dbaccess Thailand SET Corporate Day Australia/Singapore with Deutsche TISCO November 2017

Transcription

1 dbaccess Thailand SET Corporate Day Australia/Singapore with Deutsche TISCO November 2017

2 1 Contents Overview Q3 & 9M/2017 Performance Outlook 2018

3 Oil Balance Thailand: Jan - Sep 2017 Adequate refining capacity maintains the stability of supply Supply Production Sales Import (81%) 969 KBD Imported Refined Petroleum Products 69 KBD Crude/ Condensate 900 KBD Total Refining Capacity in Thailand: 1,097 KBD Refined Products 1102 KBD* Domestic Crude/ Indigenous (19%) Condensate 230 KBD 195 KBD PTT s Associated Refineries : 635 KBD (TOP, PTTGC, IRPC) Refined Products 189 KBD 931 KBD (**) Export Other Refineries : 462 KBD (SPRC, ESSO, BCP) Crude Export 35 KBD 224 KBD Source: PTIT Remark : (*)Refined product from refineries = 994 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 108 KBD (**) Not included Inventory KBD = Thousand Barrels per day 2

4 Natural Gas Balance: Jan Sep 2017 Main driver of the Thai economy Supply Production Sales Gulf of Thailand (67%) Others, 71% PTTEP, 29% Onshore (2%) 3,175 MMSCFD Bypass Gas 528 MMSCFD 6 GSPs Total Capacity 2,820 Actual Heat 99 MMSCFD Ethane/ Propane/ LPG/NGL 1,002 MMSCFD (21%) LPG/NGL Petrochemical Feedstock (14%) Industry Household Transportation (7%) Import (31%) Methane 1,644 MMSCFD Power (59%) Industry (15%) Myanmar 60% LNG 40% 1,441 MMSCFD NGV (5%) Remark: MMSCFD = Million Cubic Heating Value 1,000 Btu/ft 3 3

5 PTT is Thailand s Largest Energy Company PTT Public Limited Company ( PTT ) Robust revenue and Net Income growth since IPO (MMUSD) 4 Largest company on Thai Stock exchange Market cap ~US$34.8bn 1 or ~ THB 1.2 trillion (7.1% 1 Thai Stock Exchange market capitalization) Group companies: 13.7% 1 of Thai Stock Exchange market capitalization Majority owned by Thai government (64%) 51% by Ministry of Finance 13% by Vayupak Fund Fully integrated and highly diversified over the entire O&G value chain International exploration and production business with 695 mmboe of proved reserves in 2016 Sole operator and owner of gas transmission pipelines and GSPs in Thailand Largest refinery group in Thailand with stakes in 3 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 in Thailand with 1,575 retail stations 2 and 40% 2 of market share by sales volume International oil trading business having traded 74.6 bn liters 3 in 2016 Coal business assets in Indonesia and Madagascar Power Flagship (GPSC) to capture opportunity in neighboring ASEAN countries 1 As of 30 Sep 2017 : Avg. BOT selling rate USD/THB of (End rate) 2 As of 30 Sep For the year As of 31 Dec 2016 : Annual Avg. BOT selling rate USD/THB of (Avg. rate) Revenue Net Income 12,553 19% % 81% IPO 57,106 2,667 45% 55% International and local recognition 180 th in th in th in th in 2011 Thailand best borrower award 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 24th Overall Global Performance in Asia of 2014 SET Awards Top Corporate Governance Report Award 2010 & 2011 Best Corporate Social Responsibility Awards 2011 & 2012 Affiliate PTT 146 th Fortune Global 500 in rd in th in st in th in 2012 Dow Jones Sustainability Index (DJSI) DJSI Member (Listed in 2011) 4

6 PTT s Strategic Importance to Thailand Ministry of Finance holds majority stake in PTT PTT ratings at Thai sovereign level Public 36% Foreign 16% Thai 20% Thai Ministry of Finance 51% Kingdom of Thailand FC Baa1 BBB+ BBB+ PTT FC Baa1 BBB+ BBB+ Vayupak Fund 1 13% PTT LC Baa1 BBB+ BBB+ Note: As of Sep 2017 Largest market cap on the Thai Stock Exchange PTT PTTEP PTTGC TOP IRPC GPSC Total Others Market cap (BNUSD) % of SET 7.1% 2.2% 2.1% 1.1% 0.8% 0.4% 13.7% 86.3% Moody s rating Baa1 Baa1 Baa2 Baa1 Ba1 N.A. - - S&P rating BBB+ BBB+ BBB BBB BB+ BBB 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 As of 30 Sep 2017 : Avg. BOT selling rate USD/THB of (End rate) 5

