NDR in Singapore with Credit Suisse August 2017

Transcription

1 NDR in Singapore with Credit Suisse August 2017

2

3 1 Contents Overview Q2 & 1H/2017 Performance Outlook 2017

4 Oil Balance Thailand: Jan - Jun 2017 Adequate refining capacity maintains the stability of supply Supply Production Sales Import (80%) 955 KBD Imported Refined Petroleum Products 74 KBD Domestic Crude/ Condensate 881 KBD Total Refining Capacity in Thailand: 1,097 KBD Refined Products 1079 KBD* Crude/ Indigenous (20%) Condensate 234 KBD 197 KBD PTT s Associated Refineries : 635 KBD (TOP, PTTGC, IRPC) Refined Products 168KBD 941 KBD (**) Export Other Refineries : 462 KBD (SPRC, ESSO, BCP) Crude Export 37 KBD 205 KBD Source: PTIT Remark : (*)Refined product from refineries = 971 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 108 KBD (**) Not included Inventory KBD = Thousand Barrels per day 3

5 Natural Gas Balance: Jan Jun 2017 Main driver of the Thai economy Supply Production Sales Gulf of Thailand (68%) Others, 71% PTTEP, 29% Onshore (2%) 3,221 MMSCFD Bypass Gas 499 MMSCFD 6 GSPs Total Capacity 2,820 Actual Heat 112 MMSCFD Ethane/ Propane/ LPG/NGL 1,029 MMSCFD (22%) LPG/NGL Petrochemical Feedstock (14%) Industry Household Transportation (8%) Import (30%) Methane 1,693 MMSCFD Power (58%) Industry (15%) Myanmar 58% LNG 42% 1,409 MMSCFD NGV (5%) Remark: MMSCFD = Million Cubic Heating Value 1,000 Btu/ft 3 3

6 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$59.8bn 1 or ~ THB 2.0 trillion Group companies: 13.0% 1 of Thai Stock Exchange market capitalization Majority owned by Thai government (65%) 51% by Ministry of Finance 14% 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 1,746 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 Jun 2017 : Avg. BOT selling rate USD/THB of (End rate) 2 As of 30 Jun 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) 5

7 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 14% PTT LC Baa1 BBB+ BBB+ Note: As of Apr 2017 Largest market cap on the Thai Stock Exchange PTT PTTEP PTTGC TOP IRPC GPSC Total Others Market cap (BNUSD) % of SET 6.8% 2.2% 2.0% 1.0% 0.7% 0.3% 13.0% 87.0% 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 6 2 As of 30 Jun 2017 : Avg. BOT selling rate USD/THB of (End rate) 6

8 Downstream Upstream Intermediate Infrastructure 7 Our Major Businesses & Activities Business Areas Company PTT s holding (%) Activities E&P Coal Gas PTTEP 65.29% Exploration and Production PTT Energy Resources 100% Coal Business 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 48.91% Petrochemical Flagship TOP 49.10% Refinery Flagship IRPC 38.51% Integrated Refinery & Petrochemical Power GPSC 22.58% Power Flagship 7

9 PTT Group Strategic Framework Vision: Thai Premier Multinational Energy Company Aspiration: Strategic Objectives: Pride & Treasure of Thailand Pride with Inclusiveness BIG: Pride FT 100 Inclusiveness Treasure Sustainability Ensure Country Energy Security Build Public Trust Stakeholder Management Strengthen from Inside by SPIRIT Social Enterprise Enhance Business Transparency & CG Compliance Unit & Internal control Public/Community Wealth with Environment Conservation Enablers: People Finance RTI ExpresSo CVC Digitization CCSR 7

