Analyst Meeting Q3/2013

Transcription

1 Analyst Meeting Q3/2013

2 1 Contents Highlights Performance Q4/2013 Outlook

3 2 Highlights Operation (QoQ) Better PTTEP s performance from increased average selling price despite the decrease in sales volume from Vietnam16-1 FPSO sharing Better refining affiliates performance due to better GRM from stock gain Better petrochemical affiliates performance from higher prices Better coal performance from higher sales volume mainly from Sebuku Power business performance improved from higher steam sales volume Thus, net profit of Q3/13 surged more than 100% Gas sales volume dropped 3% mainly from lower demand from EGAT GSP#5 incident Weaker oil business performance from squeezed margin as average cost increased However, the performance of 9M/2013 decreased by 3% Finance PTT Group fund raised totally 5,110 MMUSD in 9M/2013 USD Loan/Bond PTT drawn down 310 MMUSD loan TOP issued 1,000 MMUSD bond PTT issued 10,000 MMTHB bond (September) PTTEP issued 500 MMUSD bond Credit Rating s update PTT Group Rating maintain at the same level

4 Highlights (Cont.) Sustainability PTT: - Remain a member of DJSI World Index PTT improved Carbon Disclosure Score and performance band - CFO Academy launched TOP: Accepted as a member in DJSI Emerging Market 2013 PTTGC: Accepted as a member in DJSI World Index 2013 Key Events Update July 2013 PTTGC signed MoU with Sinochem Group for strategic alliance on Petrochemical August 2013 TOP awarded EPC contractor for LAB project (100KTA) PTTEP discovered quantities of gas in all four wells in Myanmar Block-M3 PTT established PTT Oil Myanmar Co., Ltd. July 2013 PTTGC shutdown LDPE plant (300KTA) for 3.5 months, resumed in Sep PTTGC s oil spill incident August 2013 PTT s GSP#5 unplanned shutdown from lightning strike, resumed in Oct 1 EMG ระหว างการฟ องร อง 2. Gas resume 3. Stock gain and FX gain September 2013 LPG retail price for household sector uplifted PTT s - Divestment of B.Grimm BIP Power Co., Ltd. - PTT Regional Treasury Center (PTT RTC) November 2013 PTT & Subsidiaries transferred power assets to GPSC & supported GPSC s equity raising 3

5 Price Movement Dubai vs FO ($/BBL) 140 Dubai FO 20 LNG:JLC* ($/MMBTU) Dubai FO Avg Avg Avg Avg Avg Avg Avg Avg Avg * JLC = Japan LNG Cocktail : Landed LNG price in Japan New Castle Coal ($/Ton) FX (THB/USD) Avg Avg Avg Avg Avg Avg Note: Figures are monthly average 4

6 5 Net Income Performance: 9M/2012 vs 9M/2013 Unit : MMTHB 3% 81,930 6,500 12,895 Refinery Petrochem 79,261 8,028 12,816 Total intake increased 6% Avg. ACC GRM increased 24% Better spread margins Sales vol. decreased 1% 27,647 PTTEP 32,050 Avg. selling price increased 3% Sales vol. increased 8% 37,384-2,496 PTT 23,566 Others 2,801 9M/2012 9M/2013 NG sales vol. increased 4% Avg. GSP sales vol. decreased 0.3% Oil margin decreased 8% Avg. NG gas cost increase 6% More loss on NGV No impairment on investment or asset

7 6 Contents Highlights Performance Q4/2013 Outlook

8 Exploration & Production Performance : PTTEP (65.29%) % Product Prices Net Income (100%) 5% % Liquid (USD/BBL) 3% Weighted Avg. (USD/BOE) 3% 8% 8.16* * Gas (USD/MMBTU) E & P Gas Oil & Trading Refining PetChem Others Unit: MMUSD % 566 1,397 15% 1,607 Unit: KBOED 293 Sales Volume 2% % Liquid Gas Key Activities QoQ Sales volume decreased mainly from Vietnam16-1 FPSO sharing in late Q2/13, while average prices increased in line with higher crude oil price in market Net income increased mainly due to lower loss from nonrecurring items (FX effect in tax and unrealized FX loss) 9M Sales volume increased mainly from start up of BKT South and ramp up of S1 and Vietnam 16-1 Net income increased by 15% mainly due to higher selling price and sales volume * Includes one-time adjustment (retroactive) of the conversion factor in Yadana and Yetagun s gas price formula. Gas price excluding adjustment would be $ 7.95/MMBTU for Q2/13 and $7.97/MMBTU for 9M13 7