7 Downstream Upstream Intermediate Infrastructure 6 Our Major Businesses & Activities Business Areas Company PTT s holding (%) Activities E&P PTTEP 65.29% Exploration and Production Coal PTT Global Management 100% Coal Business Gas PTT PLC Gas Pipeline 100% Sole owner/operator of the Transmission pipeline S&M 100% Supply & Marketing of Natural Gas GSP 100% Extracting Hydrocarbon contents in NG for Petrochemical s feedstock Oil Marketing Oil Marketing 100% Retail service Stations and commercial Marketing Int l Trading Int l Trading 100% Import/Export/Out-Out trading of petroleum and petrochemical products Petrochemical & Refining PTTGC 49.39% Petrochemical Flagship TOP 49.10% Refinery Flagship IRPC 38.51% Integrated Refinery & Petrochemical Power GPSC 22.58% Power Flagship 6

8 PTT Strategic Framework Vision: Thai Premier Multinational Energy Company Mission: Core Value: Aspiration: Balance All Stakeholders Synergy Performance excellence Innovation Responsibility for society Integrity & ethics Trust & respect Pride & Treasure of Thailand Strategic Objectives BIG: Pride FT 100 with Inclusiveness State Enterprise Listed Company Treasure for Sustainability National Wealth Creator & Energy Security Enhancer Business Transparency Governance, Risk, Compliance Community Shared Value & Environmental Responsibility Enablers: People Finance RTI, ExpresSo & CVC Digitization CCSR 7

9 9M/2017 Performance: Record nine-month performance: Contributed from most businesses MMTHB 99,816 Extra Items Impairment Oil Sand (Canada) 558 MMUSD Dividends from mutual fund Net Income Extra Items Others Affi. P&R PTTEP PTT 75, ,877 20,044 8,963 40,067 24,750 Margin 3,720 10,302 OPEX* Depre & Amortization 74,951 Operating Performance 7,102 Other Income 18,458 13,131 8,813 Int. & Impair FX & CIT exp.& Derivatives Other** 8,657 29,001 19,359 49,722 (6,923) 9M/16 9M/17 * including petroleum exploration expenses and royalties ** including profit from discontinued operation 106,739 47% 45% 116% 24% Others Affi PTTNGD : higher FO price & lower feed cost Coal performance improved from higher ASP Petrochem & Refining Better Olefins due to both prices and vol. Improved MKT GRM Aromatics increased from BZ spreads and sales volume PTTEP Improved ASP from oil price recovery Lower unit cost Reduced sales volume Gas GSP margin improved from lower feed cost, higher petchem prices, and increased vol. (9M17: No Major T/A) S&M margin rose Oil Margin declined mainly from lower stock gain Non-oil expansions (Amazon & 7-11) 8

10 Contents Overview Q3 & 9M/2017 Performance Outlook

11 E&P : Positive core earnings while NI suffered from one-time impairment E & P Gas Oil & Trading P&R Others Product Prices Sales Volume Liquid ($/BBL) Weighted Avg. ($/BOE) % QoQ 27% YoY 2% QoQ 6% YoY KBOED 6% QoQ % YoY Liquid Gas ($/MMBTU) % QoQ 4% YoY Gas MMUSD Net Income (100%) >100% QoQ (264) % YoY Recurring NI Non-recurring*** *** Includes Deferred tax from Functional currency, Current Tax from FX Revaluation, Gain/loss from Financial instruments, Gain/(loss)on FX, H1 incident Insurance Claim, and etc. Key Highlights QoQ ASP slightly increased from the rise of gas price adjustment in Myanmar projects Sales vol. rose from recoveries of MTJDA & Bongkot (S/D in Q2) NI decreased from impairment of Mariana Oil Sands Project in Canada amounting of 558 MMUSD YoY ASP increased from the rise in oil price Sales vol. decreased from PTTEP Australasia & MTJDA NI drop from impairment despite higher recurring NI from lower DD&A 10

