Ptt Public Co., Ltd. · SET:PTT
Ptt Public — Q1 2003 Earnings Presentation
46 slides from Ptt Public's earnings presentation, May 2003
Slide 1: PTT Public Company Limited Analyst Briefing May 2003
PTT Public Company Limited Analyst Briefing May 2003
Slide 2: Disclaimer
The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These views are based
Slide 3: Highlights
Highlights 1. Brief Introduction to PTT 2. Businesses Operational Results 3. Consolidated Financial Results 4. Future Plans & Capex 5. Conclusions 3
Slide 4: 1. Brief Introduction to PTT
1. Brief Introduction to PTT 4
Slide 5: PTT PLC: The Only Integrated Gas Company in Thailand
PTT PLC : The Only Integrated Gas Company in Thailand Listed Listed on on SET SET since since 6 6 December December 2001 2001 • The largest energy company by revenue, asset size and Market Capitalization in Thailand • Shareholding Structure - MOF : 69% Public : 31% • Main businesses – Gas Business :
Slide 6: 2. Business Operational Results
2. Business Operational Results 6
Slide 7: Gas Business
Gas Business 7
Slide 8: Gas Sales - Consistent Volume Growth
Gas Sales - Consistent Volume Growth Quarterly Quarterly Gas Gas Sales Sales Customers Customers Type Type :: Q1 Q1 2003 2003 ("%$$ Volume (mmcfd) % Change Pipeline capacity with comp. = 3,170 Q1 02’ Q4 02’ Q1 03’. YoY QoQ (Actual Heat) (Portion) MMCFD (Heat 1,000) %"'$$ Q1 2003 !"$($ EGAT 1,142 952
Slide 9: Gas Separation Sales
Gas Separation Sales 2002 Total Volume = 2,558 LPG LPG Price Price *$$ 651 659 667 &$$ 647 601 &% &* +, 9% &' %') #$$ &! !$' !$* !$& !$$ 15% (+$ Yr 2002 ,+ Avg. +$$ %!& Yr 2003 Unit in 000 ‘s TPQ 243 ,! !(+ !%' !(' !%, 19% Avg. %#' &$$ ($$ 315 2 $ / Ton !'+ ($$ !$* Yr 2001 %+$ !%' Avg. %$$ 1 57% 260
Slide 10: Oil Business
Oil Business 10
Slide 11: Oil Business: Facilities & Infrastructure
Oil Business : Facilities & Infrastructure > Storage capacity – Crude oil & Products 8.4 MM BBL – LPG 74,500 tonnes > 1,403 service stations (excluding 8 LPG service stations for vehicles) > 2 Marine terminals > 22 Oil depots > 16 Aviation depots > 2 JV Multi products pipelines (613 KBD) • A fully e
Slide 12: PTT: Leader in Retail & Commercial Market Share
PTT : Leader in Retail & Commercial Market Share PTT’s PTT’s Market Market Share Share as as of of Mar Mar 03 03 Total Total Sales Sales Volume Volume Others PTT Other companies PTT 23.79% 31.38% MM Litres &$"$$$ 34,854 36,615 ($"$$$ !$"+*, !!"$!$ BCP 7.27% %$"$$$ 9,529 %&"%*+ %+"#$+ Caltex Shell !$
Slide 13: Oil Marketing Margin
Oil Marketing Margin Baht / Litre Yearly 1.18 1.24 0.78 0.71 1.17 1.25 2.50 Average 2.02 2.00 1.63 1.50 1.10 1.00 0.50 0.00 Apr-98 Apr-97 Apr-99 Apr-00 Apr-01 Apr-02 Apr-03 Oct-00 Oct-97 Oct-98 Oct-99 Oct-01 Oct-02 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jul-97 Jul-98 Jul-99 Jul-02 Jul-00 J
