PTT Public Company Limited (SET: PTT) received an ‘Overweight’ rating from JPMorgan, with a target price of THB 37 per share, as the company’s third-quarter 2025 Gas Business Unit (BU) EBITDA came in broadly in line with expectations.
PTT reported 3Q25 Gas BU EBITDA of THB 14.1 billion, up 5% quarter-on-quarter but down 10% year-on-year. The improvement was supported by a 7% quarter-on-quarter decrease in gas costs, which helped boost both S&T and Gas Separation Plant (GSP) profitability, even in the face of softer volumes and lower reference average selling prices.
PTT’s transmission segment saw EBITDA decline 2% quarter-on-quarter, primarily due to lower reserved volumes. Meanwhile, the international trading segment experienced a significant jump in EBITDA, rising from THB 208 million to THB 3.2 billion, driven by mark-to-market gains and broader spreads.
Consolidated core EBITDA for the third quarter totaled THB 85.8 billion, up 9% quarter-on-quarter and 24% year-on-year, mainly on the back of improved refining and oil marketing performance, while contributions from upstream and petrochemicals remained subdued.
For the first nine months of 2025, core earnings stood at THB 55.6 billion, a 30% decline from the same period last year, representing 68% of JPMorgan’s and 63% of market consensus full-year estimates.
PTT’s management highlighted that pooled gas costs are likely to continue declining due to lower spot LNG imports and a reduction in Gulf Gas average selling prices. GSP utilization stood at 89.4% in 3Q25, slightly down from 89.6% in the previous quarter, but is expected to rise in the fourth quarter.
Notably, there were zero spot cargoes imported into Thailand’s gas pool in the third quarter. International trading volumes dropped 2% quarter-on-quarter, but the company expects LNG trading cargo growth moving forward.
As of 11:22 AM (Bangkok time) on Thursday, the share price of PTT climbed 0.83% or THB 0.25 to THB 30.50, with a trading value of THB 122.62 million.
