PTT Global Chemical Public Company Limited (SET: PTTGC) reported a challenging third quarter for 2025, marked by a significant decline in revenue but a sharp improvement in its bottom line year-over-year (YoY).
The company recorded total sales revenue of Baht 126,836 million in 3Q25, representing a 15% decrease from Baht 149,431 million in 3Q24. The decline was primarily driven by lower crude oil prices, which subsequently pressured the prices of both petroleum and petrochemical products.
Adjusted EBITDA fell 39% YoY to Baht 5,147 million, reflecting ongoing weakness in the Upstream business unit, where Adjusted EBITDA dropped 75% YoY. The decline was led by steep contractions in Aromatics (-97%) and Olefins (which saw losses increase by over 200%). Both Olefins and Polymers continued to face margin pressure due to oversupply, subdued demand, and higher naphtha feedstock costs in line with crude oil trends.
Despite these operational headwinds, the company’s net loss narrowed substantially, with PTTGC reporting a Net Loss of Baht 2,915 million (Baht -0.73/share) — an 85% improvement compared to the Baht 19,312 million loss recorded in 3Q24. The improvement was largely due to the absence of last year’s Baht 17,511 million impairment and restructuring charges, which had significantly impacted 3Q24 results.
Key factors influencing 3Q25 performance included:
- Stock Loss / NRV Impact: Losses from inventory revaluation and NRV adjustments totaled just Baht 109 million, a 97% reduction from the prior year, reflecting improved inventory management and market stability.
- Cost Discipline: Fixed overhead expenses decreased 17% YoY, supported by restructuring at the Vencorex group and continued company-wide cost optimization initiatives.
- Bio & Circularity Strength: The Bio & Circularity business unit continued to perform strongly, posting an 86% YoY increase in Adjusted EBITDA, driven mainly by wider fatty alcohol spreads and sustained demand growth for sustainable products.
Looking ahead, PTTGC expects global petrochemical spreads to remain under pressure in the near term, as industry oversupply and muted demand recovery continue to weigh on margins. However, management remains focused on operational efficiency, strategic portfolio diversification, and the growth of its Bio & Circularity segment, which is expected to play a larger role in stabilizing earnings. The company also anticipates gradual margin recovery in the Aromatics and Olefins segments in 2026, aligned with global economic recovery and improved product demand in key regional markets.