12 E&P: Outlook E & P Gas Oil & Trading P&R Others Financial Outlook Priority on New Investments Avg. Sales Vol. (KBOED) Avg. Gas Price ($/MMBTU) Unit Cost (USD/BOE) EBITDA margin (% of Sale Rev.) 9M 17 FY2017 ~ ~5.5 ~5.6 ~28.4 ~29 ~70 *Based on FY2017 Dubai oil price at 52 $/BBL Path to re-tendering of expiring concessions in the Gulf of Thailand Geographical Thailand, SEA, Middle East Potential areas M&A Focus on producing or near-producing LNG Value Chain Corporation with PTT in LNG opportunities Exploration Portfolio Focus on prolific areas & Quick Commercialization Participating in bid rounds in potential areas Priority on Pre-Development Projects Interest Production Expected Start-up Mozambique Area 1 8.5% 12 MMTPA 2022/23 Contract 4 (Ubon) 60% KBPD 2021 Algeria HBR 24.5% 50 KBPD 2023 Southwest Vietnam 7-8.5% 490 MMSCFD

13 PTT EBITDA Breakdown by BU s: (Unit: MMTHB) Business Unit Q2/17 Q3/17 QoQ 9M/16 9M/17 YoY Gas- EBITDA 21,884 20,628 (6%) 51,610 65,002 26% S&M 4,003 3,943 (1%) 6,852 11,549 69% TM 8,663 8,428 (3%) 24,949 25,828 4% GSP 7,041 5,912 (16%) 14,833 20,650 39% NGV (1,271) (1,052) 17% (3,019) (3,332) (10%) Others 3,448 3,397 (1%) 7,995 10,307 29% Oil- EBITDA 4,541 4,613 2% 18,675 15,085 (19%) Trading*- EBITDA (24%) 4,059 3,491 (14%) Total** 27,322 25,927 (5%) 74,344 83,578 12% *MIS ** Included subsidiaries from all BUs 12 12

14 13 Gas BU: Pooled gas still low, while NG volume decreased from Power E & P Gas Oil & Trading P&R Others $/MMBTU Fuel Oil* RHS Avg. Pooled gas price LHS 6.6 * MOPS HSFO 180 CST NG Price VS FO %QoQ %YoY FO 2% 49% Pooled Price 3% 2% Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 NGV Price/Sales Volume $/Ton MMSCFD 4,752 NG Customer Breakdown 4, , ,002 1, % QoQ 4, , , Key Highlights 1% YoY 4,730 NGV (6%) Industry (15%) GSP (21%) SPP (21%) IPP (20%) EGAT (17%) THB/KG 2% QoQ NGV Avg. price K.Ton/Day 1% QoQ % YoY 13% YoY QoQ Gas cost lowered, while F/O price rose following crude oil price NG sales volume slightly decreased from GSP s planned T/A NGV volume and prices marginally increased YoY Overall NG sales slightly decreased mainly from lower power demand offsetting with GSP major T/A last year NGV vol. dropped from demand switching to gasoline and diesel

15 Gas BU: Performance improved from most segments mainly from GSP USD/Ton 1, , , GSP Feed Cost vs Petchem price %QoQ 1,153 1,103 1,153 1,139 1, %YoY HDPE 0% 2% LPG Ex-GSP 2% -10% Feed Cost 1% -12% 1,176 1,133 1, LPG Ex-GSP Feed Cost* Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 * Revised feed cost calculation from per sale volume to per GSP production volume E & P Gas Oil & Trading P&R Others HDPE kton 1, GSP Sales Volume 7% QoQ 1,609 4, ,449 5, , ,072 2,179 7% YoY Pentane (1%) Propane (11%) Ethane (34%) NGL (10%) LPG (44%) Gas - EBITDA MMTHB 65,002 26% YoY 6% QoQ 21,884 20,628 51,610 10,307 Others 7,995 20,650 GSP 14,833 25,828 3,448 TM 3,397 24,949 7,041 5,911 8,663 8,428 4,003 3,943 6,852 11,549 S&M (1,272) (1,052) (3,019) (3,332) NGV Key Highlights QoQ GSP dropped from planned T/A although selling prices maintained S&M decreased from lower industrial performance NGV loss less from increased NGV selling price Gas EBITDA decreased mainly from GSP s maintenances YoY GSP greatly improved from declined feed cost, higher selling price, and increased sales volume w/o major T/A S&M margin increased esp. from Industrial customers Gas EBITDA improved in almost all segments, despite NGV 14

