overview Performance 2014 Outlook

11 Exploration & Production Performance : PTTEP (65.29%) E & P Gas Oil & Trading Refining PetChem Others Product Prices Net Income (100%) 1% 3% Liquid (USD/BBL) 2% 1% ** ** Weighted Avg. (USD/BOE) Unit: MMUSD 1,846 1,846 Unchanged 4% 4% * * Gas (USD/MMBTU) % 238 Q3/13 Q4/ Unit: KBOED Sales Volume 5% % Q3/13 Q4/ Liquid Gas * Gas price, if excludes Vietnam 16-1 retroactive sale recording, is 7.98$ for Q4 13 and 8.01$ for 2013 ** Average selling price, if excludes Vietnam 16-1 retroactive sale recording is 66.4$ for Q4 13 and 66.09$ for 2013 Q3/13 Q4/ Key Activities QoQ Sales volume increased from Vietnam16-1 FPSO, Natuna Sea A project, while average prices slightly decrease. Net income decreased mainly due to higher loss from income tax expense, non-recurring items YoY Sales volume increased mainly from start up of BKT South and ramp up of S1 from artificial lift technique/ Vietnam 16-1/ Montara / Natuna Sea A Net income stable due to high non-recurring items 10

12 Exploration & Production Roadmap : PTTEP Growth Strategy to 600 KBOED in 2020 E & P Gas Oil & Trading Refining PetChem Others PTTEP s CAPEX Planned Thailand 52% ~16 bn USD 22% 26% Other South East Asia North America Middle East & Africa Australasia Target 5-Year Avg.Reserves Replacement Ratio ** 0.82x 1 Reserve Life Index (year) *** 7 10 **Reserves Replacement Ratio : 5-Yr Additional Proved Reserves / 5-Yr Production Volume ***Reserves Life Index (Year) : Proved Reserves / Production Volume 11

13 Gas Business Performance : Natural Gas E & P Gas Oil & Trading Refining PetChem Others Unit: MMSCFD NG Sales Volume 4,695 4,675 4,746 4,611 4,284 4,507 4,488 4,462 4,330 4,249 4,145 3,919 AVG. 4,580 4,537 4,161 GSP - Reference Product Prices Unit : USD/Ton 1,516 1,537 1,445 1,489 1,535 1,380 1,516 1, PP HDPE Naphtha FO 3.5% Domestic LPG Q1 Q2 Q3 Q4 Q3/13 Q4/ NG Customer Profile Unit: MMSCFD 1% 1% 4,488 4,462 4,537 4, ,131 1,052 1,328 1,229 Q3/13 Q4/ NGV (6%) Industry (14%) GSP (21%) SPP (14%) IPP (18%) EGAT (27%) GSP Sales Volume Unit : KTon 6,468 1,446 1, ,109 4% 727 4% 2,906 2,690 Q3/13 Q4/ , Propane (12%) 2,075 Ethane (33%) 719 NGL (12%) LPG (43%) 12

14 Gas Business Performance E & P Gas Oil & Trading Refining PetChem Others Gas Business EBITDA NGV Sales Volume Unit: MMTHB 12% 11,076 12,381 52,266 14% 45,098 16% 30% 55% 41% Others GSP TM S&M Unit : Approx. KTon/Day % % 8.54 Q3/13 Q4/ Key Activities -42% NGV QoQ NG volume decreased from 4,488 mmcfd to 4,462 mmcfd mainly from lower demand from EGAT due to cold weather EBITDA increased from higher volume of GSP#5 together with a drop in operating expenses, despite more loss in NGV YoY NG volume increase from 4,537 mmcfd to 4,580 mmcfd mainly from new 8 SPPs from Y 2012 EBITDA decreased due to an increase in NG feed cost, more loss on NGV and lower margin from industry Vol. MMCFD QoQ Lower NGV Sales volume from closing NGV station during political demonstration YOY Q3/13 Q4/ Sales volume increased by 10%, also, feed cost increased No Government subsidy, while special discount given to public transportation customers 13

