PTTGC Turns from Loss to THB1.4 Billion of Profit in 3Q23 with Sharp Spike in Refining Margin

PTT Global Chemical Public Company Limited (SET: PTTGC) has announced its 3Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;

PTTGC reported a net profit of Baht 1,426 million in 3Q23, a contrast to a net loss of Baht 13,404 million in 3Q22 and a net loss of Baht 5,591 million in the previous quarter.

The company had total sales revenue of Baht 160,392 million, increased by 9% from Q2/2023 but decreased by 12% when compared to the same period last year. The total revenue has increased mainly due to Upstream business especially in the Refinery sector as petrochemical prices increased following the rebound in crude oil prices.

The overall sales volume increased, particularly the Olefins and Polymers businesses, along with increases in sales volume and utilization rate during this quarter. Additionally, against the current high oil prices environment, the company has started to operate Olefins 2 Modification Project (OMP) which allows the Company to increase propane usage as feedstock and support our strategy to enhance feedstock flexibility and long-term competitiveness.

PTTGC had Adjusted EBITDA of Baht 12,307 million in this quarter, increased by 80% from Q2/2023, mainly driven by the sharp increase in GRM. The gross refining margins (GRM) recorded at 12.6 USD/barrel in Q3/2023. While Aromatics business has a softened performance mainly due to a scheduled maintenance shutdown during the quarter.

Polymers & Chemicals business performance increased from increased sales volume of around 10% while the average Polyethylene prices slightly decreased from previous quarter due to the slower demand recovery and oversupply. The intermediate business performance slightly improved mainly from the Monoethylene Glycol (MEG) plant, which resumed normal operation after the planned maintenance shutdown.

PTTGC stated that the performance Chemicals business performance increased following a rebound in revenue growth across the Asia Pacific region. However, overall petrochemical market remained soft, with demand across most value chains capped by recession fears and new petrochemical capacity from China.

In addition, PTTGC recorded extraordinary items from stock gain net NRV of Baht 3,674 million, loss from commodity hedging of Baht 2,729 million, net loss from foreign exchange loss and financial derivatives gain of Baht 1,146 million. Moreover, in Q3/2023, the Company recorded extraordinary items of Baht 625 million, mainly from loss from disposal of assets due to technical incidents in the warehouse construction project.