16 Gas Business Roadmap E & P Gas Oil & Trading P&R Others NG Country Demand LNG Projects LNG Terminal 1 Phase 2 : - Construction completed - Initial Acceptance : 6 Jun 2017 New LNG projects : 1) LNG Terminal 1 phase 2 Extension : (Capacities expansion from 10 MTA to 11.5 MTA) - Approved by Cabinet 12 Jul Expansion capacity: 1.5 MTA Gas Facilities Expansion New LNG Ph#2 (Early Sent Project Out) LNG Capacity (MTA) Major Project COD 7 LNG Ph# Offshore Comp. 4 th onshore Midline Comp. Nakhon Ratcha sima LNG Terminal#1 - Extension Comp Wang noi th Pipeline - Construction completed 67.78% (as of Sep 17) - COD : ) LNG Terminal 2 (Onshore LNG Terminal No.2) - Approved by Cabinet 11 Apr Capacity: 7.5 MTA - Sending EIA (Completed Report) to ONEP Jul17 - Preparing for EPC Bidding - COD : 2022 Additional LNG projects (submitted studies to CEPA and NEPC on July 2017) Myanmar-Thailand LNG Terminal FSRUs (domestic) Onshore LNG Terminal 3 15

17 Oil BU : Soften performance from lower stock gain E & P Gas Oil & Trading P&R Others Petroleum Prices Gross margin 1 /Sales volume 2 (Average Prices) USD/BBL MMTHB Stock Gain/Loss (MMTHB) * Domestic only ** Restated Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Jul-17 Aug-17 Sep-17 Oil - EBITDA QoQ YoY Oil 0 % 24% Non-oil 9% 10% 18,675** 15,085 16,167 12,333 Oil 4,541 4,613 3,660 3, ,508 2,752 Non-Oil* ,489 4, THB/Liter 1.00 MM Liter * 26% QoQ % QoQ 6,408 6, ,856 19,428 1 /Excluded Non-oil, stock gain/loss, non-recurring item 2 /PTT only Key Highlights 9% YoY 2% YoY * Revised sales volume in Q1/17 and Q2/17 due to included LPG trade volume with Trading BU (Inter-BU Trade) QoQ Gross margin declined mainly from Jet A-1 price structure (Buy M, Sell M-1) following upward price trend in Q3/17 vs declining trend in Q2/17 Sales vol. decreased mainly due to lower gasoil demand effect from serious flooding situation EBITDA increased from stock gain despite lower margin YoY Higher gross margin mainly from strong gasoline demand Lower EBITDA mainly from lower stock gain in 9M/17 despite higher margins & non-oil performance 16

18 Trading BU: Performance declined from squeeze margin E & P Gas Oil & Trading P&R Others Gross Margin 1 Sales Volume 2 Gross Margin (THB/Liter) MM Liter 14% QoQ 11% YoY 5% QoQ 55,252 56,107 2% YoY ,922 18,872 1 PTT Trading BU + trading subsidiaries: FX Adjusted + derivatives Trading EBITDA 1 MMTHB 24% QoQ 14% YoY 4,059 3, PTT Trading BU + trading subsidiaries: FX Adjusted + derivatives 2 PTT Trading BU + trading subsidiaries QoQ Gross margin & EBITDA decreased mainly from - Different settlement period of physical/paper hedging for products inventory management - Lower domestic condensate margin Sales volume increased from higher crude demand of domestic refineries resumption in Q3/17 YoY Gross margin & EBITDA declined mainly from slimmer margin per unit due to backwardation market and accounting adjustment (provisional to final price & FX) Sales volume improved from expansion of trading activities in Western hemisphere Key Highlights 17

