CLSA Asean Forum 2015 Grand Hyatt Erawan Bangkok 13 Mar 2015

Transcription

1 CLSA Asean Forum 2015 Grand Hyatt Erawan Bangkok 13 Mar 2015

2 1 Contents Overview Performance 2015 Outlook

3 Oil Balance Thailand: Jan-Dec 2014 Adequate refining capacity maintains the stability of supply Overview Performance Industry Outlook Supply Production Sales Import (80%) 898 KBD Imported Refined Petroleum Products 93 KBD Crude/ Condensate 805 KBD Total Refining Capacity in Thailand: 1,082 KBD Refined Products 971 KBD* Domestic Indigenous (20%) 228 KBD Crude/ Condensate 221 KBD PTT s Associated Refineries : 905 KBD (TOP, PTTGC, SPRC, IRPC, BCP) Refined Products 200 KBD 877 KBD (**) Export Other Refineries : 177 KBD (ESSO) Crude Export 7 KBD 207 KBD Source: PTIT Remark : (*)Refined product from refineries = 869 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 2014 Main driver of the Thai economy Gulf of Thailand (75%) Others 42% Supply Production Sales Chevron 29% PTTEP 29% Onshore (3%) Overview Performance Q2/2014 Outlook 3,529 MMSCFD Bypass Gas 1000 MMSCFD 6 GSPs Total Capacity 2,740 Actual Heat 128 MMSCFD Ethane/ Propane/ LPG/NGL 960 MMSCFD (20%) LPG/NGL Methane 1,569 MMSCFD Petrochemical Feedstock (14%) Industry Household Transportation (6%) Import (22%) Myanmar 82% LNG 18% 1,034 MMSCFD Power (59%) Industry (14%) NGV (7%) Remark: MMSCFD = Million Cubic Heating Value 1,000 Btu/ft 3 3

5 PTT is Thailand s Largest Energy Company Overview Performance Industry Outlook PTT Public Limited Company ( PTT ) Largest company on Thai Stock exchange Market cap ~US$56bn 1 or ~ THB1.8 trillion 1 Group companies:13.2% 1 of Thai Stock Exchange market capitalization Majority owned by Thai government (66%) 51% by Ministry of Finance 15% by Vayupak Fund Fully integrated and highly diversified over the entire O&G value chain International exploration and production business with 777 mmboe of proved reserves in 2014 Sole operator and owner of gas transmission pipelines and GSPs in Thailand Largest refinery group in Thailand with stakes in 5 of 6 refineries in the country Largest petrochemical producer group in Thailand with stakes in 6 of 8 major petrochemical plants Leading oil marketing business with 1,396 retail stations and 40% 2 of market share by volume International oil trading business having traded 74.2 bn liters 2 in 2014 Coal business assets in Indonesia, Madagascar, and Brunei New Power Flagship (GPSC) to capture opportunity in neighboring ASEAN countries 1 As of 30 December 2014 : THB/US$ exchange rate of As of December 2014 Robust revenue and Net Income growth since IPO (MMUSD) Revenue Net Income 12, % 81% 1,716 29% 71% IPO International and local recognition 180 th in th in th in th in 2011 Thailand best borrower award 2014 Best CEO Best CFO Best Managed Company Best Corporate Governance Best Investor Relations Best Corporate Social Responsibility Best Commitment to Strong Dividend Policy 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 & ,223 Affiliate PTT 84 st Fortune Global 500 in st in th in th in 2011 Dow Jones Sustainability Index (DJSI) DJSI Member (Listed in 2011) 4

6 PTT s Strategic Importance to Thailand Overview Performance Industry Outlook Ministry of Finance holds majority stake in PTT PTT ratings at Thai sovereign level Public 34% Foreign 17% Thai 17% 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 September 2014 Largest market cap on the Thai Stock Exchange PTT PTTEP PTTGC TOP IRPC BCP Total Others Market cap (BNUSD) % of SET 6.7% 3.2% 1.7% 0.6% 0.5% 0.3% 13.2% 86.8% 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 5 2 Based on data as of 30 December 2014/ THB/US$ exchange rate of

7 New Business Downstream Intermediate Upstream Our Major Businesses & Activities Overview Performance Industry Outlook Business Areas Company PTT s holding (%) Activities E&P PTTEP 65.29% Exploration and Production Gas Oil Marketing Int l Trading 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 100% Retail service Stations and commercial Marketing Int l Trading 100% Import/Export/Out-Out trading of petroleum and petrochemical products Petrochemical & 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 PTTER 100% Coal Business Power GPSC 30.10% Power Flagship 6 6

8 PTT Aspiration Strategic direction and target to achieve Big-Long-Strong aspiration 7 Overview Performance Industry Outlook Thai Premier Multinational Energy Company Strong TOP Quartile ROIC Big Long Ranked Fortune 84 th Listed in DJSI since 2011 Technologically Advanced and Green National Oil Company