15 Gas Business Roadmap E & P Gas Oil & Trading Refining PetChem Others Unit : MMSCFD 6,000 4,000 2, % 9% 7% 15% 13% 20% 18% 60% 58% NGV Industry GSP Power - EGAT - IPP - SPP New Supply PTTEP (M9) LNG Ph#2 LNG Capacity (MTA) Pipeline Capacity (MMSCFD) Offshore 4 th onshore compressor Nakhon Sawan BVW#7 compressor unit4 4 th onshore Midline compressor Nakhon Ratchasima 4,380 5,780 7,180 7,180 7,180 7,180 GSP Capacity (MTA)

16 Oil Business Performance : PTT E & P Gas Oil & Trading Refining PetChem Others Contribution Margin 1/ Oil BU - EBITDA Unit : THB/Liter % % 0.77 Unit : MMTHB 7% 15,929 13,603 16% 13,361 11,197 Oil Q3/13 Q4/ / Excluded non oil business Sales Volume 2/ 3,250 3,034 2,510 1, ,831 2,164 Q3/13 Q4/ Key Activities Non-Oil Unit : MM Liter 4% 3% 23,035 23,821 QoQ Better sales volume from aviation and diesel during travelling season Lower margin from capped diesel price as well as higher ethanol cost 5,826 6,031 Q3/13 Q4/ / Only PTT and PTTRM YoY Higher sales volume mainly from gasoline and aviation Lower margin from higher ethanol cost and higher stock loss Continuously growing non-oil business performance 15

17 16 International Trading Business Performance : PTT E & P Gas Oil & Trading Refining PetChem Others Contribution Margin* Trading BU - EBITDA* Unit :THB/Liter % % 0.08 Unit : MMTHB % 1,541 4,280 27% 5,426 Q3/13 Q4/ Q3/13 Q4/ * PTT only : FX Adjustment in compliance with Accounting Standard Sales Volume * PTT only : FX Adjustment in compliance with Accounting Standard Key Activities Unit : MM Liter 0.3% 2% 68,342 67,208 QoQ Sales volume maintain at the same level Higher margins from better selling prices in accordance with global oil market prices 16,784 16,842 Q3/13 Q4/ YoY Lower sales volume from out in transactions Better margins from lower domestic condensate discount

18 Refining Business Performance Overview Performance Q1/2014 Outlook E & P Gas Oil & Trading Refining PetChem Others Unit : USD/BBL Dubai A/C GIM 7.39 A/C GRM 3.67 Mkt GRM Q3/13 Q4/ Stock Gain/Loss Source : PTT, Refining Associates Note: Weighted Avg. GRM of PTT s associates complex refineries (TOP, SPRC, BCP, and IRPC) Weighted Avg. GIM of PTT s associates integrated refineries (TOP and IRPC) Account GRM/GIM = Market GRM/GIM + Hedging Gain/Loss + Stock Gain/Loss Unit : KBD Aggregated Util % 93% 740 GRM/GIM Net Income (100%) 34% Refinery Intake 1% % % Q3/13 Q4/ % % 735 BCP IRPC SPRC TOP Unit : MMTHB 12,197 1,654 86% 20,313 Q3/13 Q4/ Key Activities 2% 19,850 BCP SPRC TOP IRPC QoQ Mkt GRM decreased mainly due to decline of gasoline spread from lower seasonal demand A/C GRM decreased from lower stock gain PX price decreased from lower PTA productions and increasing supply in Indonesia BZ price increase due to tight supply in EU & US and high Styrene Monomer demand in festive season 2013 A/C GRM slightly increased mainly from stock gain A/C GIM improved from BZ spread due to tightening supply Higher utilization rate FX Loss form Baht depreciation at year end 17

19 18 Refinery Project Update Overview Performance Q1/2014 Outlook E & P Gas Oil & Trading Refining PetChem Others Refinery upgrading (TOP): HCU Revamp COD: Q1/2014 Emission Improvement Project (EIP): COD: Q1/2014 CDU-3 Crude Preheat Train Improvement: COD: Q3/2014 Linear Alkyl Benzene (LAB): TPX JV with Mitsui 75:25 Upgrade existing Benzene and Kerosene into higher valued product COD: 2015 TOP SPP: (2 blocks of SPP) COD: 2016 Solvent Expansion(SAKC): COD Q2/2014 UHV : Progress 52%, Under construction, piling and foundation; COD expected in Q3/15 Refinery : Replacing new CDU (100KBD) in 2014 Solar: Completion of 118 MW of Solar Power Plants in 2014 Biodiesel Plant # ML/ day of Biodiesel Production capacity Expected COD: 2015

