Thailand Corporate Day Tisco & Deutsche Bankptt.listedcompany.com/misc/presentations/1587_E.pdf ·...
40
Thailand Corporate Day Thailand Corporate Day Tisco Tisco & Deutsche Bank & Deutsche Bank 21 21 - - 22 May 22 May 2007 2007
Transcript of Thailand Corporate Day Tisco & Deutsche Bankptt.listedcompany.com/misc/presentations/1587_E.pdf ·...
Thailand Corporate DayThailand Corporate DayTiscoTisco & Deutsche Bank& Deutsche Bank
2121--22 May22 May 20072007
2
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 the our assumptions are correct.
Actual results may differ materially from those projected.
3
Activities & Operational ResultsActivities & Operational Results
Growing the Future
Conclusion
4
PTT : The Largest Public Company in Thailand
73%15%
12%%
PTT 44.3%
PTTEP 21.0%
IRPC 8.0 %TOP 9.2%
RRC 3.6%
PTTCH 8.8%
BAFS 0.3%
TIP 0.3%
BCP 0.7%
Other 1.3%
ATC 3.9%
0
50
100
150
200
250
300
Dec-01 Jan-03 Feb-04 Mar-05 Apr-06 May-07200
300
400
500
600
700
800
900
1,000
1,100
1,200
Notes : Ownership data as of 11 May 2007, Market capitalization data as of 11 May 2007, Stock prices data from 6 Dec 2001 to 11 May 2007; FX = 34.6888 (11/05/07)
PTT GroupPTT Group~ Bt1.44tr ($42bn)~ Bt1.44tr ($42bn)or ~27% of totalor ~27% of total
PTT outperforms the marketPTT outperforms the market(since IPO on 6 December 2001)(since IPO on 6 December 2001)
Ownership : Ministry of Finance Ownership : Ministry of Finance ‘‘Direct and IndirectDirect and Indirect’’ ~ 68%, Public ~ 32%~ 68%, Public ~ 32%
PTTPTT
AffiliatesAffiliatesOthersOthers
PTT +538%PTT +538%
SET +132%SET +132%
PTT (Bt/shr) SET
Total Market Cap. ~ Bt5.34tr ($154bn)Total Market Cap. ~ Bt5.34tr ($154bn)
5
1st : Asian Business Week’s Best Performance
265th : World’s Largest Corporations(2005 /373rd & 2004 /456th)
1st : Best Managed Companies in Thailand1st : The Best Overall Companies In
Thailand For Corporate Governance 2006
354th : World’s 2000 Leading Companies(2006 / 372nd, 2005 /425th & 2004 / 461st)
Best Managed Companies in Asia
Thailand’s Business Leader of the Year
Asia’s Best Companies in 2006 : Thailand1st : Best Managed Company
1st : Best Corporate Governance1st : Best Investor Relations
1st : Best CFO
1st : Best CEO in Thailand1st : Best Investor Relations in Thailand
1st : Best in Corporate Governance in Thailand
2005 : Best CEO of the Year2006 : Best Corporate Social
Responsibilities (CSR): Best Investor Relations (IR): Distinction in Maintaining Excellent Corporate Report31st : Top 250 Global
Energy Companies Asia/Pacific
1st : Best Corporate Governance in Asia 2006
• Commitment to Social and Environmental Issues• Commitment to Energy Saving
Recognition : Confidence & CredibilityPTT is widely recognized among business community both local andPTT is widely recognized among business community both local and international.international.
PTT ratings are comparable to sovereign ratingsPTT ratings are comparable to sovereign ratings
•Local : Moody’s (A2) / S&P (A-)•Foreign : Moody’s (A3) / S&P (BBB+)
Board of the Year Awards 2002/2003 & 2004/2005
Global Top 40 Executives inChemical by ICIS
รัฐวิสาหกิจดีเดน ป 2549 1. ผลการดาํเนินงานดีเดน 2. คณะกรรมการรัฐวิสาหกิจดีเดน
3. โครงการเพื่อสังคมดีเดน
6
““Integrated Integrated value value
enhancersenhancers””
““Core value Core value creatorscreators””
E&PE&P
GasGas
RefiningRefining
PetrochemicalPetrochemical
Oil MarketingOil Marketing
Oil TradingOil Trading
Roles in Portfolio Business Areas Strategic Intents
•Create value & achieve international revenue target beyond 20% of total revenue (excluding trading revenue)
•Encourage power sector-hydro/others
Restructure & Consolidate &
expand 'cautiously‘
Lead group trading needs and build
capabilities
Reduce cost and Review Retail
Strategy
• Consolidate and establish flagship• Selectively expand to meet PTT investment
criteria
• Continue network rationalization• Review and Define Retail Strategy and Business
Models for oil and non-oil
• Further pool trading products of group companies
• Build trading capability & network
• Consolidate related affiliates and review options for IRPC
• Limit investment to sustain existing capital
Strategic actions
Grow aggressively in Thailand Plus and
beyond
Expand regional & international
network, pursue growth vigorously
Strategic Intents Drive Specific Sector Actions
7
Highlights in 1Q07PTTPTT• Issuance of bonds and loan borrowing in a total amount of Bt 12,000 mm• Repayment of long-term loans and bonds in a total amount of Bt 10,000 mm
PETROCHEMICAL BUSINESSPETROCHEMICAL BUSINESS• Planned shutdown of PTTCH’s olefins plants (40-61 days) for the expansion of its olefins
nameplate capacity and maintenance
GAS BUSINESSGAS BUSINESS• Construction of the 3rd Pipeline – 1st phase is completed and started commissioning on
March 27, 2007. As a result, the transmission pipeline network capacity increased by 700 mmcfd from 3,660 mmcfd to 4,360 mmcfd• 18 days scheduled plant shutdown of GSP5 in relation to PTTCH’s planned shutdown of
olefins plants for expansion and maintenance• PTTEP’s Oman 44 received its first gas sales contribution with production of 50 mmcfd
of gas and 3,200 BBL/D of condensate in March 2007
OIL BUSINESSOIL BUSINESS• PTT has signed the Share Sale and Purchase Agreement with ConocoPhillips Company
(COP) for the acquisition of COP’s retail petroleum business in Thailand
8
5%
71%
19%5%
Oil GroupOil Group
Gas GroupGas Group PetchemPetchem
Revenues 298,279 Bt mmRevenues 298,279 Bt mm
EBITDA 32,664 Bt mmEBITDA 32,664 Bt mm
34%8%
12%
46%
Gas GroupGas Group
PetchemPetchem
Oil GroupOil Group
PTTEPPTTEP
TM ~13%Mkt ~ 8%GSP ~11%Oths ~2%
Performance Highlights : 1Q07 results 1Q071Q07
Note : All figures after restatement; Segmentation of Revenues and EBITDA do not include others and eliminations
40%
19%6%
12%
3%
20%
Net Income 22,581 Bt mmNet Income 22,581 Bt mm
PTTPTT
AssoAsso..--RefRef
PTTEPPTTEPPTTCHPTTCH
AffAff..--OthersOthers
Aff.Aff.--PetroPetro
56,187
18,39744,499
17,615
235,021
298,279
62,177
17,877 14,945
231,681
270,254
+10%
+11%
- 3% - 15%
- 1%RRC status
changed from a subsidiary to an
associate
1Q061Q06 1Q071Q071Q061Q06 1Q071Q07 1Q061Q06 1Q071Q07 1Q061Q06 1Q071Q07 1Q071Q071Q061Q061Q061Q06 1Q071Q07
PTTEPPTTEP(after deducted (after deducted
royalties)royalties)
Refining sub.Refining sub. PetrochemPetrochem sub.sub.TotalTotal GasGas OilOil
10,481
15,627
2,924 5,552 2,627
36,766
11,187
32,664
15,285
4,139 2,559
1Q061Q06 1Q071Q071Q061Q06 1Q071Q07 1Q061Q06 1Q071Q07 1Q061Q06 1Q071Q07 1Q071Q071Q061Q061Q061Q06 1Q071Q07
+7%- 2%
- 25%- 3%
- 11%PTTEPPTTEP Refining sub.Refining sub. PetrochemPetrochem sub.sub.TotalTotal GasGas OilOil
10,256
5,106
2,3114,213
1,837
8,814
4,387
1,346
8,034
- 5%
- 14%
- 14%
+ 91%
1Q061Q06 1Q071Q071Q061Q06 1Q071Q07 1Q061Q06 1Q071Q07 1Q061Q06 1Q071Q07 1Q071Q071Q061Q061Q061Q06 1Q071Q07
23,723
- 27%
22,581
RRC status changed from a subsidiary to an
associate
- 100%
- 100%
PTTEPPTTEPTotalTotal PTTPTT Other AffiliatesOther AffiliatesRefining sub.Refining sub. PetrochemPetrochem sub.sub.
