Thailand Focus 2012 August 29-30, 2012

Transcription

1 Thailand Focus 2012 August 29-30, 2012

2 1 Contents Overview Performance & Roadmap Investment 2H/2012 Outlook

3 Oil Balance Thailand: Jan - Jun 2012 Adequate refining capacity maintains the stability of supply Supply Production Sales Import (83%) 977 KBD Imported Refined Petroleum Products 67 KBD Crude/ Condensate 910 KBD Total Refining Capacity in Thailand: 1,087 KBD* Refined Products 970 KBD*** Domestic Indigenous (17%) 194 KBD Crude/ Condensate 145 KBD PTT s Associated Refineries : 910 KBD (TOP, PTTGC, SPRC, IRPC, BCP) ESSO : 177 KBD Refined Products 211 KBD 829 KBD ** Export Crude Export 49 KBD Source: PTIT KBD = Thousand Barrels per day Remark : (*) Excluded PTTGC s condensate splitter = 135 KBD, and Rayong Purifier which ceased its operation since Feb 2012 (**) Excluded Inventory (***) Refined product from refineries= 869 KBD, incl. domestic supply of LPG from GSPs and Petrochemical Plants = 101 KBD 260 KBD 2

4 Natural Gas Balance: Jan Jun 2012 Main driver of the Thai economy Supply Production Sales Indigenous (79%) 3,502 MMSCFD Others 41% PTTEP 27% Chevron 32% Import (21%) 905 MMSCFD LNG 14% 2,439 MMSCFD 6 GSPs Total Capacity 2,740 MMSCFD Pipeline 1,063 MMSCFD Ethane/ Propane/ LPG/NGL 936 MMSCFD (21%) LPG/NGL Methane 1,503 MMSCFD Petrochemical Feedstock (14%) Industry Household Transportation (7%) Power (59%) Industry (14%) NGV (6%) 905 MMSCFD Myanmar 86% Remark: MMSCFD = Million Cubic Heating Value 1,000 Btu/ft 3 3

5 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 Oil Marketing Int l Trading Petrochemical & Refining 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 PTT PLC Oil Marketing 100% Retail service Stations and commercial Marketing Int l Trading 100% Import/Export/Out-Out trading of petroleum and petrochemical products PTTGC 48.91% 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 International PTT Inter 100% Overseas investment arm of PTT : Coal, New energy and related businesses 4

6 5 PTT Aspiration Strategic direction and target to achieve Big-Long-Strong aspiration Thai Premier Multinational Energy Company Big Expand resources Maximize value along the chain Big Long Balance stakeholder excellence Dow Jones Sustainability Indexes Long Strong Top quartile performance Strong Drive functional excellence and synergy Share best practice and knowledge management

7 Others Green Energy/ materials Diversification Adjacent industry Oil & Gas PTT Group Strategic Direction Investment priorities by geography and value chain Internationalization ASEAN Australia, N. Asia and S. Asia Middle Non- East Asia Non- Africa Asia Non- Europe Asia Non- Americas Asia Upstream Expand production to 900 kbd Upstream Midstream Build LNG business & expand mid-/ downstream gas value chain Support group inv. Upstream P&R Retail Create P&R flagship and internationalize chemical business Expand oil station related business and spin off lubricants Top oil and gas player Trading Consolidate petroleum commodities and create value through international transactions Upstream Coal Grow coal mining to large scale Upstream Power Build Thailand Gas, follow int. gas value chain expansion, opportunistic coal Plantations Alt. energy Develop palm oil, sugar and cassava Build Thai clean power, monitor opport. in ASEAN Energy conglomerate Bio-business Build Green business (ASEAN biohub) Infrastructure Non-oil Retail Strengthen integrated hub (e.g. Gr. Marine) Explore opportunities in non-fuel retail Business conglomerate Priority 1 Priority 2 Priority 3 based on market attractiveness and potential for PTT Group to be distinctive 6