10 1H/2017 Performance: Record high half year performance: Contributed from most businesses MMTHB 77,485 Extra Items Div & gain on sales EPIF Others Affi PTTNGD : higher FO price & lower feed cost PTTER : Improved coal performance from higher ASP Petrochem & Refining Net Income Others Affi. P&R PTTEP PTT 48,548 3,687 14,374 5,405 25,082 12,362 Margin 48,548 1,548 OPEX* Operating Performance 6,264 Depre & Amortization 6,328 Other Income 12,986 FX & Derivatives 72,268 7,456 Int. & CIT exp.& Other** 5,217 5,613 19,201 12,942 34,512 1H/16 1H/17 Extra Items 52% 34% 139% 38% Better Olefins due to both prices and vol. Aromatics improved from BZ spreads, despite decreased sales volume Stock loss but MKT GRM increased PTTEP Improved ASP from oil price recovery Lower unit cost Reduced sales volume Gas GSP margin improved from lower feed cost & higher petchem prices S&M margin rose Increased sales volume from GSP with no major T/A in 1H/17 Oil Margin declined mainly from stock loss Non-oil expansions (Amazon & 7-11) Trading Performance dropped from gain from reversal NRV of gasoil in the last year * including petroleum exploration expenses and royalties ** including profit from discontinued operation 8

11 Contents Overview Q2 & 1H/2017 Performance Outlook

12 E&P : Positive earnings due to higher ASP, despite soften sales vol. E & P Gas Oil & Trading P&R Others Product Prices Sales Volume Liquid ($/BBL) Weighted Avg. ($/BOE) % QoQ 35% HoH 1% QoQ 6% HoH KBOED % QoQ % HoH Liquid Gas ($/MMBTU) MMUSD Net Income (100%) 37% QoQ >100% HoH QoQ % QoQ 7% HoH 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 Gas ASP maintained as crude price reduced while gas price increased Sales vol. dropped from planned S/D in Bongkot, temp. S/D in S1 & Montara (cyclone) NI decreased from lower sales vol. & lower FX gain HoH ASP increased from the rise in oil price Sales vol. decreased from PTTEP Australasia & MTJDA NI rose from the decrease in DD&A, oil hedging gain & FX gain 10

13 E&P: LNG value chain with PTT E & P Gas Oil & Trading P&R Others LNG Value Chain Investment Signed SSPA with Petronas to acquire PL9SB, 10% investment in MLNG Train 9 by PTT Global LNG MLNG Train 9 - Overview Investment Structure Synergy to capture value in the LNG chain 12 11

14 PTT EBITDA Breakdown by BU s: (Unit:MMTHB) Business Unit Q1/17 Q2/17 QoQ 1H/16 1H/17 HoH Gas- EBITDA 22,490 21,884 (3%) 31,537 44,374 41% S&M 3,602 4,003 11% 3,393 7, % TM 8,737 8,663 (1%) 16,795 17,400 4% GSP 7,698 7,041 (9%) 8,379 14,738 76% NGV (1,009) (1,271) (26%) (1,846) (2,280) (24%) Others 3,462 3,448 (0%) 4,816 6,910 43% Oil- EBITDA 5,931 4,541 (23%) 12,453 10,472 (16%) Trading*- EBITDA 1,647 1,258 (24%) 3,488 2,905 (17%) Total** 30,068 27,683 (8%) 47,478 57,751 22% *MIS ** Included subsidiaries from all BUs 13 12

15 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 * MOPS HSFO 180 CST NG Price VS FO %QoQ %HoH FO 4% 64% Pooled Price 9% 5% Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 NGV Price/Sales Volume $/Ton MMSCFD 4,721 NG Customer Breakdown 4, ,009 1, , , % QoQ 4, , Key Highlights 1% HoH 4,735 NGV (6%) Industry (15%) GSP (21%) SPP (21%) IPP (20%) EGAT (17%) THB/KG 2% QoQ NGV Avg. price K.Ton/Day 6% QoQ % HoH 14% HoH QoQ Gas cost kept rising, while F/O price dropped NG sales volume slightly increased from power and industry Continued drop in NGV volume with demand switching to diesel, while prices increased following pooled price HoH Overall NG sales slightly decreased mainly from lower power demand offsetting with GSP major T/A in 1H16 NGV vol. dropped from demand switching to gasoline and diesel 13