RRC status changed from a subsidiary to an
associate
- 100%
PTTEPPTTEP
9
Pipeline Business : Stable Incomes & Solid Growth
Note : Sales volume including unstabilized NGL
985 986 1030
811 806 809
410 419 441
526 540 526
284 323 362
3,016 3,075 3,167
1Q/06 4Q/06 1Q/07
EGAT IPP SPP GSP Industry
Customer ProfileCustomer Profile
•• 11stst phase of the 3phase of the 3rdrd pipeline has started commercializing on 27 March 2007 with 700 pipeline has started commercializing on 27 March 2007 with 700 mmcfd capacitymmcfd capacityand is expected ~200 mmcfd additional sales volume in 2007.and is expected ~200 mmcfd additional sales volume in 2007.
•• The increase in sales volume, especially sales to industrial cusThe increase in sales volume, especially sales to industrial customers, in 1Q/2007 led to better tomers, in 1Q/2007 led to better performance of Pipeline Business (transmission and selling & marperformance of Pipeline Business (transmission and selling & marketing business)keting business)
33%
26%
13%
17%
11%
Gas sales volumes (mmcfd) @ heat 1,000Gas sales volumes (mmcfd) @ heat 1,000
3,1673,105
3,075
2,970
3,013
3,0613,016
3,138
2,940
2007 2006 2005+ 5% yoy+ 3% qoq
2005 avg.2005 avg.2,9962,996
2006 avg.2006 avg.3,0843,084
1Q1Q 2Q2Q 3Q3Q 4Q4Q
10Note : Sales volume including unstabilized NGL; Sources : PP, HDPE (ICIS), LPG (Saudi Aramco’s CP), Naphtha (MOP Singapore), Feedstock (estimated)
Gas Separation Plants : Strategic Value CreatorsNatural gas is utilized to the fullest potential through gas sepNatural gas is utilized to the fullest potential through gas separation plantsaration plants
•• Sales volume in 1Q/07 decreased Sales volume in 1Q/07 decreased 7% 7% YoYYoY due mainly to 18 days due mainly to 18 days planned shutdown of GSP#5 in planned shutdown of GSP#5 in relation to planned shutdown of relation to planned shutdown of PTTCHPTTCH’’ss olefins plantsolefins plants
•• Selling price of GSP products in Selling price of GSP products in 1Q/07 increased 1Q/07 increased YoYYoY, except LPG , except LPG priceprice
•• Feedstock cost increased 21%YoY in Feedstock cost increased 21%YoY in US$ denomination, higher than the US$ denomination, higher than the increase in sales priceincrease in sales price
•• Hence, Hence, GSPsGSPs business reported lower business reported lower performance in 1Q/07performance in 1Q/07
515 505 480
120 122 117
243 253199
55 6471
933 944 868
183 220 222
477
483
1,274
1,275
527578
527485
1,114
1269
1,109
1267
1Q/06 4Q/06 1Q/07
LPG NGL Ethane Propane
FeedstockFeedstock
LPGLPG
Product Prices ($/ton)Product Prices ($/ton)
NaphthaNaphtha
HDPEHDPE
PPPP
14%14%
14%14%
9%9%
(9%)(9%)
21%21%
%QOQ%QOQ
PPPPHDPEHDPENaphthaNaphthaLPGLPG
%YOY%YOY
(1%)(1%)
(0.4%)(0.4%)
9%9%
10%10%
1%1%
Price ($/ton)Price ($/ton)Sales Volume (x 1,000 tons)Sales Volume (x 1,000 tons)
30%30%(18%)(18%)
(2%)(2%)
(7%)(7%)
(7%)(7%)
%QOQ%QOQ
PropanePropaneEthaneEthaneNGLNGLLPGLPG
%YOY%YOY
11%11%(21%)(21%)
(4%)(4%)
(5%)(5%)
(8%)(8%)
Sales VolumeSales Volume
TotalTotal
--7% 7% YoYYoY--8% 8% QoQQoQ
Feedstock (NG)Feedstock (NG)
11
171,508 165,465 171,170
34.28 35.92 35.43
1Q/06 4Q/06 1Q/07
Sales Vol. (boepd)Avg. Sales Prices ($/boe)
OperationsOperations -- 0.2% + 3%0.2% + 3%+ 3%+ 3% -- 11%%
%%yoyyoy %%qoqqoq
PTTEP : Growth Engine & Cash Generator
•• Sales volume in 1Q/07 slightly decreased Sales volume in 1Q/07 slightly decreased YoYYoY from from YetagunYetagunnatural gas sales and B8/32&9A crude oil salesnatural gas sales and B8/32&9A crude oil sales
•• Average sales prices increased 3%YoY in US$ denomination Average sales prices increased 3%YoY in US$ denomination but decreased in Baht exchange ratesbut decreased in Baht exchange rates
•• First gas sales contribution from OMAN44First gas sales contribution from OMAN44
•• Growth potential from highly successful discoveries in M9 and Growth potential from highly successful discoveries in M9 and NangNang NuanNuan
•• Drilling success ratio 6:7Drilling success ratio 6:7
Source : PTTEP analyst meeting : 4 May 2007
PTT holds 66. 65% in PTTEP (as of 31 March 2007).PTT holds 66. 65% in PTTEP (as of 31 March 2007).