8 7 1H/2012 Highlights Highlights Q2/2012 1H/2012 Economy Operation: Gas Oil 95 th in July th in January 2012 Ease concerns on Iran sanction Global economic indicators plummeted Euro zone unemployment rate hit record high in June Downward oil price trend Baht depreciation against USD Gas volume hit new high at 4,507 mmscfd Increased in gas feed cost More loss on NGV Lower margin while sales vol. increase Dow Jones Sustainability Indexes Sales volume increase 4% YoY Increase in gas feed cost More loss on NGV Higher margin and increase sales vol. PTTEP 1 EMG ระหว างการฟ องร อง 2. Gas resume 3. Stock gain and FX gain Refinery Petrochemical Performance dropped mainly from non recurring items (deferred tax, unrealized Fx loss, impairment) Refinery affiliates performance drop from stock loss and inventory loss (NRV) Weaken spread margin while sales vol. increase Performance increased mainly from higher avg. selling price Refinery affiliates performance drop from stock loss and inventory loss (NRV) Weaken spread margin while sales vol. increase Finance PTT issued 15,000 MMTHB debentures Impairment on EMG & Montara PTT issued 35,000 MMTHB debentures

9 8 Contents Overview Performance & Roadmap Investment 2H/2012 Outlook

10 Exploration & Production Performance : PTTEP (65.29%) E & P Gas Oil & Trading Refining PetChem Coal Product Prices Net Income (100%) % % % % % 27% Liquid (USD/BBL) Weighted Avg. (USD/BOE) Gas (USD/MMBTU) Unit: MMUSD % % 839 Sales Volume Key Activities Unit: KBOED 253 4% % 258 Liquid Gas QoQ Sales volume increased from Bongkot South s full start up in June 2012 and S1 Net income decreased mainly from non recurring losses (Impairment loss, deferred tax and unrealized FX) Impairment loss of the PTTEP AA s Asset (Montara) 109 MMUSD due to the increase of project cost and the delay of the first oil production 1H Avg. selling price increased by 22% Sales volume decreased from ceasing production of Arthit North since November

11 Exploration & Production Proved Reserves & Fund Raising Plan E & P Gas Oil & Trading Refining PetChem Coal Proved Reserves by Geography PTTEP s Equity Raising Plan 2012 Objective Total 969 MMBOE To support PTTEP s long term growth plan To maintain prudent capital structure management policy Overseas Size 56% 44% Up to US$3.0bn (base offering before over-allotment) PTT s Participation Domestic PTT to fully subscribe to its pro-rata 65.29% ownership in PTTEP 1, Or up to US$2.0bn private placement to PTT following shareholder approval Reserves Replacement Ratio 1.10 > 1 Reserve Life Index (year) 9 Policy Timing Board approval received on 20th July 2012 Transaction is subjected to PTTEP shareholders approval on 24 August 2012 Note : 1 Except for a minimal dilution to result in shareholding of not less than 64.8% of total issued shares due to potential exercise of greenshoe and stabilization actions (if required) 10

12 Gas Business Performance : Natural Gas E & P Gas Oil & Trading Refining PetChem Coal Unit: MMSCFD NG Sales Volume 4,507 4,284 4,330 4,249 4,148 4,145 4,055 3,802 4,152 3,919 Q1 Q2 Q3 Q4 AVG. 4,396 4,161 4,040 NGV EBIT Unit : MMTHB -3,570-4,426-4,133 24% -7,996 93% NG Customer Profile Unit: MMSCFD 5% 4% 4,507 4, ,238 4, NGV (6%) Industry (14%) ,341 1,308 GSP (21%) SPP (9%) IPP (20%) EGAT (30%) Key Activities QoQ NG sales volume increased due to summer season, especially in EGAT, IPP and resumption of GSP#6 Higher average gas cost from periodic price adjustment in Jan 12 and Apr 12 1H NGV loss increased by 93% due to increase in sales volume and cost of sales, while PTT absorbed 2 Baht/kg for public transportation Prolong control retail price of NGV 11