16 Gas BU: Performance improved from most segments mainly from GSP USD/Ton E & P Gas Oil & Trading P&R Others GSP Feed Cost vs Petchem price %QoQ %HoH HDPE -4% 2% 1,375 LPG Ex-GSP 3% -11% 1,234 Feed Cost 6% -15% 1,188 1,153 1,153 1,139 1,134 1, ,176 1,133 HDPE LPG Ex-GSP* Feed Cost** GSP Sales Volume kton 3% QoQ 2,965 1,669 1, ,341 1,451 15% HoH 3, ,181 Pentane (1%) Propane (12%) Ethane (35%) NGL (10%) LPG (42%) Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 * Effective on February 2, 2015 ** Revised feed cost calculation from per sale volume to per GSP production volume Gas - EBITDA Key Highlights MMTHB 3% QoQ 22,490 21,884 3,462 3,448 7,698 7,041 8,737 8,663 3,602 4,003 (1,009) (1,271) 31,537 4,816 8,379 16,795 44,374 6,910 14,738 17,400 3,393 7,606 (1,846) (2,280) Others GSP TM S&M NGV 41% HoH QoQ GSP dropped from higher feed cost and lower petrochemical prices More NGV loss from rising gas price S&M rose from increased pooled gas price and lower gas quality adjustment charged Gas EBITDA decreased mainly from GSP and NGV HoH GSP highly improved from declined feed cost, higher selling price, and increased sales volume w/o major T/A S&M margin increased Gas EBITDA improved in almost all segments, despite NGV 14

17 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 : Jun17 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 49.19% (as of Jun 17) - COD : ) LNG Terminal 2 (Onshore LNG Terminal No.2) - Approved by National Energy Policy Council (NEPC) 8 Dec Capacity: 7.5 MTA - 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

18 Oil BU : Lower performance from stock loss despite improved margins E & P Gas Oil & Trading P&R Others Petroleum Prices Gross margin 1 /Sales volume 2 (Average Prices) USD/BBL Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Apr-17 May-17 Jun-17 Oil - EBITDA QoQ HoH THB/Liter % QoQ MM Liter 6% QoQ 13,235 13,100 6,740 6,360 1 /Excluded Non-oil, stock gain/loss, non-recurring item 2 /PTT only Key Highlights 44% HoH 1% HoH MMTHB Stock Gain/Loss (MMTHB) * Domestic only 5,931 5,017 Oil 27% 20% Non-oil 4% 8% 4,541 3,660 12,453 10,784 10,472 8, ,669 1, , Oil Non-Oil* QoQ Gross margin declined mainly from diesel following higher domestic supply & lower seasonal demands Sales vol. decreased mainly due to lower aviation & diesel sales from seasonal effect EBITDA declined from higher stock loss & lower diesel margin HoH Higher gross margin mainly from diesel, gasoline and aviation fuel Lower EBITDA mainly from stock loss vs stock gain in 1H/16 despite higher margins & non-oil performance 16

19 Trading BU: Performance declined from lower margin per unit due to market downturn E & P Gas Oil & Trading P&R Others Gross Margin 1 Sales Volume 2 Gross Margin (THB/Liter) % QoQ % HoH 0.09 MM Liter 19,304 7% QoQ 17,920 35,789 37,224 4% HoH 1 PTT Trading BU + trading subsidiaries: FX Adjusted + derivatives Trading EBITDA 1 MMTHB 3,488 17% HoH 24% QoQ 2,905 1,647 1,258 1 PTT Trading BU + trading subsidiaries: FX Adjusted + derivatives 2 PTT Trading BU + trading subsidiaries Key Highlights QoQ Gross margin decreased from lower domestic crude & condensate margin due to dropped oil price Sales volume decreased from lower crude trading due to regional refineries turnaround EBITDA decreased in line with lower gross margin & sales volume HoH Gross margin slightly decreased from slimmer margin per unit due to market downturn compensated by volume expansion Sales volume improved from expansion of crude trading to China & Intra-America EBITDA decreased mainly from lower net reversal value (NRV) of gasoil inventory and slimmer margin per unit 17