9 2014 Performance: PTT Group: Non recurring & stock loss pressured performance MMTHB Refinery Petrochem PTTEP PTT Others 93,091 8,125 17,009 37,139 28, Year in Review Performance 2015 Outlook 11,366 25,311 FX gain 17,796 6,937 Other OPEX* Margin Income 23,414 4,996 Share of income 29,666 Interest expense & income taxes 9,567 11,450 39,347 2,364 1,178-5, *including petroleum exploration expenses and royalties Nonrecurring items 40% 55,795 44% 69% 38% 50% 171% Petrochem Refinery s margin decreased 81% Aromatics: PX spread drop 28% Olefins spread improved, 20% PTTEP Sales vol. increased 10% Performance decreased mainly from recognition of impairment loss of assets, higher DD&A and operating expense Gas GSP margin increased 38% GSM margin increased mainly from shortfall agreement Oil Margin and Vol increased 3% Performance decreased mainly from higher stock losses Trading Vol. decreased 2% Margin increased 32% from condensate business Others Lower performance of other affiliates mainly from PTTGE s asset impairment Refinery Avg. A/C GIM decreased 59% Aggregate intake decreased 7% 8

10 9 Contents Overview Performance 2015 Outlook

11 E&P key accomplishments in 2014 E & P Gas Oil & Trading Refining PetChem Others Production Strong production base from high-margin assets : 10% Growth Maintain domestic production to support energy demand Successfully commenced gas production from Zawtika Ramp-up production from Montara to full potential Operations Gaining clarity on resource potential through continued exploration Continued appraisal program in Zawtika, Myanmar M3 and Algeria HBR Kick-off Myanmar PSC-G & EP-2 exploration program Additional exploration discovery in Mozambique Area 1 Portfolio management Financial management Active portfolio management for short-term and long-term growth Strengthen domestic base through Hess Thailand acquisition Restructured oil sands business through KKD asset swap Expanding exploration horizon into Brazil high-potential areas Financially well-positioned against the oil price headwind Recorded >4 bn USD operating cash flow from higher sales volume Strategic funding of 1.6 bn USD to strengthen capital structure Balance dividend payment and cash flow with 4.50 THB/share dividend 10 10

12 E&P Performance: Lower net income in 2014 mainly from impairment loss of assets Liquid ($/BBL) eighted Avg. ($/BOE) Gas ($/MMBTU) MMUSD 477 Q3/14 Product Prices 25% % % 1% * 8.03* Q3/14 Q4/ Net Income (100%) 1, Q4/ Sales Volume KBOED 5% % QoQ 10% YoY 3% ** 63.38** Liquid * Gas price, if excludes Vietnam 16-1 retroactive sale recording, is 8.07$ for 2014/ 8.01$ for 2013/ 7.98$ for Q4 13 ** Average selling price, if excludes Vietnam 16-1 retroactive sale recording is 63.59$ for 2014/ 66.09$ for 2013/ 66.46$ for Q % QoQ E & P Gas Oil & Trading Refining PetChem Others 63% YoY Q3/14 Q4/ Key Highlights Gas QoQ Sales volume increased from Montara and Zawtika project Avg. price decreased in line with world oil price. Net income loss from lower price and recognition of impairment losses of assets in PTTEP Australasia project and Mariana Oil Sand project YoY Sales vol. increased mainly from full year sale of Montara, higher production of Contract 4 and first gas export from Zawtika. Net income decreased mainly from non-recurring items due to impairment of assets, increase in write-off dry hole and DD&A 11

13 12 E&P Priorities in 2015 Adaptive to industry fundamental change E & P Gas Oil & Trading Refining PetChem Others Implication Priorities in changing industry environment Short term Medium term Deliver 6% volume growth as planned Focus on cost optimization and investment prioritization Leverage strong balance sheet for value-creating growth opportunity Take a measured approach on our pre-development assets e.g. Mariana Oil Sands, Algeria HBR, Cash Maple Continue to focus on our core basins in the southeast Asia Long term Reassess long term aspiration

14 PTT EBITDA Performance: Business Segment Gas-EBITDA ( Unit:MMTHB) Q3/14 Q4/14 QoQ Y2013 Y2014 YoY 15,840 9,680 (39%) 44,836 54,102 21% S&M 7,092 3,290 (54%) 18,436 20,456 11% TM 6,681 5,874 (12%) 24,984 26,071 4% GSP 5,190 3,637 (30%) 13,663 20,030 47% NGV (5,082) (4,865) 4% (18,981) (19,962) (5%) Others 1,959 1,744 (11%) 6,734 7,507 11% Oil-EBITDA Trading*-EBITDA 3,126 (236) >(100%) 13,297 11,578 (13%) 1,010 (331) >(100%) 5,418 5,069 (6%) Total** 19,976 9,113 (54%) 63,551 70,749 11% *MIS ** Included Gas/Oil/Trading affiliates 13 13

