Thailand: PTTEP Reports Q3 Results
PTT announced its results for the 3-month and 9-month period ended September 30.
For the first 9-month of 2012 (9M/2012), sales revenue of PTT and its subsidiaries was Baht 2,060,947 million, increasing by 12.5% from the first 9-month of 2011 (9M/2011) mainly due to the increase in the sales prices of products.
The average Dubai crude oil price increased from US$ 106.1 per barrel in 9M/2011 to US$ 109.6 per barrel in 9M/2012, resulting in increased EBITDA by Baht 14,755 million, or 9.2%. This increase was principally generated by the better performance of PTT Exploration and Production Company Limited (PTTEP) and Oil Business.
However, share of net income from investments in associates in 9M/2012 was amounting to Baht 19,152 million, decreased 26.7% from 9M/2011 owing to the lower performance of refinery associates.
Despite the rising in crude oil price in comparison with 9M/2011, the decelerated global economic and the continuous debt crisis in Eurozone affected a volatility in oil market. Moreover, in 9M/2011, supply was tightening due to the turmoil in Middle East countries. As a result, stock gain decreased in 9M/2012 when compared with 9M/2011.
For the petrochemical associates, their performances were reduced by the lower spread margins of almost all products, especially in LDPE, following weaker economic growth in Europe which is its major market. Moreover, in 9M/2011, there was the Paraxylene supply shortage following the shutdowns of Paraxylene plants and the gradual increase in demand of new PTA plants in China, while in 9M/2012, the spread margin of Paraxylene declined mainly due to many PTA plants reduced their utilization rate after prolonging losses from operation, leading to lower spread margin compared with 9M/2011.
In 9M/2012, PTT and its subsidiaries had the gain on foreign exchange rate amounting to Baht 4,038 million, increased by 360.1% from the loss on foreign exchange rate amounting to Baht 1,552 million in 9M/2011. The income taxes of PTT and its subsidiaries in 9M/2012 was Baht 34,061 million, decreased by Baht 1,534 million or 4.3%.
Nevertheless, PTT International Company Limited (PTTI) recognized impairment losses of its investment in East Mediterranean Gas S.A.E. (EMG) amounting to Baht 3,972 million and PTTEP recognized impairment loss on Montara assets amounting to Baht 3,455 million. C
onsequently, the net income of PTT and its subsidiaries in 9M/2012 decreased by Baht 6,716 million or 7.6% from Baht 88,670 million in 9M/2011 (or Baht 31.09 per share) to Baht 81,954 million in 9M/2012 (or Baht 28.69 per share) of which 46% was generated from PTT itself, while 54% was contributed from the affiliates according to the shares of investment percentage. As of September 30, 2012, PTT and its subsidiaries’ total assets were Baht 1,603,200 million. Total liabilities were Baht 915,808 million, and total equity was Baht 687,392 million.
LNG World News Staff, November 14, 2012; Image: PTTEP