20 Petrochemical Business Performance Overview Performance Q1/2014 Outlook E & P Gas Oil & Trading Refining PetChem Others Spread Margins Net Income (100%) Unit : USD/Ton Unit : MMTHB 11% PP- Naphtha 37, , HDPE-Naphtha 582 HMC Polymers PX-Naphtha 35% BZ-Naphtha PTTGC ,352 6, Others Q3/13 Q4/ Sales Volume Q3/13 Q4/ Key Activities Unit : KTon HMC-PP PTTGC Olefin & Derivatives Olefin Chain Util. 94% 78% 89% 89% 11% Phenol/Acetone/BPA % 3,576 3,773 Q3/13 Q4/ Aromatics Chain Util. 93% 91% 90% 87% 3% % 1,985 2,045 Q3/13 Q4/ PTTGC - BTX QoQ Olefin prices increased due to tight supply and improved demand PX price decline due to increased supply & soften demand Utilization increased from Q3 due to GSP#5 resumption, resulting to higher sales volume 2013 Spread margin increased from higher demand following better sentiment of US and EU economies Olefin sales volume increased due to PTTAC COD since Jan 2013 Aromatics sale volume increase due to Aromatics planned S/D in 2012 FX Loss from Baht depreciation at year end 19

21 20 Petrochemical Project Update Overview Performance Q1/2014 Outlook E & P Gas Oil & Trading Refining PetChem Others Synergy: Pure H2 via New PSA : COD Q2/2014 Off gas upgrading at olefins : COD Q4/2014 Debottlenecking & Expansion: 1) BV Project 75 KTA of Butadiene, 25 KTA of Butene-1 COD: Q4/13 2) TOCGC Plant Improvement Project Increases EOE capacity by 90 KTA from 336 KTA to 426 KTA COD : Q3/15 3) PX Expansion Increases ARO II capacity from 655 to 770 KTA COD: Q4/15 4) PTTPE Cracker Debottlenecking 12% Olefins increase COD: ) Phenol KTA of Phenol, 155 KTA of Acetone COD: Q3/15 PBS 20 KTA Start construction in Q1/2013 Expected COD: 2015

22 Other Businesses : Coal - SAR (94.58%) E & P Gas Oil & Trading Refining PetChem Others Avg. Selling Price & Cash cost Net Income (100%) Unit : USD/Ton Unit : MMUSD % 0.1% Selling price % 50 20% Cash Costs Q3/13 Q4/ Sales Volume Unit : KTon 3% 10,818 11,187 Sebuku 14% 2,915 3,334 Jembayan Q3/13 Q4/ *unaudited >100% 91% (4.9) 9.4 Q3/13 Q4/ Key Activities QoQ Cash cost was lower since outsourcing and staff costs decreased from closing office in Perth Performance decreased mainly from an increase in depreciation expense YoY Sales volume slightly increased due to committed agreement Performance dropped following lower selling price and higher depreciation expense from Sebuku s Northern Lease area Lower cash cost from cost reduction initiative in both Sebuku and Jembayan mines 21

23 22 SAR Project Update E & P Gas Oil & Trading Refining PetChem Others 2014 Operation Plan Overview: Continue cost reduction initiative program under downturn market Mine plan optimization for fully utilized the coal resources Corporate reorganization to improve working efficiency and as part of cost reduction program Study on lower quality coal market to define new product that increases SAR resources optimization

24 Other Businesses : Power - GPSC (30.10%) E & P Gas Oil & Trading Refining PetChem Others Moving Forward (Capacity) Net Income (100%) Unit : MW 52% 2,356 Unit : MMBaht 1,145 1, , ,089 Renewable Conventional % 294 Current Next Step* * Business Plan 2557 (@ 25 Dec 2013) (To be revised) Q3/13 Q4/ Sales Volume Key Activities Unit : KMWh Unit : KTon 10% (Power) 4% (Steam) 7,850 4,496 QoQ Higher power sales volume from Sriracha plant S/D and higher sales to EGAT Higher steam sales volume to customers Lower income from lower EGAT selling price in winter and higher admin costs 1,934 2,126 1,169 1,214 Q3/13 Q4/