15 Energy Price Reform: Blessing in Disguise USD/BBL Dubai New Gov Petroleum Products THB/Litre ULG Gasohol Diesel New Gov. Total change for ULG for Gasohol for Diesel THB/Kg Industry LPG New Gov. THB/Kg 15 NGV New Gov. Private Car THB/Kg Auto Cooking Adjusted 4 times Total change for Cooking for Auto for Industry 10 Public Car THB/Kg Adjusted 3 times Total change for Private Car for Public Car

16 Energy Price Reform: LPG Prices E & P Gas Oil & Trading Refining PetChem Others Lifted GSP Capped Price from 333 USD/TON to reflect GSP Cost Imported 2.0 Mil. Ton (27%) GSP 3.6 Mil. Ton (48%) CP+85 $/ton or 528 $/ton 498 $/ton 488 $/TON or /kg Tax 2.39 /kg Margin 3.26 /kg Oil Fund 0.82 /kg VAT 1.58 /kg /kg Cooking Transport Industrial Refinery 1.9 Mil. Ton (25%) *CP Jan 15= 443 $/ton CP-20 $/ton or 423 $/ton Oil Fund AS CLEARING HOUSE Tax 2.39 /kg Margin 3.26 /kg No oil Fund VAT 1.19 /kg Need subsidy 4.81 /kg /kg Low income LPG prices for Petchem : not controlled, but linked to market price and/or contract price 15

17 Gas Performance: NG volume maintain growth under political uncertainty in Y2014 E & P Gas Oil & Trading Refining PetChem Others MMSCFD ,704 4,450 4,291 NG Sales Volume* 4,768 4,731 4,802 4,685 4,616 4,754 4,515 4,497 4,469 Q1 Q2 Q3 Q4 * NG Sales Volume include Inter-BA Transaction NGV Sales Volume AVG. 4,688 4,589 4,544 MMSCFD 4,731 NG Customer Breakdown % QoQ 4,802 4, , , ,165 1,070 1,228 1,206 Q3/14 Q4/ Key Highlights 4,688 2% YoY NGV (7%) Industry (14%) GSP (20%) SPP (15%) IPP (18%) EGAT (26%) K.Ton/Day % QoQ % YoY 8.82 QoQ NG volume increased mainly from higher IPP and GSP demand. Lower NGV sales volume from price adjustment. Vol. MMCFD Q3/14 Q4/ YoY NG volume increased mainly due to higher demand from SPP, GSP and industrial customers. NGV sales volume slightly increased by 3% 16

18 *Restated Gas Performance : Higher NG sales and stronger GSP Margin drove performance GSP - Reference Product Prices USD/Ton 1,620 1, MMTHB 39% QoQ 15,840 1,959 9,680 5,190 1,744 6,681 3,637 7,092 5,874 3,290 (5,082) (4,865) 1, ,516 1,572 1,448 1,487 1, Q3/14 Q4/ Gas - EBITDA 44,836 6,734 13,663 24,984 26,071 18,436 20,456 21% YoY 54,102 7,507 Others 20,030 GSP (18,981) (19,962) Q3/14 Q4/ * 2014 E & P Gas Oil & Trading Refining PetChem Others PP HDPE Naphtha Feed Cost* LPG Capped * Revised Feed cost due to re-calculated with GSP production volume instead of sale volume TM S&M NGV kton 1, GSP Sales Volume 9% QoQ 1,734 6, ,075 2, ,690 2,739 Q3/14 Q4/ Key Highlights 3% YoY 6,392 Propane (13%) Ethane (33%) NGL (11%) LPG (43%) QoQ Lower NGV loss from sale volume decrease GSPs performance declined from margin squeeze Gas BU s EBITDA decreased from lower GSPs margin and conversion factor changed impacted COGS of GSM YoY Better performance from Myanmar Gas shortfall and higher NG sales volume for SPP customer, better GSP s margin, higher GSP sale volume More loss on NGV from increased volume 17

19 18 Gas BU: Gas Consumption keep growing in line with GDP Growth E & P Gas Oil & Trading Refining PetChem Others