19 P&R BU : Strong GRM, Olefins and BZ performance except PX QoQ YoY A/C GRM 146% 34% Stock Gain/Loss *A/C GRM and A/C GIM include effect from hedging gain/(loss) 66% 82% 82% 75% BTX U-Rate QoQ YoY USD/Ton BZ-Cond Dubai USD/BBL Mkt GRM A/C GRM* PX-Cond GRM Aromatics BZ 5% 47% PX 6% 5% E & P Gas Oil & Trading P&R Others Olefins U-Rate USD/Ton 1,133 1,114 HDPE Price Unit : MMTHB 14,175 1,214 1,880 6,603 1,229 3,249 89% 96% PP Price Net Income (100%) 20, ,955 3,247 7,605 Olefins QoQ YoY HDPE 2% PP 3% 10% 1,149 1,138 1,132 44, ,209 15,857 8,027 86% 1,034 59,990 2,623 2,857 29,740 6,841 15,420 17, % 1,149 1,141 47% QoQ 36% YoY Others HMC PTTGC IRPC TOP 18

20 P&R : Upcoming Projects E & P Gas Oil & Trading P&R Others PTTGC IRPC TOP PP Expansion & PP Compounding Gasoline Maximization mlldpe ME plants2 UHV Catalyst Cooler PO/Polyols MTP Retrofit CFP PP Expansion and PP Compounding Gasoline Maximization mlldpe ME plants2 UHV Catalyst Cooler PO/ Polyols MTP Retrofit CFP Capacity PPE +160 KTA PPC +140 KTA To capture domestic market gasoline deficit mlldpe (400 KTA) Hexane -1 (34 KTA) Methyl Ester (200 KTA) Flexibility of crude selection and fully optimized UHV operation PO (200 KTA) Polyols (130 KTA) Ethylene (500 KTA) Propylene (250 KTA) upgrade lower value product into higher value product and ability to process heavier (cheaper) crude oil CAPEX 236 MUSD 1,100 MB 288 MUSD 47 MUSD 1,390 MB 888 MUSD TBA TBA COD PPE Sep 2017 PPC Dec 2017 End 2017 Q1/2018 Q4/ H2020 2H

21 Other Businesses : Coal - SAR Better performance from higher market coal price and cost control E & P Gas Oil & Trading P&R Others New Castle Avg. Selling Price Total Cash Costs Avg. Selling Price* & Cash cost* USD/Ton QoQ 97 22% *Average Calorific value ~ 5,500 kcal/kg MMUSD % 12% Net income 11% QoQ YoY 52% 54% 30% >100%YoY kton 1,925 2, ,925 2,086 Sales Volume 8% QoQ 7,054 1,415 5,639 5,763 Key Highlights 5, % YoY Sebuku Jembayan QoQ Cash cost increased from higher contractor expense and royalties linked with Newcastle Sales volume increased as plan Performance improved mainly from - Increase in sales volumes & coal price - One-time CIT refund YoY Cash cost increased from Newcastle linked variable cost Sales volume declined mainly from Sebuku temporary suspension Performance improved mainly from higher market coal price and cost control 20

22 Other Businesses : Power - GPSC Performance improved from lower maintenance cost and higher share of profit E & P Gas Oil & Trading P&R Others Sales Volume* Net Income (100%) GWh QoQ YoY 000 Ton Power 49% 9% Steam 2% 5% 4,963 4,713 Power Steam 1,632 1,365 1, ,796 3,472 MMBaht 815 9% QoQ 888 2,281 8% YoY 2,453 Cogen : SPP 32.5% *sales vol. of Sriracha, Rayong & IRPC-CP phase 1 plants Renewable 2.6% Committed Capacity Operating 1,410 MW Combined heat : VSPP 0.4% Cogen: Hydro SPP Electricity 28% 68% Combine Cycle : IPP 64.5% Renewable 4% Under construction 512 MW Present 2019 Key Highlights QoQ Lower power sales vol. from IPP as EGAT dispatch instruction and IRPC- CP S/D for commissioning test between phase I&II, also effecting lower steam sales vol. Better NI from Rayong Plant with higher electricity price, lower maintenance cost, dividend received from RCPL and income from contractor of IRPC-CP Phase I YoY Lower power sales vol. from lower dispatch to EGAT Lower steam vol. from SPP as higher no. of customers S/D in 9M17 and S/D for commissioning test of IRPC-CP NI rose as lower NG & maintenance cost, S/D of gas turbine in Q3 16 (Rayong Plant) and higher share of affiliates profit 21