13 Gas Business Performance E & P Gas Oil & Trading Refining PetChem Coal GSP - Reference Product Prices Gas BU EBITDA Unit : USD/Ton 1,428 1,445 1,656 1,424 1,391 1,395 1,387 1, PP HDPE Naphtha FO 3.5% Domestic LPG Unit: MMTHB 15,965 6% 14,976 35,483 13% 30,941 Others S&M TM GSP GSP Sales Volume Key Activities Unit : KTon 1,457 10% 1, ,938 4% 3, ,425 Propane (9%) Ethane (33%) NGL (11%) LPG (47%) QoQ EBITDA slightly decreased due to more loss in NGV GSPs sales volume increased from GSP#6 s resumption 1H EBITDA slightly decreased due to an increase in natural gas feed cost and more loss in NGV 12

14 13 Gas Business Roadmap E & P Gas Oil & Trading Refining PetChem Coal Unit : MMSCFD 6,000 4,000 2, % 7% 6% 15% 14% 18% 22% 58% 60% NGV Industry GSP Power - EGAT - IPP - SPP New Supply PTTLNG Chevron (Plathong) PTTEP (Bongkot South) PTTEP (M9) Pipeline Capacity (MMSCFD) 4,380 Offshore Compressor 5,580 4 th Onshore 6,980 6,980 6,980 6,980 GSP Capacity (MTA) GSP#

15 Oil Business Performance : PTT E & P Gas Oil & Trading Refining PetChem Coal Contribution Margin* Oil BU - EBITDA Unit : THB/Liter % 19% 0.93 Unit : MMTHB 5% 7,114 31% 9, ,793 4,556 6,465 8,486 Oil 4,392 4,094 Q1/12 Q2/12 * Excluded non oil business 1H/11 1H/ Non-Oil Sales Volume Unit : MM Liter 8% 11,530 10,682 3% 5,671 5,859 Key Activities QoQ Sales volume increased mainly due to higher fuel oil sales to compensate lower gas volume from some gas field maintenance shutdown EBITDA dropped mainly from stock loss 1H Sales volume increased from higher fuel oil and LPG sales EBITDA increased from better diesel and aviation fuel margins Better performance of non-oil business 14

16 15 Oil Business Development E & P Gas Oil & Trading Refining PetChem Coal Intelligent Station International Station Non-oil business Trusted Brand : Thailand s Top Brand in Platinum Award for service station Provides free Wi-Fi service which complies with the government s policy of Smart Thailand and PTT s TAGNOC Grow internationally Laos Cambodia Philippines EBITDA from Non-oil business increased 15% QoQ and 33% YoY in Q2/12 Café Amazon Rank#1 in number of branch Rank#2 in terms of market share Expand to premium market under the Amazon Embrace

17 16 International Trading Business Performance : PTT E & P Gas Oil & Trading Refining PetChem Coal Contribution Margin Trading BU - EBITDA* Unit :THB/Liter Unit : MMTHB 0.12** >100% 0.09** ** 100% ** 50% ,340** 969** 3,360** 57% 2,309** * PTT Only ** FX Adjustment in compliance with Accounting Standard Sales Volume 10% 3% 32,232 29,311 16,354 15,878 Unit : MM Liter Key Activities 1, QoQ Lower sales volume due to BCP 30 days planned shutdown Contribution margin surged as a result of better margin from local crude oil sales 1H Performance dropped due to lower margin, despite volume increased as refineries planned shutdown totally 119 days in 1H/11

18 Refining Business Performance E & P Gas Oil & Trading Refining PetChem Coal GRM/GIM Net Income (100%) Unit : USD/BBL Unit : MMTHB Dubai ,399 A/C GIM A/C GRM Mkt GRM Unit : KBD 97% Aggregated Util Q1/12 Q2/ H/11 1H/12 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 % Stock Gain Total Intake 91% 91% 93% 66% 4.30 /Loss % 2% BCP IRPC SPRC TOP , % -14,936-1,597 Key Activities 106% BCP TOP SPRC IRPC QoQ Accounting GRM plummeted from stock loss due to the drop in crude oil price PX spread margin softened from delayed start up and cut run of PTA plants 1H Lower performance from the decrease in GRM and stock loss from the drop in crude oil price as concern on European debt crisis and global economic recovery 17

