PTT Public Company (PTT) Q4 2024 earnings summary

Executive summary

• 2024 net income was 90,072 MB, down 20% year-over-year, with revenue at 3,090,453 MB, down 2% year-over-year, reflecting upstream strength offset by weaker petrochemical spreads, energy policy impacts, and lower product selling prices.

• Dividend of 2.10 THB/share declared (yield 6.6%, payout ratio 67%), maintaining a high payout tradition.

• Group maintained strong financial health, with net debt/EBITDA at 1.65x and credit ratings at sovereign level.

• Strategic focus shifted to refocusing hydrocarbon business and revisiting non-hydrocarbon segments, with operational efficiency and cost control emphasized.

• Net income was impacted by lower EBITDA, higher depreciation, and non-recurring losses.

Financial highlights

• EBITDA for 2024 was 396,234 MB, down 7% year-over-year; 4Q24 EBITDA rose 5% quarter-over-quarter.

• Net income excluding extra items was 94,551 MB, down 15% year-over-year.

• Extra items in 2024 included divestment gains (~6,900 MB), bond buyback gains (~1,800 MB), and impairment losses (notably Vencorex, Asahi, PTTAC, net -10,500 MB).

• Free cash flow for 2024 was 184,476 MB; CAPEX was 174,053 MB.

• 4Q2024 net income was 9,311 MB, down 43% sequentially and 71.6% year-over-year, mainly due to higher FX losses and non-recurring items.

Outlook and guidance

• 2025 GDP growth forecast: global 3.3%, Thailand 2.9%.

• Oil price (Dubai) expected at $71–81/bbl, Singapore GRM at $3.8–4.8/bbl, HDPE at $928–1,028/ton.

• Upstream: sales volume to increase, unit cost to remain competitive; downstream: product spreads remain challenged by surplus supply and sluggish demand.

• Power: electricity consumption in Thailand recovering, coal costs trending down.

• Life science: steady growth in sales and margin expected in Asia and the U.S.