Analyst Meeting Q1/2016 - listed...

Analyst MeetingQ1/2016

Synergy Hall23 May 2016

1

Safety and Sustainability:

Aspiration = Zero Accident

* Total Recordable Injury Rate

2

Jan – Apr 2016 Performance

Policy and Standard

Process and Platform

Technology and Innovation

People and Culture

1.71

0.27

0

1

2

3

4

2009 2010 2011 2012 2013 2014 2015 Jan-Apr2016

Injury Rate (Injuries/Million hrs)

TRIR-employee TRIR-contractor

Overview

Performance

Key takeaways

Overview Performance Key takeaways

Contents

3

Q1/2016 Highlights:

4


Key Events Update (Q1)

• NGV price floating in Jan’16 with capped ceiling at 13.50 Bht/kg for 6 months

• Divestment SBECL

• ESP major T/A 23 days (1-23 Mar’16)• The tribunal rules on PTT to make

payment for damages to RPC regarding termination of commercial contract (25 Mar’16)

• The Chief Ombudsman submitted the complaint regarding PTT not returning the natural gas pipeline assets in accordance with the judgment of the Supreme Administrative Court (4 Apr’16)

Performance (YoY)

• GAS – GSP, TM and NGV performance

improved

• Oil – performance increased from stock

gain

• Trading – performance improved from

domestic condensate

• Power – performance improved from

higher sales volume, lower gas cost and

dividends received from RPCL

• PTTEP – lower performance from decrease in oil price

• P&R – pressured performance from refineries despite improved aromatics and olefins

• Coal – performance declined from low coal price

Finance • PTTGC – Drawdown LT loan ~6,000 MB • IRPC - Drawdown LT~ 2,000 MB

10

50

90

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16

0

5

10

15

20

25


LNG (JLC) ($/MMBTU) JKM Spot Avg. Pooled Gas ($/MMBTU)

31

32

33

34

35

36

37


100

300

500

700

900

1100


HDPE-Naphtha Spread PX-Naphtha Spread

13.6

NG Prices ($/MMBTU)

* JLC = Japan LNG Cocktail : Landed LNG price in Japan

Key Business Drivers: Oil price bottom out & NG further decline

Note: Figures are average

682

Dubai vs FO ($/BBL)

HDPE and PX spreads($/Ton) FX (USD/THB)

Dubai

FO

HDPE

321

PX

61.3

59.1

800

360

9.3

JLC*

51.9

51.2 Avg. Pooled

7.98.5

49.7

42.6

771

357

9.2

7.3

9.1

7.3

JKM

7.7

32.8

35.4

4

Depreciated

3.0 THB/USD (9.1%)

762

5* Naphtha (MOPJ)

40.7

34.9

9.0

7.1

6.6

703

304

30.4

25.8

5.1

7.8

6.2

40633.4

Appreciate

0.2 THB/USD (0.55%)


36.0 35.8

6,638

11,967

5,616

3,671

8,044

6,184

2,286 1,847

Q1/2016 Performance: Strong PTT operations offset loss from affiliates

6*including petroleum exploration expenses and royalties

PTTT: loss from MTM of derivatives

PTTER as coal price dropped

PTTNGD due to squeezed margins

Others


2,081 905 1,027

22,584

MMTHB

Margin

FX gainOPEX*

Share of

income

Int. & CIT exp.

Other Income

23,669

Q1/15 Q1/16

PTTEP

PTT

Others

P&R

Net Income

PTTEPLower avg. price 28%Cash cost reduced 21%Sales vol. increase 4%

OilVol. increased 5% mainly from increased demand from lower retail prices Performance increased from stock gain

TradingMargin increased 33% from domestic condensateVol. decreased 11% from out-out transactions

Gas

GSP margin improved from lower feed costbetter NGV performance Increased TM performance

80%

35%

19%

23%

2,278408 1,756

Petrochem & Refining Avg. A/C GRM decreased 7% BCP and SPRC divestment on Apr’15 & Dec’15

Olefins business better from higher HDPE spreads

Aromatics improved from spreads margin and volume increase

Overview

Performance

Key takeaways

7


Contents

E&P : lower performance from continuing decline in oil price, albeit slowering

Product Prices

Net Income (100%)

Sales Volume

Key Highlights

8.08 7.29 7.16 6.29 6.09

50.06

59.34

49.3342.22

32.04

48.95 48.4744.83

39.1835.08

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

Liquid ($/BBL)

Gas($/MMBTU)

Weighted Avg.

($/BOE)

MMUSD

222 231 226

94 105 104

Q1/15 Q4/15 Q1/16

336

Liquid

Gas

KBOED

316

8

* Gas price, if excludes Vietnam 16-1 retroactive sale recording, is 8.08$ for 9M14

** Average selling price, if excludes Vietnam 16-1 retroactive sale recording is 66.24$ for 9M14

Q4/15

3% QoQ

25% YoY

4% YoY

2% QoQ

36% YoY

19% QoQ

E & P Gas Oil & Trading Refining PetChem Others

24% QoQ

36% YoY

10% QoQ

28% YoY

330

Q1/16

157

246

132

*** 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.

Q1/15

Non-recurring***

Recurring NI


248

116

1,538

13

16

119

41

QoQ

• Avg selling price continued to decline, albeit at a slower pace

• Sales volume decreased slightly from Zawtika’s planned shutdown

• Recurring NI increased due to the absence of $119m tax expenses

as in Q4/15 (reversal of DTA), whilst non-recurring NI decreased

due to oil hedging loss in Q1/16 vs gain in Q4/15

YoY

• Avg selling price significantly declined from slump in oil & gas prices

• Sales volume increased from Algeria’s full production

• NI declined by 36%, mainly due to selling prices

8

E&P Strategy:Overview Performance Key takeaways

RESET REFOCUS & RENEW

ActualQ1’16

Guidance 2016

Avg. Gas Price ($/MMBTU)

6.1 ~5.5

Avg. Sales Vol. (KBOD/D)

330 ~322

EBITDA margin (% of Sale Rev.)

