CLSA Conference September 19-21, 2011
Transcript of CLSA Conference September 19-21, 2011
CLSA ConferenceCLSA ConferenceSeptember 19-21, 2011September 19-21, 2011
Oil Balance Thailand: Jan - Jun 2011 Adequate refining capacity maintains the stability of supply
I t (80%) D ti
SupplySupply ProductionProduction SalesSales
Imported Refined Petroleum Products 46 KBDImport (80%)
Crude/ Condensate Refined
Domestic849 KBD
Condensate803 KBD Products
923 KBD*Total Refining Capacity in Thailand:
1,099 KBD
Indigenous (20%)
799 KBD (**)Crude/ Condensate 182 KBD PTT’s Associated Refineries : 905 KBD Refined
Export212 KBD (TOP, PTTAR, SPRC, IRPC, BCP)
Other Refineries : 194 KBD(ESSO, RPC)
Products166 KBD
Crude Export 30 KBD196 KBD
Source: PTITRemark : (*)Refined product from refineries= 821 KBD, including domestic supply of LPG from GSPs and Petrochemical Plants = 102 KBD
(**) Not included InventoryKBD = Thousand Barrels per day 1/20
Natural Gas Balance: Jan – Jun 2011Main driver of the Thai economy
SupplySupply ProductionProduction SalesSales
Indigenous (82%)3,403 MMSCFD
Petrochemical
Ethane/ Propane/LPG/NGL
Total 4,148 MMSCFD
Feedstock (14%)
IndustryH h ld
2,492 MMSCFD 892 MMSCFD (21%)Chevron28%Others
38%
HouseholdTransportation
(7%)
LPG/NGL
Methane
6 GSPsTotal Capacity 2,665 MMSCFD
PTTEP 34%
PTTEP
Power (62%)Industry (12%)
Pipeline 911 MMSCFD
Methane 1,600 MMSCFDImport (18%)
749 MMSCFDMyanmar
PTTEP 14%
Others 86%
y ( )NGV (5%)
749 MMSCFD
Remark: MMSCFD = Million Cubic Feet @ Heating Value 1,000 Btu/ft3
2/20
Our major businesses & activities
Business Areas ActivitiesCompany PTT’s holding (%)
E&PE&P PTTEP 65.31% Exploration and Production
stre
amst
ream
GasGas
Ups
Ups
edia
teed
iate PTT PLC
• Gas Pipeline 100% Sole owner/operator of the Transmission pipelineGasGas
Oil M k tiOil M k tiPTT PLC
Inte
rme
Inte
rme • S&M 100% Supply & Marketing of Natural Gas
• GSP 100% Extracting Hydrocarbon contents in NG for Petrochemical’s feedstock
Oil MarketingOil Marketing
Int’l TradingInt’l Trading
eam
eam
• Oil Marketing 100% Retail service Stations and commercial Marketing
• Int’l Trading 100% Import/Export/Out-Out trading of petroleum and petrochemical products
Dow
nstr
eD
owns
tre
Refining &Refining &PetrochemicalPetrochemical
(Aromatics)(Aromatics)
TOP 49.10%PTTAR 48.49% Integrated Complex Refinery & Petrochemical IRPC 38.65% SPRC 36.00% Stand alone Complex Refinery(Aromatics)(Aromatics) SPRC 36.00% Stand alone Complex RefineryBCP 27.36% Complex Refinery & Retail Stations
PTTCH 49.14% Gas-based Olefins Chain PetrochemicalPetrochemicalPetrochemical
ssN
ew
New
Bu
sine
s sBu
sine
ss
InternationalInternational PTT Inter 100% Overseas investment arm of PTT : Coal, New energy and related businesses
3/20
PTT AspirationStrategic direction and target to achieve “Big-Long-Strong” aspiration
“Thai Premier Multinational Energy Company”
E dExpand resources Maximize value along the chain
Big
BigBalance stakeholder excellenceLong
“Top quartile performance”
Long
StrongDrive functional excellence and synergyShare best practice and
Strong
performance”Dow JonesSustainabilityIndexes
Share best practice and knowledge management
4/20
2011 PTT Group Strategic DirectionInvestment priorities by geography and value chain
Internationalization
Non- AsiaEuropeNon- AsiaAfrica Non- AsiaAmericasNon- AsiaMiddle East
Australia, N. Asia and S. AsiaASEAN
Gas
UpstreamUpstream
UpstreamMidstream
Create P&R flagship and
Expand production to 900 kbd
Build LNG business & expand mid-/ downstream gas value chain
Support group inv.