9 Exploration & Production Roadmap : PTTEP Growth Strategy to 600 KBOED in 2020 E & P Gas Oil & Trading Refining PetChem Others Potential Future Reserves Contributors Myanmar Australia Mozambique Kenya Production Volume (KBOE/D) 600 M3: Plan 8 appraisal wells drilling in M11: Drilling started in Sep 2013 Algeria HBR Completed 1st exploration phase and commencing 2nd exploration phase Explore for potential in several permits - Cash/Maple discovery 6 offshore and 2 onshore exploration wells to be drilled within 2014 Explore the frontier blocks M&A 314 International Domestic Potential Near-term Value Contributors Montara First off-load in Q at 500 K barrels Zawtika Commercial delivery expected in Q Algeria 433a & 416b 1st oil expected by end of 2014 At 20 KBPD KKD Leismer Expansion +20 KBPD by 2017; Corner +40 KBPD by 2017/18 Cove First LNG: 2 Trains (of 5 MMTPA each) expected in 2018 / Current Value Contributors* Bongkot Arthit MTJDA S1 Yadana Yetagun Sales volume: Gas 891 MMSCFD Condensate 32 KBPD Sales volume: Gas 225 MMSCFD Condensate 9 KBPD Note: * Nine months ending September 30, Sales volume: Gas 314 MMSCFD Condensate 8 KBPD Average crude production: 33 KBPD Combined average sales volume: >1,100 MMSCFD Reserves Replacement Ratio ** Policy Reserve Life Index (year) *** 8 **Reserves Replacement Ratio : 5-Yr Additional Proved Reserves / 5-Yr Production Volume ***Reserves Life Index (Year) : Proved Reserves / Production Volume 8

10 Gas Business Performance : Natural Gas E & P Gas Oil & Trading Refining PetChem Others NG Sales Volume GSP - Reference Product Prices Unit: MMSCFD Unit : USD/Ton ,695 4,675 4,611 4,746 AVG. 4,636 1,473 1,516 1,439 1,509 1,443 1,489 1,375 1,471 PP HDPE ,284 4,507 4,538 4,145 4,330 4,249 3,919 4,537 4, Naphtha FO 3.5% Domestic LPG Unit: MMSCFD 3% 4% 4,675 4,538 4,467 4, Q1 Q2 Q3 Q4 NG Customer Profile ,355 1,131 1,319 1,289 NGV (6%) Industry (14%) GSP (20%) SPP (13%) IPP (19%) EGAT (28%) GSP Sales Volume Unit : KTon 0.3% 4,720 4, Propane (12%) 11% 1,626 1, ,528 1,565 Ethane (33%) NGL (12%) 2,137 2,043 LPG (43%) 9

11 Gas Business Performance E & P Gas Oil & Trading Refining PetChem Others Gas Business EBITDA Unit: MMTHB 43,005 24% 32,717 Others (16%) GSP (30%) 23% TM (58%) 9,010 11,076 NGV Sales Volume Unit : Approx. KTon/Day 2% % 8.53 Key Activities S&M (38%) NGV (-42%) Vol. MMCFD QoQ NG volume decreased from 4,675 mmcfd to 4,538 mmcfd mainly from lower demand from EGAT Industry margin squeezed due to soften fuel oil prices EBITDA increased due to better margin from GSP following lower LPG sales due to GSP#5 S/D, despite more loss in NGV 9M NG volume increased from 4,467 mmcfd to 4,636 mmcfd mainly from 10 new SPPs EBITDA decreased due to an increase in NG feed cost, more loss on NGV and lower margin from industry QoQ More loss on NGV was due to an increase in sales volume and NG feed cost 9M Sales volume increased by 12%, also, feed cost increased No Government subsidy, while special discount given to public transportation customers Control retail price of NGV remains 10