74 ~65

Unit Cost($/BOE)

29 <34

Progressing on pre-development candidates• Mozambique: focus on

finalizing commercial agreement

• Algeria: access resources and development concept

Exploration in new prospective areas• Myanmar: conduct

2D/3D seismic surveys • Brazil: prepare for

3D seismic survey

Evaluate new investment opportunities• Near home• Near-term producing

assets• Prospective exploration

blocks• LNG value chain:

evaluate feasibility partnership with PTTEP

2016 Full year guidance

Maintain sales volume Bring down unit cost

9

Business Unit Q1/15 Q4/15 Q1/16 QoQ YoY

Gas- EBITDA 9,204 13,769 14,562 6% 58%

• S&M 2,495 2,626 1,365 (48%) (45%)

• TM 6,797 6,956 8,431 21% 24%

• GSP 842 4,372 3,497 (20%) 315%

• NGV (3,005) (1,913) (937) 51% 69%

• Others 2,075 1,728 2,206 28% 6%

(Unit:MMTHB)

4,015 4,066 5,875 44% 46%

740 1,170 1,108 (5%) 50%

*MIS** Included Gas & Oil subsidiaries

10

Oil-EBITDA

Trading*-EBITDA

Total** 13,959 19,005 21,545 13% 54%

PTT EBITDA Breakdown by BU’s:


12.112.6 12.6

8.82 8.04 8.18

Q1/15 Q4/15 Q1/16Vol.

MMCFD317 289 294

8.6 9.2

8.6 8.5 8.5

7.9 7.3

6.6 6.2

610 607591

437

318377

265

217

160

-

100

200

300

400

500

600

700

5

7

9

11

13

15

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

1,129 1,075 1,075

1,011 971 894

720 721 808

985 1,008 884

670 632 673

317 289 294

Q1/15 Q4/15 Q1/16

Gas BU: NG volume decreased from ESP’s T/A, while pooled gas price still trailing

NG Price VS FO NG Customer Breakdown

$/MMBTU

EGAT (23%)

IPP (19%)

SPP (17%)

GSP (19%)

Industry (15%)NGV (7%)

MMSCFD

4,832

NGV Price/Sales Volume

QoQ

• Pooled gas cost further declined, but still lagging selling price, linked to fuel oil

• NG sales volume maintained, notwithstanding Ethane Separation Plant (ESP)’s major T/A. Volume partially offset by increases in SPP’s and Industry’s demand

• Slightly higher NGV volume due to one added NGV Station in Q1/16

YoY

• Overall NG sales decreased from ESP’s major T/A and less gas called from EGAT/IPP’s

• NGV volume decreased, as a result of price hikes

Key Highlights

4,628

ที่เพ่ิมข้ึนเป็นของ

K.Ton/Day

11

7% YoY

2% QoQ


4,696

1% QoQ$/Ton

Fuel Oil*

* MOPS HSFO 180 CST

Avg. Pooled gas price

LHS

RHS

%QoQ %YoY

FO 26% 50%

PooledPrice 6% 27%

4% YoY

•

THB/KG

NGV Avg. price 4% YoY

0.1% QoQ


2,495 2,626 1,365

6,797 6,956 8,431

842 4,372 3,497

(3,005) (1,913) (937)

2,075

1,728 2,206

Q1/15 Q4/15 Q1/16

858 876 832

577 444 505

405

399 304

1,375 1,234 1,576

1,266

1,188

1,375 1,234

1,153 1,103

333 333 333 333

443 497

470 440

431 389 394 391 382

380 359 352 310 309

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

Propane (12%)

Gas - EBITDA

MMTHB

Others

TM

GSP

13,7699,204

S&M

NGV

674 803 680

187 171

169

552 604

449

204 128

187

94

7

Q1/15 Q4/15 Q1/16

GSP Sales Volume

LPG (46%)

kTon

1,620

13% QoQ

8% YoY

Gas BU: Performance continues to improve from GSP & TM margins and less subsidies

NGL (11%)

Ethane (30%)

Key Highlights

6% QoQ

GSP Feed Cost vs Petroleum price

Naphtha

USD/Ton

Feed Cost**

LPG Ex-GSP*

* Effective on February 2, 2015** Revised feed cost calculation from per sale volume to per GSP production volume

Pentane (1%)

58% YoY


1,492

14,562

12

HDPE

QoQ

• GSP performance dropped as a result of ESP’s T/A and margin squeeze from petchem prices declined more than feed cost

• TM margin improved due to increased Total Demand Charge (TDC) volume from additional customers

• Gas EBITDA is better notwithstanding ESP’s T/A, mainly from improvement in TM and NGV