UpstreamP&R
Oil
& G
Retail
T di
Create P&R flagship and internationalize chemical business
Expand oil station related business and spin off lubricants
Consolidate petroleum commodities and create value through international transactions
Top oil and gas player
UpstreamCoal
Adj
acen
t in
dust
ry
Trading
rsif
icat
ion
Grow coal mining to large scale
UpstreamPower Build Thailand Gas, follow int. gas value chain e pansion oppo t nistic coal
Consolidate petroleum commodities and create value through international transactions
A i E
nerg
y/ia
ls
Div
e
Alt. energy Build Thai clean power, monitor opport. in ASEAN
chain expansion, opportunistic coal
Plantations Develop palm oil, sugar and cassava Energy
conglomerate
sG
reen
m
ater
i
Infrastructure
Build Green business (ASEAN biohub) Bio-business
pp
Strengthen integrated hub Business
Non-oil RetailExplore opportunities in non-fuel retailO
ther
s eg a ed u(e.g. Gr. Marine) Business
conglomerate
Priority 1 Priority 3Priority 2 based on market attractiveness and potential for PTT Group to be distinctive 5/20
PTTEP: Operating and Financial performanceEarnings continuously improved from both sales volume and price
Sales Volume Product priceUnit: KBOED
4% Y Y
77
263 271 273
Liquid
+ 4% YoY+ 1% Q0Q
74.54
108.95
56 28
Liquid (USD/BBL)
196 Gas5.55 5.92
46.2156.28
Gas (USD/MMBTU)
Weighted Avg.(USD/BOE)
Net Income (100%)2Q/11 Product Mix
2Q/10 1Q/11 2Q/11 2Q/10 1Q/11 2Q/11
Liquid Liquid
By Volume By Revenue
351 359 370
+ 5% YoY+ 3% Q0Q
Unit: MMUSD
72%
28%45%
55%
351 359
72%
Gas Gas 2Q/10 1Q/11 2Q/11
6/20
PTTEP: Target Sales VolumeRevised sales volume based on Montara production in 1Q/2012
Target Sales Volume Proved Reserves
307323 329 317
Unit: KBOED
Total 1,043 MMBOETotal 1,043 MMBOE
265 269
MTJDA
Overseas
Bongkot
Arthit 45%55%
OthersPolicy
Domestic
2010 2011 2012 2013 2014 2015Reserves Replacement Ratio 1.33 > 1
Reserve Life Index (year) 9
KKD Oil SandsMTJDA
Vietnam 16-1
Montara
BongkotSouth
Algeria
M9
7/20
PTT: Natural Gas Sales & Transmission Pipeline Continuing demand growth from industry and IPP
Customer ProfileGas Volume
+ 7% YoY+ 4% Q0Q4 330
Unit: MMSCFD Unit: MMSCFD
2011 Industry (13%)
NGV (6%)
Q Q
4,0554,152 4,1484,145
4,330
558247
4,145 4,3304,055
SPP (12%)
GSP (20%)
Industry (13%)
20103,606
3,677 3,686
3,802
511
880
558
2009
IPP (22%)
SPP (12%)
3,280
1 166
968
EGAT (27%)
1Q 2Q 3Q 4Q
1,166
2Q/10 1Q/11 2Q/11
8/20
PTT: Gas Separation PlantsBetter earnings driven by sales volume and petrochemical prices
Product PricesSales Volume
Unit : USD/TonUnit : KTon
+ 53% YoY+ 0.4% Q0Q
1/
Propane (9%)133
1,466 1,472
1,3731 340
1,661
PP 1/
HDPE 1/
NGL (11%)
Ethane (31%)
164
467963
904
1,187
1,340
Domestic LPG
Naphtha 2/
LPG (48%)708 333 333
647
2Q/10 1Q/11 2Q/11 2Q/10 1Q/11 2Q/11
Note: 1/ SEA Spot (CMAI)2/ MOP’S
9/20
Expansion to meet future gas demandPTT: Gas Business
6 000
Gas Demand OutlookGas Demand OutlookUnit : MMSCFD
4,000
6,000
GSP
IndustryNGV
17%11%
4%
4%20%
14%
0
2,000Power68%
17%
61%
0
2010 2011 2012 2013 2014 2015
New S l
PTTEP (Bongkot
PTTLNG PTTEP(M9)
PTTEP(JDA B17) Chevron
PipelineCapacity
Supply (BongkotSouth)
4th Onshore Offshore
Compressor
( )(JDA B17) Chevron(Plathong)
Capacity(MMSCFD) 5,580
GSPProduction
5,580 6,980 6,9804,380Compressor
6,980
GSP#6
4.3Production
(MTA) 7.0 7.0 7.0 7.06.3
10/20
PTT : Oil Marketing and International Trading Business Market leader in Thailand, going international
Thailand’s Market Share 2Q/2011
3%
34%
25%Others
9%11%
10%
8%
Trusted Brand 2011 :Thailand’s Top Brand in Platin m A ard for ser ice station11%
1Q/11 2Q/11 Q Q
Thailand’s Top Brand in Platinum Award for service station
• Best in class operationo Depot & Logistics management1Q/11 2Q/11 QoQ
Oil Marketing Margin ¹ (THB/Liter)
0.81 0.86 6.2%
Sales Volume 2 (MM Lit )
3,714 3,690 -1.0%