23 Other Businesses : Power GPSC IRPC-CP Phase 2 (SPP) E & P Gas Oil & Trading P&R Others Project Highlight: COD: 2 projects in Q4 17 Project Type Capacity COD Construction Progress as of Q3/17 Gas-Fired Power Plant Electricity: 240 MW Steam: T/H Q % Ichinoseki Solar Power 1GK (ISP1) Solar Electricity: 20.8 MW Q % 22

24 PTT Consolidated Performance: 9M/2017 1% QoQ 31% YoY Avg. Dubai (USD/BBL) M/16 9M/17 Unit : MMTHB Revenue 478,788 1% QoQ 475,178 1,241,989 18% YoY 1,463,763 1% 6% 29% Revenue 18% Others PTTEP 1% 5% PTT - Gas P&R 15% 31% Revenue 46% 48% PTT - Oil & Trading EBITDA 74,910 16% QoQ 87, , ,182 10% YoY 30% 1% EBITDA 36% Others 2% P&R 35% EBITDA 31% PTTEP 10% 23% 6% PTT - Oil & Trading 26% PTT - Gas Net Income/ Operating Performance 31,317 QoQ 29% 13% 30,397 34,484 22,331 75,522 74,951 YoY 32% 42% 106,739 99,816 27% 8% 12% Net Income 53% P&R Others 29% 9% 7% Net Income PTTEP 55% PTT 23

25 Statement of Financial Position MMTHB 1,805,041 1,818,746 2,232,331 2% 2,191,091 Assets/Liabilities slightly decreased : Decreased in PPE due to depreciation exp. Decreased in cash and cash equivalent and S/T investment from dividend payment and debt repayment of PTT and affiliates Cash & S/T Invest 392, , , ,820 AP & Other Liabilities AR & Other Current Assets Others Noncurrent Assets 349, , , , , ,414 L/T Liabilities (incl. due within 1 yr) 0.71 Net Debt/EBITDA Net Debt/Equity YE16 9M/17 PPE 1,171,597 1,206,550 1,116,170 1,091,249 Total Equity PTT Ratings at Sovereign Level FC : Moody s (Baa1), S&P (BBB+), FITCH (BBB+) 1 31 Dec Sep Sep LC : Moody s (Baa1), S&P (BBB+), FITCH (BBB+) 24

26 PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 339bn (~ $10bn 1 ) during CAPEX revision Y2017: CAPEX increased by ~ THB 10.3 bn mainly from Head Office: LNG value chain opportunistic investment Wholly owned subsidiaries: Land purchase for LNG Terminal 2 Investment in Wholly Owned Subsidiaries 40% By Business Unit LNG, 14% Capital Restructuring, 22% Others, 1% Infrastructure, 43% Other Wholly Owned Sub., 4% PTT 5-Years CAPEX Plan Bt 339 bn Oil & Trading, 12% Gas, 4% Infrastructure Investment in wholly owned subsidiaries Head Office and Others Oil and International Trading Natural Gas 1 FX rate = Baht 34/$ 93, ,661 20,637 47,215 57, , ,376 9,350 9, , ,265 7,785 4,566 6,736 3,792 3,887 2,382 2,066 2, (revised) 102,282 16,812 36,874 51,975 60,486 34,327 35,970 9,935 14,313 13,944 40, budget revision approved by BOD on 16 Jun 17 58,093 Unit: MMTHB 5 th pipeline & extension JV & Investment in 100% owned subsidiaries 25

27 26 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% 54.1% 148.6% Dividend payout 49.0% 29.8% 25% Baht / share PTT s minimum payout ratio EPS DPS H/2017