YoY

• GSP feed cost decline (-19%) more than selling prices (HDPE -7% & LPG -3%) helped boost GSP margin

• Lower PTT’s subsidies on LPG and NGV, as a result of price liberalization

• Gas EBITDA continued to improve from GSP, TM and NGV


1,710

%QoQ %YoY

HDPE -4% -7%

LPG Ex-GSP -2% -3%

Naphtha -24% -32%

Feed Cost -0.3% -19%

Gas Business Roadmap

LNG Projects

13


LNG onshore Terminal 1 Phase 2:

− Construction completed 85.63%, COD: 2017

New LNG projects approved by

Committee on Energy Policy Administration (CEPA),

proposing for National Energy Policy Council (NEPC) approval

1) Terminal 1 capacity enhancement

(from 10 MTA to 11.5 MTA)

− Expansion capacity: 1.5 MTA

− Budget: 1,000 MB

− COD: 2019

2) LNG Onshore Terminal 2

− Capacity: (5 or 7.5 MTA), subject to government energy policy and gulf of Thailand gas supply policy

− Budget: subject to capacity

− COD: 2022

Additional LNG projects needed for further studies before submitting for CEPA and NEPC for consideration

− FSRUs (domestic)

− LNG onshore Terminal 3

− FSRU in Myanmar


8.82 8.59 8.52 8.04 8.18

9.00

9.50

10.00

10.50

11.00

11.50

12.00

12.50

13.00

0

5

10

15

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

Avg. Sales Vol. (K.Ton/day)Price (THB/Kg)

0.0

0.1

0.2

0.3

0.4

0.5

0.6

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

Industry Auto Household Import

1,847 1,8581,738

1,871 1,959

392 462637 566

319

(50.00)

(40.00)

(30.00)

(20.00)

(10.00)

-

10.00

20.00

30.00

40.00

0

1,000

2,000

3,000

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

Sales vol.

14


Oil BU: Demand continues to adjust following price liberalization

NGV - volume continues to fall from price hikes

M.Ton

Diesel - demand improved following price fallGasoline - demand surged, as a result of price drop

M.Litre

THB/Litre

34.8930.09

26.1920.62

M.Litre

THB/Litre

12.13

LPG - demand (automobile) and import fall, following price liberalization


THB/kg

20.9624.16

12.6012.60

31.83

22.12

Avg. QoQ YoY

Price -7% -21%

Vol. 5% 6%

Export -44% -19%

Change

763 792 812 845 858

91 126 178112 109

-50

0

50

0

500

1,000

1,500

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

Sales Vol. Export

22.29

Avg. QoQ YoY

Price -0.1% 4%

Vol. 2% -7%

ChangeK Tons/day

0.49 0.49 0.51 0.45 0.39

Avg. QoQ YoY

Price -5% -14%

Vol. 2% 12%

Export -3% 19%

Change

Avg. QoQ YoY

Price -6% -13%

Total vol. -13% -20%

Industry 4% 3%

Auto -9% -15%

Household -0.3% 0.2%

Import -52% -66%

Change

746 881 879

3,269 3,185 4,996

Q1/15 Q4/15 Q1/16

4,015

5,8754,066

100150200250300350400450500550600

20

50

80

QoQ YoY

Oil 57% 53%

Non-oil 0.2% 18%

0.94 1.17

0.87

6,386 6,511

6,677

Q1/15 Q4/15 Q1/16

Oil BU : Better performance mainly from stock gain

MMTHB

THB/Liter

15

QoQ

• Volume slightly increased mainly from lower product prices• Contribution margin decreased mainly due to the decline in

margin for aviation fuel, gasoline, and diesel

YoY• Sales volume significantly increased mainly from lower

product prices• Slightly lower contribution margins mainly from the decline

in margin of aviation fuel• Higher EBITDA mainly from stock gain and increase in non-

oil (Amazon +20%)

Oil

Non-Oil*


* EBITDA from Operating

Sales volume1/Contribution margin2/

MM Liter

1/ PTT only

2/ Excluded Non-oil and stock gain/loss

7% YoY

5% YoY

(1,229) (1,657) 687

Petroleum Prices

Stock Gain/Loss(MMTHB)

26% QoQ

3% QoQ

Oil - EBITDA

USD/BBL

(Average Prices)

Q1/15 Q2/15 Q3/15 Q4/15 Jan 16 Feb 16 Mar 16


Key Highlights

USD/ton

(Average Prices)

Gasoline LHS

Diesel LHS

LPG (Pool) RHS

52.5 46.3

38.9 51.9

40.7

30.4

0.06 0.09 0.08

Q1/15 Q4/15 Q1/16

* PTT only : FX Adjusted

740

1,170 1,108

Q1/15 Q4/15 Q1/16

21,067 20,438 18,823

Q1/15 Q4/15 Q1/16

8% QoQ

Trading BU: Margin improved from domestic condensate

Contribution Margin*

Trading - EBITDA*

Sales Volume

Key Highlights

MMTHB

MM Liter

16

* PTT only : FX Adjusted

50% YoY


Contribution Margin (THB/Liter)

NWS($/BBL)

42% YoY

11% YoY

16% QoQ

5% QoQ


Dubai ($/BBL) 25% QoQ

26% YoY

QoQ

• Volume decreased mainly from lower out-out transactions as low seasonal demand in Q1, compared to peak demand in Q4

• Margin slightly decreased from lower domestic crude margin, following lower oil price, despite improved condensate margin

YoY• Sales volume declined, mainly from decline in out-out

trading of petroleum products supplied to Indonesia, following Indonesian’s policy change since Q2/15

• Better contribution margins, mainly from better domestic condensate margins from higher condensate demand

33% YoY

11% QoQ

Major Aromatics Products Exporter from India

► Become a major aromatics products

exporter from

► More than 50% of total export

volume from India in some products,

via a strong relationship with 4 main

producers

► Create more flexibility on portfolio

optimization.