20 Oil Performance : Stock loss hurts performance E & P Gas Oil & Trading Refining PetChem Others THB/Liter Contribution Margin 1/ 3% YoY MM Liter Sales Volume 2/ 3% YoY 23,981 24, % QoQ % QoQ ,943 6,209 Q3/14 Q4/ / Excluded non oil business Oil - EBITDA MMTHB 13% YoY 13,297 11,578 10,938 8,827 Oil 108% QoQ 3,126 2,442 2,359 2, (948) Non-Oil* Q3/14 (236) Q4/ * EBITDA from Operating Q3/14 Q4/ / Only PTT and PTTRM Key Highlights QoQ Margin squeezed from stock loss and a drop in oil prices Volume increased mainly from higher demand following lower oil prices EBITDA turned negative mainly due to stock loss and and inventory losses from NRV YoY Better margin mainly from high gasoline and aviation margin Better sales volume mainly from gasoline and aviation Better non-oil business performance following branch expansion EBITDA decreased mainly from higher stock losses and inventory losses from NRV 19

21 20 Oil BU : Going Forward Moving toward sustainable growth E & P Gas Oil & Trading Refining PetChem Others Meeting Godji Family at PTT Life Station Rank 24th in Platts Top 250 Global Energy Company Ranking 2014 Promoting substitute energy via distribution hub of Gasohol E85 20

22 Trading Performance : Domestic condensate drives performance E & P Gas Oil & Trading Refining PetChem Others THB/Liter Contribution Margin* 32% YoY 14% QoQ MM Liter Sales Volume 2% YoY 75,545 74,200 4% QoQ 20,429 19,527 Q3/14 Q4/ Q3/14 Q4/ * PTT only : FX Adjustment in compliance with Accounting Standard Trading - EBITDA* Key Highlights MMTHB 1, % QoQ 5,418 6% YoY 5,069 (331) Q3/14 Q4/ QoQ Lower margins from higher condensate discount following lower crude oil prices Sales volume decreased mainly from conservative crude trading during oil prices decline EBITDA turns negative mainly from doubtful debt YoY Margins surged from lower condensate discount rate Lower sales volume mainly due to a drop in crude import EBITDA decreased mainly from doubtful debt despite better margins * PTT only : FX Adjustment in compliance with Accounting Standard 21

23 Refineries : Key Events 2014 E & P Gas Oil & Trading Refining PetChem Others Jun: CDU-3 Major Turnaround : 15 Jun- End July ~46 Days Aug: COD of key margin improvement products i.e. HVU-2 revamp, CDU-3 Preheat Train Mar: T/A 18 Mar - 9 Apr Jun: Fire incident in Vacuum Gas Oil Hydro Treating Unit (VGOHT): VGOHT Unit: Reconstruction on schedule, expect start up Apr Insurance claim: 1,710 MB in 2014 Sep: Dispute settlement between IRPC and Liaopairattana family Dec: JV with PCC Rokita SA, Poland Apr: COD Solar: Phase 3 (48 MW PPA) May: T/A 1May- 15 Jun (46 Days) scheduled Shutdown of Crude Distillation Unit (CDU) Jul: BCP acquired 81.41% shares of Nido Petroleum Limited following tender offers Aug: Purchase ordinary shares of 85% of BCP Bioethanol Dec: Purchase of shares in Galoc Production Company WLL by Nido Feb : Major Turnaround 8 Feb- 18 Mar (38 Days) Apr : 3 projects (FCCR revamp,pgp recovery,aph) to improve operations were completed Dec : The Cabinet approved COA Amendment 22

24 Refining Business Performance: More stock losses and pressured Aromatics USD/BBL Dubai QoQ A/C GIM Mkt GRM Stock Gain/Loss GRM/GIM A/C GIM: 221% A/C GRM Q3/14 Q4/14 (2.40) (4.23) E & P Gas Oil & Trading Refining PetChem Others YoY A/C GIM: 60% Aromatics Production 64% PX-ULG95 BZ-ULG95 QoQ BZ: 37% PX: 32% 207 Aromatics 89% % Q3/14 Q4/ % 279 YoY BZ: 7% PX: 43% Refinery Utilization Aggregated Intake (KBD) U-Rate (%) Q3/14 Q4/ Aggregated U-Rate T/A 13% QoQ (31 days ) TOP IRPC SPRC BCP % YoY 4,650 Net Income (100%) (213) (2,175) (2,489) (5,779) (6,479) (6,100) 18, % QoQ 180% YoY 9,316 4,652 3, (4,026) (5,235) (6,367) (1,985) (20,847) 23 (14,916) Q3/14 Q4/

25 24 Petrochemical : Key Events 2014 E & P Gas Oil & Trading Refining PetChem Others Feb: Aug: Sep: PTTGC had planned shutdown of Olefins Plant I-1 and unplanned shutdown of Plant I4-1. Purchased 34% of the registered capital in Vencorex from Perstorp, making % holding in Vencorex changed from 51% to 85%. ARO 2 (capacity 1.07 ton/year) had unplanned S/D. Better PP spread than planned Smooth Operation & no unplanned S/D Smooth Operation & no unplanned S/D