Unit : Bt mm
Proved ReservesProved Reserves~ 923 mboe~ 923 mboe GasGas
83%83%
LiquidLiquid17%17% OverseaOversea
29%29%
DomesticDomestic71%71%
Reserves Life 13 yrsReserves Life 13 yrs
21,02020,149 19,731
15,55514,467
15,247
7,839
6,1186,771
1Q/06 4Q/06 1Q/07
Revenues
EBITDA
NI
- 6% - 2%- 2% + 5%- 14% + 11%
%yoy %qoq
12
5,832 5,8237,589
928 943
1,096407 557
473859 1,265
1,0538,026 8,58910,211
1Q/06 4Q/06 1Q/07
Others
Petrochem
Condensate
Crude
452 502 558
1,457 1,337 1,386
313 331 358489 547 511651 677 634
3,362 3,394 3,448
1Q/06 4Q/06 1Q/07
LPG
Gasoline
Jet/IK
Diesel
Fuel Oil
Oil Business : Strong Leadership Position with No.1 market sharePTT is a market leader in oil retails at 32% market share with PTT is a market leader in oil retails at 32% market share with 1,219 gas stations nationwide.1,219 gas stations nationwide.
0.08
0.61
0.16
0.35
0.12
0.64
Marketing MarginMarketing Margin
Trading MarginTrading Margin
Unit : Unit : Baht/LitreBaht/Litre
11Q06Q06
44Q06Q06
11Q07Q07
11Q06Q06
44Q06Q06
11Q07Q07
Unit : million liters
Source : Ministry of Energy: Note : excluded supply sales
Oil Marketing : sales volume ~ 240 Oil Marketing : sales volume ~ 240 kboe/dkboe/d
Oil Trading : trade volume ~ 714 Oil Trading : trade volume ~ 714 kboe/dkboe/dUnit : million liters
Source : PTT
+ 3% yoy+ 2% qoq
+ 27% yoy+ 19% qoq
•• Marketing margin is squeezing, while the Marketing margin is squeezing, while the volume still promising volume still promising
•• Gasohol market has been expanding Gasohol market has been expanding rapidly; PTT accounts for 39% of market rapidly; PTT accounts for 39% of market sharesshares
•• Trading volume boosted in 1Q07 from Trading volume boosted in 1Q07 from sales of crude to refining associates and sales of crude to refining associates and outout--out trading activities out trading activities
ThailandThailand’’s Market Shares Market Share(1Q07 Average)(1Q07 Average)
24%
12%
13% 12%
7%
32%
PTT
BCP
ESSOShell
Caltex
Others
13
3,438
1,841
5,334
8,380
4,053 5,759
106 98 106
1Q/06 4Q/06 1Q/07
EBITDA NI %Utl
SPRC 150 kbpd (PTT 36%)
776
3,0692,463
2,1922,013 577
87107
99
1Q/06 4Q/06 1Q/07
1,166
2,9202,945
1,9662,338 821
97107103
1Q/06 4Q/06 1Q/07
RRC 145 kbpd (PTT 48.75%)
Refining Associates : Better performance in 1Q/07 from high GRM
PTT Group represents 34% of total refining capacity by equity poPTT Group represents 34% of total refining capacity by equity portionrtion
Cooperation among refineries improves security of supply and helCooperation among refineries improves security of supply and helps manage supply chain efficiently.ps manage supply chain efficiently.
TOP 225 kbpd (PTT 49.54%)
857
41
574
-711 -42514
4438
62
1Q/06 4Q/06 1Q/07
BCP 120 kbpd (PTT 29.75%)
IRPC 215 kbpd (PTT 31.5%)
2,9553,576
-2,602 -3,1262,480 3,524
82 6687
1Q/06 4Q/06 1Q/07
Unit : Bt mm
6.5
11.3
2.53.6
8.5
5.9
0
2
4
6
8
10
12
1Q/06 2Q/06 3Q/06 4Q/06 1Q/07
GRM ($/bbl)
2006 (avg)2006 (avg)
Average GRM of PTT’s associates’ complex refineries
14
2,1632,9232,497
501
2,524
349
70%99% 98%
0
5 0 0
1 0 0 0
1 5 0 0
2 0 0 0
2 5 0 0
3 0 0 0
3 5 0 0
4 0 0 0
4 5 0 0
5 0 0 0
5 5 0 0
6 0 0 0
6 5 0 0
7 0 0 0
7 5 0 0
8 0 0 0
1Q/06 4Q/06 1Q/07
- 20%
0%
20%
40%
60%
80%
100%
120%
: EBITDA : NI : %Utilization
4,357
5,647 6,3504,249
4,158 2,435
61%
104%107%
103%99%93%
- 1 , 0 0 0
1 , 0 0 0
3 , 0 0 0
5 , 0 0 0
7 , 0 0 0
9 , 0 0 0
1 1 , 0 0 0
1 3 , 0 0 0
1 5 , 0 0 0
1Q/06 4Q/06 1Q/07-10%
10%
30%
50%
70%
90%
110%
: EBITDA : NI: OLEFINS : HDPE
Petrochemical Affiliates : Capacity expansion and diversified portfolioPTT focuses on gasPTT focuses on gas--based petrochemical business to create more values from natural based petrochemical business to create more values from natural gas assets.gas assets.
%utilization %utilization
ATC ATC (PTT 49.67%)(PTT 49.67%)PTTCHPTTCH (PTT 55.19%)(PTT 55.19%)
PTTCHPTTCH
ATCATC
PTT GSPsPTT GSPs
RefineriesRefineries
PTTPTT
Ethane, Propane,
LPG, NGL
Naphtha
Condensate
Reformate
Pyg
as
Ligh
t N
apht
ha
&
Raf
fin
ate
Unit : Bt mm
ParaxyleneParaxylene495 495 ktakta
BenzeneBenzene467 467 ktakta
CyclohexaneCyclohexane150 150 ktakta
PropylenePropylene377 377 ktakta
EthyleneEthylene1,146 1,146 ktakta
HDPE 250 HDPE 250 ktakta+250 +250 ktakta
MEGMEG200 200 ktakta
Unit : Bt mm
15
Consolidated Income Statements : 1Q07
62%3,7351,434---Dividend /Gain on investment disposal
7%12,54911,690(5%)22,58123,723Net Income
---(66%)4351,298- PTTCH
---(74%)147565- Others
2%11,13110,873(14%)26,30330,704EBIT
(2%)14,73515,029(12%)36,49341,560Contribution Margin
1%265,171263,10914%261,786228,694Cost of sales (excl. DD&A)
4.47
8,814
-
2,380
2,380
11,194
861
1,935
-
1,345
12,476
3,375
279,906
1Q07
7%
(16%)
-
(1%)
(1%)
(13%)
(179%)
12%
-
(21%)
(1%)
(21%)
1%
%YOY
-103%7,1773,532Shared incomes from assoc.
2,406(67%) 1,6534,987Gain from FX.
