PTTGC Records THB678 Billion in Sales as Hedging Loss and High Cost Weigh on Bottom Line

PTT Global Chemical Public Company Limited (SET: PTTGC) has announced its 2022 consolidated financial statement through the Stock Exchange of Thailand as follows;

Year 2022 2021
Net Profit (Loss)
Million Baht
-8,752.21 44,982.39
Earning Per Share
-1.940 10.010
% Change 119.46

PTTGC reported a net loss of Baht 8,752 million for 2022, a significant downturn from a net profit of Baht 44,982 million in 2021.

In 2022, the company had total sales revenue of Baht 678,267 million, increased by 46% from previous year due to several factors such as the global economic recovery with the economy now re-opened and demand increased.

Overall performance of Upstream Business remained strong, however the spreads weakened for all major petrochemical products, especially in Intermediate and Polymers & Chemicals businesses. The main reasons were the higher production costs, China’s zero-COVID policy’s adverse impacts on the demand, the oversupply situation, and the concerns over a global recession.

Despite higher sales for the year, the company had to record higher feedstock cost by 53% to Baht 521,512 million, a significant increase from Baht 341,893 million in 2021.

Meanwhile, the company had a technical incident in the warehouse construction project amounting Baht 894 million in 2022.

The company had a loss from commodity hedging of Baht 23,057 million as the market product spreads were higher than the hedged price especially during the first half of 2022 when Russia-Ukraine tension started. The company recorded Stock Loss Net NRV of Baht 3,657 million, Net loss from Foreign Exchange and financial derivatives of Baht 313 million. Moreover, SG&A expenses rose to Baht 31,458 million in 2022, compared to Baht 18,878 million in 2021.