Trading BU: Geographical coverage expansion continues



17

4,498 3,749 4,726

3,832

447

3,014

1,037

2,601

1,974

Q1/15 Q4/15 Q1/16**

98 101

156

255 288

332

Q1/15 Q4/15 Q1/16

66% 85% 80%

17

51.9 40.7 30.4

7.42 6.94

4.98 6.57

4.34 3.54

8.24 7.53

8.15

Q1/15 Q4/15 Q1/16

GRM/GIM

Refinery Utilization

USD/BBL

A/C GRM*

A/C GIM*Mkt GRM

Dubai

Net Income (100%)

U-Rate (%) Q1/15 Q4/15 Q1/16

Aggregated U-Rate

96 99 98

TOP 106 110 107

IRPC 84 84 87

Aggregated Intake (KBD) 472 483

AromaticsAromatics Production

BZ-ULG95

Refining BU: Lower GRM and stock loss, while better Aromatics helped

-2.45 -2.77 -0.87StockGain/Loss


USD/Ton

482

6,170

11,968

7,740


IRPC

TOP

SPRC

BCP

PX-ULG95

QoQ YoY

BZ 54% 59%

PX 15% 30%

*A/C GRM and A/C GIM include effect from hedging gain/(loss)

QoQ YoY

25% 35%

QoQ YoY

0.2% 2%

QoQ YoY

A/C GIM 8% 1%

Unit : MMTHB

18** Sold out of BCP and SPRC

Refineries : Strategic Projects update



Linear Alkyl Benzene (LAB)

• Successfully COD on 25 Feb 2016

• On technical aspect, plant is successfully test run

and capable to run up to 120% (at 120 KTA)

• On commercial aspect, trial cargo has been

delivered to customers for quality testing

TOP SPP (2blocks of SPP)

• Successfully COD 1st block of TOP SPP (124MW)

on 1 Apr16

• 2nd block (115 MW):

• Trial run in late Apr 16

• COD on 1 Jun 2016

• Overall progress at 99.9%

19

EVEREST Performance : $300m+

Health : top quartile

http://www.thaioilgroup.com/

http://www.thaioilgroup.com/

5,631 4,691 4,707

612 1,263

649

665

-548

126

Q1/15 Q4/15 Q1/16

1,188 1,153 1,103 1,149 995 930

Q1/15 Q4/15 Q1/16 20

5.98 6.23

4.77 4.17

7.63

3.86

Q1/15 Q4/15 Q1/16

102% 99% 93% 88% 66%87%

217 231 271 332

411 415

Q1/15 Q4/15 Q1/16

Net Income (100%)

Aromatics

Unit : MMTHB

PTTGC

HMC Others

5,406

Olefins U-Rate

96% 97%81%

Olefins

USD/Ton

BTXU-Rate

Refineries

CDU U-Rate

A/C GRM*Mkt GRM

BZ-Cond PX-Cond

-1.50 -2.47 -0.97

StockGain/LossNet NRV

Petrochemical BU: Pressured Refinery & Olefins, despite better Aromatics

6,908

HDPEPrice

PPPrice


219 251 201

USD/TonUSD/BBL

AromaticsMkt P2F

5,482

Mkt P2F20% QoQ

8% YoY


QoQ YoY

HDPE 4% 7%

PP 7% 19%

QoQ YoY

BZ 17% 25%

PX 1% 25%

*A/C GRM include effect from hedging gain/(loss)

QoQ YoY

A/C GRM 49% 7%

QoQ YoY

1% 21%

Existing

Non Captive Upstream

and …

HDI Deriv. 12 KTA

Phenol II 405 KTAAromatics 170 KTA

HDI Monomer 70 KTA

mLLDPE400 KTA

PO/Polyol 250 KTA

MTP Retrofit761 KTA

8,000

8,500

9,000

9,500

10,000

10,500

11,000

2015A 2016F 2017F 2018F 2019F 2020F

ARO2 Phenol2HDI

ThailandHDI France MLLDPE PO/Polyol MTP Retrofit

CAPEX 128.8 MUSD 345 MUSD 43 MUSD 18 MUSD 288.2 MUSD TBC TBC

Additional PetChem*

(per year)

PX 115 KTA BZ 35 KTAOX 20 KTA

PH 250 KTAAC 155 KTA

HDI Derivative

12 KTA

HDI Monomer

70 KTA

MLLDPE 400 KTA

Hexene-1 34 KTA

PO 200 KTAPolyol 130 KTA

Ethylene 500 KTAPropylene 261

KTA

COD May 2016 May 2016 Q3’16 Q3’16 2018 Q2’19 2020

EBITDA Uplift/Year**

24 MUSD 63 MUSD 9 MUSD 24 MUSD 59 MUSD

• 100% stake of additional capacity ** Estimate EBITDA uplift with 100% stake at mid cycle price