25 24 GPSC Project Update E & P Gas Oil & Trading Refining PetChem Others Update Progress (Q4-2013) Purchase 51% share in IRPC clean power (IRPCCP) from IRPC Complete transfer share of 4 power assets from PTT/PTTI Combined Heat and Power Producing Company Limited (CHPP) Bang Pa-In Cogeneration Company Limited (BIC) Thai Solar Renewable Company Limited (TSR) Natee Synergy Company Limited (NSC) Highlight Activities 2014 (planning) Transfer share of the rest 3 power assets from PTT/PTTI Ratchaburi Power Company Limited (RPCL) NavaNakorn Electricity Generating Company Limited (NNEG) Nam Lik 1 Power Company Limited (NL1PC) GPSC Initial Public Offering Readiness

26 PTT Consolidated Performance: 2013 Dubai (USD/BBL) Revenue EBITDA Unit : MMTHB 2% 2,793,833 2,842,688 4% 723, ,995 Q3/2013 Q4/ % 4% 227, ,972 56,691 58,984 PTT - Gas PTTEP PTT - Oil & Trading PTT - Gas 2013 Others 4% 7% 17% Revenue Others 6% 3% 20% EBITDA 72% PTT - Oil & Trading 71% PTTEP Q3/2013 Q4/ Net Income 50% 30,877 15,392 10% 104,608 94,652 PetChem Refining 18% Others 9% 3% Net Income 39% PTTEP EPS (THB/Share) Q3/2013 Q4/ PTT 31% 25

27 Statement of Financial Position : Solid and Secured Unit: MMTHB Increased assets : PTTEP s Assets 4 th Onshore pipeline Nakonsawan pipeline 11% 1,801,722 Strong Financial Position ICR * Cash & S/T Invest Other Current Assets Others Noncurrent Assets PP&E 1,629, , , , , , , , , , , , , , ,178 Other Liabilities L/T Liabilities (incl. due within 1 yr) Total Equity *ICR = EBITDA/Interest Expense PTT Ratings at Sovereign Level FC LC Net Debt/EBITDA 2.0 Net Debt/Equity 1.0 : Moody s (Baa1), S&P (BBB+), JCR (A-), FITCH (BBB+) : Moody s (Baa1), S&P (BBB+), JCR (A), FITCH (A-) 31 Dec Dec 13 26

28 27 Dividend Policy & Historical Payments PTT is firmly committed to pay dividend at no less than 25% of net income 32.4%32.6% 29.8% 30.1% 30.3% 30.8% UNIT : Baht / share PTT s minimum payout ratio % 40.4% 34.7% 34.9% 35.5% 39.3% Dividend payout EPS DPS

29 28 PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 327bn ($10bn) during Overview Performance Q4/ Outlook Unit: MMTHB CAPEX Breakdown : 5 Years By Business Unit Investment in Joint Venture and Its subsidiaries Head Office and Others Oil and International Trading Natural Gas JV & Investment in Subsidiaries 38% M&A and Investment Oversea 24% LNG 14% Gas 42% LNG, M&A and Investment Oversea LPG import facility 4 th pipeline & extension 86, 38,404 6,888 11,753 29,903, 1, 1 17,563 29,043 3,206 9, ,925 22,826 17,177,, 18,709 18, ,415 11,503 30,103 37,839 R&D, Others 3% Oil & Trading 17%