19 Refining Business Roadmap E & P Gas Oil & Trading Refining PetChem Coal PTT 49.10% Refining Cap. 275 Kbpd PX 489 KTA MX 90 KTA BZ 177 KTA Tol 144 KTA PX & BZ Upgrading PX 100 KTA BZ 100 KTA Upcoming COD Q3/12 HCU Revamp Phase I & II PSA & HVU Revamp Ethanol UBE 400 KLiter/day Specialty Wax Power Plant 110 MW Benzene Derivatives LAB 100 KTA Power Plant 110 MW PTT 38.51% Refining Cap. 215 Kbpd Aromatic 367 KTA Olefin 728 KTA Polyolefin 615 KTA Propylene Booster Propylene 100 KTA Upcoming COD Q3/12 ABS/SAN Expansion ABS/SAN 61 KTA PP Compound and Specialties 100 KTA Propylene 320 KTA PTT 27.22% Bangchak Refining Cap. 120 Kbpd Solar Power Plant Ph I 44 MW (Installed) COD Q3/12 Solar Power Plant Ph II - Chaiyaphum 25 MW (Installed) Upcoming COD Q4/12 Tail Gas Treating Unit Solar Power Plant Ph II Ayutthaya 25 MW (Installed) Ethanol UBE 400 KLiter/day Solar Power Plant Ph III 75 MW (Installed) Continuous Catalytic Reforming Unit (CCR) 12 KBD Cogeneration Power Plant 15 MW Expansion project Palm Plantation 3,300 Rais Upcoming COD Q3/12 18

20 Petrochemical Business Performance Unit : USD/Ton 380 HDPE-Naphtha E & P Gas Oil & Trading Refining PetChem Coal Spread Margins Net Income (100%) 574 PX-Naphtha Unit : MMTHB 11,108 24,312 51% 88% HMC Polymers 1,335 11,911 PTTGC PTT Phenol Sales Volume Unit : KTon 77% 89% 85% 83% Aggregated Util. HMC Polymers PTT Phenol PTTGC % % 884 Key Activities QoQ Sales volume slightly increased from economic recovery and the resumption of HMC Polymers s PDH unit and PTT Phenol s BPA unit in Q1/12 after turnarounds Weaken performance due to squeezed spread margins as well as stock loss from PTTGC s refinery unit 1H Sales volume increased from the commercial operations of PTTGC s LDPE 300 KTA in Feb 2011 PTT Phenol s Bis-Phenol A 150 KTA in Q2/11 HMC Polymers s PDH 310 KTA in Feb

21 20 Petrochemical Business Roadmap E & P Gas Oil & Trading Refining PetChem Coal PTT 48.91% Refining Olefins Aromatics Polymers Specialty 280 KTA 2,888 KTA 2,259 KTA 1,590 KTA 826 KTA NatureWorks 50% PLA 70 KTA VENCOREX 51% TDI 125 KTA HDI 45 KTA PTT 40.00% Phenol Acetone BPA 200 KTA 125 KTA 150 KTA Phenol Acetone 250 KTA 154 KTA PTT 41.44% PP Propylene 750 KTA 310 KTA PTT 48.50% AN 200 KTA MMA 70 KTA AMS 160 KTA Upcoming COD Q4/12 PTT 50.00% PBS 20 KTA

22 Other Businesses : Coal - SAR (45.3%) E & P Gas Oil & Trading Refining PetChem Coal Avg. Selling Price & Cash cost Net Income (100%) Unit : USD/Ton Unit : MMUSD 0.3% % 54 7% 95 Selling price 89 8% Cash Costs 71% % 38 Unit : KTon 34% 2,693 2,015 Sales Volume 5,156 9% 4,708 Sebuku Jembayan Key Activities QoQ Sebuku ramp up resulted in 30% increase in production Jembayan new development on track, production and cash cost reduced Global coal price soften on weaken demand 1H Sales volume decreased from heavy rainfall and resources brought to focus on 2 new pits in Jembayan in 1H/12 Performance dropped due to the increase in cash cost and the decrease in sales volume, despite the rise in average selling price from fixed price contracts 21

23 22 Coal Mining Roadmap E & P Gas Oil & Trading Refining PetChem Coal Target Production Volume Unit : MMTon Resources & Reserves Reserves 146 MMTon Sebuku 2% Sebuku 98% Jembayan Jembayan Resources 1,505 MMTon Jembayan E 40% 60% Reserves/Production ratio 13.8 years 22 Sebuku

