PTT : Announces Positive Performance of 4Q2020, Provides 25,000 Job Opportunities, with Five-Year Investment Budget Over 800 Billion THB to Stimulate Economy

18 February 2021

PTT's performance in the fourth quarter in 2020 increases, compared to the previous quarter while transforming to new business, highlighting 'Clean Energy' and 'Life Science'. PTT Group's five-year investment budget was set at over 800 Billion THB to stimulate Thailand's economy.

Mr. Auttapol Rerkpiboon, President & Chief Executive Officer, PTT Public Company Limited (PTT) announced performance in the fourth quarter of 2020 and the year of 2020. PTT Group reported its EBITDA (Earnings Before Interest Tax Depreciation and Amortization) in the fourth quarter of 2020 at 71.614 Billion THB, increasing by 4.149 Billion THB or 6.1% from the previous quarter. The growth was due to the better performance in the petrochemical and refinery business, resulted from the global economic revival, economic stimulus package and consumers' changing behavior in health concern, work from home, and personal car usage. Meanwhile, upstream business got a positive performance mainly from the operation of gas separation plant regarding the drop of gas cost and the rise in average selling price of petrochemical products in the global market. Petroleum exploration and production business showed a drop in an average selling price. PTT Group reported its net profit in the fourth quarter of 2020 at 13.147 Biillion THB, decreasing by 973 Million THB or at 6.9% compared to the previous quarter.

PTT Group, therefore, reported its total EBITDA in the year of 2020 at 225.672 Billion THB, declining 63.300 Billion THB or 21.9% in the previous year (2019). The main effects for the drop were a decrease in average selling prices of exploration and production business and the stock loss from the petrochemical and refinery business. Crude oil price fell from 67.3 USD per barrel in 2019 to 51.1 USD per barrel in 2020. Upstream business also showed the decrease, mainly from the reduction of the Gas Separation Plant business' selling price and the negative impact from the COVID-19, as well as the shutdown maintenance and reduction in production capacity of Gas Separation Plant. However, the technology and engineering business showed positive performance according to the acquisition of GLOW by GPSC in the first quarter of 2019. Hence, PTT Group's net profit in 2020 reported at 37.766 Billion THB, decreasing by 55.185 Billion THB or 59.4% from 2019.

For the five-year corporate planning (2021 - 2025), PTT Group has set the capital expenditures budget (CAPEX) at 850.573 Billion THB, excluding project under consideration. This five-year CAPEX focuses on the investment in the Gas Separation Plant Unit 7 and the fifth natural gas transmission pipeline, the construction of the second LNG Receiving Terminal at Nong Faeb in Rayong, and Map Ta Phut Terminal Phase 3. Furthermore, PTT Group has set the Provisional Capital Expenditure in the next five years at 804.202 Billion THB for the expansion of LNG Value Chain both domestic and international market. The provisional capital expenditure is also for the investment in Gas-to-Power business, Electricity Value Chain, and renewable energy to reduce greenhouse gas emission, as well as the establishment of Innobic (Asia), a new business in Life Science, on November 18th 2020.

In order to help reduce the negative impact of COVID-19 to the country, PTT Group has offered Restart Thailand Project to provide over 25,000 job opportunities with one-year contract and 851 Million THB to procure and distribute alcohol gel and protection equipment, and development of COVID-19 test kit.

Furthermore, the PTT Group's greenhouse gas emission in 2030 was revised from 27% to 20%, compared to business scenarios. PTT will also use the 'Internal Carbon Price' in the company's Capital Expenditure Decision Process, in projects focused on reducing greenhouse gas emissions (GHG Scope 1 and 2).

Consequently, PTT Group has been listed on the Dow Jones Sustainability World Index (DJSI World) in 2020 for the ninth consecutive year and received the highest score in the Oil & Gas Upstream Integrated Business Group. The company was also recognized as Best Investor Relations Awards in 'SET Awards 2020' for the second consecutive year and selected to be listed in Thailand Sustainability Investment (THSI) 2020. In addition, PTT received awards from Thailand Corporate Excellence Awards 2020 and State Owned Enterprise Award (SOE Award) 2020. Another success is new flagship company in PTT Group, PTT Oil and Retail Business Public Company Limited, which the Initial Public Offering and Listing of the Shares greatly received positive feedback from domestic investors.