30 29 Contents Overview Performance 2014 Outlook

31 Economic 2014 Outlook : Challenges ahead 2014 US Market : will see the better growth in 2014 : - US Economics Recovery : - Effect from QE Tapering EU market: pass the worst, recovery is still modest : - EU Economy tends to recover from recession : - EU has a risk on stagnation China market: cooling down growth : - Sustain their growth rate around 7.4% in Y2014 : - China Economic Growth Continues to Cool - Chinese Credit Controls : slower sustainable growth AEC market : keep an eyes on : - IMF forecast ASEAN-5 1 GDP growth in 2014 around 5.1% : - US QE Tapering effect to SEA s Currencies Weaken Thailand market: Political Impasse Drags On Much Longer Than Expected : - Export growth according to global economies recovery : - How to solve rice mortgage scheme - Prolong of political conflicts - THB depreciate as fund outflow PTT Performance: On Track : - Performance tends to have minimal impact : - Hanging Issue: on LPG and NGV Pricing Capped 1 Indonesia, Malaysia, Philippines, Thailand, and Vietnam

32 Jan-12 Feb-12 Mar-12 Apr-12 May- Jun-12 Jul-12 Aug- Sep-12 Oct-12 Nov- Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May- Jun-13 Jul-13 Aug- Sep-13 Oct-13 Nov- Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May- Jun-14 Jul-14 Aug- Sep-14 Oct-14 Nov- Dec-14 Market 2014 Outlook : Crude Oil Monthly Avg. Crude Oil WTI Brent Dubai Dubai Forecast (PTT Group PRISM) Forecast Psychology 100 USD/BBL Dubai crude oil price in 2014 is expected to be around USD/BBL Impact from Cold Snap in US Middle East and North Africa (MENA) geopolitical uncertainty especially in Libya and South-Sudan IMF forecast GDP Growth 3.7% mainly from Advanced Countries Significant production growth from shale oil/gas assets Ongoing negotiation with P5+1 to relax more economic sanction of Iran Refineries Maintenance in Q 1 Source: PRISM (PTT Group) Estimated ( ) 31

33 Market 2014 Outlook : Henry Hub Natural Gas Price EIA s projected HH Price in 1 is 1 USD/MMBTU ( 0.44 USD/MMBTU) Impact of US Freezing Temperature US aim to be 3 rd largest LNG export country Significant production growth from shale gas assets US LNG Project List : Rank by DOE s application order Non-FTA approved Source : Short term 2014 Outlook, February 2014 EIA, Street Research, Bloomberg and PTT 32

34 Market 2014 Outlook:Asia LNG Spot Price (JKM : Japan Korea Marker) $/MMBTU Winter Season Winter Season Winter Season Fukushima Daiichi Incident Last Nuclear Power Plant in Japan was shutdown Average JKM Price 2013 = $/MMBtu Actual JKM Price Forward JKM Price AVG. JKM Price in 2014 is expected approximately USD/MMBTU Strong Winter Demand from North Asia Fewer Reload Cargoes from Europe to Asia due to higher demand since EU Economic recover. Uncertainty of Japan Nuclear Policy to restart Nuclear Power Plant Other Source of Supply come to market (African Cargoes) Alternative fuel will replace LNG demand when JKM price keep higher.

35 Market 2014 Outlook : GRM Forecast GO Mogas FO Singapore GRM in 2014 is estimated to be around 5-6 USD/BBL Strong Winter Demand Limited Net Capacity addition as refinery closure in Japan, Australia & Project postponement in China/India Expect Less Chinese export as government impose import tax on Biodiesel Impact from Jubail Refinery in Saudi Arabia (400 KBD) Close Arbitrage to move gasoil cargo west on mild winter in Europe Source: FACTS, DB, KBC, Reuters, IEA, Reuters, Thaioil and PRISM Estimated (February 2014) 34

36 Jan-13 Source: PRISM Estimated Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct Market 2014 Outlook : Petrochemical Unit :USD/ton 2,000 1,800 1,600 1,400 1,200 1, Spread Olefins Y 2014 PP HDPE Naphtha 2,000 1,800 1,600 1,400 1,200 1, Spread Aromatics Y2014 PX BZ Naphtha HDPE-Naphtha expected to be around USD/TON PP-Naphtha expected to be around USD/TON Bz-Naphtha forecasted to be around USD/TON PX-Naphtha forecasted to be around USD/TON Olefins spreads tend to slightly higher while PX spreads lower Tighten supply from Propylene Plant T/A Higher PE Demand from Chinese restocking after Chinese New Year Light Feed in US will help to support Benzene Market New PX Capacity in South Korea, China, India and Singapore Keep an eye on Indonesian Economics due to sentiment on Rupiah value

