Mr. Kongkrapan Intarajang, CEO and President of PTT Public Company Limited (SET: PTT), reveal the progress of finding partner for the company’s subsidiaries in the petrochemical and refinery sectors, which include PTT Global Chemical Public Company Limited (SET: PTTGC), Thai Oil Public Company Limited (SET: TOP), and IRPC Public Company Limited (SET: IRPC). Finalization is anticipated within the year.
PTT has discussed with its group that the new partners must be able to strengthen the business of the company’s subsidiaries. In addition, PTT also informed Innobic (Asia) Company Limited, one of PTT’s subsidiaries, to find a partner that specializes in pharmaceuticals and medicine to improve its business. Still, PTT will continue to be the major shareholder.
Regarding the business trend for the rest of 2025, PTT has forecast an economic slowdown and decided to change its strategy to generate strong performance amid challenging times. The company aims to lift its revenue so its EBITDA could generate more than THB 20 billion this year. This move meant to compensate for the loss following the reduction of the product’s price and margin.
To fulfill this goal, PTT plans to use asset monetization to generate THB 8 billion, the MissionX project to increase operational excellence, lifting the competitive ability by THB 1 – 2 billion, and the P1 and D1 projects, which are the synergy process within the PTT group, to generate THB 2 – 3 billion. The company also works on cost saving to reduce spending by about THB 10 billion.
In addition, the company also plans to use the Axis project to bring digital technology and AI to increase work capacity, and create warroom to prepare for the global economic recession and other situations such as volatilization in the energy sector.
Mr. Kongkrapan added that in the past year, there has been progress on several major strategies, including the focus on the hydrocarbon sector to create energy security for Thailand. PTT Exploration and Production Public Company Limited (SET: PTTEP) is increasing the natural gas production from the Arthit Project to 330 million cubic feet per day.
Furthermore, the company also increased shareholding in the Sinphuhorm Project, an onshore petroleum field located in Thailand’s Northeast region. This would increase the nation’s petroleum reservation and expand business’ growth in foreign lands as PTTEP currently holds a 10% share of Ghasha, one of the United Arab Emirates’ largest natural gas sources.
Meanwhile, Global Power Synergy Public Company Limited (SET: GPSC), another subsidiary of PTT, has expanded its renewable energy sector in India and Taiwan to align with the clean energy growing demand. This action also increases value in the LNG sector and pushes the business into the region’s center hub for LNG trading, using the infrastructure’s advancements. The company also prepares to import LNG 11 million tons per year, which covers the long term and regional LNG hub spot contracts.
As for the petrochemical and refinery sector, the change in the industry landscape forces the company to accelerate its ability to compete and secure petrochemical’s raw material in the long term. To do so, PTTGC will import 400,000 tons of ethane from the U.S. per year. There is also the value adding process by the collaboration between PTT’s group through several projects, such as P1 and D1 projects, the joint supply & market managements. Furthermore, PTT also seeks strategic partners to reinforce its business, which should benefit the company and the flagship, with PTT remaining as a major shareholder.
The company also reiterated its excellent financial management with a dividend payment of THB 2.1 per share in 2024, the highest figure since entering on the stock market. PTT also maintained its financial discipline and extended trade credit to improve the financial condition of the company’s subsidiaries. Moreover, this year, PTT announced a stock buyback to generate effective liquidity management, form trust and increase return rate for the shareholder.