12 Gas Business Roadmap E & P Gas Oil & Trading Refining PetChem Coal New Supply PTTEP (Bongkot South) PTTEP (M9) LNG Ph#2 LNG Capacity (MTA) Pipeline Capacity Offshore compressor 4 th onshore BVW#7 unit 4 (MMSCFD) 4,380 4,380 7,180 7,180 7,180 7,180 GSP Capacity (MTA)

13 Oil Business Performance : PTT E & P Gas Oil & Trading Refining PetChem Others Contribution Margin 1/ Oil BU - EBITDA Unit : THB/Liter % % 0.80 Unit : MMTHB 7% 12,659 11,389 11% 11,273 9,644 Oil 3,250 3,034 1/ Excluded non oil business 2,640 2, ,270 1,629 Non-Oil Sales Volume 2/ Key Activities Unit : MM Liter 5% 17,195 18,103 2% 6,008 6,140 QoQ Squeezed margin from an increase in Ethanol cost Better sales volume from aviation during travelling season in Europe 9M Lower margin from capped diesel price and higher average cost Higher sales volume mainly from gasoline, aviation, and LPG Continuously growing non-oil business performance 2/ Only PTT and PTTRM 12

14 13 Oil Business Development E & P Gas Oil & Trading Refining PetChem Others PTT Green For Life PTT Innovation PTT COMPOSITE+ World class quality: PTT HyForce Premium Diesel Premium grade synthetic diesel Jet-fuel technology The first and only Euro 5 Diesel standard in Thailand A new form of gas cylinders in Thailand Using technology in coordination polymers and fiberglass Environmentally friendly Reducing carbon dioxide emissions and energy used in the production process Pioneering in the three southern border provinces Target to expand nationwide in 2014

15 14 International Trading Business Performance : PTT E & P Gas Oil & Trading Refining PetChem Others Contribution Margin* Trading BU - EBITDA* Unit :THB/Liter 25% 33% Unit : MMTHB 37% 3, ,244 23% 962 2,845 * PTT only : FX Adjustment in compliance with Accounting Standard Unit : MM Liter Sales Volume 1% 49,825 50,384 1% 16,988 16,784 * PTT only : FX Adjustment in compliance with Accounting Standard Key Activities QoQ Sales volume slightly dropped from condensate and imported crude oil (out-in) following tight supply from ME tension 9M Better margins from lower discount rate for domestic condensate Sales volume increased from crude oil and gasoline from out-out trading

16 Refining Business Performance E & P Gas Oil & Trading Refining PetChem Others GRM/GIM Net Income (100%) Unit : USD/BBL Unit : MMTHB % Dubai >100% >100% 24% 16,426 18,196 A/C GIM ,197 A/C GRM Mkt GRM BCP SPRC TOP Stock Gain ,925 IRPC /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 % 95% 736 Total Intake 1% % 95% 6% BCP IRPC SPRC TOP Key Activities QoQ Market GRM decreased slightly mainly from gasoline due to end of US driving season and Ramadan season A/C GRM increase from Stock gain following higher oil price PX price increased from polyester seasonal demand and tight supply BZ price decreased due high inventory in China and US 9M A/C GRM increased mainly from stock gain due to less price volatile BZ price increased due to tightening supply and high SM demand Higher utilization rate 15

17 16 Refinery Project Update E & P Gas Oil & Trading Refining PetChem Others Refinery upgrading (TOP) Maximize lube base oil production while increasing Gasoline/Jet/Diesel production Expected COD: 2014 Emission Improvement Project (EIP) To control flue gas quality according to the new emission law (New emission law limits SOX < 500 ppm from Dec 2013 onwards) Expected COD: 2014 ABS&SAN Expansion 60 KTA : COD Oct 2013 EBSM Expansion 60 KTA : COD Sep 2013 Lube Blending Expansion 60 m.ltrs./year COD Nov 2013 Solar Power Plant Phase 3 (PPA 48 MW) Location : Buriram, Nakhon Ratchasima, Chaiyaphum, Prachin Buri Expected COD: Apr 2014