37 Thank you PTT Public Company Limited Investor Relations Department Tel , Fax , ir@pttplc.com Disclaimer The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events and financial performance. These views are based on assumptions subject to various risks and uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ materially from those projected. Petroleum Reserves and Resources Information In this presentation, the Company discloses petroleum reserves and resources that are not included in the Securities Exchange and Commission of Thailand (SEC) Annual Registration Statement Form 56-1 under Supplemental Information on Petroleum Exploration and Production Activities. The reserves and resources data contained in this presentation reflects the Company s best estimates of its reserves and resources. While the Company periodically obtains an independent audit of a portion of its proved reserves, no independent qualified reserves evaluator or auditor was involved in the preparation of reserves and resources data disclosed in this presentation. Unless stated otherwise, reserves and resources are stated at the Company s gross basis. This presentation may contain the terms proved reserves, probable reserves, and/or contingent resources. Unless stated otherwise, the Company adopts similar description as defined by the Society of Petroleum Engineers. Proved Reserves - Proved reserves are defined as those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulations. Probable Reserves - Probable reserves are defined as those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable. Contingent Resources Contingent resources are defined as those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from known accumulations, but which are not currently considered to be commercially recoverable. The reasons for non commerciality could be economic including market availability, political, environmental, or technological.

38 Debt Profile : Control Cost & Manage Risk Managed debt according to financial risk and policy Debt Portfolio Unit : MMTHB PTT Only Consolidated : Cost of debts ~ 4.57 % : % fixed-rate ~ % : Avg. debt life ~ 8.55 years : Cost of debts ~ 4.38 % : % fixed-rate ~ % : Avg. debt life ~ 7.78 years USD THB 436, , , ,153 72,337 (30%) 288, , , ,972 (35%) (41%) 162,090 (41%) 215, ,665 (49%) (55%) 170, , ,399 (70%) (65%) (59%) 229, , ,298 (59%) (51%) (45%) 31 De c De c De c De c De c De c 13 Note : Data as of 31 Dec 2013 (THB/USD = THB/JPY = ) Excluding liabilities from finance leases; Cost of debts includes withholding tax. 37

39 Statements of Consolidated Cash Flows for 2013 & 2012 Operating , ,327 Net Income 104,608 94,652 Changes in assets & liabilities -25,141-25,592 Income Tax -40,783-45,822 Non-Cash Adjustment 120, ,342 Interest-net 15,665 15,747 Investing , ,364 CAPEX(PP&E, Intangible asset) -116, ,457 Investment (Sub. &Affiliates) -86,758-11,256 Dividend/Interest Received 15,758 18,488 Others 9,540 11,861 Free Cash flow -3,079 69,963 Financing 27,725-55,790 Repayment Loans -122,419-76,726 Interest paid -20,249-20,089 Dividend paid -42,308-46,367 Received from share issue 37, Received from loans/bonds 175,288 87,112 Adjustment -3,862 6,586 Beginning Cash and Cash Equivalents 116, ,924 Cash In/(Out) 20,784 20,759 Ending Cash & Cash Equivalents 136, ,

40 Statements of Cash Flows for Year 2013 & 2012 (PTT Only) Operating , ,592 Net Income 74,697 63,988 Changes in assets & liabilities -3,380-12,063 Income Tax -3,725-2,276 Non-Cash Adjustment -14,392-15,199 Interest - net 6,698 8,142 Investing , ,981 CAPEX (PP&E, Intangible asset) -20,433-22,912 Investment (Sub. &Affiliates) -61,585-4,281 Dividend/Interest Received 31,329 37,880 Others -15,040 6,294 Free Cash flow -5,831 59,573 Financing 2,103-43,214 Repayment Loans -35,043-55,754 Interest paid -12,166-13,472 Dividend paid -34,261-37,116 Received from share issue - - Received from loans/bonds 83,573 63,128 Adjustment Beginning Cash and Cash Equivalents 51,341 47,642 Cash In/(Out) -3,699 16,285 Ending Cash & Cash Equivalents 47,642 63,