20 P&R BU : Performance improved from Olefins & Aromatics, despite stock loss 78% BTX U-Rate USD/Ton 458 BZ-Cond 420 PX-Cond 66% Aromatics E & P Gas Oil & Trading P&R Others 87% 72% QoQ HoH BZ 26% 57% PX 9% 2% 95% 89% Olefins U-Rate USD/Ton 1,1761,159 HDPE Price PP Price Olefins 1,133 1,114 1,128 83% 1,006 QoQ 92% HoH HDPE 4% 2% PP 4% 13% 1,155 1,137 ACC P2F %QoQ 26%HoH GRM Net Income (100%) Dubai Unit : MMTHB QoQ HoH USD/BBL Mkt GRM A/C GRM* QoQ Stock Gain/Loss *A/C GRM nclude effect from hedging gain/(loss) HoH A/C GRM 43% 9% 24,913 1, ,175 31,385 2,652-43% 25% 39,088 2,528 2,857 9,632 19,785 Others HMC PTTGC 13,182 1,214 6,720 1,880 3,594 IRPC 2,365 6,603 12,479 1,229 10,324 TOP 7,075 3, (98) 18

21 P&R : Upcoming Projects E & P Gas Oil & Trading P&R Others HDI Derivatives Thailand Assets Injection PP Expansion & PP Compounding Gasoline Maximization UHV Catalyst Cooler mlldpe PO/Polyols ME plants2) MTP Retrofit PTTGC IRPC TOP CFP HDI Thailand Assets Injection PP Expansion & PP Compounding Gasoline Maximization mlldpe ME plants2 UHV Catalyst Cooler PO/ Polyols MTP Retrofit CFP HMC (PP 750 KTA) Capacity HDI Derivatives (12 KTA) PTTAC (AN 200 KTA, MMA 70 KTA, AMS 160 KTA) 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 & fully optimized UHV operation PO (200 KTA) Polyols (130 KTA) Ethylene (500 KTA) Propylene (250 KTA) Upgrade to higher value product and able to process heavier crude PTTMCC (PBS 20 KTA) CAPEX 44 MUSD 766 MUSD 236 MUSD 1,100 MB 288 MUSD 47 MUSD 1,390 MB 888 MUSD TBA TBA COD 2017 Q3/2017 PPE Aug 2017 PPC Sept 2017 End H/

22 Other Businesses : Coal - SAR Better performance from higher market coal price E & P Gas Oil & Trading P&R Others Avg. Selling Price* & Cash cost* Sales Volume USD/Ton QoQ HoH kton New Castle Avg. Selling Price Total Cash Costs % 0% 15% % 58% 30% 6% QoQ 1,823 1, ,752 1,925 4,630 1,031 3, ,599 3,677 19% HoH Sebuku Jembayan *Calorific value ~ 5,500 kcal/ton Net income Key Highlights MMUSD % QoQ 27.6 >100% HoH 46.6 QoQ Cash cost dropped from higher discount after contract renegotiation Sales volume increased as plan Performance improved from - cost reduction from new mining rates - increase in sales volumes 2.8 HoH Cash cost increased from Newcastle linked variable cost Sales volume declined mainly from mud slide in Sebuku Performance improved mainly from higher market coal price 20

23 Other Businesses : Power - GPSC Performance improved as customer recovery from maintenance shutdown E & P Gas Oil & Trading P&R Others Sales Volume* Net Income (100%) GWh 000 Ton QoQ HoH Power 6% 8% Steam 10% 3% MMBaht 9% QoQ 1% HoH 3,214 3,116 2,821 2,613 1,557 1,565 Power Steam 1,456 1,484 1,632 1, *sales vol. of Sriracha, Rayong & IRPC-CP phase 1 plants Committed Capacity Key Highlights Cogen : SPP 32.5% Renewable 2.6% 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 QoQ Lower power sales vol. due to lower dispatch vol. to EGAT Higher steam sales vol. from Rayong & IRPC-CP phase 1 Plant as major customer recovery from S/D in Q1 17 Better NI from higher SPP sales vol. & received insurance claim HoH Higher power sales vol. from higher dispatch to EGAT but lower steam vol. from SPP due to S/D of industrial customers NI slightly increased due to rise in selling price despite customer S/D in Q