o Depot & Logistics management
• Expand non-oil businesses o Implement Amazon’s franchise o Launch community mall with gas station(MM Liter)
Trading Margin(THB/Liter)
0.08 0.03 -62.5%
Trade Volume 3(MM Lit )
13,063 16,248 24.38%
o Launch community mall with gas station plug-in model
• Grow Internationallyo Retail in Indochina++(MM Liter)
Source : Department of Energy Business, PTT (Excluded supply sales and LPG & propane sold to Petrochem) ¹ Gross Margin included PTTRM and non-oil business2 Exclude PTTRM3 Exclude PTTT
o Retail in Indochina++o Lube worldwide distributed in 21 countrieso Expand trading network
11/20
Petrochemical Affiliates Performance Higher performance from increased sales volume and spread margins
U it MMTHB
Net Income (Net Income (100100%)%)Petrochemical Product PricesPetrochemical Product Prices
U it USD/T Unit : MMTHB
2,403
Unit: USD/Ton
8 763
+ 138% YoY+ 7% Q0Q
2,045
1,881BPA1/ 1,205
1,077488,220
8,763
PTT Phenol
HMC PolymersOthers
1,661
1,373
1,579Phenol1/
, PTT Phenol
977
1,340
1,187 1,142HDPE1/
PP1/
6,433
3,679
PTTCH
698
810MEG1/
LightNaphtha2/
Note : 1/ SEA spot 2/ MOP’S Source : ICIS
2Q/10 1Q/11 2Q/11 2Q/10 1Q/11 2Q/11
12/20
Major expansion in 2011Petrochemical Roadmap
2011 2012 onwards
PTT 49.14%
Olefins 2,888 KTAPolymers 990 KTA
HDPE 300 KTALDPE 300 KTA
EO-Based 495 KTAOleochemicals 819 KTA
PTT 40.00%
Phenol 200 KTAAcetone 125 KTA
Bis-Phenol-A 150 KTA Phenol 250 KTAAcetone 154 KTA
PTT 41.44%
PP 450 KTA PP 300 KTAPropylene 310 KTA
PTT 48.50%
AN 200 KTAMMA 70 KTA
PTT 50.00%
PBS 20 KTAPBS 20 KTA
13/20
Refining Associates PerformancePerformance affected by lower inventory gain and tighter aromatics spread
Unit : USD/BBL Unit : MMTHB
Net Income (Net Income (100100%)%)Accounting GRM & Accounting GIMAccounting GRM & Accounting GIM
12.59 15.31
8.66 21,017A/C GIM
A/C GRM
3.66 6.66 5.86
13 227
/
+ 355% YoY- 37% Q0Q
2Q/10 1Q/11 2Q/11
3,021
13,227
Aromatic PricesAromatic Prices
Unit : USD/Ton
BCP
IRPC
968
1,502
1,136 977
2,141
1,840
2,980
2,904
B ¹PX¹
IRPC
SPRC*
PTTAR903 698
2Q/10 1Q/11 2Q/11
3,245
2Q/10 1Q/11 2Q/11
Benzene¹Light Naphtha¹
¹ MOP’S
TOP
Source : PTT, Refining AssociatesNote: Weighted Avg. GRM of PTT’s associates’ complex refineries (TOP, PTTAR, SPRC and BCP)
Weighted Avg. GIM of PTT’s associates’ integrated refineries (TOP, PTTAR and IRPC)Account GRM/GIM = Market GRM/GIM + Hedging Gain/Loss + Stock Gain/Loss
*SPRC’s Net Income is unreviewed F/S
14/20
Refining RoadmapFocus on value creation and products quality improvement
2011 2012 2013 2014 2015
PTT 49 10%
EURO IVVLCC 2 MMBBL
PX & BZ Upgrading
HCU Revamp Phase I-PSA
Benzene Derivatives-LAB
Power Plant 110 MWPTT 49.10%
Refining Cap. 275 KbpdPX 489 KTAMX 90 KTABZ 177 KTATol 144 KTA
VLCC 2 MMBBL pg g• PX 100 KTA• BZ 100 KTAEthanol UBE400 KLiter/day
100 KTA
Tol 144 KTA
PTT 48.49%Refining Cap. 280 KbpdPX 1,190 KTA BZ 655 KTA
EURO IV
BZ 655 KTA CX 200 KTAOther 214 KTA
PTT 38.65%
Refining Cap 215 Kbpd
Power plant220 MW
Propylene Booster • Propylene
ABS/SAN Expansion
Propylene 320 KTARefining Cap. 215 Kbpd
Aromatic 367 KTAOlefin 728 KTA Polyolefin 615 KTA
(COD Jun 1)py
100 KTA • ABS/SAN 61 KTA
PP Compound and Specialties100 KTA
PTT 27.36%
Bangchak
Refining Cap 120 Kbpd
EURO IV
Solar Power Plant Ph I 38 MW(8 MW: COD Aug 2011)
Solar Power Plant Ph II32 MW
Ethanol UBE
Solar Power Plant Ph III 48 MW
Algae Energy30,000 Liter/Day
Palm Mill45 Tons/Hour
Refining Cap. 120 Kbpd 2011)Ethanol TAE365 KLiter/day
Ethanol UBE400 KLiter/day
Expansion project 15/20
PTT: Coal businessExpected production boost-up from the Northern lease license
Sales Volume & PriceSales Volume & Price Production ProfileProduction Profile
Unit : MMTonAvg. selling price Unit : MMTon
Unit : KTon
7295
- 13% YoY- 8% Q0Q
g g pUSD/Ton
8 5 910.7 11.5
1417
Sebuku
2,214
263