26 Petrochemical Business Performance: Stock loss and plummeted Aromatics offset by solid Olefins CDU U-Rate Mkt GRM A/C GRM Q3/14 Q4/ Stock Gain/Loss Refineries (7.69) E & P Gas Oil & Trading Refining PetChem Others 102% 101% BTX 83% 91% 102% 63% U-Rate QoQ QoQ YoY 578%:A/C GRM 81%:A/C GRM BZ-Cond: 26% 430 BZ-Cond 479 PX-Cond 320 Aromatics PX-Cond: 16% % 81% YoY Q3/14 Q4/ BZ-Cond: 1% PX:-Cond 28% 400 Olefins U-Rate USD/Ton HDPE- Naphtha 94% PP- Naphtha Olefins 101% 90% 91% QoQ YoY HDPE-Naphtha: 16% PP-Naphtha: 17% HDPE-Naphtha: 20% PP-Naphtha: 17% 682 Q3/14 Q4/ Unit : MMTHB 8,657 7,590 Net Income (100%) 142% QoQ (3,652) -4, ,625 33,140 20,624 15,036 Q3/14 Q4/ % YoY Others HMC PTTGC 25

27 Other Businesses : Coal - SAR (94.58%) Cost reduction initiatives relieved effect from continuing coal price declined E & P Gas Oil & Trading Refining PetChem Others Avg. Selling Price & Cash cost Sales Volume USD/Ton New Castle Avg. Selling Price (ASP) Cash Costs % 64 5% 59 8% % 64 12% 42 11% kton 3% QoQ 2,303 2, ,501 1,645 11,187 2,991 8,196 12% YoY 9,845 3,072 6,773 Sebuku Jembayan Q3/14 Q4/ EBITDA & Net Income (100%) MMUSD 36.7 EBITDA EBITDA 12% QoQ NI 1,200% QoQ NI EBITDA 22% YoY NI 26% YoY Q3/14 Q4/ Q3/14 Q4/ Key Highlights QoQ Cash cost improved from new contract negotiation with mining contractor and logistic contractor. Sales volume slightly lower since lower coal sales at Sebuku to relieve impact during coal price down turn. YoY ASP dropped significantly but less than NEWC because of marketing initiatives to lock up price in spot contract before price going down further. Net income decreased due to extra expenditure on tax settlement, Indo restructuring and write-off Project Cambodia. 26

28 Other Businesses : Power - GPSC (30.10%) Better performance supported by higher steam sales E & P Gas Oil & Trading Refining PetChem Others GWh kton 2,102 1,245 Power Steam MW Sales Volume 1,966 6% 1,279 3% 7,850 7,573 4% 4,496 Q3/14 Q4/ , ,200 *Power only (excluding Steam) Capacity* 1, , ,981 11% Renewable Hydro Conventional MMBaht 521 *Adj.TFRIC 4 QoQ Net Income* (100%) 19% QoQ 424 1,553 1,789 Q3/14 Q4/ Key Highlights 15% YoY Lower power sales volume from Sriracha plant S/D and lower demand from EGAT. Higher steam sales volume due to major customers back to normal operation Performance dropped from lower EGAT selling price and power sales volume from Sriracha plant. YoY Power sales volume dropped mainly from Sriracha plant because of lower demand from EGAT. Steam sales volume increased mainly during Q2/14 due to higher sales to major customers. Better performance from higher steam sales. 27

29 Other Businesses : Power GPSC (30.10%) Project update Key Activities 2014 All 7 assets transferred from PTT to GPSC E & P Gas Oil & Trading Refining PetChem Others Highlight Planned Activities 2015 GPSC Initial Public Offering (IPO) Preparation Completed its conversion into a public company limited as Global Power Synergy Public Company Limited (the Company ) on 27 November 2014 On Nov 28,2014 Submitted the registration statement (Form 69-1) and the prospectus (Form 72-1) to SET Addition 1,000MW during 5 Years 5 Years Investment plan 2,701 MW 1,825 MW

30 PTT Consolidated Performance: 2014 Dubai (USD/BBL) Unit : MMTHB Revenue 757,619 15% 643, % 2,842,408 2,834,732 7% 4% 17% Revenue 72% Others PTTEP 4% 8% PTT - Gas 18% Revenue 70% Q3/14 Q4/ PTT - Oil & Trading EBITDA 10% 228, ,025 66,052 22% 51,854 Q3/14 Q4/ % 4% 5% EBITDA 71% PTT - Oil & Trading Others 4% 4% PTT - Gas 22% EBITDA 70% PTTEP Net Income 24, % 93,091 40% 55,795 18% 9% 2% Net Income 40% Others Refining 1% PetChem -10% 21% 17% Net Income PTTEP -26,649 Q3/14 Q4/ % 29 PTT 71% 29