24 PTT Consolidated Performance : 1H/2012 Dubai (USD/BBL) Revenue Unit : MMTHB 16% 1% 1,184,434 1,374, , ,817 1H/2012 Others PTTEP 6% 4% PTT - Gas 16% Revenue 74% PTT - Oil & Trading EBITDA 11% 2% 106, ,220 59,554 58,666 Others PTT - Oil & Trading 8% 5% 26% EBITDA PTT - Gas 61% PTTEP Net Income EPS (THB/Share) 37,386 77% 8,513 67,199 32% 45, Refining -1% -9% PetChem 14% 35% PTTEP Net Income Others 61% PTT 23

25 24 PTT Group Performance : 1H/2012 Performance 100% % share Equity Method % PTT Unit : MMTHB 1H/11 1H/12 YoY 1H/11 1H/12 YoY PTT Net Operating Income 27,927 27,863 0% 27,927 27,863 0% E&P - PTTEP 22,149 26,021 17% 65.29% 14,948 16,181 8% Petro. Business 24,312 11,911-51% 11,378 6,214-45% - PTTGC* 19,940 10,703-46% 48.91% 9,376 5,565-41% - HMC/PPCL/PTTPL/PTTPM/PTTAC / PTTME/PTTTANK 4,372 1,208-72% 40-48% 2, % Refining 27,398-1, % 10, % - TOP 10, % 49.10% 5, % - IRPC 6,753-3, % 38.51% 2,306-1, % - SPRC 5, % 36.00% 2, % - BCP 4,445 2,054-54% 27.22% 1, % Others Business 2,625-2,769 n.m. 1,438-4,077 n.m. Inter Gas & Utilities Oil & Oth. - PTTI group (PTTAPM,EMG,PTTML,FLNG),PTTGE ,876 n.m. 100% ,876 n.m. -TTM/PTTNGD/IPT/TP/DCAP/CHPP 1,905 1,680-12% % % - PTTRB/PTTT/SBECL/THAPPLINE/ /PTTCL/TLBC/ICT/EnCo 1, % % 1, % Shared of Net Income from Affiliates 76,484 33,566-56% 38,702 18,036-53% Add Gain (Loss) on sales of investments in Associates n.m n.m. PTT Conso. Net Income 104,981 61,429-41% 67,199 45,899-32%

26 Statement of Financial Position : Solid and Secured Unit: MMTHB Cash & S/T Invest Other Current Assets Others Noncurrent Assets PP&E 1,401, , , , , , , , ,408 Increased assets : 4 th Onshore pipeline PTTEP Australasia Myanmar Zawtika KKD oil sands Mining properties (RIM) 7% 1,495, , ,519 Other Liabilities L/T Liabilities (incl. due within 1 yr) 601, , , ,452 Total Equity Strong Financial Position Jun-12 ICR PTT Ratings at Sovereign Level Net Debt/EBITDA < 2.0 Net Debt/Equity < 1.0 FC : Moody s (Baa1), S&P (BBB+), JCR (A-), FITCH (BBB) LC : Moody s (Baa1), S&P (BBB+), JCR (A), FITCH (A-) Treasury policy 31 Dec11 30 Jun 12 25

27 Dividend Policy & Historical Payments PTT is firmly committed to pay dividend at no less than 25% of net income EPS DPS % Dividend Payout 32.4% 32.6% 29.8% 30.1% 30.3% 30.8% 33.0% 43.6% 40.4% 34.7% 35.2% 31.1% 25% 25% PTT s minimum payout ratio UNIT : Baht / share H12 26

28 27 Contents Overview Performance & Roadmap Investment 2H/2012 Outlook

29 PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 234 bn ($8bn) during Unit: MMTHB R&D JV & Investment in Subsidiaries CAPEX Breakdown : 3 Years By Business Unit 76,840 Oil & Trading Gas 75,576 81,513 32,383 JV & Investment in Subsidiaries 54% Power 4% LNG 4% Coal 2% Others 44% Gas 34% 46,807 39,787 R&D 3% Oil & Trading 9% 23,138 25,977 35,