Petrochemical : Strategic Projects update


Overview Performance Key takeaway

MTP Retrofit

21

(149)

(5)23

(154)

7

Other Businesses : Coal - SAR Continued under pressure from low coal price, despite cost improvements

EBIT

Sales Volume

Key Highlights

MMUSD

USD/Ton

1,968 898

1,446

573

513

617

2,541

1,411

2,063

Q1/15 Q4/15 Q1/16

kTon

Jembayan

Sebuku

Avg. Selling Price

Cash Costs

46% QoQ

Avg. Selling Price & Cash cost

New Castle

13%

19% YoY

70%

Q1/15 Q4/15 Q1/16

Impairment

4%

23%

20%

23%

12%

•

22

2.4x

QoQ YoY

QoQ

YoY


56

52

45

34

39

30

66

5351

Q1/15 Q4/15 Q1/16


Operating profit

QoQ

• Selling price declined by 13%, however, cash cost declined by 23%, from successful negotiations with contractors and reduction in fuel cost, following lower oil price

• Volume increased, mainly from effort to sell during annual price peak in Q1, following seasonal contract renewal period

YoY• Sales volume decreased, as coal price dropped from

oversupply• Performance dropped, mainly from lower coal price, despite

reduction in production costs

http://www.straitsasia.com/


541 496573

1,233 1,198 1,320

Q1/15 Q4/15 Q1/16

531

335

871

Q1/15 Q4/15 Q1/16

Net Income (100%)Sales Volume

Key Highlights

MMBahtGWh

64% YoY

Other Businesses : Power - GPSC Outstanding performance, as a result of higher sales and plant/cost optimization

‘000 Ton


Committed Capacity

Power 6% Steam 10% Steam 7%

>100% QoQ

Power

Steam

Power 16%

23

QoQ YoY

Combine Cycle :

IPP

67.7%

Cogen : SPP

29.5%

Renewable

2.4%

Combined heat: VSPP

0.4%

Operating1,338 MW

Hydro60%

Cogen: SPP36%

Renewable4%

Underconstruction

584 MW


QoQ

• Higher sales due to higher sales to EGAT and IRPC-CP full operations

• NI increased, mainly from lower feed cost, plant optimization and dividend income from RPCL (THB 180m in Q1/16)

YoY

• Higher sales, as a result of Rayong Plant’s S/D for Minor Inspection in Q1/15

• Better NI, due to higher demand and better cost management





Other Businesses : Power – GPSCGrowth roadmap – 8 committed projects


24

23


GPSC’s Committed Capacity

Total Capacity by 2019

Electricity 1,922 MW

Stream 1,582 (T/h)

Unit: Equity MW

44%

20%

6%

29%

1%

21,497 20,139

22,584 23,669

PTT - Oil

& Trading

PTT - Gas

Others

PTTEP

51.9 40.7 30.4

PTT Consolidated Performance: Q1/2016

Avg. Dubai (USD/BBL)

Q1/16Q1/15

515,211 469,585

386,940

Q1/15 Q4/15 Q1/16

PTTP&R

Others

PTTEP

Net Income

Unit : MMTHB

EBITDA

Net Income/ Operating Performance

Revenue Revenue

EBITDA

Revenue

EBITDA70,742 65,607 71,341

Q1/15 Q4/15 Q1/16

25

P&R

P&R

25% YoY

18% QoQ

9% QoQ

Net Income

41% YoY

25% QoQ

Operating PerformanceNet Income


1% YoY

40%

21%

9%

29%

1%

PTT - Gas

Others

PTTEP

188

Operating Performance

10% YoY

18% QoQ

5% YoY

>100% QoQ

50%

13%

6%

28%

3%

47%

18%

6%

28%

1%

51%

26%

16%

8%

PTT - Oil

& Trading

Net Income

29%

36%

25%

10%

PTT Group Performance : Q1/2016 (YoY)

% PTT

holding

Q1/15 Q1/16 YoY Q1/15 Q1/16 YoY

PTT Net operating Income 6,638 11,967 80% 6,638 11,967 80%

E&P - PTTEP 8,616 5,625 -35% 65.3% 5,616 3,671 -35%

- PTTGC 5,631 4,707 -16% 49.3% 2,684 2,242 -16%

- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 1,277 775 -39% 620 330 -47%

Petrochemical 6,908 5,482 -21% 3,304 2,572 -22%

- TOP 4,498 4,726 5% 49.1% 2,217 2,366 7%

- IRPC 3,832 3,014 -21% 38.5% 1,571 1,246 -21%

- SPRC 2,601 - -100% 5.41%* 679 0 -100%

- BCP 1,037 - -100% 0%** 273 0 -100%

Refining 11,968 7,740 -35% 4,740 3,612 -24%

Inter - PTTER, PTTGE -530 -348 34% 100% -347 -364 -5%

Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 1,071 1,349 26% 1,042 1,228 18%

Utilities -GPSC/ TP/ DCAP 854 1,311 54% 259 316 22%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 1,499 1,060 -29% 1,333 667 -50%