41 PTT Consolidated Performance: Q4/2013 Dubai (USD/BBL) Unit : MMTHB Revenue % 749, ,152 Q3/2013 Q4/2013 4% PTT - Gas PTTEP PTT - Oil & Trading PTT - Gas Q4/ % Revenue 22% Others 4% 7% Others 3% 6% EBITDA 73% PTT - Oil & Trading EBITDA 56,691 58,984 69% PTTEP Net Income Q3/2013 Q4/ ,877 50% 15,392 PetChem Others Refining -0.4% 4% 27% Net Income 33% PTTEP EPS (THB/Share) Q3/2013 Q4/ PTT 36% 40

42 PTT Group Performance : 2013 Performance 100% % share Equity Method % PTT Unit : MMTHB Y2012 Y2013 YoY Y2012 Y2013 YoY PTT Net operating Income 45,229 29,166-36% 45,229 29,166-36% E&P - PTTEP 57,316 56,155-2% 65.29% 36,168 37,139 3% Petro. Business 37,926 32,854-13% 18,578 16,956-9% - PTTGC 34,449 32,841-5% 48.89% 16,796 16,772 0% - HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/ PTTME/PTTMCC 3, % 40-50% 1, % Refining 20,701 20,411-1% 8,788 8,649-2% Others Business - TOP 12,656 10,854-14% 49.10% 6,391 4,738-26% - IRPC n.m % ,265 n.m. - SPRC 4,497 3,977-12% 36.00% 1,591 1,393-12% - BCP 4,303 4,731 10% 27.22% 1,191 1,253 5% - PTTI group Inter -5,951-2,701 55% 100% -6,005-2,854 52% (PTTAPM,EMG,PTTML,FLNG),PTTGE Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 2,531 3,520 39% % 900 2,600 n.m. Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 1,941 2,577 33% 20-30% % Oil & Oth.- PTTT/SBECL/THAPPLINE/PTTRB/Others 549 2,481 n.m % 333 2,019 n.m. Shared of Net Income from Affiliates 114, ,172 1% 59,379 65,486 10% PTT Conso. Net Income 160, ,463-10% 104,608 94,652-10% 41

43 Data as of 31 Dec 2013 E&P and Gas Business Group Oil Business Group Petrochemicals & Refining Business Group Subsidiaries Consolidate PTT Exploration & Production Plc. PTTEP 65.29% PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00% PTT LNG Co., Ltd. PTTLNG % Joint Ventures Proportionate Trans Thai-Malaysia (Thailand) Co., Ltd. TTM (T) 50.00% Trans Thai-Malaysia (Malaysia) Sdn. Bhd. TTM (M) 50.00% District Cooling System and Power Plant DCAP 35.00% Associates Equity Thai Oil Power Co., Ltd. TP 26.00% Nava Nakorn Electricity Generation NNEG 30.00% Global Power Synergy Co., Ltd GPSC 30.10% Others Cost Ratchaburi Power Co., Ltd. RPCL 15.00% Subsidiaries Consolidate PTT (Cambodia) Co., Ltd. PTTCL % Subic Bay Energy Co., Ltd. SBECL % PTT Retail Business Co., Ltd. PTTRB % Thai Lube Blending Co., Ltd. TLBC* 48.95% PTT Tank Terminal Co., Ltd. PTTTANK % PTT Oil Myanmar Co., Ltd. PTTOM % Associates Equity Keloil-PTT LPG Sdn. Bhd. KPL 40.00% Vietnam LPG Co., Ltd. VLPG 45.00% Thai Petroleum Pipeline Co., Ltd.THAPPLINE 36.44% PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00% Others Cost PetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00% PetroAsia (Sanshui) Co., Ltd. PA(Sanshui) 25.00% Intoplane Services Co., Ltd. IPS 16.67% Fuel Pipeline Transportation Co., Ltd.FPT % Others Fair Value Bangkok Aviation Fuel Services Plc. BAFS 7.06% Petrochemical Subsidiaries Consolidate PTT Polymer Marketing Co., Ltd. PTTPM 50.00% PTT Polymer Logistics Co., Ltd. PTTPL % PTT PMMA Co., Ltd. PTTPMMA % Associates Equity PTT Global Chemical Plc. PTTGC 48.89% PTT Maintenance and Engineering PTTME 40.00% PTT Energy Solutions Co., Ltd. PTTES 40.00% Joint Ventures Proportionate HMC Polymers Co., Ltd. HMC 41.44% PTT Asahi Chemical Co., Ltd. PTTAC 48.50% PTT MCC Biochem Co., Ltd. PTTMCC 50.00% Refining Associates Equity Thai Oil Plc. TOP 49.10% IRPC Plc. IRPC 38.51% Star Petroleum Refining Co., Ltd. SPRC 36.00% Bangchak Petroleum Plc. BCP 27.22% International Trading Business Group Subsidiaries Consolidate PTT International Trading Pte. PTTT % International Investment Subsidiaries Consolidate PTT International Co., Ltd. PTTI % PTT Green Energy Pte. Ltd PTTGE % Subsidiaries Consolidate Energy Complex Co., Ltd. EnCo 50.00% Business Service Alliance Co., Ltd. BSA * 25.00% PTT Regional Treasury Center Pte. Ltd. PTTRTC % Others Associates Equity PTT ICT Solutions Co., Ltd. PTTICT 20.00% Others Fair Value Dhipaya Insurance Plc. TIP 13.33% Remark : * Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies. 42