31 Statement of Financial Position MMTHB Cash & S/T Invest Other Current Assets Others Noncurrent Assets PP&E 160, ,206 1,805,041 1,818, , , , , , , , , % 1,805,039 1,779, , , , , Dec Dec Dec Sep 14 5 Other Liabilities L/T Liabilities (incl. due within 1 yr) Total Equity Decreased assets : Dropped in A/R mainly from decreases in sales volume and selling price of an International Trading Business Decrease in petroleum exploration and production assets of PTTEP due to assets swap of Canada Oil Sands KKD project and the impairment losses on assets of PTT Australasia project ICR 3.5 * Net Debt/EBITDA Net Debt/Equity *ICR = (Net cash flow from operating activities +Taxes paid from operating activities) divided by Interest paid from financing activities PTT Ratings at Sovereign Level FC LC : Moody s (Baa1), S&P (BBB+), JCR (A-), FITCH (BBB+) : Moody s (Baa1), S&P (BBB+), JCR (A), FITCH (A-) 30

32 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% 33.0% 43.6% 40.4% 34.7% 34.9% 35.5% 40.0% 56.9% PTT s minimum payout ratio 25% 25% Baht / share Dividend payout EPS DPS Interim

33 PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 327bn* ($10bn) during Unit: MMTHB Infrastructure Investment in Joint Venture and Its subsidiaries R&D and Others Oil and International Trading Natural Gas CAPEX Breakdown : 5 Years By Business Unit JV & Investment in Subsidiaries 29% M&A and Investment Oversea 12% R&D, Others 4% LNG 17% Gas 50% LNG, M&A and Investment Oversea LPG import facility 4 th pipeline & extension 85,480 5,519 29,975 5,472 9,629 34,885 38, ,928 3,970 5,767 19,398 64, ,654 1,882 9,217 33,876 17, ,891 Infrastructure 2% 70,931 67, ,147 1,219 11,283 40,008 36,571 Oil & Trading 15%

34 33 Contents Overview Performance 2015 Outlook

35 Economic Outlook : Challenges Ahead For Y2015 Greece out of EU?? 1 = 1$?? EU market: Aggressive ECB Stimulus : EU Economic impact of QE : Risk of stagnation and prolonged deflation Russia Economy under pressure from western sanction and falling oil price US Market : Economy Expands to boost consumer spending : US Economic Recovery Consumer spending expansion from declining global oil price : Fed plans to increase interest rates in Y2015 China market: Slowing down for sustainable growth : Low inflation allows easing monetary policies : IMF revised Chinese GDP Forecast down to 6.8% in Y2015 Continuing to face slumping Chinese real-estate market Thailand market: Govt. stimulus package will boost economy : Government investment will drives Thai economy growth Clarity in government policy helps to lift private sector s confidence : Delays in infrastructure spending will delays investment project AEC market : Robust Economic Growth : IMF uplifted forecast ASEAN-5 GDP growth in 2015 around 5.2% : Exchange rate volatility PTT Performance: Brighten future : Unlocked PTT pendulums (LPG, NGV, Non-productive investment) : Uncertainty on oil price 7 / 18 34

36 Henry Hub / JKM Price Outlook: Gas Price trend to move lower from higher supply US LNG Export Terminal Projects LNG Global Demand/Supply Excess Supply expected in L-T Henry Hub Natural Gas Price Forecast Japan-Korea Market Price Forecast Average HH price 2014 = 4.26$/MMBtu EIA s projected HH Price in 2015 is 3.05 $/MMBTU Average JKM price 2014 = $/MMBtu Factors to watch Higher spot LNG cargo in market due to high temperature than normal in Japan during winter season Korea Nuclear Reactor will be allowed to restart Factors to watch Growth in shale production Lower-than-expected heating demand and higher natural gas production Expected JKM price 2015 = 7-9 $/MMBtu Current 6.80 $/MMBtu Source : Short term 2014 Outlook, July 2014 EIA, Street Research, Bloomberg and PTT 35

37 USD/bbl Crude Oil Outlook: Overwhelming supply pressure oil price World Oil Demand/Supply Balance Shortage surplus surplus surplus OPEC spare capacity trend to rises in 2015 However, rising geopolitics and falling oil rig count helped a price rebound Source: Barclays, IEA Crude Oil Price Forecast in Y2015 range bound $/bbl Factors to watch Dubai $96.6/bbl Dubai Forecast Y2015 Range $50-60/bbl Geopolitical risk remain high Reduction of the US oil rig count Peak Global refinery maintenance in Q Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 WTI Brent Dubai Dubai Forecast (PTT Group PRISM) Column2 Source: (PTT Group) Estimated ( ) Slowdown of the Chinese economy 36