Others Business 2,894 3,372 17% 2,287 1,847 -19%

Shared of Net Income from Affiliates 30,386 22,219 -27% 15,947 11,702 -27%

PTT Conso. Net Income 37,024 34,186 -8% 22,585 23,669 5%

Equity Method % PTTPerformance 100%

Unit : MMTHB

26


*SPRC before disposed = 36%, **BCP divested in April 2015

PTT Ratings at Sovereign Level

− FC : Moody’s (Baa1), S&P (BBB+),

JCR (A-), FITCH (BBB+)

− LC : Moody’s (Baa1), S&P (BBB+),

JCR (A), FITCH (A-)

0.290.24

1.09

0.93

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

(0.1)

0.1

0.3

0.5

0.7

0.9

YE15 Q1/16

Other Liabilities

PP&E

Others Non-

currentAssets

OtherCurrentAssets

L/TLiabilities(incl. due within 1 yr)

TotalEquity

MMTHB

Cash & S/T Invest

31 Dec 13 30 Sep 14

1,805,041 1,818,746

Statement of Financial Position

Net Debt/EBITDA ≤ 2.0

Net Debt/Equity ≤ 1.0

1,118,677 1,112,094

375,617 378,929

332,977 299,654

346,725 386,061

1,087,687 1,110,345

632,834 631,475

453,475 434,918

1 2 3 4 5

0.1%

2,176,7382,173,996

31 Mar 1631 Dec 15

Assets slightly increased :

• Rise in cash and cash equivalents mainly from

operating cash inflow

• Decrease in A/R & A/P due to lower in product price

27


Free Cash flow

16,713 13,526

InvestingQ1/15

(87,624)Q1/16

(62,819)

CAPEX (PP&E, Intangible asset) (46,059) (32,540)

Investment (Sub. &Affiliates) (568) (245)

Current investment (44,046) (29,481)

Dividend/Interest Received 1,276 1,217

Others 1,773 (1,770)

OperatingQ1/15

104,337Q1/1676,345

Net Income 22,584 23,669

Changes in assets & liabilities 43,082 7,992

Income Tax (2,037) (2,549)

Non-Cash Adjustment 40,708 47,233

Ending Cash & Cash Equivalents

224,980 249,833

Beginning Cash and Cash Equivalents

234,212 239,978

Cash In/(Out)

(9,232) 9,855

Adjustment

1,018 4,337

Financing (26,963) (8,008)

Repayment Loans (12,858) (12,869)

Interest paid (7,835) (7,074)

Dividend paid (0) (330)

Received from share issue 113 -

Received from loans/Bonds (6,383) 12,265

Others - -

Statements of Consolidated Cash Flows : Q1/16

28


Overview

Performance

Key takeaways


29

Contents

Summary: Y2016 - Forecast

Business Y2015 Q1/2016 Y2016(E) VS

Q1/2016

Reason

Gas Price ($/mmbtu)- Henry Hub- JKM

2.637.46

1.985.06

Range 2.2 – 2.54.3 – 5.3

• US export LNG (Sabine Pass LNG)

• Higher supply and weak demand in North Asia

Oil Price ($/bbl)Dubai Price 51 30

Range35-40

• Decline in US oil output in 2H16 but oversupply condition remains

Refinery Margin ($/bbl)Singapore GRM 7.7 7.7

Range6-7

• Lower Gasoline crack due to high inventory & slow demand duringwinter season in Q4

• Lower Fuel Oil crack due to weak demand in Japan and reduced Chinese import

Petrochemical($/ton)

- Olefins (HDPE, PP)

- Aromatics (PX, BZ)

HDPE-Naphtha =746

PP –Naphtha = 645

PX-Naphtha = 353 BZ-Naphtha = 195

HDPE-Naphtha =762

PP –Naphtha = 569

PX-Naphtha = 410BZ-Naphtha = 233

HDPE-Naphtha = 798PP –Naphtha = 649

PX-Naphtha = 388BZ-Naphtha = 223

Olefins• Supply tight during

Turnaround season in Q2• Supported by seasonal

demand Aromatics• More supply in 2H after

plant resumption from unplanned /planned shutdown

30

Q1/2016

Oil price bottom out & NG further decline

Operating results mostly improved with no

impairment

Cost reduction relieved PTTEP and Coal

performance

Lower gas feed cost help improve gas

performance

NGV price restructuring

Enhanced Oil performance from stock gain

Pressured refineries and olefins performance

despite aromatics

• Power business improve from sales volume

Looking Forward

• Global economy slowdown

• Oil price to remain low at a level of 35-40

$/bbl from ME production

• Feed gas cost expected to be further

declined

• Refineries seasonal maintenance in Q2

• Petrochemical prices tend to improve from

tight supply

Key Takeaways

31

Thank youPTT Public Company Limited – Investor Relations Department

Tel. +66 2 537-3518, Fax. +66 2 537-3948, E-mail: [email protected] Website: http://www.pttplc.com

Disclaimer

The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking

statements that reflect our current views with respect to future events and financial performance. These views are based on assumptions subject to various risks and

uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ

materially from those projected.

Petroleum Reserves and Resources Information

In this presentation, the Company discloses petroleum reserves and resources that are not included in the Securities Exchange and Commission of Thailand (SEC) Annual

Registration Statement Form 56-1 under “Supplemental Information on Petroleum Exploration and Production Activities”. The reserves and resources data contained in

this presentation reflects the Company’s best estimates of its reserves and resources. While the Company periodically obtains an independent audit of a portion of its

proved reserves, no independent qualified reserves evaluator or auditor was involved in the preparation of reserves and resources data disclosed in this presentation.