18 Petrochemical Business Performance E & P Gas Oil & Trading Refining PetChem Others Spread Margins Net Income (100%) Unit : USD/Ton Unit : MMTHB HDPE-Naphtha 2% PX-Naphtha 35% 3% 13% >100% 26,785 1% 26,524 HMC Polymers ,868 10,352 PTTGC Others Unit : KTon Aggregated Util. Sales Volume 87% 84% 90% 90% 1% 2,121 2,104 10% 712 HMC Polymers 644 PTTGC Key Activities QoQ Olefin prices increased due to tight supply and improved demand, despite spread to naphtha decreased from increased naphtha price following crude oil price Lower sales volume mainly from lower utilization rate of PTTGC olefins plant due to GSP#5 shutdown 9M Spread margin increased from higher demand following better sentiment of US and EU economies Sales volume remained despite GSP#5 shutdown 17

19 Petrochemical Project Update E & P Gas Oil & Trading Refining PetChem Others C4 Value Enhancement LT : C4 Upgrading to Butadiene ; Expected COD: Q1/14 Quench Oil Tower Modification To reduce naphtha to gas portion from 0.95 to 0.60 at I4-1 Expected COD : Q4/14 Debottlenecking - PX capacity Increases ARO II capacity from 655 to 770 KTA (total PX capacity ARO I and ARO II to increase from 1,195 KTA to 1,310 KTA) Expected COD: Q3/15 Debottlenecking - PTTPE Additional capacity of 12% Converting additional ethylene into downstream products Expected COD: 2016 Phenol 2 Capture longer value chain of benzene and propylene Expected COD: Q3/15 PTT Asahi Chemical Start commercial operation of PTTAC AN 200 KTA MMA 70 KTA AMS 160 KTA COD: Q1/13 PBS 20 KTA Start construction in Q1/2013 Expected COD:

20 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 91 19% 5% Selling price % 9% Cash Costs % % 14.2 Sales Volume Unit : KTon 1% 7,957 7,853 Sebuku 18% 2,466 2,915 Jembayan *unaudited Q2/13 Q3/13* 9M/12 9M/13* Key Activities QoQ Selling price slightly dropped following New Castle Coal price from excess supply Cash cost was slightly lower from better strip ratio mainly from Sebuku Sales volume increased mainly from Sebuku as a result of heavily pre-strip in 1H/13 9M Performance dropped following lower selling price and higher depreciation expense from new pits in Sebuku s Northern Lease Lower cash cost from better strip ratio Sales volume decreased slightly mainly from Jembayan due to lower coal price 19

21 Other Businesses : Power - GPSC (30.10%) E & P Gas Oil & Trading Refining PetChem Others Moving Forward (Capacity) Net Income (100%) Unit : MW 1,357* 87% 2,531** 496 Renewable Unit : MMBaht 356 6% 378 1,357 2,035 Conventional *Including steam Current Next Step **Confirmed plan and on-going negotiation by Y2013 Sales Volume Q2/13 Q3/13 Key Activities Unit : KMWh Unit : KTon 2,086 1,934 7% (Power) 11% (Steam) QoQ Lower power sales volume from 5-days outage(sriracha) in Sep and lower power sales to EGAT Higher steam sales volume to customers (HMC and PTTGC) Higher net income followed higher sales volume of stream sales 1,052 1,169 Q2/13 Q3/13 20

22 PTT Consolidated Performance: 9M/2013 Dubai (USD/BBL) Revenue EBITDA Unit : MMTHB 2% 8% 2,060,947 2,092, , ,152 Q2/2013 Q3/2013 9M/2012 9M/2013 3% 1% 174, ,989 55,919 56,691 PTT - Gas PTTEP PTT - Oil & Trading PTT - Gas 9M/2013 Others 4% 7% 17% Revenue Others 6% 3% 19% EBITDA 72% PTT - Oil & Trading 72% PTTEP Q2/2013 Q3/2013 9M/2012 9M/2013 Net Income 12,278 >100% 30,877 3% 81,930 79,261 PetChem Refining 16% 10% 4% Others Net Income 40% PTTEP EPS (THB/Share) Q2/2013 Q3/2013 9M/2012 9M/ PTT 30% 21

