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PTT lost a loss of over 1.5 billion baht in 1Q2013 due to the impact of petrochemical and refining stocks. Including the Gas Business Group E&P and the oil business they have reduced revenues from lower crude oil prices. The aftermath of the COVID-19 epidemic.
Mr. Chansin Treenuchagron, CEO and President of PTT Public Company Limited, revealed that operating results for the first quarter of 2020, PTT recorded a net loss of 1.554 billion baht, a decrease of 30.866 billion baht compared to the same period last year. The same period last year with a net profit of 29,312 million baht
PTT earnings before interest, depreciation and tax deduction (EBITDA) decreased by 48.138 million baht or 59.8% compared to the first quarter of 2019, mainly due to the petrochemical and refining business that has lost oil stocks in 1/2020, after the dramatic drop in crude oil prices The refining gross margin, which does not include the impact of the GRM stock, decreased in line with aircraft fuel differentials. Diesel and fuel oil with high sulfur content and reduced crude oil In addition, the diffusion of products and raw materials of most petrochemical products decreased.
In addition, the natural gas business group had reduced operating results. Mainly from the gas separation plant business. Due to the reduced sale price and sales volume AND the acquisition and distribution of gas. Because the reference price of fuel oil has decreased For the oil business group, its operating results decreased due to the increase in inventory loss and reduced sales volume due to the effect of COVID-19
However, the performance of the Technology and Engineering Group improved with the acquisition of GLOW Energy from Global Power Synergy Public Company Limited (GPSC) in March 2019 in At the same time, the oil exploration and production business has increased operating results due to higher sales revenue. Mainly from the Malaysia Y Partex Group project, which resulted in PTT and its subsidiaries in 1Q2020 net loss with a decrease in net profit of approximately 30,866 million baht or a decrease of more than 100.0% from 29,312 in 1Q2019. Millions of baht after the decrease in EBITDA and the increase in depreciation and amortization of the oil exploration and production business. And the technology and engineering business that increased with the previous commercial acquisition. In addition, in the first quarter of 2020, there were foreign exchange losses on foreign currency loans and income tax expenses that increased due to the depreciation of the baht against the US dollar. . Even though derivatives gains will increase
Due to the COVID-19 epidemic and the oil price war that affects all industries. Including the energy industry AND the results of the PTT group as well. However, the PTT Group closely monitors the situation AND has management and issued several measures By establishing the PTT Group Vital Center for short and long term planning With short term measures, such as expense management through policies. “Reduce by postpaid” In this quarter, PTT Group can reduce expenses in This part of the operation, from the fourth quarter of 2019, around 3,600 million baht. Cooperation in the PTT Group Optimization to manage demand, supply and inventory to maximize profits. Including liquidity management and maintaining financial strength.
If we compare operating results in the first quarter of 2020, PTT and its subsidiaries had sales revenue of 483.567 million baht, a decrease of 76.539 million baht from the fourth quarter of 2019, or 13.7 percent of almost all business groups. Both the average sales price and the average sales volume that decreased With profit before interest Depreciation and taxes (EBITDA) in the first quarter of 2020 was 32,385 million baht, a decrease of 34,563 million baht or 51.6 percent , mainly from the reduction of the petrochemical and refining business groups. Due to the loss of oil stocks of approximately 32 billion baht, according to the price of crude oil, which fell a lot from the end of 4/2019 to USD 67.3 per barrel to USD 23.4 per barrel at the end of 1Q2020 due to oversupply OPEC and its partners cannot reach an agreement to reduce production. Furthermore, the demand for refined oil and petrochemicals decreased due to the economic slowdown due to the COVID-19 epidemic that led to the closure of cities in many countries. Whereas in the fourth quarter of 2019, there was a profit from oil stocks in the amount of approximately 1.3 billion baht. In addition, Market GRM’s gross profit decreased due to the spread of finished oil and crude oil in line with the lower price of crude oil. And the spread of olefins, petrochemical lines and raw materials decreased Although the spread of aromatic petrochemicals and raw materials will increase Including reduced sales volume
Regarding the operations of the oil exploration and production business, it decreased with respect to sales volume and average sale price. Despite the fact that the operating expenses have decreased as the volume of sales has decreased. For the operating results of the natural gas business group, it decreased mainly from the business of gas separation plants. This is due to the decrease in sales volume because in 1/2020, gas separation plants and petrochemical plants have closed for maintenance as planned. And in the gas acquisition and distribution business, due to the reference price of fuel oil in industrial customers, it decreased. The technology and engineering business group has improved operating results primarily from GPSC, which has increased revenues, the availability of IPP power plants and lower raw material costs from SPP power plants. Better as cost decreases Including better performance of the oil business due to reduced operating expenses.
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