Unless stated otherwise, reserves and resources are stated at the Company’s gross basis. This presentation may contain the terms “proved reserves”, “probable reserves”,

and/or “contingent resources”. Unless stated otherwise, the Company adopts similar description as defined by the Society of Petroleum Engineers.

Proved Reserves - Proved reserves are defined as those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable

certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government

regulations.

Probable Reserves - Probable reserves are defined as those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be

recoverable.

Contingent Resources – Contingent resources are defined as those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from

known accumulations, but which are not currently considered to be commercially recoverable. The reasons for non commerciality could be economic including market

availability, political, environmental, or technological. 31

32

mailto:[email protected]

http://www.pttplc.com/

2016 2017 2018 2019 2020

11,121 10,850 6,619 5,698 5,282

7,315 5,4664,430 3,191 3,272

1,817 609502 342 325

10,967 17,60712,106 13,245 13,586

19,619

32,983

34,64946,042

29,008

Infrastructure

Investment in JV andits subs

Head Office andOthers

Oil and InternationalTrading

Natural Gas

204,595

89,085

2,969

Infrastructure55%

Gas13%

Oil & Trading

8%

M&A and Oversea

investment8%

LNG15% R&D, Others

1%

PTT: CAPEX (PTT and Wholly Owned Subsidiaries)

PTT plans to invest ~Bt 297bn* ($8bn) during 2016-2020

CAPEX Breakdown : 5 Years

By Business UnitJV &

Investment in

Subsidiaries

23%

33

67,514 68,517

51,47350,83958,306

* 2016-2020 budget approved by BOD at YE2015

5th pipeline & extension

LNG, M&A and Investment Oversea

Energy Infrastructure

69%

Green1%

Growth30%

Unit: MMTHB

By Strategy

33

Free Cash flow

(597) (8,263)

Financing (8,378) (4,047)

Repayment Loans (6,645) (1,643)

Interest paid (2,555) (2,739)

Dividend paid 0 0

Received from share issue 0 0

Received from loans/Bonds 822 335

Ending Cash & Cash Equivalents

48,983 55,228

Beginning Cash and Cash Equivalents

58,018 67,525

Cash In/(Out)

(9,035) (12,297)

Adjustment

(60) 13

Statements of Cash Flows (PTT Only) : Q1/16

34

InvestingQ1/15 Q1/16

(19,403) (29,743)

CAPEX (PP&E, Intangible asset)(8,643) (5,584)

Investment (Sub. &Affiliates) (300)

(39)

Current investment(10,312)

(21,241)

Dividend/Interest Received 545) 548)

Others(692) (3,426)

Operating Q1/15 Q1/16

18,806 21,480

Net Income 12,083 18,282

Changes in assets & liabilities 8,046 3,443

Income Tax (502) (382)

Non-Cash Adjustment (821) 137

PTT Group Performance : Q1/2016 (QoQ)

35*SPRC before disposed = 36%, **BCP divested in April 2015

% PTT

holding

Q4/15 Q1/16 QoQ Q4/15 Q1/16 QoQ

PTT Net operating Income 9,044 11,967 32% 9,044 11,967 32%

E&P - PTTEP 4,694 5,625 20% 65.3% 3,070 3,671 20%

- PTTGC 4,691 4,707 0% 49.3% 2,256 2,242 -1%

- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 715 775 8% 249 330 33%

Petrochemical 5,406 5,482 1% 2,505 2,572 3%

- TOP 3,749 4,726 26% 49.1% 2,038 2,366 16%

- IRPC 447 3,014 574% 38.5% 263 1,246 374%

- SPRC 1,974 - -100% 5.41%* 557 0 -100%

- BCP - - #DIV/0! 0%** - 0 #DIV/0!

Refining 6,170 7,740 25% 2,858 3,612 26%

Inter - PTTER, PTTGE -18,359 -348 -98% 100% -18,643 -364 -98%

Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 1,911 1,349 -29% 1,487 1,228 -17%

Utilities -GPSC/ TP/ DCAP 377 1,311 248% 137 316 131%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 270 1,204 346% 145 811 459%

Others Business -15,801 3,516 -122% -16,874 1,991 -112%

Shared of Net Income from Affiliates 469 22,363 4668% -8,441 11,846 -240%

PTT Conso. Net Income 9,098 34,186 276% 188 23,669 12490%

Equity Method % PTTPerformance 100%

Unit : MMTHB

35

Debt Profile : Control Cost & Manage Risk

Debt Portfolio

Managed debt according to financial risk and policy

ConsolidatedPTT OnlyUnit : MMTHB

: Cost of debts ~ 4.58%: % fixed-rate ~ 73%: Avg. debt life ~ 8.18 years

: Cost of debts ~ 4.45%: % fixed-rate ~ 70%: Avg. debt life ~ 7.29 years

204,560 184,091 182,583

384,548 368,733 372,696

83,98581,154 80,495

305,127256,588 251,621

288,545265,245 263,078

689,675

625,321 624,317

31 Dec 14 31 Dec 15 31 Mar 16 31 Dec 14 31 Dec 15 31 Mar 16

USD&Other

THB

(29%)

(71%)

(31%)

(69%)

(44%)

(56%)

(40%)

(60%)

Note : Data as of 31 Mar 16 (THB/USD = 35.4074 THB/JPY = 0.316710) Excluding liabilities from finance leases; Cost of debts includes withholding tax.