44 Natural Gas Price Structure : 2013 Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns. Customers 1 Sales Price Structure Gas Pool Price + Supply Margins + Pipeline Tariffs Power Producers 60% : EGAT 28% : IPP 19% : SPP 13% Average Purchased Gas Price 1.75% 1.75% 9.33% 21.9 Bt/MMBtu GSP 20% Charged at the same price structure of power producers Petrochemicals Feedstocks Ethane, Propane, LPG NGL Local Cooking Gas Export Cooking Gas Profit-sharing mechanism based on market prices of petrochemicals Reference to Naphtha market price Capped at 333 USD/ton Reference to Saudi Aramco s contract price Industry 14% Charged at prices comparable to fuel oil NGV 6% Capped at 10.5 Baht/Kg Contract periods are ~ years or until depletion of gas fields or the expiration of concessions 1 As at October,

45 Natural Gas : Strong and Increasing Demand over Long Term Natural gas is a fuel of choice for power producers and transportation industry MMscfd 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Source : PTT 2,635 8% 14% 78% Gas demand forecast (CAGR during ) : Total ~ 2% : Power ~ 3% : GSP ~ -1% : Industry ~ 2% : NGV ~ 3% 6% 14% 21% 59% NGV Industry GSP Power 6,462 8% 13% 12% 67% 44

46 Thailand s Projected Energy Demand Commercial Primary Energy Consumption KBD , ,863 2% 13% 16% 35% 2,280 2,758 2% 13% 2% Hydro/Import 12% Renewable 15% 14% Coal/Lignite 40% 40% Natural Gas 3,184 3% 13% 16% 39% Nuclear 1% 4% 13% 17% 38% % 32% Oil 30% 29% 27% Source : EPPO/ PDP 2010 Revised 3 (June 2012)/ PTT analysis as of 25 Feb

47 46 Gas Business Generates Stable Returns Overview Gas transmission pipeline capacity Sole owner and operator of entire gas transmission pipelines in Thailand (3,752 km), a regulated business IRROE ranges between 12.5% - 18% for transmission pipeline investment Supply & marketing of natural gas provides fixed margin with long-term contracts of years 6 Gas Separation Plants; Total production 6.7 MTA; are on petrochemical market price-linked profit sharing basis Yadana Yetagun Andaman Sea Ban I Tong Thailand Nakhon Sawan Wang Noi NBK Ratchaburi SBK The Luang Samut Prakan ESB Phu Hom Nam Phong Nakhon Ratchasima Kaong Khoi Bang Pakong Chon Buri Rayong Khanom Songkhla Sadao Benchamas Tantawan Platong Chevron Additional Arthit FPSO Erawan Arthit Pailin Bongkot South Bongkot Thai-Malaysia (JDA) Natural gas fields Power plants Gas separation plant 1,2,3,5,6 in Rayong Gas separation unit 4 in Nakhon Si Thammarat Existing pipeline Future pipeline