Slide 14: Core Subsidiaries: PTTEP and TOC
Core Subsidiaries : PTTEP and TOC 14
Slide 15: Potential Growth through PTTEP
Potential Growth through PTTEP Current Current Production Production Areas Areas 2nd 2nd Largest Largest Market Market Share Share for for Gas Gas Supply Supply &"'"(")"*"#"+ !""#""$""% +/#*+#0 Others 21% Total Gas Sales Myanmar O&G Unocal Namphong 4% 34% for Q1 2003 : /#*1$* !"#$%#&' BG 2,534 mmcfd
Slide 16: Improvement and Potential from TOC
Improvement and Potential from TOC Financial Financial Highlights Highlights Baht MM Baht MM EBITDA • PTT’s Share : 63% Net Income !&$$$ %"&$$ • Main Products (Tonnes/Yr) !%$$$ %"$$$ Sales (RH) – Ethylene : 385,000 !$$$$ !"#$$ – Propylene : 190,000 '$$$ !"%$$ #$$$ • Feedstock : Naphtha Base '$$ • Ma
Slide 17: Investment in Major Affiliates
Investment in Major Affiliates 17
Slide 18: Petrochemical Affiliates Performance
Petrochemical Affiliates Performance Baht MM #$$$ EBITDA Net Income &$$$ • Petrochemical affiliates have all %$$$ become profitable even for TPX $ which only began operation last year !,,* !,,' !,,, %$$$ %$$! %$$% )! • The Cash flow is enough to cover .%$$$ %$$( costs .&$$$ 84 101 91 105 104 82.75 9
Slide 19: Petrochemical Industry: Improvement in Prices
Petrochemical Industry : Improvement in Prices Ethylene Current Price $ / Ton Propylene • Improvement in prices led to a Ethylene : $365 Paraxylene Propylene : $478 sustainable performance for year ,$$ Paraxylene : $460 2002 and continuously to the year '$$ 2003 *$$ #$$ • Currently, the products pri
Slide 20: Refining Affiliates Performance
Refining Affiliates Performance (Avg. GRM : $5.00-6.00) Baht MM EBITDA Net Income ,$$$ '$$$ (Company only) +%$$ Baht MM #$$$ %&$$ ($$$ .&$$ !,,' !,,, %$$$ %$$! %$$% )! %$$( .(%$$ $ %$$$ %$$! %$$% )!-%$$( .#$$$ 77.6 88.7 94.5 103.03 Utilization (%) 101.6 100.5 96.1 93.0 95.9 99.4 Baht MM !%$$$ ($$$ *
Slide 21: Trend of GRM shows better potential
Trend of GRM shows better potential $ / BBL Thailand Singapore • The GRM of Thailand’s refineries + as a whole are higher than of & regional ( • The GRMs are on the rising trend % since the middle of 2002 ! • If the level of GRM was to maintain in 2003, the refineries $ should have sustainable .! pe
Slide 22: 3. Consolidated Financial Results
3. Consolidated Financial Results 22
Slide 23: Consolidated Income Statement
Consolidated Income Statement (Baht MM) 2002 Q1 2002 Q4 2002* Q1 2003 YoY% QoQ% Sales 399,752 87,149 112,173 126,102 45 12 S&A Expense 14,114 3,247 6,053 3,325 2 - EBITDA 54,098 11,511 14,454 16,862 46 17 EBIT 42,644 8,743 11,532 13,827 58 20 Interest 9,623 2,499 2,482 2,099 (16) (15) Share of Inv.