2,858 2,679 2,477
Jembayan
Sebuku
8.5 9
Jembayan
2Q/10 1Q/11 2Q/11
ReservesReserves ResourcesResources Net Income (Net Income (100100%)%)
2008 2009 2010 2011 Target
2012 Target
2013 Target
ReservesReserves ResourcesResources (( ))
Unit : MMUSD+ 68% YoY- 6% Q0Q
41
2%
Sebuku Jembayan
23
41 39
98% 60%
40%
16162Q/10 1Q/11 2Q/11
Jembayan Sebuku
1,505 MMTon125 MMTon
16/20
Financial PerformanceEarnings slightly declined QoQ mainly from refining associates
Dubai (USD/BBL)2Q/1178 101 111
6%4%Others
PTTEP
Unit : MMTHB + 30% YoY+19% Q0Q
495,339 540,857643,577
75%
15%
6%PTT – Gas
21,163MMUSD
Revenue2Q/10 1Q/11 2Q/11
75%
PTT – Oil & Trading
5%PTT – Oil & TradingOthers
43,465 51,853 55,054
+ 27% YoY+ 6% Q0Q
6%
34%
55%
5%
PTT – Gas
1,810MMUSD
EBITDA2Q/10 1Q/11 2Q/11
+ 91% YoY
PTTEP
Others
Net Income
17,02434,524 32,528
- 6% Q0Q
42%12%
20%2%
PTT
P t h i l
1,060MMUSD
Refining
Net Income
EPS (THB/Share)2Q/10 1Q/11 2Q/116.00 12.12 11.40
24%
Petrochemicals
PTTEP
17/20
Statement of Financial Position: Solid and SecuredGrowing Assets with strong financial position
Unit: MMTHB• GSP#6• 40% KKD Oil Sand Strong Financial Position
11.0 12.3• PTTLNG• WIP of 4th pipeline , PTT Asahi
b /
ICR
g• ESP• WIP of Montara & Bongkot,
PTTLNG, PTT Asahi, GSP6, & PTT Tank
+ 10%
0.4 0.5 1.4
1.7
2010 1H/11111,833
347 977Other LiabilitiesCash &
Net Debt/EBITDA
Net Debt/Equity1,229,1091,357,554
/
206,348
260,816 157,585
404 288
300,666
347,977
Others
OtherCurrentAssets
L/TLiabilities(incl. due
S/T Invest
• Treasury policy
368,515 420,670 371,029
404,288 Others Non-
currentAssets
(incl. due within 1 yr) − Net Debt/Equity < 1.0
− Net Debt/EBITDA < 2.0
• PTT ratings at sovereign level
496,661 564,235 557,414 605,289 PP&E
TotalEquity
− FC : Moody’s (Baa1), S&P (BBB+),
JCR (A-), FITCH (BBB)
− LC : Moody’s (Baa1), S&P (BBB+),
JCR (A), FITCH (A-)
31 Dec10 30 Jun 11
18/20
PTT: CAPEX (PTT and wholly owned Subsidies)PTT plans to invest ~Bt 330 bn ($11bn) during 2011-2015
CAPEX 2011 - 2015 330,052Unit: MMTHB
R&D / OthersJV
,
Committed projects 235,814
M&A opportunities 94,238LNGOil & TradingGas
94,091
79,276 CAPEX Breakdown : 5 Years
Gas 36%41,47056,703
28 282
58,339
9, 6 CAPEX Breakdown : 5 YearsBy Business Unit64,889
Gas 36%
Others
32 134
,
28,12428,282
19,334
33,456JV53%
LNG 3%
Oil & Trading 4%
R&D / Others 4%
26,509 29,871 20,98632,134
10,205
2011 2012 2013 2014 2015
19/20
3Q/2011 Economic & Market Outlook
• Global economy, although driven by developing and emerging countries,Global economy, although driven by developing and emerging countries, may grow at slower pace. IMF projected 2011 growth at 4.0%.
• Thai economy is also expected to expand in line with global economy. NESDB estimated 2011 growth 3 5 4 5%NESDB estimated 2011 growth 3.5 – 4.5%.
• Dubai crude oil price is expected to move in the range of $100-110/bbl + Continuing political unrest in MENA and Hurricane season in the U.S.g p- U.S. and European economy recovery still in doubt
• Avg. market GRM would be in the range of $6-7/bbl due to strong power plant demand in China and resumed operations of Japanese plantsplant demand in China and resumed operations of Japanese plants.
• Olefins petrochemical market spread is expected to maintain from restocking, while oversupply still exists.
• Aromatics petrochemical spread margin is expected to increase from restocking and higher demand of additional PTA plants.
20/20
Thank youThank youPTT Public Company Limited – Investor Relations Department
Tel. +66 2 537-3518, Fax. +66 2 537-3948, E-mail: [email protected]://www.pttplc.com, http://www.twitter.com/PTTIRp // p p , p // /
The information contained in our presentation is intended solely for your personal reference only. In addition, such
DisclaimerDisclaimer
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.
