PTT : Announcement of PTT PLC. and its subsidiaries' audited Financial Statements for the year ended 31 December 2020 and Operating Results for the fourth quarter and year ended 2020

(Translation)

No. 80000001/112

18 February 2021

SubjectAnnouncement of PTT PLC. and its subsidiaries' audited Financial Statements for the year ended 31 December 2020 and Operating Results for the fourth quarter and year ended 2020

To

President

The Stock Exchange of Thailand

PTT Public Company Limited ( " PTT" ) is pleased to submit the company financial statements and consolidated financial statements for the year ended 31 December 2020 which have been audited by the auditor, Office of the Auditor General, and approved by PTT's Audit Committee and PTT's Board of Directors. The operating results for the fourth quarter and year ended 2020 of PTT consolidated is as follows:

Operating results: The fourth quarter of 2020 compared to the third quarter of 2020

In the fourth quarter of 2020 (4Q2020), Sales revenue of PTT Group was reported at Baht 407,174 million, increased by Baht 23,575 million or 6.1% from the third quarter of 2020 (3Q2020) mainly from Petrochemical and Refining business, International trading business, and Oil business due to higher average selling prices and overall sales volume. This resulted from higher oil demand on petroleum and petrochemical products after the improved Coronavirus 2019 (COVID-19) pandemic situations.

In 4Q2020, PTT and its subsidiaries reported Earnings before Interest, Tax, Depreciation and

Amortization or EBITDA in an amount of Baht 71,614 million, increased by Baht 4,149 million or 6. 1% when compared to 3Q2020. This was mainly from the Petrochemical and Refining businesses, especially Petrochemical business due to stronger demand from economic recovery and the economic stimulus measures in many countries together with the changing of consumer behavior to be more aware of hygiene, work from home, and travel by private vehicles which resulted in higher petrochemical product prices and product spreads both of the Olefins and Aromatics when compared to the previous quarter. In the Refining business, Market Gross Refining Margin(MarketGRM)excludingstockgain&lossincreasedfromUS$(0.4)perbarrelin3Q2020toUS$1.2 per barrel in 4Q2020 mainly from the decrease in crude premium due to subdued demand from the new wave of COVID-19 as well as higher product spreads of aviation/kerosene from higher demand during winter and higher fuel oil spreads from higher demand from transportation and power plant sectors. However, the decrease of stock gain in 4Q2020 resulted in Accounting Gross Refining Margin (Accounting GRM) reduced from US$ 4.2 per barrel in 3Q2020 to US$ 2.5 per barrel in 4Q2020. In addition, the Gas business recorded improved performance /mainly from …

mainly from PTT's Gas Separation Plant (GSP)'s lower feed gas cost, higher average petrochemical referenced selling prices, and higher sales volume from increased demand of petrochemical customers and domestic fuel demand. In addition, the higher performance of Natural Gas Sales and Marketing (S&M) business was resulted mainly from better gross margin due to lower natural gas cost as well as higher average selling prices of industrial customers according to increased average fuel oil referenced selling prices. However, the Exploration and Production business's performance dropped from lower average selling prices, despite higher average sales volume mainly due to the Contract 4, the Partex group, and Malaysia projects.

In this regard, Net income in 4Q2020 was reported at Baht 13,147 million, decreased by Baht 973 million or 6.9% from the previous quarter. This was mainly from non-recurring items (PTT's portion) from the recognition of impairment loss (net tax) on assets amounting to Baht 7,696 million in 4Q2020 mainly from Coal business approximately by Baht 6,800 million, Exploration and Production business approximately by Baht 690 million, and Petrochemical and Refining businesses approximately by Baht 180 million. In addition, there was a loss from derivatives in 4Q2020 despite higher gain on foreign exchange rate due to the appreciation of Thai Baht against US Dollar in 4Q2020 compared to Baht depreciation in 3Q2020.

Operating results: The fourth quarter of 2020 compared to the fourth quarter of 2019

Compared to the fourth quarter of 2019 (4Q2019), Sales Revenue of PTT and it subsidiaries decreased by Baht 152,932 million or 27.3% mainly from lower average selling prices and sales volume in almost all businesses.

In 4Q2020, PTT and its subsidiaries reported EBITDA increased by Baht 4,666 million or 7. 0%

(when compared to 4Q2019). This was mainly from the Petrochemical and Refining businesses that the Petrochemical business' s performance increased from better Olefins product spreads due to strong demand from COVID-19's relevant products and online shopping trend. However, the Refining business's performance dropped primarily due to the lower Market GRM from US$ 2.2 per barrel in 4Q2019 to US$ 1.2 per barrel in 4Q2020 according to the decrease in most of petroleum product spreads despite higher stock gain in 4Q2020 which resulted in lower Accounting GRM from US$ 3.5 per barrel in 4Q2019 to US$ 2.5 per barrel in 4Q2020. Furthermore, the performance of Oil business increased from higher stock gain in 4Q2020, despite stock loss in 4Q2019 whereas overall sales volume decreased. Besides, Non-oil business's performance improved compared to 4Q2019. However, the performance of Exploration and Production business decreased from both lower average selling prices and sales volume mainly from the Bongkot and the Malaysia-Thai Joint Development Areas (MTJDA) project.