28 27 Contents Overview Q3 & 9M/2017 Performance Outlook 2018

29 28 Summary: Outlook 2018 Business 9M (Forecast) Reason Gas Price ($/mmbtu) - Henry Hub - JKM Oil Price ($/bbl) Dubai Price 51.1 Refinery Margin ($/bbl) Singapore GRM 7.04 Petrochemical ($/ton) - Olefins (HDPE, PP) - Aromatics (PX, BZ) HDPE = 1,149 PP = 1,141 PX-Naphtha = 384 BZ-Naphtha = 358 Range Range Range HDPE = 1,133 PP = 1,103 PX-Naphtha = BZ-Naphtha = HH: Higher demand from domestic & overseas JKM: Steady demand growth in the power and industrial sectors and the emergence of new buyers Incremental supply to Asia will depress spot prices OPEC to extend output-cut deal amid strong demand Geopolitics supports: Iraq vs. Kurdistan/ US to impose new sanctions on Iran Higher possibility of U.S. shale oil production 2017 product cracks spiked in Q2 and Q3 due to Shell s Pernis refinery shutdown and impact of Hurricane Harvey Higher demand from healthier economic growth Olefins: - More PE availability from US producers - New PP capacity addition from China and India Aromatics: - Higher feedstock cost (Naphtha) Increasing BZ supply (Petro Rabigh, Nghi Son)

30 29 Thank you PTT Public Company Limited Investor Relations Department Tel , Fax , ptt-ir@pttplc.com Website: Disclaimer The information contained in our presentation is intended solely for your personal reference only. Please do not circulate this material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any action in reliance upon it. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events, financial performance and result of PTT s activities. 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. The information contained in this presentation is subject to change without notice and PTT does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. 29

31 Debt Profile : Control Cost & Manage Risk Managed debt according to financial risk and policy Debt Portfolio Unit : MMTHB PTT Only : Cost of debts ~ 4.75% : % fixed-rate ~ 70% : Avg. debt life ~ 8.21 years Consolidated : Cost of debts ~ 4.29% : % fixed-rate ~ 68% : Avg. debt life ~ 5.85 years USD&Other THB 625, , , ,588 (41%) 250,968 (44%) 214,952 (40%) 265,245 81,154 (31%) 184,091 (69%) 228, ,355 81,245 62,776 (36%) (31%) 147, ,579 (64%) (69%) 368,733 (59%) 325, ,801 (56%) (60%) 31 Dec Dec Sep Dec Dec Sep Note : Data as of 30 Sep 17 (THB/USD = THB/JPY = ) Excluding liabilities from finance leases; Cost of debts includes withholding tax. Cost of debts, % fixed rate, and avg. debt life took into account the derivative transactions. Debt outstanding is reconciled with accounting. 30

32 Statements of Consolidated Cash Flows : 9M/2017 Operating 9M/2016 9M/ , ,951 Net Income 75,522 99,816 Changes in assets & liabilities (19,150) (19,582) Income Tax (29,073) (32,545) Non-Cash Adjustment 155, ,262 Investing 9M/2016 9M/2017 (134,942) (102,836) CAPEX (PP&E, Intangible asset) (82,814) (77,068) Investment (Sub. & Affiliates & others) (2,015) (23,906) Current investment (53,025) (5,185) Dividend/Interest Received 7,506 12,634 Others (4,594) (9,311) Free Cash flow 48, ,115 Financing (102,796) (112,769) Repayment Loans (64,052) (62,029) Interest paid (23,238) (23,237) Dividend paid (44,374) (73,320) Received from share issue 102 3,056 Received from loans/bonds 23,610 41,639 Adjustment Others 5,156 1, (10,459) Beginning Cash and Cash Equivalents 239, ,566 Cash In/(Out) (54,549) (20,113) Ending Cash & Cash Equivalents Ending cash incl. S/T investment 185, , , ,452 31

33 Statements of Cash Flows (PTT Only) : 9M/2017 9M/2016 9M/2017 Operating 55,861 54,602 Net Income 62,788 83,768 Changes in assets & liabilities (3,997) (11,924) Income Tax (5,073) (9,240) Non-Cash Adjustment 2,143 (8,002) 9M/2016 9M/2017 Investing (12,497) (2,393) CAPEX (PP&E, Intangible asset) (16,806) (16,484) Investment (Sub.& Affiliates & Others) 323 (34,224) Current investment (17,391) (20,618) Dividend/Interest Received 24,098 39,912 Others (2,721) 29,021 Financing (65,462) (75,995) Free Cash Flow 43,364 52,209 Repayment Loans (27,702) (18,520) Interest paid (9,956) (8,579) Dividend paid (28,560) (51,413) Received from share issue - - Received from loans/bonds 756 2,517 Adjustment Others Beginning Cash and Cash Equivalents 67,524 62,648 Cash In/(Out) (22,035) (23,675) Ending Cash & Cash Equivalents Ending cash incl. S/T investment 45,489 38,973 97, ,906 32