4.18(5%)8.058.48EPS (per share)
10,256---Net Income (Company Only)
-2%5,4205,292- PTTEP
2,406(1%)2,3802,406- PTT
2,406(12%)8,3829,562Taxation
12,661(9%)34,53538,036EBT
1,699(8%)2,5732,787Interest expenses
1,6325%6,3626,062DD&A
12,505(11%)32,66436,766EBITDA
4,089(13%)4,8475,568SG&A & Exploration expenses (excl. DD&A)
278,13810%298,279270,254Sales
1Q06%YOY1Q071Q06Unit : Bt mm
Consolidated Cost Method
16
• Stronger financial position
• Treasury policy is strictly followed to maintain financial discipline− Net Debt/E < 1.0
− Net Debt/EBITDA < 2.0
• PTT ratings are comparable to sovereign ratings− Foreign : Moody’s (A2), S&P (BBB+)
− Local : Moody’s (A2), S&P (A-)
Balance Sheets : Strong Financial Position with Low Gearing
305,378 337,132 358,676
122,415
160,892170,303
147,858
165,21174,156
88,219105,535
219,951223,647
165,346
354,322278,433
378,068
219,610
177,180
151,764
198,145
751,453
649,807
799,860
2005 2006 1Q07
PTT is fully committed to maintain solid & secure financial posiPTT is fully committed to maintain solid & secure financial position.tion.
Note : Figures after restatement at ending periods
Other Liabilities
PP&E
Others Non-
currentAssets
OtherAssets
L/TLiabilities(incl. due within 1 yr)
Shareholders’Equity
+ 16%+ 16%
13.0
12.7
12.9
0.50.4
0.8
0.9 0.9
0.3
0.6
0.6
1.3
2005 2006 1Q07
Net Debt/EBITDANet Debt/EBITDA
Net Debt/ENet Debt/E
IBD/EIBD/E
ICRICR
Financial RatiosFinancial Ratios
Balance SheetsBalance SheetsUnit : Bt mm
• GSP#5 startup• Conso. PTTCH
+ 6%+ 6%
• De-conso RRC • Recognized BCP,
IRPC under Equity Method
Cash & S-T Invest.
17
Debt PortfolioDebt Portfolio
134,997 138,162 148,082
113,400125,518 131,558
84,285 73,97367,855
41,69443,521 38,683
7,033 6,887
7,033 6,887
2005 2006 1Q07 2005 2006 1Q07
YenUSDTHB
PTTEP6%PTTCH
9%
PTT80%
Others7%
Consolidated debt ~ Bt223bn ($6.3bn)Consolidated debt ~ Bt223bn ($6.3bn)
4,000 12,40038,300
76,8586,541
31,507
6,750
380 393
< 1Yr 1-2 Yr 2-5 Yr > 5 YrPTT THB PTT USD PTT JPY
PTTPTT’’s repayment schedule (Company Only)s repayment schedule (Company Only)
ConsolidatedConsolidated PTT OnlyPTT Only
: TTM ~ 4%: DCAP: PTTNGD: PTTUT ~ 3%: PPCL: HMC
Note : Data as of 31 March 2007 (THB/USD = 35.1354, THB/JPY = 0. 299437) Excluding liabilities from finance leases; Cost of debts includes withholding tax
: Cost of debts ~ 5.94%: % fixed-rate ~ 84%: Avg. loan life ~ 8.13 years
: Cost of debts ~5.82%: % fixed-rate ~ 89%: Avg. loan life ~ 8.58 years
~ 35% of total loan (Bt62bn) will be repaid within 5 years.
Debt portfolio is structured to minimize financial risks.Debt portfolio is structured to minimize financial risks.
Unit : Bt mm
(38%)
(62%)
(27%)
(73%)
(3%)
(63%) (71%)
(25%)
222,824222,824219,282219,282
177,128177,128
155,094155,094
219,168219,168
176,072176,072
(34%) (4%)
4,3804,380 12,79312,793
44,84144,841
115,115115,115
(66%)
(31%)
(3%)
(74%)
(22%)
(4%)
Debt Profile : Control Cost & Manage Risk
18
Cash Flow (Company Only) : Jan – Mar 2007
OperatingOperating 16,85316,853
Net Income & nonNet Income & non--cashcashAdjustmentAdjustment
8,892*8,892*
Changes in assets Changes in assets & liabilities& liabilities
7,9617,961
CAPEX & INVESTMENTCAPEX & INVESTMENT (8,284)(8,284)
CAPEX (PP&E)CAPEX (PP&E) (5,579)(5,579)
Investment in Affiliates.Investment in Affiliates. (1,748)(1,748)
Free Cash FlowFree Cash Flow
8,5698,569
FinanceFinance 2,0012,001
Bond & L/T LoanBond & L/T Loan
OthersOthers (957)(957)
12,00012,000
Share IssuedShare Issued 3434
REPAYMENTREPAYMENT (10,000)(10,000)
Cash in (Out)Cash in (Out)
10,57110,571
Beginning Cash & Beginning Cash & Cash Equivalents Cash Equivalents
26,51026,510
Ending Cash & Ending Cash & Cash EquivalentsCash Equivalents
37,08037,080
Unit : Million Unit : Million BahtBaht
OthersOthers (33)(33)
Note : *Including effect of exchange rates on cash and currency transtation differences
19
Activities & Operational Results
Growing the FutureGrowing the Future
Conclusion
20
Energy Consumption : Growing along with Economic Expansion
0
500
1,000
1,500
2,000
2,500
3,000
2000 2003 2006 2009 2012 2015
kboed
Oil and gas are major sources of energy and likely to remain so Oil and gas are major sources of energy and likely to remain so for many years.for many years.
Source : EPPO/PTT
OilOil
GasGas
CoalCoal
Hydro/OthersHydro/Others
45%45% 38%38%
38%38%
42%42%16%16%
17%17%
3%3%
2%2%
Energy consumption forecast (CAGR during 2007Energy consumption forecast (CAGR during 2007--2015)2015): Total ~ 5%: Total ~ 5%: Gas ~ 6%: Gas ~ 6%: Oil ~ 3%: Oil ~ 3%: Coal ~ 5%: Coal ~ 5%
57%57%
29%29%
12%12%
2%2%
1,2821,282
1,8461,846
2,6972,697
21
Natural Gas : Strong and Increasing Demand over Long TermNatural gas is a fuel of choice for power producers and increasiNatural gas is a fuel of choice for power producers and increasingly transportation industry.ngly transportation industry.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2000 2003 2006 2009 2012 2015
mmscfd
Source : PTT – based on PDP 2007
PowerPower
GSPGSP
IndustryIndustry
77%77%
17%17%
8%8%
1,9701,970
3,3203,320
6,1006,100
11%11%
19%19%
20%20%
72%72%
62%62%
Gas demand forecast (CAGR during 2007Gas demand forecast (CAGR during 2007--2015)2015): Total ~ 8%: Total ~ 8%: Power ~ 6%: Power ~ 6%: GSP ~ 10%: GSP ~ 10%: Industry ~ 15%: Industry ~ 15%
22
CAPEX & Investments : Growing the Future
32,172
43,783 45,178 44,139
30,228
11,570
2,735
2,468 1,237 1,053
1,083
37,19310,481
6,3495,054
2,418
815,595
24,586
18,197
6,406
1,799 1,730
1,034 19,82123,054
38,049
53,30957,281
35,158
73,134
57,586
53,58150,759
13,051
34,174
-5,000
5,000
15,000
25,000
35,000
45,000
55,000
65,000
75,000
85,000Gas Oil JV Others PTTEP PTTCH
Sources : PTT (Board approval on 21 Dec 2006), PTTEP (Analyst Meeting – 4 May 2007); FX = 38.0000; PTTCH’s CAPEX does not includes ‘on lend’ of Bt 32,782mm
PTT plans to invest Bt210bn ($5.5bn) during 2007PTT plans to invest Bt210bn ($5.5bn) during 2007--2011, mostly into expanding gas business.2011, mostly into expanding gas business.
