PTT Global Chemicals Public Company Limited (SET: PTTGC) delivered a core profit after tax of 4.5 billion baht, exceeding both Morgan Stanley and market forecasts. The company’s robust results were driven by strong refining operations and upstream olefin segments, while free cash flow improved despite a slight increase in capital expenditure.
PTTGC demonstrated effective feedstock management, reporting minimal concerns over crude oil availability. The company has secured crude supplies through June and is actively sourcing for July, with plans to operate its refinery at an impressive 103-104% capacity.
In terms of pricing, PTTGC highlighted that the full effect of increased crude premiums—up by USD 30 per barrel quarter-on-quarter—will be realized in the second quarter. Notably, these premiums have since normalized to USD 7 per barrel, a reduction from USD 16 per barrel in the first quarter of 2026.
Financially, net debt ticked up modestly QoQ to USD 8.3 billion, mainly due to a rise in outstanding payables to parent company PTT, totaling USD 2.7 billion in working capital crude support.
Morgan Stanley also notes industry-wide consolidation in Asia’s chemical sector, including PTTGC’s forthcoming integration with Siam Cement, which is expected to enhance feedstock security and strengthen pricing power. In this context, Morgan Stanley maintains an “Overweight” rating on PTTGC with a target price of 43 baht, while also favoring Siam Cement and Petronas Chemicals in the sector.