38 USD/bbl Refinery Margin Outlook : Refinery margin remains stable during harvest season CDU Additional Vs Additional Demand AP&ME Refinery Maintenance in Asia-Pacific Area Supply Growth Demand Growth Note: Adjusted capacity based on start-up period (Effective additional capacity) Source: FACTs Semi Annual Reports, October 2014, reuters, Bloomberg, TOP estimate Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 V Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Expected new barrels from AP/ME are expected to continually flood the petroleum product market Singapore GRM Forecast in Y2015 to be around 6-7$/bbl Forecast GO Mogas FO Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Source: FACTS, DB, KBC, Reuters, IEA, Reuters, Thaioil and PRISM Estimated (July 2014) Asian Refineries will start going under maintenance and will be peak mid-may. Factors to watch Upcoming US driving Season in Q Spring refinery maintenance in Region and US Yanbu and Ruwais refineries ramp up in Q Less Mogas demand after Indonesia and Malaysia cut subsidies 37

39 Jan- 14 J u l - 14 Jan- 15 J u l - 15 USD/Ton Availability Petrochemical Outlook : Olefin spread stable from restocking after Chinese New Year Asia Ethylene Supply/Demand Balance Asia Propylene Supply/Demand Balance Olefins Product Spread HDPE-Naphtha expected to be around USD/TON 800 Y 2015 PP-Naphtha expected to be around USD/TON Factors to watch in Anticipated increase demands in US, China and Indonesia Source: HIS, ICIS and PRISM Spread HDPE Spread PP Ample supply amid generally high cracker run-rates in Japan, South Korea and Taiwan, and New Capacity 6.7M Ton come on stream Fluctuation in upstream feedstock prices, buyers deferred any unnecessary purchases to keep inventories at low level 38

40 Jan- 14 J u l - 14 Jan- 15 J u l - 15 USD/Ton Availability Availability Petrochemical Outlook: Expect PX margin to recover from Lunar New Year Demand Aromatics Product Spread Bz-Naphtha forecasted to be around USD/TON PX-Naphtha forecasted to be around USD/TON Factors to watch in Anticipated increase demands due to positive boost on America's economy, and new downstream plans start up in China 0 Ample supply in Asia as a result from new plant start up Source: HIS, ICIS and PRISM Spread BZ Spread PX Buyers are wait-and-see for the prices to be stabilize 39

41 Thank you PTT Public Company Limited Investor Relations Department Tel , Fax , ir@pttplc.com Website: 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, 40 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.

42 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 ~ 8.25 years : Cost of debts ~ 4.41 % : % fixed-rate ~ % : Avg. debt life ~ 7.69 years USD THB 436, , , , , , , , ,390 (49%) (55%) (51%) 100, , ,024 (35%) (41%) (36%) 188, , ,924 (65%) (59%) (64%) 221, , ,332 (51%) (45%) (48%) 31 Dec Dec Dec Dec Dec Dec Note : Data as of 31 Dec 14 (THB/USD = THB/JPY = ) Excluding liabilities from finance leases; Cost of debts includes withholding tax. 41

43 42 PTT Group Performance : 2014 (YoY) % share Y2013 Y2013 Unit : MMTHB Y2014 YoY Y2014 YoY (Restated) (Restated) PTT Net operating Income 28,454 39,347 38% 28,454 39,347 38% E&P - PTTEP 56,155 21,490-62% 65.29% 37,139 11,450-69% - PTTGC 33,140 15,036-55% 48.89% 16,825 7,007-58% - HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/ PTTME/PTTMCC/PMMA Performance 100% Equity Method % PTT 1,485 5, % 40-50% 184 2, % Petrochemical 34,625 20,624-40% 17,009 9,567-44% - TOP 9,316-4, % 49.10% 4,209-1, % - IRPC 826-5, % 38.51% 1,265-1, % - SPRC 3,977-6, % 36.00% 1,393-2, % - BCP 4, % 27.22% 1, % Refining 18,771-14, % 8,125-5, % Inter - PTTER, PTTGE -2,701-5, % 100% -2,770-5, % Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 3,615 4,893 35% % 2,475 3,596 45% Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 1,376 2, % 20-30% % Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others 2,361 2,217-6% % 2,031 2,302 13% Others Business 4,651 4,492-3% 2,364 1,178-50% Shared of Net Income from Affiliates 114,202 31,690-72% 64,637 16,448-75% PTT Conso. Net Income 142,656 71,037-50% 93,091 55,795-40% 42