23 Statement of Financial Position : Solid and Secured Unit: MMTHB Increased assets : PTTEP s Assets 4 th Onshore pipeline Strong Financial Position 4% ICR * Cash & S/T Invest Other Current Assets Others Noncurrent Assets 1,629, , , , , ,804 1,694, , , , , ,034 Other Liabilities L/T Liabilities (incl. due within 1 yr) Sep-13 *ICR = EBITDA/Interest Expense Net Debt/EBITDA < 2.0 Net Debt/Equity < 1.0 PP&E 650, , , ,010 Total Equity PTT Ratings at Sovereign Level FC : Moody s (Baa1), S&P (BBB+), JCR (A-), FITCH (BBB+) LC : Moody s (Baa1), S&P (BBB+), JCR (A), FITCH (A-) 31 Dec Sep 13 22

24 23 PTT Group Performance : 9M/2013 % share Unit : MMTHB 9M/12 9M/13 YoY 9M/12 9M/13 YoY PTT Net operating Income 37,384 23,566-37% 37,384 23,566-37% E&P - PTTEP 43,548 48,727 12% 65.29% 27,647 32,050 16% Petro. Business 26,785 26,524-1% 12,895 12,816-1% - PTTGC 24,239 25,857 7% 48.89% 11,520 12,657 10% - HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/ PTTME/PTTMCC 2, % 40-50% 1, % Refining 16,426 18,196 11% 6,500 8,028 24% Inter - TOP 10,395 10,407 0% 49.10% 4,809 4,738-1% - IRPC n.m % n.m. - SPRC 3,652 3,783 4% 36.00% 1,171 1,325 13% - BCP 3,126 3,964 27% 27.22% 904 1,069 18% - PTTI group (PTTAPM,EMG,PTTML,FLNG),PTTGE Performance 100% Equity Method % PTT -4,499-1,651 63% 100% -4,587-1,520 67% Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 1,932 2,809 45% % 678 2,216 n.m. Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 1,433 1,969 37% 20-30% % Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others 1,125 1,744 55% % 926 1,409 52% Shared of Net Income from Affiliates 86,750 98,318 13% 44,546 55,695 25% PTT Conso. Net Income 124, ,884-2% 81,930 79,261-3%

25 24 Contents Highlights Performance Q4/2013 Outlook

26 Economic Outlook : Challenges ahead Q4/2013 US Market is the main focus 1 Indonesia, Malaysia, Philippines, Thailand, and Vietnam. 2 NESDB published on November 18, 2013 : - US Fed Maintains Stimulus Measures : - Impact from US Government shutdown & Debt Ceiling EU market remains volatile : - Easing EU Debt Crisis Concern : - Delay Forming EU Banking Union China market is the main driver : - Maintain their growth rate above 7.5% : - Fragile Chinese Economy - Cool down China Economics by Likonomics policy: no stimulus, deleveraging and structural reform - Shadow Banking could lead to the economic bubble AEC market is blooming : - IMF forecast ASEAN-5 1 GDP growth in 2013 around 5.0% : - Doubtful collaboration from uneven economic competitiveness Thailand market is expected to grow marginally : - NESDB expected Thailand GDP growth in 2013 around 3.0% and in 2014 around % 2 : - Political conflicts - THB Depreciate as fund outflow 25 25

27 Market Outlook : Crude Oil Monthly Avg. Crude Oil WTI Brent Dubai Dubai Forecast (PTT Group PRISM) Forecast Psychology 100 USD/BBL AVG. Dubai crude oil price in Q4/2013 is expected to be around USD/BBL Incoming Winter demand Middle East and North Africa (MENA) geopolitical uncertainty Concerns over US Government Shutdown & Debt ceiling Partial resumption of Libyan, Iraqi & North Sea oil supply EU/US refineries come back from maintenance Source: PRISM (PTT Group) Estimated ( ) 26

28 Market Outlook : Henry Hub Natural Gas Price Forecasted Henry Hub in Y2013 approximately USD/MMBTU US approved 4 LNG Projects for exporting to NON-FTA countries Winter demand in US Shale gas revolution US LNG Project List : Rank by DOE s application order Source : Short term Outlook, October 2013 EIA, Street Research, Bloomberg and PTT 27

29 Market Outlook:Asia LNG Spot Price (JKM : Japan Korea Marker) Hot Summer Season in Japan Lower-than-average temp in North Asia Last Nuclear Power Plant in Japan Shutdown Fukushima Daiichi Incident AVG. JKM Price in Q4/13 is expected approximately USD/MMBTU Nuclear Power Plant in Japan Shutdown Alternative fuel will be replace LNG demand when JKM price keep higher. Winter demand in North Asia Abenomics Policy keep policy to stimulus Japan Economics 28