30 29 Contents Overview Performance & Roadmap Investment 2H/2012 Outlook

31 Economic Outlook : 2H/2012 Global Thailand Positive U.S. upcoming election U.S. and China begin to stimulate their economies Easing monetary policy in developed and emerging countries BOT keep policy rate unchanged at 3% p.a. BOT forecast annual GDP growth of 5.7% Economic recovery supports number of tourists Negative Territorial disputes in South China sea Euro zone debt crisis escalated in Italy, Spain, Greece Turmoil in the oil producing countries (Syria, Iran and Israel) Transparency issue of major financial institutions CPI increases following the rise in energy prices and minimum wages Headline inflation rose in July due to higher fuel and food prices Uncertain energy policy Continuous effort in flood protection 30

32 Market Outlook : Crude Oil Monthly Avg. Dubai Crude Oil Forecast Dubai crude oil price in 2H/2012 is expected to be around US$ per barrel The North Sea oil fields maintenance Unit :USD/BBL Daily Avg. Dubai Crude Oil Hurricane season in Gulf of Mexico 135 Crude stocking ahead of winter season Saudi Arabia is expected to cut the crude supply by 500 KBD Iran sanction Prolong European debt crisis Source: PRISM,PTT Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 31

33 Source: FACTS, DB, KBC, Reuters, IEA, Reuters, Thaioil and PRISM Estimated 32 Market Outlook : GRM Mogas crack GO crack FO crack Mogas crack outlook GO crack outlook FO crack outlook Forecast Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Singapore GRM in 2H/2012 is estimated to around 6 7 USD/BBL GRM in Singapore rebounded sharply due to refinery maintenance, outage and cut run Additional demand from Muslim countries ahead of Ramadan festival Permanent closure of Shell Clyde refinery in Sydney (90,000 b/d) at the end of September Seasonal surge of driving season in Q3 and heating oil demand in winter Additional Chinese refining capacities Prolong European debt crisis

34 Source: PRISM Estimated 33 Market Outlook : Petrochemical Unit :USD/ton Olefins Aromatics 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 and Aromatics spread remain weak Seasonal demand from winter and new year Turnaround of petrochemical plants in Q3 Lower demand caused by European debt crisis as well as economic slowdown in U.S. and China Delayed start up of new PTA plants while there will be additional 1.6 MTA of PX capacity in China Squeezed PTA margin will pressure PX market

35 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.

36 PTT Consolidated Performance : Q2/2012 Dubai (USD/BBL) Revenue Unit : MMTHB 1% 692, , % 1,374,922 1,184,434 Q2/2012 Others PTTEP 6% 4% PTT - Gas 17% Revenue 73% PTT - Oil & Trading EBITDA 11% 2% 106, ,220 58,666 59,554 Others PTT - Oil & Trading 7% 6% 25% EBITDA PTT - Gas 62% PTTEP Net Income EPS (THB/Share) 37,386 77% 8,513 67,199 32% 45, Refining Others -52% -64% 10% PetChem 60% PTTEP Net Income 145 % PTT 35

37 36 PTT Group Performance : Q2/2012 Performance 100% % share Equity Method % PTT Unit : MMTHB Q2/11 Q2/12 YoY Q2/11 Q2/12 YoY PTT Net Operating Income 13,765 12,327-10% 13,765 12,327-10% E&P - PTTEP 11,170 7,733 n.m % 7,704 5,124-33% Petro. Business 11,108 1,334-88% 5, % - PTTGC 8, % 48.91% 4, % - HMC/PPCL/PTTPL/PTTPM/PTTAC / PTTME/PTTTANK 2, % 40-48% 1, % Refining 11,086-14,936 n.m. 5,273-5,406 n.m. - TOP 3,245-6, % 49.10% 2,705-2, % - IRPC 2,980-4,060 n.m % 846-1,532 n.m. - SPRC 1,840-3,588 n.m % 800-1,128 n.m. - BCP 3, % 27.22% % Others Business 389-3,680 n.m ,409 n.m. Inter Gas & Utilities Oil & Oth. - PTTI group (PTTAPM,EMG,PTTML,FLNG),PTTGE ,268 n.m. 100% ,268 n.m. -TTM/PTTNGD/IPT/TP/DCAP/CHPP 1, % % % - PTTRB/PTTT/SBECL/THAPPLINE/ /PTTCL/TLBC/ICT/EnCo n.m % n.m. Shared of Net Income from Affiliates 33,753-9, % 17,942-3, % Add Gain (Loss) on sales of investments in Associates PTT Conso. Net Income 48,088 2,778-94% 32,277 8,513-74%