Highlights of 2Q/2011Thai Premier Multinational Energy Company
• 2Q/2011 Avg Dubai Price at 111 $/bbl increasing from 101 $/bbl in 1Q/2011
Key Key PerformancePerformance
• 2Q/2011 Avg. Dubai Price at 111 $/bbl, increasing from 101 $/bbl in 1Q/2011
• Higher natural gas sales volume, from 4,145 to 4,330 MMSCFD
• 2Q/2011 Revenue at Bt 643 bn and Net Profit at Bt 33 bn
2011 2015 CAPEX l i d f Bt 327 b t Bt 330 b
InvestmentInvestment
2Q/2011 Revenue at Bt 643 bn and Net Profit at Bt 33 bn
• 2011-2015 CAPEX plan revised from Bt 327 bn to Bt 330 bn
• PTTCH & PTTAR merger to be completed within October 2011
• Sakari Resources Limited the new name of Straits Asia Resources Limited• Sakari Resources Limited, the new name of Straits Asia Resources Limited
OperationsOperations
• After gas leakage incident, 1st gas pipeline resumed operation on 15 August 2011
• GSP#5 shutdown for major turnaround (22 days) in June 2011
• PTT LNG Terminal started commissioning in June 2011, COD in August 2011
• PTT Asahi Chemical started commissioning in July 2011, COD in 4Q/201122
PTT Group Performance QoQ
% share
Unit : MM Baht 1Q/11 2Q/11 QoQ 1Q/11 2Q/11 QoQ
PTT Company Only 19,628 19,888 1% 19,628 19,888 1%
Performance 100% Equity Method % PTT
Less: Dividend Received 5,466 5,134 -6% 5,466 5,134 -6%Gain from sell PTTCH 989 989PTT Net operating Income 14,162 13,765 -3% 14,162 13,765 -3%
E&P - PTTEP 10,979 11,170 2% 65.31% 7,244 7,704 6%
Petro. - PTTCH 6,178 6,433 4% 49.14% 2,923 3,023 3%
- HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTME/PTTTANK 2,042 2,330 14% 40-48% 948 1,054 11%
8,220 8,763 7% 3,871 4,077 5%
Refining - TOP 7,228 3,245 -55% 49.10% 2,525 2,705 7%
- IRPC 3,499 2,980 -15% 38.65% 1,460 846 -42%
- PTTAR 4,979 2,141 -57% 48.49% 2,265 1,165 -49%
- SPRC 3,887 1,840 -22% 36.00% 1,374 800 -42%
- BCP 1,424 3,021 29% 27.36% 306 922 201%
21,017 13,227 -37% 7,930 6,438 -19%
PTTI (PTTAPM EMG PTTML FLNG)Inter
- PTTI group(PTTAPM,EMG,PTTML,FLNG),PTTGE -584 -31 95% 100% -581 -31 95%
Gas & Utilities
-TTM/PTTNGD/IPT/TP/DCAP/CHPP 832 1,073 29% 20-100% 349 439 26%
Oil & Oth. - PTTRB/PTTT/SBECL/THAPPLINE//PTTCL/TLBC/ICT/EnCo 1,590 -402 -125% 33-100% 1,549 -434 -128%/PTTCL/TLBC/ICT/EnCo
Shared of Net Income from Affiliates 42,054 33,800 -20% 20,362 18,193 -11%Add Gain (Loss) on sales of investments in Associates 0 570 0 570
PTT Conso. Net Income 56,216 48,135 -14% 34,524 32,528 -6%23
PTT Group Performance YoY
% share
Unit : MMTHB 1H/10 1H/11 YoY 1H/10 1H/11 YoY
PTT Company Only 25,398 39,516 56% 25,398 39,516 56%
Performance 100% Equity Method % PTT
Less: Dividend Received 8,066 10,600 31% 8,066 10,600 31%
Gain from sell PTTCH 0 989 0 989
PTT Net operating Income 17,332 27,927 61% 17,332 27,927 61%
E&P - PTTEP 21,623 22,149 2% 65.31% 14,159 14,948 6%
Petro. - PTTCH 5,474 12,611 130% 49.14% 2,673 5,946 122%
- HMC/PPCL/PTTPL/PTTPM/PTTAC/ PTTME/PTTTANK 2,371 4,372 84% 40-48% 980 2,002 104%
7 845 16 983 116% 3 653 7 948 118%7,845 16,983 116% 3,653 7,948 118%
Refining - TOP 3,056 10,473 243% 49.10% 1,457 5,230 259%
- IRPC 3,562 6,479 82% 38.65% 1,189 2,306 94%
- PTTAR 1,826 7,120 290% 48.49% 889 3,430 286%, , ,
- SPRC 1,916 5,727 199% 36.00% 647 2,174 236%
- BCP 1,199 4,445 271% 27.36% 349 1,228 252%
11,559 34,244 196% 4,531 14,368 217%
Inter - PTTI group(PTTAPM,EMG,PTTML,FLNG),PTTGE -962 -615 36% 100% -964 -615 36%
Gas & Utilities
-TTM/PTTNGD/IPT/TP/DCAP/CHPP 1,085 1,905 76% 20-100% 658 788 20%
Oil & Oth. - PTTRB/PTTT/SBECL/THAPPLINE//PTTCL/TLBC/ICT/EnCo 320 1,188 271% 33-100% 430 1,118 160%
Shared of Net Income from Affiliates 41,470 75,854 83% 22,467 38,555 72%
Add Gain (Loss) on sales of investments in Associates 0 570 0 570
PTT Conso. Net Income 58,802 104,351 77% 39,799 67,052 68%
24
Statements of Cash flows For the June 30, 2011 & 2010
1H10 1H11 1H10 1H11Operating 54,842 49,759 CAPEX & Investment (55,210) 104,454)
Unit : MMTHB
EBITDA & Non-Cash Adjustment 59,745 83,290 CAPEX (PP&E, Intangible asset) 22,103) (43,827)
Changes in assets & liabilities (4,903) (33,530) Investment (Sub. &Affiliates) (1,396) (77,117)Dividend/Interest Received 6,103 6,026Others (13,983) 10,464
Free Cash Flow Finance (14,810) 16,160