3%12%
84%
1%
Others
Gas
Oil
JV
In addition to PTT’s CAPEX during 2007-2011-PTTEP’s CAPEX ~ Bt191,514mm ($5.0bn)-PTTCH’s CAPEX ~ Bt 52,718mm ($1.4bn)
PTTPTT’’s CAPEX ~ Bt209,151m ($5.5bn)s CAPEX ~ Bt209,151m ($5.5bn)during 2007during 2007--20112011Unit : Bt mn
2006 A2006 A 20072007 20082008 20092009 20102010 20112011
23
Strategic Roadmap : Core Value CreatorsInfrastructure is under expansion to enhance capability to meet Infrastructure is under expansion to enhance capability to meet rising gas demand.rising gas demand.
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
2006 2007 2008 2009 2010 2011
TMTM
Project completed
3rd Pipeline ph1
Pipeline Capacity~ 3,660 mmcfd
~ 4,360
Project completed
Capacity~ 4.1 mta
~ 4.1 mta
GSP
GSP
Note : Pipeline capacity include onshore pipeline to Namphong field of 140 mmcfd ; Board approval data as of December 2006
IndustryIndustry ~17%~17%
Gas Demand OutlookGas Demand OutlookUnit : mmscfd
GSP ~21%GSP ~21%
Power ~62%Power ~62%
3rd Pipeline ph2Offshore
Compressor
~ 5,560
~ 4.1 mta
~ 5,560 ~ 5,560
4th onshore pipeline
~ 6,960
Ethane Plant
~4.9 mta
GSP#6
~ 6.7 mta
24Grand Total
378
909~ 215,000 bpd
~ 145,000 bpd
~ 120,000 bpd
Power Plant -200MWProject Cost $ 200 MM
Safety & Lay out Improv.Project Cost $ 39 MM
Propylene BoosterProject Cost $ 50 MM
HDPE Compound_PipeProject Cost $ 12 MM
ABS ExpansionProject Cost $ 10 MM
Petroleum Improv.Project Cost $ 620 MMJetty ImprovementProject Cost $ 46 MM
BC
PB
CP
TOP
TOP
RR
CR
RC
*IR
PC
*IR
PC
20062006 20072007 20020088 20020099 20102010 20201111
Strategic Roadmap : Integrated Value Enhancers - RefineryNew businesses are under development to utilize assets, enhance New businesses are under development to utilize assets, enhance competitiveness, and diversify risks.competitiveness, and diversify risks.
Reforming & Upgrading
+ 65,000 bpdProject Cost $ 522 MM
Ethanol Project500,000 Litre/D
Project Cost $150 MM
Ethanol Project 100,000 Litre/D
Project Cost $50 MMTLB Specialties
Project Cost $61 MM
PQI Project VDU 35 KBD &
HCU 25 KBDProject Cost $378 MM
Condensate Tank
Project Cost 30 MM
CDU-3 Debot+ 50,000 bpd
Project Cost $218MM
Expansion (TPX)PX 348 to 489 ktaMX 72 to 90 kta
BZ 177 ktaTL 144 kta
Project Cost $ 282 MMNew Gas Turbine
Project Cost $ 43 MMSBM Expansion
Project Cost $ 150 MM
~ 225,000 bpd
TotalTotal(MM$) (MM$)
954
552
2,793
Refining CapacityRefining Capacity
Note : *IRPC’s plans are subjected to further study and approval
25
Propylene 50 KTA
200920092008200820072007
Ethylene 1,146 KTAPropylene 377 KTAHDPE 250 KTAMEG 220 KTAEO 80 KTAEthoxylates 50 KTAVNT : VCM 200 KTABPE : HDPE 250 KTA
PP 450 KTA
Ethylene : 360 KTA Propylene : 312 KTA
BTX : 380 KTAPE : 310 KTA PP : 475 KTA
PS/ABS : 211 KTA MTBE : 100 KTA
OTHERS : 485 KTA
20102010
Ethylene 1000 KTALDPE 300 KTALLDPE 400 KTA
HDPE 300 KTA
Ethylene 130 KTAPropylene 60 KTA
Ethylene 100 KTA
Methyl Ester Fatty Alcohol
MEG 95 KTA
331 KTA
Ethanolamines 50 KTAChlorine Chloride 20 KTA
Phenol 200 KTAAcetone 125 KTA
EVA $118 MM$118 MMAutoclave LDPE& EVA 100 KTA
PP 300 KTA
Strategic Roadmap : Integrated Value Enhancers - PetrochemicalNew businesses are under development to utilize assets, enhance New businesses are under development to utilize assets, enhance competitiveness, and diversify risks.competitiveness, and diversify risks.
HMCHMC
AN 200 KTAMMA 70 KTA
BTX 1,101 KTAPX 530 KTABZ 467 KTACyclohexane 150 KTACondensate 70 KBD
PX 616 KTABZ 363 KTAToluene 60 KTA
2,0362,036
283283
600600
477477
581581
3,9773,977
TotalTotal(MM$)(MM$)
Grand Total
DebotDebot II $140MM$140MM
Methyl EsterMethyl Ester $165MM$165MMFatty AlcoholFatty Alcohol
EO DerivativesEO Derivatives $45MM$45MM
DebotDebot IIII $75MM$75MM
MEG ExpansionMEG Expansion $$5858MMMM
HDPE IRAN JVHDPE IRAN JV $225MM
Phenol Phenol $283MM$283MM
PDH/PPPDH/PP $600MM$600MM
Aromatic 2Aromatic 2 $551MM$551MM
AN/MMAAN/MMA$340MM$340MM$137MM$137MM
$1,300MM$1,300MM
EO DerivativesEO Derivatives $28MM$28MM
DebottleneckDebottleneckAromatic 1Aromatic 1 $10MM$10MM
Additional 10-15% capacity
DebottleneckDebottleneckAromatic 1Aromatic 1 $20MM$20MM
Additional 20% capacity
HDPE ExpansionHDPE 100 KTA
26
Activities & Operational Results
Growing the Future
ConclusionConclusion
Outlook 2Q/2007
• Domestic oil demand is expected to slow down in relation to the slow down of economy
• Natural gas demand is expected to grow after the commissioning of the 3rd pipeline – 1st phase.