24 Other Businesses : Power GPSC E & P Gas Oil & Trading P&R Others Bangpa-In Cogeneration Company Limited (BIC) Phase 2 (SPP) Project Highlight: COD: 1 project in Q2 17 & 2 projects in 2H17 Project Type Capacity COD Construction Progress as of Q2/17 Gas-Fired Power Plant Electricity: 117 MW Steam: 20 T/h 29 Jun % IRPC-CP Phase 2 (SPP) Gas-Fired Power Plant Electricity: 240 MW Steam: T/H Q % Ichinoseki Solar Power 1GK (ISP1) Solar Electricity: 20.8 MW Q % 22

25 PTT Consolidated Performance: 1H/2017 6% QoQ 53.1 Avg. Dubai % HoH (USD/BBL) H/16 1H/17 6% QoQ Unit : MMTHB Revenue 23% HoH Others 1% 988,585 1% PTTEP 6% 5% 806,817 P&R PTT - Gas 29% 19% 15% 30% 509, ,788 Revenue Revenue 16% QoQ 7% HoH 153, ,171 45% 1% 49% Others 2% P&R PTT - Oil & Trading PTTEP EBITDA 89,261 74,910 32% EBITDA 37% 33% EBITDA 32% Net Income/ Operating Performance 46,168 41,858 48,548 48,548 31,317 30,397 QoQ 32% 27% 77,485 72,255 HoH 60% 49% 10% 30% 20% 7% 11% Net Income 52% 6% PTT - Oil & Trading P&R Others 25% 7% 27% Net Income 17% 51% PTT - Gas PTTEP PTT 23

26 Statement of Financial Position MMTHB Cash & S/T Invest AR & Other Current Assets Others Noncurrent Assets 1,805,041 1,818,746 2,232, , , , , , , , % 2,174, , , ,266 AP & Other Liabilities L/T Liabilities (incl. due within 1 yr) Assets/Liabilities slightly decreased : Decreased in PPE due to depreciation expenses in period Decreased in cash and cash equivalent and S/T investment from dividend payment and debt repayment Decrease in A/R due to lower sales vol. & avg. selling prices Net Debt/EBITDA Net Debt/Equity (0.1) YE16 1H/ PPE 1,171,597 1,210,325 1,116,170 1,095, Dec Jun Sep Total Equity PTT Ratings at Sovereign Level FC : Moody s (Baa1), S&P (BBB+), FITCH (BBB+) LC : Moody s (Baa1), S&P (BBB+), FITCH (BBB+) 24

27 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

28 Dividend Policy & Historical Payments PTT is firmly committed to pay dividend at no less than 25% of net income 148.6% 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% 49.0% 25% PTT s minimum payout ratio 25% Baht / share Dividend payout EPS DPS

29 27 Contents Overview Q2 & 1H/2017 Performance Outlook 2017

30 28 Summary: Outlook 2017 Business 1H (Forecast) Gas Price ($/mmbtu) - Henry Hub - JKM Range Reason US LNG export capacity & NG pipeline export to Mexico High US domestic supply Strong LNG demand (SEA & SA). New energy policies in Korea to change from coal-to-gas. Oil Price ($/bbl) Dubai Price 51.4 Range OPEC/Non-OPEC maintain production-cut deal amid strong demand Pressure from U.S. shale oil production Refinery Margin ($/bbl) Singapore GRM 6.42 Range Gasoline: Tight regional supply from ADNOC s Ruwais and Shell s Pernis refinery shutdown FO: Healthy bunker demand Lower Russia exports following refinery upgrading Petrochemical ($/ton) - Olefins (HDPE, PP) - Aromatics (PX, BZ) HDPE-Naphtha =682 PP Naphtha = 640 PX-Naphtha = 380 BZ-Naphtha = 373 HDPE-Naphtha = PP Naphtha = PX-Naphtha = BZ-Naphtha = Olefin: - Improving demand from China (2H17) - Potential increase PE supply (India) & PP (China and Thailand) Aromatics: - Improving PX demand from PTA sector - More supply from new PX & BZ capacity (India, Saudi Arabia)

