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

Executive summary

• Q2 2024 revenue reached Baht 167,054 million, up 8% QoQ and 14% YoY, with net profit at Baht 1,846 million, reversing prior losses and driven by higher sales in Petroleum, Aromatics, and Performance Chemicals.

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

• Extraordinary gains included Baht 2,895 million from bond buybacks and Baht 247.5 million from a partial divestment in PTT Digital.

• 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, swinging to Baht 1,846 million from prior losses.

• Adjusted EBITDA margin was 6% in Q2 2024, down from 7% in Q1 2024; net profit margin improved to 1.2%.

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

• Feedstock costs increased 11% QoQ, impacting margins.

• EPS improved to Baht 0.41 from Baht -0.13 in Q1 2024 and Baht -1.24 in Q2 2023.

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.

• Polyethylene prices expected to rise slightly; Performance Chemicals demand to outpace GDP growth.