PTT Public Company Limited (SET: PTT) has announced a new five-year investment plan spanning 2026-2030, which was disclosed to the Stock Exchange of Thailand yesterday. The total planned capital expenditure (CAPEX) is set at THB 76.6 billion, marking a significant 41% increase (THB 22.1 billion) from the previous plan (2025-2029).
The higher CAPEX allocation stems from:
1) Project Delay: The postponement of construction for Gas Separation Plant Unit #7 (GSP#7), shifting THB 10 billion in upstream gas business spending to the new plan.
2) Asset Monetization Strategy: Increased spending aligned with PTT’s asset monetization strategy, particularly via subsidiaries such as PTT Tank Terminal Co., Ltd. (+THB 12 billion).
Segment-wise, 59% of the new CAPEX (approx. THB 44.1 billion) is dedicated to the natural gas business, encompassing projects such as GSP#7, the 5th natural gas pipeline and Bang Pakong–South Bangkok power plant, and the third phase of the LNG terminal. Downstream, trading, and other businesses account for 38% (THB 29.3 billion), while 4% (THB 3.2 billion) is earmarked for new, sustainability-related, and non-hydrocarbon ventures.
PTT has also set aside an investment reserve of approximately THB 115.2 billion over the next five years. This additional budget is earmarked for energy transition initiatives, especially the development of a fully integrated LNG value chain domestically and abroad.
Kasikorn Securities views the new five-year plan neutrally, as most major investment projects remain unchanged except for the GSP#7 delay and the asset monetization initiatives. While these activities should enhance efficiency and strengthen the financial health of key refining and petrochemical subsidiaries, excluding the value added from such moves, the new CAPEX plan may reduce PTT’s net asset value (NAV) via higher net debt, estimated at a decrease of about THB 0.77 per share.
Kasikorn Securities maintains its “Buy” rating for PTT, with a mid-2026 target price of THB 34.10 per share. This recommendation is supported by an expected total shareholder return (TSR) of 16%, stable earnings, attractive dividend yields, and additional upside potential from asset monetization as well as strategic ventures such as the Genesis Project, which seeks new strategic partners.
