PTT Public Company (PTT) Q2 2024 earnings summary

Executive summary

• Sales revenue for 2Q2024 rose 5.6% year-over-year to Baht 821,943 million, with net profit up 76.4% to Baht 35,469 million, driven by higher performance in Exploration & Production and Petrochemical & Refining segments, and significant non-recurring gains.

• Strategic refocus on core hydrocarbon business with parallel investment in decarbonization and sustainability initiatives, including CCS, hydrogen, and Net Zero 2050 objectives.

• Portfolio optimization underway, seeking partners for non-core or underperforming assets and emphasizing operational excellence.

• Key investments include offshore wind, LNG terminal partnership, and expansion in renewables and international E&P.

• Non-recurring gains in 1H2024 included asset disposals and debenture repurchases, totaling approximately Baht 10,000 million after tax.

Financial highlights

• 2Q2024 net profit: Baht 35,469 million (+76.4% YoY, +22.4% QoQ); 1H2024 net profit: Baht 64,437 million (+34.4% YoY, +34% HoH).

• 2Q2024 EBITDA: Baht 115,334 million (+24.5% YoY, -2.8% QoQ); 1H2024 EBITDA: Baht 234,051 million (+19.0% YoY).

• Revenue rose 5% QoQ and 6% YoY to 821,943 MB in 2Q24.

• Free cash flow for 1H24 was +82,375 MB; cash and short-term investments at 451,180 MB as of June 2024.

• Interim dividend declared at THB 0.8 per share, matching last year; payout ratio at 35%.

Outlook and guidance

• Dubai crude oil price forecasted at US$78–88/bbl; Singapore GRM at US$4.7–5.7/bbl; global oil demand in 2024 expected to rise to 104.7 MMBD.

• 3Q2024 petrochemical prices expected to decline due to increased supply and weak demand.

• Adjustments in natural gas supply margin rates and Single Pool Gas policy expected to impact future gas business margins.

• Upstream: stable margins, volume growth; Gas: higher demand, cost structure adjustment; P&R: margin pressure, possible 2H24 recovery; Power: domestic consumption recovery.

• Global and Thai GDP growth forecast at 3.2% and 2.0–3.0% respectively for 2024.