30 Market Outlook : GRM Forecast GO Mogas FO Singapore GRM in Q4/2013 is estimated to be around 5-6 USD/BBL Winter Demand boost heating oil consumption Improve bunker demand for year-end festival Impact from Jubail Refinery in Saudi Arabia (400 KBD) Low refinery turnaround, higher run rate Source: FACTS, DB, KBC, Reuters, IEA, Reuters, Thaioil and PRISM Estimated (November 2013) 29

31 Jan-12 Source: PRISM Estimated Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct Market Outlook : Petrochemical Unit :USD/ton 2,000 1,800 1,600 1,400 1,200 1, Spread Olefins Q PP HDPE Naphtha 2,000 1,800 1,600 1,400 1,200 1, Spread Aromatics Q 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 spread slightly higher while Aromatics spreads soften High Plastic demand for year ended festival Olefin price expected to remain high due to New PE plants in Asia come on-stream Chinese economy soften New PX Capacities and lackluster Polyester Demand

32 31 Key Takeaways Q3/2013 operation performance is back to normal 9M/2013 remains on track GSP#5 resumed operation in Oct 2013 LPG/NGV issues are still overhung No concern on the upcoming Myanmar gas turnaround

33 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.

34 Debt Profile : Control Cost & Manage Risk Managed debt according to financial risk and policy Debt Portfolio Unit : MMTHB PTT Only Consolidated : Cost of debts ~ 4.8 % : % fixed-rate ~ 91.3 % : Avg. debt life ~ 8.2 years : Cost of debts ~ 4.5 % : % fixed-rate ~ 82.5 % : Avg. debt life ~ 7.5 years USD THB 391, , , , , , , , ,153 72,337 (30%) 100,069 (35%) 110,187 (36%) (41%) (49%) (52%) 170, , ,949 (70%) (65%) (64%) 229, , ,971 (59%) (51%) (48%) 31 De c De c S ep De c De c Se p-1 3 Note : Data as of 30 Sep 2013 (THB/USD = THB/JPY = ) Excluding liabilities from finance leases; Cost of debts includes withholding tax. 33

35 Statements of Consolidated Cash Flows for 9M 2013 & 2012 Operating 9M/ ,717 9M/ ,932 Net Income 81,930 79,261 Changes in assets & liabilities -62,983-15,172 Income Tax -35,494-41,584 Non-Cash Adjustment 102,655 99,806 Interest-net 1,609 1,621 Investing 9M/ ,400 9M/ ,226 CAPEX(PP&E, Intangible asset) -87,948-87,851 Investment (Sub. &Affiliates) -73,370 3,354 Dividend/Interest Received 12,896 15,929 Others 1,022-1,658 Free Cash flow -59,683 53,706 Financing 35,019-31,183 Repayment Loans -58,809-45,495 Interest paid -14,401-14,141 Dividend paid -42,729-31,571 Received from share issue 4,819 - Received from loans/bonds 146,139 60,024 Adjustment -2,342 2,614 Beginning Cash and Cash Equivalents 116, ,924 Cash In/(Out) -27,006 25,137 Ending Cash & Cash Equivalents 89, ,

36 Statements of Cash Flows for Year 9M 2013 & 2012 (PTT Only) Operating 9M/ ,161 9M/ ,482 Net Income 65,889 57,576 Changes in assets & liabilities -23,687-22,439 Income Tax -2,343-1,833 Non-Cash Adjustment -11,613-14,619 Interest - net Investing 9M/ M/ ,835 CAPEX (PP&E, Intangible asset) -15,672-15,081 Investment (Sub. &Affiliates) -1,287 2,667 Dividend/Interest Received 27,801 34,953 Others -11,279-1,704 Free Cash flow 28,724 40,317 Financing -30,167-20,832 Repayment Loans -32,176-29,831 Interest paid -8,729-9,421 Dividend paid -34,262-22,841 Received from share issue - - Received from loans/bonds 45,000 41,261 Adjustment Beginning Cash and Cash Equivalents 51,341 47,641 Cash In/(Out) -1,821 19,409 Ending Cash & Cash Equivalents 49,520 67,