36

Cost of debts, % fixed rate, and avg. debt life took into account the derivative transactions. Debt outstanding is reconciled with accounting.

(31%)

(69%)

(41%)

(59%)

Subsidiaries ConsolidatePTT (Cambodia) Co., Ltd. PTTCL 100.00%PTT Retail Business Co., Ltd. PTTRB 100.00%Thai Lube Blending Co., Ltd. TLBC** 48.95%PTT Tank Terminal Co., Ltd. PTTTANK 100.00%PTT Oil Myanmar Co., Ltd. PTTOM 100.00%

Associates EquityKeloil-PTT LPG Sdn. Bhd. KPL 40.00%Thai Petroleum Pipeline Co., Ltd.THAPPLINE 40.40%PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00%

Others CostPetroAsia (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 0.00024%

Others Fair ValueBangkok Aviation Fuel Services Plc. BAFS 7.06%

Others

Subsidiaries ConsolidatePTT Exploration & Production Plc. PTTEP 65.29%PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00%PTT LNG Co., Ltd. PTTLNG 100.00%Thai Oil Power Co., Ltd.* TP 26.00%Global Power Synergy Co., Ltd* GPSC 22.58%

Joint Ventures EquityTrans 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%

Petrochemical Subsidiaries ConsolidatePTT Polymer Marketing Co., Ltd. PTTPM 50.00%PTT Polymer Logistics Co., Ltd. PTTPL**50.00%PTT PMMA Co., Ltd. PTTPMMA 100.00%PTT Global Chemical Plc.* PTTGC 49.42%PTT Maintenance and Engineering* PTTME 40.00%PTT Energy Solutions Co., Ltd.* PTTES 40.00%

Joint Ventures EquityHMC Polymers Co., Ltd. HMC 41.44%PTT Asahi Chemical Co., Ltd. PTTAC 48.50%PTT MCC Biochem Co., Ltd. PTTMCC 50.00%

Refining Subsidiaries ConsolidateThai Oil Plc.* TOP 49.10%IRPC Plc.* IRPC 38.51%

Refining Associates EquityStar Petroleum Refining Co., Ltd. SPRC 5.41%

Others Fair ValueDhipaya Insurance Plc. TIP 13.33%

Subsidiaries ConsolidateEnergy Complex Co., Ltd. EnCo 50.00%Business Service Alliance Co., Ltd. BSA * 25.00%PTT Regional Treasury Center Pte. Ltd. PTTRTC 100.00%PTT ICT Solutions Co., Ltd.* PTTICT 20.00%

International Trading Business Group

Subsidiaries ConsolidatePTT International Trading Pte. PTTT 100.00%

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.

Petrochemicals & Refining Business GroupE&P and Gas Business Group Oil Business Group

Data as of 31 March 2016

International Investment

Subsidiaries ConsolidatePTT Energy Resources Co., Ltd. PTTER 100.00%PTT Green Energy Pte. Ltd PTTGE 100.00%

36

37

37

Natural Gas Price Structure : Jan-Mar 2016

CustomersSales Price Structure

Gas Pool Price Supply Margins Pipeline Tariffs+ +

Average Purchased Gas Price

1.75%

1.75%

9.33%

21.9 Bt/MMBtu

Charged at the same price structure of power producers

Reference to Saudi Aramco’s contract price

Charged at prices comparable to fuel oil

Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns.

Profit-sharing mechanism based on market prices of petrochemicals

Reference to Naphtha market price

At GSPs cost (adjusted every 3 months)

• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions

38

*

* EGAT IPP and SPP Supply Margins not more than 2.1525 and 11.4759 respectively

*

*

Power Producers 60%

: EGAT 23%

: IPP 19%

: SPP 18%

GSP 20%

Petrochemicals Feedstocks

Industry 14%

NGV 6%

Ethane, Propane, LPG

NGL

Local Cooking Gas

Export Cooking Gas

21 Jan -15 Jul 2016: Capped at 13.50 Baht/Kg. If cost is less than 13.50 Baht/Kg, retail price will be set to reflect the cost.

39Source : PTT

Gas demand forecast (CAGR during 2016-2030): Total ~ 0.3%: Power ~ 1%: GSP ~ -3%: Industry ~ 2%: NGV ~ -1%

Natural Gas : A steadily growth of natural gas upon Government fuel diversification policy for power generation

Thailand’s Projected Energy Demand

40

Primary Energy Consumption

Source : EPPO/ DEDE/ PDP 2015/ PTT analysis as of May 2016

0

500

1000

1500

2000

2500

3000

3500

4000

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Oil

Natural Gas

Coal/Lignite

Hydro/Import

KBD

Renewable2,619

25%

32%

15%

2%

26%

3,720

2,494

29%

35%

14%

20%

2%

29%

37%

12%

20%

2%

1.4%

1.7%

3.0%

4.1%

5.1%

Gas Business Generates Stable Returns

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 25-30 years

6 Gas Separation Plants; Total

production 6.7 MTA; are on

petrochemical market price-linked

profit sharing basis

Overview Gas transmission pipeline capacity

41

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