38 Statements of Cash Flows for 1H 2012 & 2011 (PTT Only) Operating 1H/ ,323 1H/ ,382 Net Income 39,516 47,225 Changes in assets & liabilities -16,803-20,666 Income Tax -5, Non-Cash Adjustment 4,865-6,655 Interest-net Investing 1H/ ,154 1H/2012-3,287 CAPEX(PP&E, Intangible asset) -10,822-10,263 Investment (Sub. &Affiliates) -26,505-1,226 Dividend/Interest Received 12,900 17,658 Others 8,273-9,456 Financing -29,616-9,430 Free Cash flow 6,169 17,095 Repayment Loans -14,048-18,601 Interest paid -6,343-5,851 Dividend paid -15,667-19,978 Received from share issue 1,250 0 Received from loans/bonds 5,192 35,000 Adjustment 1-35 Beginning Cash and Cash Equivalents 61,311 51,341 Cash In/(Out) -23,446 7,630 Ending Cash & Cash Equivalents 37,865 58,

39 Statements of Consolidated Cash Flows for 1H 2012 & 2011 Operating 1H/ ,757 1H/ ,681 Net Income 67,199 45,899 Changes in assets & liabilities -33,428-57,391 Income Tax -31,854-30,733 Non-Cash Adjustment 47,517 75,587 Interest - net 323 1,319 Investing 1H/ ,261 1H/ ,082 CAPEX (PP&E, Intangible asset) -43,827-58,243 Investment (Sub. &Affiliates) -76,043-1,884 Dividend/Interest Received 6,094 9,030 Others 10,515-7,985 Financing 14,796 3,200 Free Cash flow -53,504-24,401 Repayment Loans -14,676-45,972 Interest paid -8,466-8,979 Dividend paid -19,766-24,278 Received from share issue 1,321 4,883 Received from loans/bonds 56,383 77,548 Adjustment 721 1,173 Beginning Cash and Cash Equivalents 135, ,132 Cash In/(Out) -37,987-20,028 Ending Cash & Cash Equivalents 97,814 96,

40 Debt Profile : Control Cost & Manage Risk Managed debt according to financial risk and policy Debt Portfolio Unit : MMTHB PTT Only Consolidated : Cost of debts ~ 4.87 % : % fixed-rate ~ 93 % : Avg. debt life ~ 7.44 years : Cost of debts ~ 4.50 % : % fixed-rate ~ 82 % : Avg. debt life ~ 7.39 years 370, , ,774 USD THB 266, , ,153 68,308 (26%) 72,337 (30%) 71,047 (27%) 114, , ,404 (31%) (41%) (46%) 197,877 (74%) 170, ,709 (70%) (73%) 255,860 (69%) 229, ,370 (59%) (54%) 31 Dec Dec Jun Dec Dec Jun-12 Note : Data as of 30 Jun 2012 (THB/USD = THB/JPY = ) Excluding liabilities from finance leases; Cost of debts includes withholding tax. 39