44 43 PTT Group Performance : Q4/14 (QoQ) Performance 100% % share Equity Method % PTT Unit : MMTHB Q3/14 Q4/14 QoQ Q3/14 Q4/14 QoQ PTT Net operating Income 12,209 2,237-82% 12,209 2,237-82% E&P - PTTEP 15,284-24, % 65.29% 7,846-16, % - PTTGC 7,590-4, % 48.89% 3,907-2, % - HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTES/ PTTME/PTTMCC/PMMA 1,067 1,283 20% 40-50% % Petrochemical 8,657-3, % 4,401-1, % - TOP -2,175-6, % 49.10% -1,078-3, % - IRPC 22-5, % 38.51% 43-2, % - SPRC , % 36.00% -1-2, % - BCP 381-2, % 27.22% % Refining -1,985-20, % , % Inter - PTTER, PTTGE , % 100% , % Gas -PTTNGD/ TTM(T)/ TTM (M)/ PTTLNG 1, % % 1, % Utilities -GPSC/ TP/ DCAP/ CHPP/ BIP/ BIC/ NNEG 1, % 20-30% % Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/Others % % % Others Business 2,328-2, % 1,048-2, % Shared of Net Income from Affiliates 24,284-51, % 12,349-28, % PTT Conso. Net Income 36,493-49, % 24,558-26, % 43

45 Statements of Consolidated Cash Flows Operating , ,367 Net Income 93,091 55,795 Changes in assets & liabilities -25,218 11,545 Income Tax -45,822-49,826 Non-Cash Adjustment 127, ,093 Interest-net 15,754 18,760 Investing , ,061 CAPEX(PP&E, Intangible asset) -114, ,452 Investment (Sub. &Affiliates) -11,255-26,854 Dividend/Interest Received 18,488 13,882 Others 11,960-2,637 Free Cash flow 70,243 91,306 Financing -56,070-47,315 Repayment Loans -77,005-49,559 Interest paid -20,089-20,980 Dividend paid -46,368-48,837 Received from share issue ,335 Received from loans/bonds 87,112 39,726 Adjustment 6,586 2,111 Beginning Cash and Cash Equivalents 136, ,683 Cash In/(Out) 20,759 46, Ending Cash & Cash Equivalents 157, ,785 44

46 Statements of Cash Flows (PTT Only) Operating , ,504 Net Income 63,276 44,256 Changes in assets & liabilities -12,069 17,966 Income Tax -2,276-2,553 Non-Cash Adjustment -14,094 15,834 Interest - net 8,154 8,001 Investing , ,430 CAPEX (PP&E, Intangible asset) -22,912-31,639 Investment (Sub. &Affiliates) -4,281-3,905 Dividend/Interest Received 37,880 32,969 Others 6,393-16,855 Free Cash flow 60,071 64,074 Financing -43,712-69,983 Repayment Loans -56,252-27,963 Interest paid -13,472-12,801 Dividend paid -37,116-39,985 Received from share issue - - Received from loans/bonds 63,128 10,766 Adjustment Beginning Cash and Cash Equivalents Cash In/(Out) Ending Cash & Cash Equivalents 47,641 63,927 16,286-5, ,927 58,018 45

47 Data as of 31 December 2014 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% Global Power Synergy Co., Ltd GPSC 30.10% 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% Thai Petroleum Pipeline Co., Ltd.THAPPLINE 40.40% 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 Energy Resources Co., Ltd. PTTER % PTT Green Energy Pte. Ltd PTTGE % Others Subsidiaries Consolidate Associates Equity Others Fair Value Energy Complex Co., Ltd. EnCo 50.00% PTT ICT Solutions Co., Ltd. PTTICT 20.00% Dhipaya Insurance Plc. TIP 13.33% Business Service Alliance Co., Ltd. BSA * 25.00% PTT Regional Treasury Center Pte. Ltd. PTTRTC % 46 Remark : * Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies. 46

48 Natural Gas Price Structure : Jan-Dec 2014 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 59% : EGAT 27% : IPP 17% : SPP 15% 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 7% Capped at 12.5 Baht/Kg from Dec 2014 Contract periods are ~ years or until depletion of gas fields or the expiration of concessions 1 As at Jan,

49 Natural Gas : Strong and Increasing Demand over Long Term Natural gas is a fuel of choice for power producers and transportation industry Source : PTT 48 48

50 Thailand s Projected Energy Demand Primary Energy Consumption KBD ,917 2% 13% 15% 38% 2,307 2% 12% 14% 40% 2,841 3% 12% 18% 39% 3,281 3% 13% 22% 35% 32% 3,701 Nuclear 1% 4% Hydro/Import 12% Renewable 25% Coal/Lignite Natural Gas % 32% 28% 27% 26% Oil 0 Source : EPPO/ PDP 2010 Revised 3 (June 2012)/ PTT analysis as of 04 Nov

51 50 Gas Business Generates Stable Returns 2014 Year in Review Gas transmission pipeline capacity Sole owner and operator of entire gas transmission pipelines in Thailand (3,678 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 50 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