• Threat of supply disruption has brought the world oil prices to raise back to $60-65/bbl
• High GRM is expected in 2Q07 due to the significant reduction of US oil reserves and seasonal shutdown of Asia located refiners
• Petrochemical prices tend to remain fluctuate and sustain at high level in relation to the high oil prices and tight supply situation
Thank youThank you
PTT Public Company Limited – Capital Market & Investor Relations DepartmentTel. +66 2 537-2792, Fax. +66 2 537-2791, Email: [email protected], http://www.pttplc.com/
29
Hydrocarbon Value ChainG
asG
asO
ilO
ilP
etro
chem
ical
Pet
roch
emic
al
Crude Oil Crude Oil ProcurementProcurement
Natural Gas
Crude & Condensate
Power Plants
Compressor
Gas Separation Plants
PTTRF
Natural Gas Mix
Gas Products
Electricity
DCS in Airport
NGV
Oil
LPG
Logistics
Petrochemical Plants: Intermediates (MEG, Phenol, etc.) Plastic Resins
Olefins & Aromatics Plants
End Products
Petroleum Products
PipelinePTT Stations
UpstreamUpstream IntermediateIntermediate DownstreamDownstream End CustomersEnd Customers
PTTEP
Trading
Export MarketsExport Markets
PTT Group has strong presence in various sectors throughout the PTT Group has strong presence in various sectors throughout the hydrocarbon value chain.hydrocarbon value chain.
Industry
Lube Base Plant
LPG & NGL
NGL
LPG
Olefin gas products
Crude & Condensate
30
Subsidiaries Consolidate Subsidiaries Consolidate PetrochemicalPTT Exploration & Production Plc. PTTEP 66.65% PTT International Trading Pte. PTTT 100.00% Subsidiaries ConsolidatePTT Natural Gas Distribution Co.,Ltd. PTTNGD 58.00% PTT (Cambodia) Co.,Ltd. PTTCL 100.00% PTT Chemical Plc. PTTCH 55.19%PTT Utility Co.,Ltd. PTTUT 40.00% Subic Bay Energy Co.,Ltd. SBECL 100.00% PTT Phenol Co.,Ltd. PPCL 40.00%PTT LNG Co.,Ltd. PTTLNG 100.00% Retail Business Alliance Co.,Ltd RBA 49.00% PTT Polymer Marketing Co.,Ltd. PTTPM 75.00%
PTT Polymer Logistics Co.,Ltd. PTTPL 100.00%
Joint Venture Proportionate Associates Equity Associates EquityTrans Thai-Malaysia (Thailand) Co.,Ltd. TTM (T) 50.00% Keloil-PTT LPG Sdn. Bhd. KPL 40.00% Aromatics (Thailand) Plc. ATC 49.67%Trans Thai-Malaysia (Malaysia) Sdn. Bhd. TTM (M) 50.00% Thai Lube Blending Co.,Ltd TLBC 48.95% IRPC Plc. IRPC 31.50%District Cooling System And Power Plant DCAP 35.00% Vietnam LPG Co.,Ltd. VLPG 45.00%
Thai Petroleum Pipeline Co.,Ltd THAPPLINE 33.19% Joint Venture ProportionatePetroAsia (Thailand) Co.,Ltd. PA(Thailand) 35.00% HMC Polymers Co.,Ltd HMC 41.44%
Associates Equity PTT Asahi Chemical Co.,Ltd. PTTAC 47.50%Thai oil Power Co.,Ltd. TP 26.00%Independent Power (Thailand) Co.,Ltd. IPT 20.00%
RefiningAssociates Equity
Bangkok Aviation Fuel Services Plc. BAFS 7.06%
Thaioil Plc. TOP 49.54%Star Petroleum Refining Co.,Ltd. SPRC 36.00%Rayong Refinery Public Co.,Ltd. RRC 48.75%
Others
PetroAsia (Huizhou) Co.,Ltd. PA(Huizhou) 25.00%PTT Mart Co.,Ltd. PTT Mart 49 .00%
Cost
PetroAsia (Shantou) Co.,Ltd. PA(Shantou) 15.00%
Fuel Pipeline Transportation Co.,Ltd. FPT 2.76%Intoplane Services Co.,Ltd. IPS 16.67%
Bangchak Petroleum Public Co.,Ltd. BCP 29.75%
Others CostRatchaburi Power Co.,Ltd RPCL 15.00%
Subsidiaries Consolidate Associates Equity OthersEnergy Complex Co.,Ltd. EnCo 50.00% Dhipaya Insurance Public Co.,Ltd. TIP 13.33%PTT ICT Solutions Co.,Ltd. PTTICT 20.00%
Gas Business Group Oil Business Group Petrochemical & Refining
Others Group
Group
Fair Value
Fair Value
Others
*
* **
Remark : PTT’s subsidiaries that PTT holds less than 50% is consolidated because PTT has the power to control the financial and operating policies.Note : Data as of 31 March 2007
31
EBITDA 142,675 Bt mmEBITDA 142,675 Bt mm
31%
3%
21%
45%
Gas GroupGas GroupPetchem&RefPetchem&Ref
OilOil
PTTEPPTTEP
TM ~12%Mkt ~ 5%GSP ~14%
Performance Highlights : Record 2006 results
20062006
22%
68%
10%Oil GroupOil Group
Gas GroupGas Group
PetchemPetchem&Ref&Ref
Revenues 1,213,985 Bt mmRevenues 1,213,985 Bt mm
Note : All figures after restatement; Segmentation of Revenues and EBITDA do not include others and eliminations
38%
19%9%
6%2%
14%
5%7%
Net Income 95,261 Bt mmNet Income 95,261 Bt mm
PTTPTTAffAff..--RefRef
PTTEPPTTEPPTTCHPTTCH
AffAff..--OthersOthersAff.Aff.--PetroPetro
RRC RRC (100%(100%--5 MTH)5 MTH)
32,537
15,120 10,464
26,901
499
95,261
36,041
18,200
4,5618,362
21,451
+11%
+9%
+20%-56%
- 20%
Gain on Disposal of RRC Gain on Disposal of RRC after tax 6,682after tax 6,682
Gain from Gain from RRCRRC’’ss Debt haircut 5,417Debt haircut 5,417 5 mth.Conso.
RRC
20052005 2006200620052005 20062006 20052005 20062006 20052005 20062006 200620062005200520052005 20062006
85,521
+ 1,576%
PTTEPPTTEP PTTCHPTTCHRRCRRCTotalTotal PTTPTT Other AffiliatesOther Affiliates
208,930
59,373141,275
15,523
805,263
1,213,985
244,684
76,419
76,389
76,676
995,443926,269
+31%
+17%
+29%
- 46%
+394%
+24%
Conso.PTTCH
5 mth.Conso.
RRC
20052005 2006200620052005 20062006 20052005 20062006 20052005 20062006 200620062005200520052005 20062006
PTTEPPTTEP RefiningRefining PetrochemPetrochemTotalTotal GasGas OilOil
42,11050,051
13,205
1,740
7,253
114,045
44,806
142,675
63,313
6,46924,334
5,003
20052005 2006200620052005 20062006 20052005 20062006 20052005 20062006 200620062005200520052005 20062006
+6%+26%
-51% +1,299%-31%
5 mth.Conso.
RRC
+25%PTTEPPTTEP RefiningRefining PetrochemPetrochemTotalTotal GasGas OilOil
Gain on Disposal of RRC 6,682Gain on Disposal of RRC 6,682
32
1Q/06 2Q/06 3Q/06 4Q/06
171,508 171,662 168,830 165,465
34.28 37.61 35.9238.25
1Q/06 2Q/06 3Q/06 4Q/06
Sales Vol. (boepd)Avg. Sales Prices ($/boe)
OperationsOperations -- 3% 3% -- 2%2%+ 14%+ 14% -- 66%%
%%yoyyoy %%qoqqoq
PTTEP : Growth Engine & Cash Generator
2005 2006
•• In 2006, Avg. sales price has risen more than 20% In 2006, Avg. sales price has risen more than 20% with sales volume growth ~10%with sales volume growth ~10%
•• Maintain solid financials and sufficient liquidity, high Maintain solid financials and sufficient liquidity, high growth potential with excellent cash flow to growth potential with excellent cash flow to enhance capability to pursue new opportunities.enhance capability to pursue new opportunities.
