PTT Global Chemical Public Company (PTTGC) Q3 2024 earnings summary

Executive summary

• Q3 2024 earnings and sales revenue declined due to lower margins in Intermediates and petroleum products, partially offset by improved Aromatics; significant impairments for PTTAC and Vencorex recognized.

• Portfolio transformation advanced with business withdrawal from PTTAC and Vencorex, expected to uplift EBITDA and net income from 2025.

• Strategic focus on high-value, low-carbon businesses, sustainability, and operational excellence continues.

• Extraordinary items included stock loss net NRV of Baht 3,912 million, commodity hedging gain of Baht 280 million, and net FX/derivatives gain of Baht 2,941 million.

• Business restructuring led to impairment and restructuring expenses totaling Baht 8,574 million for Vencorex and Baht 8,937 million for PTT Asahi Chemical, resulting in a net loss of Baht 19,312 million.

Financial highlights

• Revenue for Q3 2024 was THB 149,431 million, down 7% year-over-year and 11% sequentially; 9M 2024 revenue up 4% year-over-year.

• Adjusted EBITDA for Q3 2024 was THB 8,387 million, down 31% year-over-year and 13% sequentially; margin at 6%, down 2 percentage points year-over-year.

• Net loss after tax in Q3 2024 was THB 19,312 million, mainly due to impairments; excluding these, net loss was THB 1,801 million.

• Major one-time items: Vencorex impairment (THB 7,960 million/8,574 million), PTTAC impairment (THB 8,937 million) in Q3 2024.

• EPS was Baht -4.28, compared to Baht 0.41 in Q2 2024.

Outlook and guidance

• 2025 outlook: Olefins and allnex volumes to increase; refinery shutdown planned in Q4 2025.

• HDPE price expected at $1,030–1,060/ton, HDPE–MOPJ spread at $390–420/ton in 2025; polyethylene demand recovery supported by economic stimulus.

• Discontinuation of loss contributions from Vencorex and PTTAC to uplift EBITDA by THB 2.6 billion and NI by THB 5.0 billion from 2025.

• Key projects starting in 2025: NatureWorks Plant 2, AGC Vinythai expansion, and bio-refinery SAF.

• Global economic growth for 2025 projected at 3.2%, with gradual recovery expected.