37 36 PTT Group Performance : Q3/2013 % share Unit : MMTHB Q2/13 Q3/13 QoQ Q2/13 Q3/13 QoQ PTT Net operating Income 4,213 7,320 74% 4,213 7,320 74% E&P - PTTEP 10,664 17,805 67% 65.29% 7,595 11,853 56% Petro. Business 2,868 10,352 n.m. 1,457 4,817 n.m. - PTTGC 4,172 9,610 n.m % 2,243 4,589 n.m. - HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/ PTTME/PTTMCC -1, n.m % n.m. Refining -1,925 12,197 n.m. -1,237 5,439 n.m. Inter - TOP -1,565 7,609 n.m % ,898 n.m. - IRPC -1,159 1,048 n.m % n.m. - SPRC 392 2,181 n.m % n.m. - BCP 407 1,359 n.m % n.m. - PTTI group (PTTAPM,EMG,PTTML,FLNG),PTTGE Performance 100% Equity Method % PTT n.m. 100% n.m. Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 740 1,060 43% % % Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG % 20-30% % Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others % % % Shared of Net Income from Affiliates 12,731 42,733 n.m. 8,065 23,567 n.m. PTT Conso. Net Income 16,944 50,053 n.m. 12,278 30,887 n.m.

38 Data as of 30 Sep 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 % 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% Thai Solar Renewable Co., Ltd TSR 40.00% Associates Equity Thai Oil Power Co., Ltd. TP 26.00% Nava Nakorn Electricity Generation NNEG 30.00% Bangpa-in Cogeneration, Ltd BIC 25.00% 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 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 % 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. 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% 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. 37

39 Oil Balance Thailand: Jan - Sep 2013 Adequate refining capacity maintains the stability of supply Supply Production Sales Import (80%) 939 KBD Imported Refined Petroleum Products 76 KBD Crude/ Condensate 863 KBD Total Refining Capacity in Thailand: 1,087 KBD Refined Products 989 KBD* Domestic Indigenous (20%) 241 KBD Crude/ Condensate 214 KBD PTT s Associated Refineries : 910 KBD (TOP, PTTGC, SPRC, IRPC, BCP) Refined Products 199 KBD 860 KBD (**) Export Other Refineries : 177 KBD (ESSO) Crude Export 27 KBD 226 KBD Source: PTIT Remark : (*)Refined product from refineries= 886 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 103 KBD (**) Not included Inventory KBD = Thousand Barrels per day 38

40 Natural Gas Balance: Jan Sep 2013 Main driver of the Thai economy Gulf of Thailand (75%) Others 40% Supply Production Sales Chevron 33% PTTEP 27% Onshore (3%) 2,448 MMSCFD Bypass Gas 1,045 MMSCFD 6 GSPs Total Capacity 2,740 Actual Heat 122 MMSCFD Ethane/ Propane/ LPG/NGL 962 MMSCFD (21%) LPG/NGL Methane 1,486 MMSCFD Petrochemical Feedstock (15%) Industry Household Transportation (6%) Import (22%) Myanmar 79% LNG 21% 1,027 MMSCFD Power (59%) Industry (14%) NGV (6%) Remark: MMSCFD = Million Cubic Heating Value 1,000 Btu/ft 3 39

41 Natural Gas Price Structure : Jan Sep 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% 21.8 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,

42 41 Natural Gas : Strong and Increasing Demand over Long Term Natural gas is a fuel of choice for power producers and transportation industry Gas demand forecast (CAGR during ) : Total ~ 2% : Power ~ 3% : GSP ~ -1% : Industry ~ 3% : NGV ~ 1%

43 Thailand s Projected Energy Demand Commercial Primary Energy Consumption KBD , ,863 2% 13% 16% 35% 2,826 2,376 2% Hydro/Import 13% 2% Renewable 12% 15% Coal/Lignite 15% Natural Gas 41% 41% 3,261 3% 13% 16% 41% Nuclear 1% 3% 13% 17% 40% % 30% Oil 29% 27% 26% Source : EPPO/ PDP 2010 Revised 3 (June 2012)/ PTT analysis as of 1 May