Slide 24: Improvement in Consolidated Financial Status
Improvement in Consolidated Financial Status Balance Balance Sheet Sheet Financial Financial Ratios Ratios Baht MM Times Equity Int. Bearing Debt 8.0 ICR 2 %+$"$$$ ' %$$"$$$ # 5.6 4.8 !+$"$$$ 131,911 131,959 & !$$"$$$ 2.8 144,127 IBD/ 2.4 EBITDA % 2.1 +$"$$$ 1.4 108,613 1.2 IBD1/E 70,119 97,296 1.3
Slide 25: Consolidated Debt Outstanding with Lower FX Risk
Consolidated Debt Outstanding with Lower FX Risk Loan Loan Portfolio Portfolio (As (As of of Mar Mar 03) 03) LT-Debt LT-Debt Repayment Repayment Schedule Schedule mm Baht Equivalent JPY 8% PTT PTTEP TOC 10,837 ($"$$$ USD 24,091 20% %+"$$$ %+$ 26,542 Baht 21,183 &"$$$ !&$+ 72% %$"$$$ 18,780 18,418 Ba
Slide 26: 4. Future Plans & Capex
4. Future Plans & Capex 26
Slide 27: Capex and JV Investment: Focused on Gas
Capex and JV Investment : Focused on Gas +$"$$$ Gas Capex Oil Capex 39,040 Other Capex &$"$$$ 31,879 New JV Inv ($"$$$ CDS Baht MM 21,516 %$"$$$ 12,483 9,123 !$"$$$ 4,473 $ %$$%-789 %$$( %$$& %$$+ %$$# %$$* • 5 year total capex (03’ - 07’) is Baht 109,391 MM, equivalent to US$ 2,543 MM * • 90% of bu
Slide 28: Progress of All Major Projects are as Planned
Progress of All Major Projects are as Planned BURMA THAILAND • 3rd Offshore Pipeline Yadana – Commence Date : Phase I 2006 Phase II 2011 Bangkok Ratchaburi – Basic engineering design in progress Yetagun Rayong – To start construction beginning of 2004 Thapsakae KP 270 2nd • Sainoi to North/South Bkk
Slide 29: 5. Conclusions
5. Conclusions 29
Slide 30: Conclusions
Conclusions • Performance for Q1 2003 has improved significantly from the same period last year from the followings; – Improvement in gas business mainly from the rise in LPG price and increase in sales volume – Gain from equity income has risen dramatically especially petrochemical and refining aff
Slide 31: Thank you
Thank you Any further questions please contact : PTT Investor Relations Division Tel : (662)537-2787-8 E-Mail : [email protected] 31
Slide 32: Appendix
Appendix 32
Slide 33: PTT's Vision
PTT’s Vision To be the pre-eminent Thai energy Corporation, operating a fully integrated oil and gas business, which encompasses gas-based petrochemicals and total energy services, confident of being a regional leader and a high performance organization with accountability, integrity, and optimum st
Slide 34: Corporate Structure
Corporate Structure PTT Plc. Gas Business Group Oil Business Group Petrochemicals and Refining • Exploration and Production: PTTEP Marketing Trading • Focus in Gas Based Petrochemical • Processing • Commercial • Crude and Condensate • Transmission and Distribution • Retail • Refined Products • Suppl
Slide 35: Business Chain: Creating Value
Business Chain : Creating Value Domestic Int’l Upstream Intermediate Downstream Downstream Natural Gas Natural Gas Mix EGAT Exploration and IPP & SPP Gas Chain Production (PTTEP) Transmission Gas Industries Network Separation Gas Products IPP IPP&&SPP SPPFuture Future Natural Gas Plant Procurement P
Slide 36: PTT's Business Direction & Strategies
PTT’s Business Direction & Strategies From Gas Business To Integrated Business Total Energy Service Oil Business From To Strategic Drive & Market Share Leader Profit Oriented & Efficiency Drive Quality of Service Refining Business Rationalize & Position Refining Affiliates Petrochemical Business Gas
Slide 37: Financial Status & Income Generating Capability