34 PTT Group Performance : 9M/2017 (YoY) 33 33

35 PTT Group Performance : Q3/2017 (QoQ) 34

36 Data as of 30 Sep 2017 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 % Thai Oil Power Co., Ltd.* TP 26.00% Global Power Synergy Co., Ltd* GPSC 22.58% Joint Ventures Equity 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% PTT Global LNG Co., Ltd PTTGL 50.00% Subsidiaries Consolidate PTT (Cambodia) Co., Ltd. PTTCL % PTT Oil & Retail Business Co., Ltd. PTTOR % Thai Lube Blending Co., Ltd. TLBC** 48.95% 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**50.00% PTT Global Chemical Plc.* PTTGC 49.39% PTT Maintenance and Engineering* PTTME 40.00% PTT Energy Solutions Co., Ltd.* PTTES 40.00% PTT Tank Terminal Co., Ltd. PTTTANK % Joint Ventures Equity HMC Polymers Co., Ltd. HMC 41.44% PTT Asahi Chemical Co., Ltd. PTTAC 50.00% PTT MCC Biochem Co., Ltd. PTTMCC 50.00% Refining Subsidiaries Consolidate Thai Oil Plc.* TOP 49.10% IRPC Plc.* IRPC 38.51% Others Fair Value Star Petroleum Refining Co., Ltd. SPRC 5.41% International Trading Business Group Subsidiaries Consolidate PTT International Trading Pte. PTTT % PTT International Trading London Ltd PTTTLDN % International Investment Subsidiaries Consolidate PTT Energy Resources Co., Ltd. PTTER % PTT Green Energy Pte. Ltd PTTGE % PTT Global Management Co., Ltd. PTTGM % Subsidiaries Consolidate Energy Complex Co., Ltd. EnCo 50.00% Business Service Alliance Co., Ltd. BSA * % PTT Regional Treasury Center Pte. Ltd. PTTRTC % PTT Digital Solutions Co., Ltd.* PTT DIGITAL 20.00% Others Others Fair Value Dhipaya Insurance Plc. TIP 13.33% Remark : *The companies have changed their status to subsidiaries due to impact from PACK5 ** Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies. 35

37 Contract periods are ~ years or until depletion of gas fields or the expiration of concessions 36 Natural Gas Price Structure : Jan-Sep 2017 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 17% : IPP 20% : SPP 22% GSP 21% Average Purchased Gas Price 1.75% * 1.75% * 9.33% * Charged at the same price structure of power producers 21.9 Bt/MMBtu * EGAT IPP and SPP Supply Margins not more than and respectively Petrochemicals Feedstocks Ethane, Propane, LPG NGL Local Cooking Gas Export Cooking Gas Industry 15% Profit-sharing mechanism based on market prices of petrochemicals Reference to Naphtha market price At GSPs cost (adjusted every 3 months) Reference to Saudi Aramco s contract price Charged at prices comparable to fuel oil NGV 5% Since 16 Jul 2016 : The retail price is set to reflect the natural gas cost but operating cost is still regulated. Since 5 Sep 2017 : Allowance to adjusted Baht/Kg. for gas quality improvement cost 36 NGV retail Price as of 30 Sep,17 = Baht/Kg.

38 37 Natural Gas : Growth of natural gas upon Government fuel diversification policy for power generation Thailand Gas demand forecast (CAGR during ) : Total ~ 1% : Power ~ 3% : GSP ~ -5% : Industry ~ 1% : NGV ~ -5% Thailand Gas Demand Replace : coal (3,340 MW), AE and EE 30% New Plan

39 Gas Business Generates Stable Returns Overview Gas transmission pipeline capacity Sole owner and operator of entire gas transmission pipelines in Thailand (~ 4,000 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 Gas Separation Plant Capacity Unit MMcf/d Unit 2 and MMcf/d Unit MMcf/d Unit MMcf/d Unit MMcf/d 38