(369) (54,694) Issued Loans/Bonds 30,321 51,984 Repayment Loans (18,685) (2,156)Redemption Bonds (6,000) (8,000)Interest Paid 7,096) (8,460)Share Issued 1 232 2 559Share Issued 1,232 2,559 Dividend Paid (14,582) (19,767)
Adjustment (1,401) 548
Effect of FX on Cash & Cash Equivalent (1,377) 810Effect of FX on Cash & Cash Equivalent (1,377) 810
Currency Translation Differences (24) (262)
Ending Cash & Beginning Cash & CashEnding Cash & Cash Equivalents
Beginning Cash & Cash Equivalents
Cash in (Out)
87,476 97,814 104,056 135,801 (16,580) (37,987)
25
Debt Profile : Control Cost & Manage RiskManaged debt according to financial risk and policy
Debt Portfolio
ConsolidatedConsolidatedPTT OnlyPTT OnlyUnit : MMTHB ConsolidatedConsolidatedPTT OnlyPTT OnlyU t
: Cost of debts ~ 5.08 %: % fixed-rate ~ 90 %: Avg. debt life ~ 7.5 years
: Cost of debts ~ 4.38 %: % fixed-rate ~ 82.8 %: Avg. debt life ~ 6.4 years
114 442 155,986USD
343,138370,302
g y
403,525
g y
63,979 68,308 68,410
84,147 114,442 ,THB
266,185257,443
(25%) (26%)
(31%)(25%)258,189
(39%)
8258,991 255,860 247,539
(25%) (26%) (26%)
193,454 197,877 189,779(75%) (74%)
(69%)(75%)
(74%)(61%)
31 Dec 09 31 Dec 10 30 Jun 11 31 Dec 09 31 Dec 10 30 Jun 11
Note : Data as of 30 Jun 2011 (THB/USD = 30.8882 THB/JPY = 0.3857 ) Excluding liabilities from finance leases; Cost of debts includes withholding tax. 26
PTT’s Strategic Importance to the Thai EconomyThai Premier Multinational Energy Company
PTT has the largest market cap on the SET
OTHERS
PTTEP6.3%
PTTCH2.3%
TOP1 5%PTT G
SET Market Cap = Baht 8.6 trillion
OTHERS 76.8% PTT
10.8%
1.5%
IRPC1.1%
PTTAR1 1%
PTT Group23.6%
100100
139
1.1%
BCP & OTHERS
0.5%
Ministry of Finance holds majority stake in PTTMinistry of Finance holds majority stake in PTT
Data as of 5 September 2011
Fortune Global 500 Ranking
118118
155155
128128
100100
Need new initiatives
59.9 59.9
Ministry of Finance holds majority stake in PTTMinistry of Finance holds majority stake in PTT
Rev.of 100th company in Fortune Global 500 (Billion USD)
g
64.964.9 65.065.0 68.168.1
155155
Vayupak Fund 15%
46.2 Public 34%
Ministry of
Finance
2008 2009 2010 2020
Revenue (Billion USD)
27Data as of 18 March 2011
Remark: * DJSI = Dow Jones Sustainability Index
51%
Future Growth of PTTPTT International
Coal PipelineUnit : MM TonSAR EMG (Egypt)
8.5 9 10.7 11.5 1417
( gyp )
• Investing 25% in EMG
• Offshore natural gas pipeline system
2008 2009 2010 2011 2012 2013
Jembayan Sebuku
from Egypt to Israel
• 2010 Sales volume = 2.1 BCM/y
• 2011 Average sales volume target up to 3 BCM/y
PowerPalm Plantation
• Acquired Izin Prinsip for the Northern Leases at Sebuku • Potential reserves in Brunei & Madagascar projects
PowerPalm Plantation
2011 Xayaburi Hydro 1,285 MW
PTT Green Energy
• 147,000 Ha land acquiredP t ti l 78 000 H i 2011 2012
OnwardsExpanding in neighboring countries
o Potential ̴78,000 Ha in 2011
• 11,045 Ha plantedo Additional 9,000 Ha has been prepared in 2011prepared in 2011.
• 45 T/Hr CPO Mill has been completed
28
Thailand’s projected energy demand
Commercial Primary Energy Consumption
180,000KTOE
163,299
120 000
140,000
160,000
Hydro/Import
6%
15%
145,162
127,145
106,939
5%
14%4%
2%1%
Nuclear
80,000
100,000
120,000
13%Coal/Lignite
yd o/ po
17%Renewable
2%
106,939
87,651
14%
13%3% 16%
15%
13%
40,000
60,00033%
14% Natural Gas 33%
38%
35%37%
0
20,000 38% Oil 27%32% 29%31%
Source : EPPO/ PDP 2010/ PTT team analysis29
Natural Gas : Strong and Increasing Demand over Long TermNatural gas is a fuel of choice for power producers and transportation industry
Gas demand forecast (CAGR during Gas demand forecast (CAGR during 20102010--20302030)): Total ~ : Total ~ 11%%: Power ~ : Power ~ 11%%: GSP ~: GSP ~ 22%%
6,000mmscfd : GSP ~ : GSP ~ 22%%
: Industry ~ : Industry ~ 33%%: NGV: NGV ~ ~ 11%%
44%%
55,,236236
4,000
5,000
IndustryIndustry1111%%
1616%%
1919%%
NGVNGV44%%
3,000
GSPGSP1717%%
88%%
11,,970970
2,000
88%%
1515%%
0
1,000 PowerPower7777%% 6868%% 6161%%
0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030Source : PDP 2010
30
Natural Gas Price StructureGas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns.