41 Data as of 30 June 2012 E&P and Gas 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 % Combined Heat and Power producing Co.,Ltd CHPP % 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% Independent Power (Thailand) Co., Ltd. IPT 20.00% PTT Utility Co., Ltd. PTTUT 40.00% B.Grimm BIP Power Co., Ltd. B.Grimm BIP 23.00% Nava Nakorn Electricity Generation Co.,Ltd NNEG 30.00% Bangpa-in Cogeneration, Ltd BIC 25.00% Others Cost Ratchaburi Power Co., Ltd. RPCL 15.00% Oil Business Group Subsidiaries Consolidate PTT (Cambodia) Co., Ltd. PTTCL % Subic Bay Energy Co., Ltd. SBECL % PTT Retail Business Co., Ltd. PTTRB % PTT Green Energy Pte. Ltd PTTGE % Thai Lube Blending Co., Ltd. TLBC* 48.95% Associates Equity Keloil-PTT LPG Sdn. Bhd. KPL 40.00% Vietnam LPG Co., Ltd. VLPG 45.00% Thai Petroleum Pipeline Co., Ltd. THAPPLINE 33.19% PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00% Others Cost PetroAsia (Huizhou) Co., Ltd. PA(Huizhou) 25.00% 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 2.76% Others Fair Value Bangkok Aviation Fuel Services Plc. BAFS 7.06% Petrochemicals & Refining Business Group Petrochemical Subsidiaries Consolidate PTT Polymer Marketing Co., Ltd. PTTPM 50.00% PTT Polymer Logistics Co., Ltd. PTTPL % PTT Tank Terminal Co., Ltd. PTTTANK % Associates Equity PTT Global Chemical Plc. PTTGC 48.91% PTT Phenol Co., Ltd. PPCL 40.00% PTT Maintenance and Engineering Co., Ltd.PTTME 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. PMBC 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% PTT Energy Solutions Co., Ltd. PTTES 40.00% International Trading Business Group Subsidiaries Consolidate PTT International Trading Pte. PTTT % Subsidiaries Consolidate PTT International Co., Ltd. PTTI % Energy Complex Co., Ltd. EnCo 50.00% Business Service Alliance Co., Ltd. BSA * 25.00% 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. 40

42 41 PTT s Strategic Importance to the Thai Economy PTT has the largest market cap on the SET Ministry of Finance holds majority stake in PTT SET Market Cap = Baht 9.6 trillion Others 80.0% PTT Group 20.0% PTTEP 5.0% PTT 9.6% PTTGC 2.8% TOP 1.3% IRPC 0.8% BCP & Others 0.5% Vayupak Fund 15% Ministry of Finance 51% Public 34% Foreign 18% Thai 16% Data as of 8 Aug 2012 Data as of 9 March 2012

43 Accolades PTT is widely recognized among business communities both international and local Asia Talent Management 10 th Asia Business Leaders Award th Top Asia Overall Performance of rd Top Asia Integrated Oil&Gas of th in th in th in th in th in th in 2010 Dow Jones Sustainability Index # 17 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 Asian Corporate Director Recognition Awards Asia s Best CEO2011 & 2012 Asia s Best CFO Best IR Website/Promotion Best Environmental Responsibility Best Investor Relations Best Investor Relations Professional ThaiBMA Best Bond Awards 2011 Best Investor Relations Issuer ThaiBMA Best Bond Awards 2010 Deal of the Year Most Creative Issue Best Investor Relations Issuer The winners of The Asset s Platinum Awards in 2010 & 2011 Board of the year Award 2010 & 2011 SET Awards Top Corporate Governance Report Award 2010 & 2011 Best Corporate Social Responsibility Awards 2011 Trusted Brand 2010 & 2011 Thailand s Top Brand in Platinum Award for Service Station 2010 & 2011 Thailand s Top Brand - Gold Award for lubricant products Best CEO 2010 Best CEO for Energy Sector 2011 Most Organised Investor Relations Best Senior Management IR Support Strongest Adherence to Corporate Governance Most Consistent Dividend Policy Best Strategic CSR Outstanding State Enterprise Award 2010 & 2011 Best State Enterprise of the Year, Best of the Best Outstanding Leadership Outstanding Innovation 42

44 43 Natural Gas Price Structure Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns. Customers Sales Price Structure Gas Pool Price + Supply Margins + Pipeline Tariffs Power Producers 59% : EGAT 30% : IPP 20% : SPP 9% Average Purchased Gas Price 1.75% 1.75% 9.33% 21.8 Bt/MMBtu GSP 21% Charged at the same price structure of power producers Petrochemicals Feedstocks Ethane, Propane, LPG NGL Local Cooking Gas Profit-sharing mechanism based on market prices of petrochemicals Reference to Naphtha market price Capped at 333 USD/ton 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