Therefore, Net income in 4Q2020 dropped by Baht 4,299 million or 24.6% when compared to 4Q2019. This resulted mainly from non-recurring items (PTT's portion) such as the impairment loss (net tax) on assets as aforementioned in 4Q2020, while in 4Q2019, there were PTT's expenses in accordance with the

/Court's judgement …

Court's judgement amounting to Baht 2,105 million and the allowance for impairment of the pipelines transmission amounting to Baht 498 million as well as IRPC's recognition on reversal of assets impairment (net tax) amounting to Baht 366 million. Besides, there were higher loss on derivatives together with increased finance cost and income tax expenses. However, there was an increase in gain on foreign exchange rate from more Baht appreciation against US Dollar in 4Q2020 compared to 4Q2019.

Operating results: Year 2020 compared with Year 2019

For the year 2020, Sales Revenue of PTT and its subsidiaries was Baht 1,615,665 million, decreasing from 2019 by Baht 604,074 million or 27.2% from most of business groups. This resulted from the decrease in both of average selling prices and sales volume except for the Technology and Engineering business according to Global Power Synergy Public Company Limited (GPSC)'s acquisition of GLOW Energy Public Company Limited (GLOW) at the end of the first quarter of 2019 (1Q2019).

In 2020, PTT and its subsidiaries reported EBITDA of Baht 225,672 million, dropped by Baht 63,300 million or 21.9% from Baht 288,972 million in 2019. This was primarily due to Exploration and Production business from its lower average selling prices, despite the increase in average sales volume from the Malaysia project and the Partex group after the business acquisition in the second half of 2019. Likewise, performance of Petrochemical and Refining businesses significantly decreased from their stock loss in 2020 in an approximate amount of Baht 19,000 million due to the sharp drop of crude oil price from the end of 2019 at US$ 67.3 per barrel to the end of 2020 at US$ 51.1 per barrel according to oil price war, the crude oil oversupply together with the drop on demand of both petroleum and petrochemical products from the economic activity slowdown amid COVID-19 pandemic. Nonetheless, there was stock gain in 2019 in an approximate amount of Baht 2,800 million. Moreover, the dropped Market GRM from US$ 2.7 per barrel in 2019 to US$ 0.8 per barrel in 2020, was caused by lower spreads of almost all petroleum products resulted in the Accounting GRM sharply declined from US$ 3.0 per barrel in 2019 to US$ (0.8) per barrel in 2020. Also most of olefins and aromatics spreads reduced. The performance of Gas business group decreased mainly from the GSP's lower petrochemical referenced selling prices and lower sales volume due to the impact of COVID-19 together with the optimization of maintenance shutdown and production turndown according to lower customer demand in 2020. Furthermore, soften S&M business's performance was due to lower natural gas prices and fuel oil referenced selling prices as well as lower sales volume. However, performance of Technology and Engineering business improved particularly from GPSC's performance from the acquisition of GLOW at the end of 1Q2019.

In this regards, Net Income in 2020 was reported at Baht 37,766 million, dropped by Baht 55,185 million or 59.4% from Baht of 92,951 million in 2019 in line with the decline of EBITDA and higher depreciation and amortization expenses mainly from Exploration and Production business and Technology and Engineering business due to the business aquisition as aforementioned. In 2020, there were non-recurring items

/(PTT's portion) …

(PTT's portion) from the impairment loss (net tax) on assets amounting to Baht 9,478 million mainly from coal business approximately by Baht 7,700 million, Exploration and Production business approximately by Baht 1,600 million and Petrochemical and Refining businesses approximately by Baht 180 million. In 2019, there were an additional labor compensation expenses according to the Announcement of the State Enterprise Labor Relations Committee and the new Labor Protection Act of PTT Group, amounting to Baht 2,841 million and recognition of expense in accordance with the Civil Court's judgement amounting to Baht 2,105 million, the allowance for impairment of the pipelines transmission amounting to Baht 498 million, despite IRPC's recognition on reversal of assets impairment (net tax) and warranty claim on project construction amounting to Baht 366 and 130 million, respectively. Furthermore, there was lower gain on foreign exchange rate in 2020 due to less Baht appreciation against US Dollar in 2020 when compared to 2019, despite increase in gain on derivatives and lower income tax expenses due to the decrease in most of the group performance.

PTT and its subsidiaries' consolidated financial position as of 31 December 2020

As of 31 December 2020, PTT and its subsidiaries had the total assets amounting to Baht 2,544,183 million, increased by Baht 57,218 million or 2.3% from 31 December 2019, mainly due to the increase in right of use by Baht 70,831 million mainly from the reclassification according to the adoption of Thai Financial Reporting Standard - the Lease, effective from 1 January 2020 onwards. Whereas, the total liabilities were recorded at Baht 1,258,338 million, increased by Baht 72,413 million or 6.1% primarily from an increase in the interest-bearing debt amounting to Baht 136,534 million mainly from the increase in long-term loans and bonds together with the increase of lease liabilities from the adoption of Thai Financial Reporting Standard - the Lease offset by the decrease in accounts payables and income tax payable approximately by Baht 75,000 million. The total shareholders'equity was Baht 1,285,845 million, decreased by 1.2% or Baht 15,195 million, mainly from dividend payment from the performance of the second half of year 2019 and the first half of year 2020.

Please be informed accordingly,

Yours sincerely,

(Mr. Auttapol Rerkpiboon) President & Chief Executive Officer

Investor Relations Department

Tel. [phone]

Fax. [phone]