CustomersCustomersSales Price StructureSales Price Structure
Gas Pool PriceGas Pool Price Supply MarginsSupply Margins Pipeline TariffsPipeline Tariffs+ +
Power Producers Power Producers 6161%%
EGATEGAT 2828%% 11 7575%%: EGAT : EGAT 2828%%
: IPP : IPP 2121%%
: SPP : SPP 1212%%
Average Purchased Average Purchased Gas PriceGas Price
11..7575%%
11..7575%%
99..3333%%
2121..7 7 Bt/Bt/MMBtuMMBtu
GSP GSP 2121%% Charged at the same price structure of power producersCharged at the same price structure of power producers
Petrochemicals Feedstocks:
Ethane Propane LPG Profit-sharing mechanism based on market prices of petrochemicalsEthane, Propane, LPG Profit-sharing mechanism based on market prices of petrochemicals
NGL Reference to Naphtha market price
Local Cooking Gas
ki
Capped at 333 USD/ton
Reference to Saudi Aramco’s contract price
Industry Industry 1212%% Charged at prices comparable to fuel oilCharged at prices comparable to fuel oil
NGV NGV 66%% Capped at Capped at 88..5 5 Baht/Kg*Baht/Kg*
Export Cooking Gas
3131* Government subsidies Baht 2 /kg from Oil Fund until September 30th , 2011
• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions
Oil Prices Movement: Our Key Value Driver
Crude FO Gasoline HSD2Q/11 vs 1Q/11 10% 9% 11% 10%
Petroleum prices
140
160
2Q/11 vs 1Q/11 10% 9% 11% 10%2Q/11 vs 2Q/10 42% 43% 43% 46%
116.8 113.3 110.7100
120
140Dubai 2010 avg. = $78/bbl
Dubai 2009 avg. = $62/bbl
91.1
52 759.1
67.975.4 75.9 78.0 73.9 84.4
100.5
40
60
80
52.744.1
0
20
40
1Q/08 2Q/08 3Q/08 4Q/08 1Q/09 2Q/09 3Q/09 4Q/09 1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11
Dubai FO ULG95 MOP'S HSD MOP'S
1Q/08 2Q/08 3Q/08 4Q/08 1Q/09 2Q/09 3Q/09 4Q/09 1Q/10 2Q/10 3Q/10 4Q/10 1Q/11 2Q/11
Dubai 91.1 116.8 113.3 52.7 44.1 59.1 67.9 75.4 75.9 78.0 73.9 84.4 100.5 110.7
Price (USD/BBL)
32
FO 74.6 92.6 102.6 45.1 39.0 53.4 64.9 70.9 72.8 71.4 69.1 76.1 93.3 102.1
Gasoline MOP'S 105.1 129.8 119.6 56.7 54.8 68.8 76.8 80.5 88.2 87.5 82.5 95.0 113.1 125.0
HSD MOP'S 114.4 154.5 139.5 70.5 53.2 66.4 74.9 81.6 85.2 89.5 86.3 96.0 118.7 130.832
Petrochemical Market Reference Prices: Driven by Crude Oil Price
Aromatics prices
LPG Naptha PP HDPE2Q/11 vs 1Q/11 7% 25% 15% 8%
Benzene ParaXylene2Q/11 vs 1Q/11 -1% -7%
Petrochemical prices
$/Ton$/Ton
2Q/11 vs 1Q/11 7% 25% 15% 8%2Q/11 vs 2Q/10 21% 26% 22% 14%
2Q/11 vs 1Q/11 -1% -7%2Q/11 vs 2Q/10 26% 55%
2 000
1,6611,607
1 3731,600
1,800
2,000
1,5021,600
1,800
2,000
914854
1,5101,373
1,000
1,200
1,400
1,136
1,169
,
1 000
1,200
1,400
832877
400
600
800
,1,051
600
800
1,000
0
200
400
0
200
400
33LPG Naphtha PP HDPE
Benzene PXSource: PLATTS & ICIS 33
Subsidiaries ConsolidateS b idi i C lid t Petrochemical Subsidiaries Consolidate
Petrochemicals & Refining Business GroupE&P and Gas Business Group Oil Business Group
Data as of 30 June 2011
Subsidiaries ConsolidatePTT (Cambodia) Co., Ltd. PTTCL 100.00%Subic Bay Energy Co., Ltd. SBECL 100.00%PTT Retail Business Co., Ltd. PTTRB 100.00%PTT Green Energy Pte. Ltd PTTGE 100.00%Retail Business Alliance Co., Ltd. RBA * 49.00%
Associates Equity
Subsidiaries ConsolidatePTT Exploration & Production Plc. PTTEP 65.31%PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00%PTT LNG Co., Ltd. PTTLNG 100.00%Combined Heat and Power producing Co.,Ltd CHPP 100.00%
Joint Ventures ProportionateT Th i M l i (Th il d) C Ltd TTM (T) 50 00%
Petrochemical Subsidiaries ConsolidatePTT Polymer Marketing Co., Ltd. PTTPM 50.00%PTT Polymer Logistics Co., Ltd. PTTPL 100.00%PTT Tank Terminal Co., Ltd. PTTTANK 100.00%
Associates EquityPTT Chemical Plc. PTTCH 49.14%PTT Phenol Co Ltd PPCL 40 00%Associates Equity
Keloil-PTT LPG Sdn. Bhd. KPL 40.00%Vietnam LPG Co., Ltd. VLPG 45.00%Thai Petroleum Pipeline Co., Ltd. THAPPLINE 33.19%PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00%