31 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. 30

32 Debt Profile : Control Cost & Manage Risk Managed debt according to financial risk and policy Debt Portfolio Unit : MMTHB PTT Only : Cost of debts ~ 4.74% : % fixed-rate ~ 70% : Avg. debt life ~ 8.48 years Consolidated : Cost of debts ~ 4.44% : % fixed-rate ~ 65% : Avg. debt life ~ 7.08 years USD&Other THB 625, , , ,588 (41%) 250,968 (44%) 217,995 (40%) 265,245 81,154 (31%) 184,091 (69%) 228, ,559 81,245 63,965 (36%) (31%) 147, ,594 (64%) (69%) 368,733 (59%) 325, ,072 (56%) (60%) 31 Dec Dec Jun Dec Dec Jun Note : Data as of 30 Jun 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

33 Statements of Consolidated Cash Flows : 1H/2017 Operating 1H/ ,976 1H/ ,969 Net Income 48,548 77,485 Changes in assets & liabilities (7,970) (25,761) Income Tax (23,209) (23,200) Non-Cash Adjustment 113,607 91,445 Investing 1H/2016 (107,256) 1H/2017 (41,569) CAPEX (PP&E, Intangible asset) (58,938) (51,347) Investment (Sub.& Affiliates & Others) (522) (8,009) Current investment (50.499) 10,817 Dividend/Interest Received 4,791 9,997 Others (2,088) (3,027) Free Cash flow 23,720 78,400 Adjustment Financing (59,297) (74,182) Repayment Loans (39,342) (38,657) Interest paid (16,129) (15,210) Dividend Paid (22,107) (42,670) Received from share issue 100 3,056 Received from loans/bonds 18,511 20,391 Others (330) (1,092) (5,615) (5,312) Beginning Cash and Cash Equivalents 239, ,566 Cash In/(Out) (41,192) (1,094) Ending Cash & Cash Equivalents Ending cash incl. S/T investment 198, , , ,468 31

34 Statements of Cash Flows (PTT Only) : 1H/2017 Operating 1H/2016 1H/ ,730 26,920 Net Income 40,930 59,300 Changes in assets & liabilities (2,526) (18,547) Income Tax (1,870) (5,253) Non-Cash Adjustment 196 (8,580) Investing 1H/2016 1H/2017 (26,556) (5,689) CAPEX (PP&E, Intangible asset) (11,865) (11,649) Investment (Sub.& Affiliates & Others) (39) (28,111) Current investment (28,526) 9,865 Dividend/Interest Received 16,196 25,181 Others (2,322) (975) Free Cash Flow 10,174 21,231 Financing (28,322) (29,712) Repayment Loans (9,704) (18,294) Interest paid (7,194) (6,493) Dividend paid (11,424) (28,563) Adjustment (55) (638) Received from loans/bonds - 23,638 Beginning Cash and Cash Equivalents 67,524 62,648 Cash In/(Out) (18,203) (9,119) Ending Cash & Cash Equivalents Ending cash incl. S/T investment 49,321 53, , ,121 32

35 PTT Group Performance : 1H/2017 (HoH) 33 34

36 PTT Group Performance : Q2/2017 (QoQ) 34

37 Data as of 31 Jun 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 49.42% 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

38 Natural Gas Price Structure : Jan-Jun 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 58% : EGAT 18% : IPP 19% Average Purchased Gas Price 1.75% * 1.75% * 9.33% * 21.9 Bt/MMBtu : SPP 21% * EGAT IPP and SPP Supply Margins not more than and respectively GSP 22% Charged at the same price structure of power producers 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% 21 Jan -15 Jul 2016: Capped at Baht/Kg. If cost is less than Baht/Kg, retail price will be set to reflect the cost. Since 16 Jul 2016 : The retail price is set to reflect the cost. NGV retail Price as of 30 Jun,17 = Baht/Kg. 37 Contract periods are ~ years or until depletion of gas fields or the expiration of concessions 36

39 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

40 Thailand s Projected Energy Demand Primary Energy Consumption 4,500 KBD 3,853 4,000 3,500 3,000 2,500 2,000 1,500 2,714 2% 9% 11% 46% 2,812 2% 10% 11% 44% 2.9% 4.6% 3.6% 0.3% Hydro/Import Renewable Coal/Lignite Natural Gas 3% 18% 16% 34% 1, % 33% 0.7% Oil 28% 0 Sources : Ministry of Energy (Thailand Energy Outlook 2016) 38

41 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 39