•• Strong potential in Myanmar, Vietnam, Cambodia, Strong potential in Myanmar, Vietnam, Cambodia, Indonesia, Oman, Iran and Algeria Projects.Indonesia, Oman, Iran and Algeria Projects.
•• Commit to strong Commit to strong ““Corporate GovernanceCorporate Governance”” to create to create longlong--term value to stakeholders.term value to stakeholders.
Source : PTTEP analyst meeting : February 2007
PTT holds 66. 13% in PTTEP (as of 31 December 2006).PTT holds 66. 13% in PTTEP (as of 31 December 2006).
Unit : Bt mm
RevenuesRevenues
EBITDAEBITDA
Net IncomeNet Income
22,54422,54420,14920,14921,02021,020
68,35568,355
86,33986,339
16,80416,80415,55515,555
14,46714,467
63,24663,246
50,01150,011
7,2777,2777,8397,839 6,1186,118
23,73523,73528,04728,047
22,62722,627
16,41916,419
6,8136,813
OperationsOperations
153,531 169,348
29.3736.52
2005 2006
Sales Vol. (boepd)Avg. Sales Prices ($/boe)
+ 10%+ 10%+ 24%+ 24%
%chg%chg
+ 32%+ 32%
+ 24%+ 24%
+ 18%+ 18%
Proved ReservesProved Reserves~ 923 mboe~ 923 mboe
GasGas83%83%
LiquidLiquid17%17% OverseaOversea
29%29%
DomesticDomestic71%71%
Reserves Life 13 yrsReserves Life 13 yrs
33
5,35110,232
3,4386,885
18,75316,595
25,01429,003
5,9931,8414,086
3,783
98
104110 109 108104
1Q/06 2Q/06 3Q/06 4Q/06 2005 2006
EBITDA NI %Utl
SPRC 150 kbpd (PTT 36%)
6,195
14,2335,314
-1952,475
7848,379
-2242,0138,049
3,829 577
107 10410010410593
1Q/06 2Q/06 3Q/06 4Q/06 2005 2006
5,0888,948
13,769
-251
2,944 1,1668211,1812,338 3,421
11,985 7,761
107
10791107106106
1Q/06 2Q06 3Q06 4Q/06 2005 2006
RRC 145 kbpd (PTT 48.75%)
Refining Subsidiaries : 2006 Lower Results from lower GRM and stock loss
PTT Group represents 34% of total refining capacity by equity poPTT Group represents 34% of total refining capacity by equity portionrtion
Cooperation among refineries improves security of supply and helCooperation among refineries improves security of supply and helps manage supply chain efficiently.ps manage supply chain efficiently.
TOP 225 kbpd (PTT 49.54%)
1,124 9581,613
300 196-716247
4,620
-7272,959-34
657
38
47
58
6054
67
1Q/06 2Q/06 3Q/06 4Q/06 2005 2006
BCP 120 kbpd (PTT 29.75%)
IRPC 215 kbpd (PTT 31.5%)
2,9455,037 3,923
3,995 6,823-2,602
9,30315,827
-3,126 8,1432,480 2,631
6679
82
83 86 83
1Q/06 2Q/06 3Q/06 4Q/06 2005 2006
Note : (RRC) 2005 included gain from debt haircut Bt5,417 mm
Unit : Bt mm
8.5 8.0
10.2
3.3
6.5
11.3
3.62.5
7.6
5.9
0
2
4
6
8
10
12
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
GRM ($/bbl)
20052005 20062006
2005 (avg)2005 (avg)2006 (avg)2006 (avg)
34
1,0882,163
7,744
7,6233,272
1,499501
2,497
6,416
2,817
349 5,243
70%96% 106% 99% 97%
95%
0
5 0 0
1 0 0 0
1 5 0 0
2 0 0 0
2 5 0 0
3 0 0 0
3 5 0 0
4 0 0 0
4 5 0 0
5 0 0 0
5 5 0 0
6 0 0 0
6 5 0 0
7 0 0 0
7 5 0 0
8 0 0 0
1Q/06 2Q/06 3Q/06 4Q/06 2005 2006
- 20%
0%
20%
40%
60%
80%
100%
120%
: EBITDA : NI : %Utilization
4,162 4,357
5,656 5,945 6,340 18,9196,350
24,291
12,9254,159 4,62817,306
104%
101%104%95%
108% 104%103%96%
85%99% 80%97%
0
2 , 0 0 0
4 , 0 0 0
6 , 0 0 0
8 , 0 0 0
1 0 , 0 0 0
1 2 , 0 0 0
1 4 , 0 0 0
1 6 , 0 0 0
1 8 , 0 0 0
2 0 , 0 0 0
1Q/06 2Q/06 3Q/06 4Q/06 2005 2006
0%
20%
40%
60%
80%
100%
: EBITDA : NI : OLEFINS : HDPE
Petrochemical Affiliates : Better performance from volume & price
Capacity expansion and diversified portfolioCapacity expansion and diversified portfolio
PTT focuses on gasPTT focuses on gas--based petrochemical business to create more values from natural based petrochemical business to create more values from natural gas assets.gas assets.
%UTILIZATION
ATC ATC (PTT 49.82%)(PTT 49.82%)PTTCHPTTCH (PTT 55.19%)(PTT 55.19%)
PTTCHPTTCH
ATCATC
PTT GSPsPTT GSPs
RefineriesRefineries
PTTPTT
Ethane, Propane,
LPG, NGL
Naphtha
Condensate
Reformate
Pyg
as
Ligh
t N
apht
ha
&
Raf
fin
ate
Unit : Bt mm
ParaxyleneParaxylene495 495 ktakta
BenzeneBenzene467 467 ktakta
CyclohexaneCyclohexane150 150 ktakta
PropylenePropylene377 377 ktakta
EthyleneEthylene1,146 1,146 ktakta
HDPE 250 HDPE 250 ktakta+250 +250 ktakta
MEGMEG200 200 ktakta
35
Consolidated Income Statements : Year ended 2006
(12)(2,512)19,13921,651Shared incomes from assoc.