Others CostPetroAsia (Huizhou) Co Ltd PA(Huizhou) 25 00%
Trans Thai-Malaysia (Thailand) Co., Ltd. TTM (T) 50.00%Trans Thai-Malaysia (Malaysia) Sdn. Bhd. TTM (M) 50.00%District Cooling System and Power Plant DCAP 35.00%
Associates EquityThai Oil Power Co., Ltd. TP 26.00%Independent Power (Thailand) Co., Ltd. IPT 20.00%PTT Utilit Co Ltd PTTUT 40 00%
PTT Phenol Co., Ltd. PPCL 40.00%PTT Maintenance and Engineering Co., Ltd.PTTME 40.00%
Joint Ventures ProportionateHMC Polymers Co., Ltd. HMC 41.44%PTT Asahi Chemical Co., Ltd. PTTAC 48.50%PTT MCC Biochem Co., Ltd. PMBC 50.00%
PetroAsia (Huizhou) Co., Ltd. PA(Huizhou) 25.00%PetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00%PetroAsia (Sanshui) Co., Ltd. PA(Sanshui) 25.00%Intoplane Services Co., Ltd. IPS 16.67%Fuel Pipeline Transportation Co., Ltd.FPT 2.76%
Others Fair ValueBangkok Aviation Fuel Services Plc BAFS 7 06%
PTT Utility Co., Ltd. PTTUT 40.00%B.Grimm BIP Power Co., Ltd. B.Grimm BIP 23.00%Nava Nakorn Electricity Generation Co.,Ltd NNEG 30.00%
Others CostRatchaburi Power Co., Ltd. RPCL 15.00%
Refining Associates EquityThai Oil Plc. TOP 49.10%PTT Aromatics and Refining Plc. PTTAR 48.49%IRPC Plc. IRPC 38.65%Star Petroleum Refining Co., Ltd. SPRC 36.00%Bangchak Petroleum Plc. BCP 27.36%PTT Energy Solutions Co Ltd PTTES 40 00%Bangkok Aviation Fuel Services Plc. BAFS 7.06% PTT Energy Solutions Co., Ltd. PTTES 40.00%
International Trading Business Group
OthersSubsidiaries Consolidate
Subsidiaries ConsolidatePTT International Trading Pte. PTTT 100.00%
Associates Equity
34
Others Fair ValueDhipaya Insurance Plc. TIP 13.33%
Subsidiaries ConsolidatePTT International Co., Ltd. PTTI 100.00%Energy Complex Co., Ltd. EnCo 50.00%Business Service Alliance Co., Ltd. BSA * 25.00%
Remark : * Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies.
Associates EquityPTT ICT Solutions Co., Ltd. PTTICT 20.00%
Recognition: Awards 2010-2011PTT is widely recognized among business communities both international and local
7th Top Asia Energy Companies of 201035th Top Global Energy Companies of 2010
128th Fortune Global 500 of 2011(155th in 2010 / 118th in 2009) 196th The Biggest Listed Companies in the
World 2010(244th in 2009 / 205th in 2008)
Best CEO 2010 Asian Corporate Director Recognition Thai BMA Best Bond Awards 2010Best CEO 2010Best CFO 2010Best Managed Company 2010Best Corporate Governance 2010Best Investor Relations 2010Best Corporate Social Responsibility 2010
Asian Corporate Director Recognition Awards 2011
• Asia’s Best CEO• Asia’s Best CFO• Best IR Website/Promotion • Best Environmental Responsibility
Thai BMA Best Bond Awards 2010• Deal of the Year• Most Creative Issue• Best Investor Relations Issuer
p p yBest Commitment to Strong Dividend Policy 2010
p y• Best Investor Relations• Best IR Officer
SET Awards 2010• Top Corporate Governance Report Award
Trusted Brand 2011• Thailand’s Top Brand in Platinum Award
for service station
Outstanding State Enterprise Award 2010• Best State Enterprise of the Year, Best
f th B tfor service station of the Best• Outstanding Leadership Award• Outstanding Innovation Award
35
Dividend Policy & Historical PaymentsPTT is firmly committed to pay dividend at no less than 25% of net income
43 6%
EPS DPS % Dividend Payout
25% 25%
32.4% 32.6% 29.8% 30.1% 30.3% 30.8% 33.0%43.6% 40.4%
35.0%25.5%
PTT’s minimum payout ratioPTT’s minimum payout ratio
30.5734.14 34.82
29.26
UNIT : Baht / shareUNIT : Baht / share 22.40
18 3321.06
23.52
7 71 8.75
13.43
18.33
9.25 10.50 11.508.00 8.50
10.257.71
2.50 2.85 4.006.75
8.00 8.506.00
36
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1H2011