PTT Global Chemical Public Company (PTTGC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached 168.4 billion THB, up 8% QoQ and 14% YoY, with net profit at 1.84 billion THB, marking a significant turnaround from prior losses.

• Adjusted EBITDA was 9,662 MB, down 13% QoQ but up 47% YoY, reflecting improved performance in Intermediates and Polymers.

• Total assets as of June 30, 2024, stood at 713.3 billion THB, with equity of 297.3 billion THB and liabilities of 416.0 billion THB.

• Strategic focus sharpened on portfolio reshaping, high-value products, decarbonization, and deleveraging.

• Non-core divestments and bond buybacks supported capital structure optimization.

Financial highlights

• Revenue grew 14% YoY and 8% QoQ; net profit improved by 133% YoY and over 200% QoQ.

• Q2 2024 gross profit was 10.7 billion THB, up from 5.3 billion THB in Q2 2023.

• Adjusted EBITDA rose 47% YoY but declined 13% QoQ; operating profit was -1,663 MB, reflecting margin pressures.

• Extra gains from bond buyback (2,895 MB) and divestment contributed to net profit.

• Feedstock costs increased 11% QoQ, impacting margins.

Outlook and guidance

• H2 2024 focus on portfolio reshaping, high-value business, and efficiency improvements.

• Market recovery expected to be gradual; refinery margins to improve on seasonal demand.

• 2024 utilization rates guided at 103% for refinery, 90% aromatics, 82% olefins, and 105% polymers.

• Macro risks include economic slowdown, geopolitical tensions, and supply chain disruptions.

• Dividend distributions for the period totaled 3.38 billion THB.