NM.9,9249,9251FX gain (loss)
113.4534.0230.57EPS (per share)
230.452.391.94Extraordinary items (per shr)
113.0131.6428.63EPS (excl. extra items – per shr)
119,74095,26185,521NI
231,2656,6825,417Extra Items/Gain on RRC Disposal
2,285627
11
3,5881,6628,475
3,7451,927
88,579
157265
80,104
- PTTCH- Others
NI before extra items
304,98521,62416,639- PTTEP
(4)(365)8,1408,505- PTT
399,87035,43625,566Taxation
3135,528149,796114,268EBT
252,19411,0068,812Interest expenses
5320
9,27619,354
26,755115,920
17,47996,566
DD&AEBIT
2528,630142,675114,045EBITDA
347,32428,66821,344S&A expenses
31287,7161,213,985926,269Sales
%ChangeChange20062005
Note : All figures after restatement, EBT = Earnings before taxes and minority interests; NM = Not Meaningful
Unit : Bt mm
36
Natural Gas Price Structure
CustomersCustomersSales Price StructureSales Price Structure
Gas Pool PriceGas Pool Price Supply MarginsSupply Margins Pipeline TariffsPipeline Tariffs+ +
Power Producers ~ 73%Power Producers ~ 73%
: EGAT ~ 33%: EGAT ~ 33%
: IPP ~ 26%: IPP ~ 26%
: SPP ~ 14%: SPP ~ 14%
Average Purchased Average Purchased Gas PriceGas Price
1.75%1.75%
1.75%1.75%
9.33%9.33%
~ 19.4 Bt/~ 19.4 Bt/mmbtummbtu
GSP ~ 17%GSP ~ 17% Charged at the same price structure of power producersCharged at the same price structure of power producers
Petrochemicals
LPG
Profit-sharing mechanism based on market prices of petrochemicals
Reference to Saudi Aramco’s contract price
Industry ~ 11%Industry ~ 11% Charged at prices comparable to fuel oilCharged at prices comparable to fuel oil
Gas prices are mostly agreed under longGas prices are mostly agreed under long--term contracts and volatility passterm contracts and volatility pass--through to ensure stable returns.through to ensure stable returns.
NGVNGV Charged at prices competitive to dieselCharged at prices competitive to diesel
• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions.
• The current pipeline tariff of 19.4 Bt/mmbtu is charged to cover fixed costs and provide agreed returns of 18% IRROE; the tariff is projected to be revised to reflect 16% IRROE after the completion of the 3rd pipeline.
Note : Data as of 31 Dec 2006
37
PTTPTT’’s Natural Gas Pipeline Networks Natural Gas Pipeline Network
Schedule : Major ProjectsKey projects are strategically linked and timely corresponding tKey projects are strategically linked and timely corresponding to meet demand.o meet demand.
•• 33rdrd Pipeline (Onshore & Offshore)Pipeline (Onshore & Offshore)Onshore: completed in March 2006Offshore: COD 27 March 2007
•• Pipeline : Pipeline : SainoiSainoi –– S. BangkokS. BangkokCOD December 2006
•• Pipeline : JDA Pipeline : JDA –– ArthitArthitCOD ~ 4Q/2007
•• GSP#6GSP#6COD ~ 1H/2011
•• Ethane PlantEthane PlantCOD ~ 1H/2010
•• Pipeline : Pipeline : SainoiSainoi –– N. BangkokN. BangkokCOD ~ 2H/2009
COD : Commercial Operation Date
Yetagun
YadanaWang Noi
Tha Luang Kaeng Khoi
Rayong
SBKRatchaburi
Thap Sakae
Khanom
BenjamasTantawanPlatong
PRPPailin
Arthit
Bongkot
JDA
Erawan
Bang Pakong
Expansion Under Master Plan 3
TTM Pipeline
Karnchanaburi
Existing 1st Pipeline
Existing 2nd Pipeline
Power Plant
Gas Field
Puhom
Nampong
3rd pipeline, 42”, 1,900 MMSCFD, 418 km.
1st pipeline, 34” , 860 MMSCFD, 415 km.
2nd pipeline, 36”, 1,150 MMSCFD, 418 km.
West pipeline, 42”, 1,900 MMSCFD, 238 km.
38
Refining Industry
Note : Data as of 31 Dec 2006
PTT Group represents 34% of total refining capacityPTT Group represents 34% of total refining capacity by equity portionby equity portion
TOP (225 kbpd)(PTT 49.54%)
ESSO (145 kbpd)
RPC (17 kbpd)
BCP (120 kbpd)(PTT 29.75%)
TPI (215 kbpd)(PTT 31.50%)
SPRC (150 kbpd)(PTT 36.00%)
RRC (145 kbpd)(PTT 48.75%)
TOP22%
RRC14%
SPRC15%
BCP12%
TPI21%
ESSO14%
RPC2%
• PTT accounts for 34% by equity portion.
• TOP/SPRC/RRC – complex refineries with potential for upgrade & expansion.
• BCP is undertaking “Product Quality Improvement”project to enhance product mix.
• Oil demand is projected to exceed refining capacity by 2008.
Total refining capacityTotal refining capacity~ 1,012 kbpd~ 1,012 kbpd
Strong leadership position ensures stable supply to downstream aStrong leadership position ensures stable supply to downstream and related businesses.nd related businesses.
39
Dividend Policy & Historical Payments
7.71 8.75
13.43
22.40
30.57
34.02
2.50 2.85 4.006.75
9.2510.50
32.4% 32.6%
29.8% 30.1% 30.3% 30.9%
25%
2001 2002 2003 2004 2005 2006
EPS DPS % Dividend Payout
Note : All figures after restatement
PTTPTT’’s minimum payout ratios minimum payout ratio
PTT is firmly committed to pay dividend at no less than 25% of nPTT is firmly committed to pay dividend at no less than 25% of net income.et income.
UNIT : Baht / shareUNIT : Baht / share
40
Reference : Product Prices
19%5344500%(3%)499500582548512: Condensate (ATC)
Petrochemicals ($/ton)
17%66.0456.42(3%)(8%)57.9959.9970.6070.3063.32: WTI
25%61.5549.32(3%)(4%)55.4157.3565.9764.7758.02: Dubai
15%27.5323.892%6%26.2025.7928.8728.7724.65: ULG
16%26.7323.091%(2%)25.2824.9928.0727.9725.91: ULR
16%26.0322.522%(2%)24.7024.2927.3727.2725.21: Gasohol
Refined Products (@retails – Bt/L)
28%25.5520.01(3%)(13%)23.1823.8927.1226.5626.71: HSD
Feedstocks ($/ton)
27%1,1509052%20%1,1321,1121,2601,007947: Paraxylene (ICIS – ACP Net)
6%8698232%32%978958905862742: Benzene (CMAI – FOB Korea)
16%1,2361,061(1%)14%1,2641,2721,3661,1871,112: PP (ICIS – Film/SEA SP)
19%1,2351,0350%14%1,2661,2721,3471,1991,114: HDPE (ICIS – Film/SEA SP)
16%1,2241,0581%14%1,2741,2671,3291,1791,116: LLDPE (ICIS – Film/SEA SP)
11%1,2321,1132%16%1,2931,2731,3401,1911,116: LDPE (ICIS – Film/SEA SP)
18%1,1269562%17%1,1821,1571,2551,0811,006: Propylene (ICIS – SEA SP)
27%1,1619115%17%1,2221,1611,3111,1201,045: Ethylene (ICIS – SEA SP)
32%5594240%9%527525540550485: Naphtha (MOP Singapore)
19%51243210%(9%)527477537457578: LPG (Saudi Aramco’s CP)
Crude ($/bbl)
36.230841.1746(3%)(10%)35.135436.230837.637338.329538.9417FX – THB/USD (@end period)
%Chg.20062005%QOQ%YOY1Q4Q3Q2Q1Q
20072006