Financial Status & Income Generating Capability No. of Employee MM Baht 4,000 4,000 450,000 Assets 3,748 3,738 3,800 3,726 3,721 387,094 400,000 Total Debt 3,735 3,758 3,639 371,813 3,693 3,556 3,600 3,643 377,611 Equity 3,540 3,501 350,000 Manpower 3,440 3,366 3,378 3,400 3,442 300,000 Sales Revenu
Slide 38: Revenues, EBITDA and Net Profit Performance
Revenues, EBITDA and Net Profit Performance EBITDA Breakdown Baht MM GAS PTTEP OIL TOC Net Profit (LH) Revenues (RH) Baht MM *)"))) &$)"))) ')"))) &))"))) 54,098 51,127 !",#+ %$)"))) $)"))) +"*&% 12% #"(!& 4% 41,962 11% %))"))) &)"))) 10% &"%%! %!"!,+ 40% %%"%!! !$)"))) 27,135 41% %)"))) !&"',+ 35%
Slide 39: PTT's Major Income Structure - Mostly Fixed Return
PTT’s Major Income Structure - Mostly Fixed Return Sales Price Structure Customers Gas Pool Price 2 Supply Margin 2 Pipeline Tariff Power Producers 78% EGAT 43% 1.75% ~Baht 19.4 / Average 1.75% MMBTU IPP 20% purchased gas reflecting price SPP 15% 9.33% 18% IRROE Industrial Users 8% Charged at the pr
Slide 40: Take or Pay As a Hidden Asset
Take or Pay As a Hidden Asset Make Make Up Up Gas Gas from from Yadana Yadana and and Yetagun Yetagun • Total Advance Payment for TOP booked as asset value of 1000 about $ 830 MM in year 2001 900 Make up = Free cash • Additional cash from Advance 800 payment for Take or Pay MMCFD (Heat 1,000) 700 –
Slide 41: Oil Business: Leader in Retail Service Stations
Oil Business : Leader in Retail Service Stations Service Service Stations Stations in in Thailand Thailand Type Type of of PTT PTT Service Service Stations Stations BCP CoCo 6.42% Shell 2.56% 17,355 3.90% ESSO 3.87% CoDo Caltex 2.93% 12.59% PTT JV DoDo Others 8.10% 1,411 21.27% 54.98% 74.78% Co-op 8
Slide 42: Petrochemical Affiliates
Petrochemical Affiliates 1 Companies PTT’s Share Main Products Capacity Debt Outst. Major Projects Highlight (%) (Tonnes/Yr) (US$ MM) Customers ATC 46.33 Paraxylene 394,000 314.04 SSMC Debottleneck II Benzene 330,000 Siam Mitsui Completion date : 2004 Tuntex Capacity Increase : PX : 495,000 BZ : 467
Slide 43: Refining Affiliates
Refining Affiliates 1 Companies PTT’s Share Refinery Process Capacity Debt Outst. Highlights (Kbd) (US$MM) Thaioil 49.99 Complex (FCCU, HCU) 220 1,174.84 Heavy tail repayment to finish by 2014 SPRC 36.00 Complex (RFCCU) 150 443.62 Heavy tail repayment to finish by 2009 RRC 36.00 Complex (HCU, VBU) 1
Slide 44: Thailand Petroleum Industry
Thailand Petroleum Industry Petroleum Petroleum Consumption Consumption !"%$$ 7% 1,028.5 • Petroleum consumption grew 993.0 !"$$$ 922.1 863.6 890.0 898.4 932.2 by almost 7% in 2002 '$$ • The overall Petroleum KBD #$$ consumption has been growing since 1998 &$$ • The improvement in %$$ consumption am
Slide 45: Thailand Refined Petroleum Industry
Thailand Refined Petroleum Industry Market Market size size of of Refined Refined Oil Oil Products Products ()) • Overall refined product grew by 699.7 *)) 5% 653.8 629.5 630.3 618.8 approximately 5% in 2002 602.1 588.5 ')) • Volume sales for diesel and $)) gasoline have grown towards KBD &)) the le
Slide 46: Thailand Gas Demand: Growing Consistently
Thailand Gas Demand : Growing Consistently KBD 1% • Gas demand grew 8% in &$$ R =1 374.2 374.7 CAG 343.7 2002 and average of 11% 296.4 since 1997 ($$ 259.7 222.4 234.1 • Growth is sustainable %$$ despite economic downturn, mainly driven !$$ by electricity demand • Demand for this year $ expected to