PTT Public : Announcement of PTT PLC. and its subsidiaries' reviewed Financial Statements and Operating Results for the 3-month and 6-month period ended 30 June 2020

(Translation)

No. 80000001/

	August 10, 2020
Subject	Announcement of PTT PLC. and its subsidiaries' reviewed Financial Statements
	and Operating Results for the 3-month and 6-month period ended 30 June 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 3-month and 6-month period ended 30 June 2020 which have been reviewed by the auditor and approved by PTT's Audit Committee. The operating result for PTT consolidated is as follows:

Operating results: The second quarter of 2020 compared to the first quarter of 2020

In the Second quarter of 2020 (2Q2020), Sales revenue of PTT Group was reported at Baht 341,325 million, decreased by Baht 142,242 million or 29. 4% from the First quarter of year 2020 (1Q2020) mainly from lower sales revenue in all business groups from lower average selling prices and average sales volume as a result of the COVID-19pandemic,many countries around the world have implemented lockdown measures as well as the impact of the oil prices war.

In 2Q2020, PTT and its subsidiaries reported Earnings before Interest, Tax, Depreciation and Amortization or EBITDA in an amount of Baht 54,208 million, increased by Baht 21,823 million or 67.4% when compared to 1Q2020. This resulted mainly from the Petrochemical and Refining businesses' EBITDA with its stock gain in 2Q2020 while stock loss in 1Q2020 that crude oil price increased from the end of 1Q2020 at US$ 23.4 per barrel to US$ 42.1 per barrel at the end of 2Q2020. The increased in crude oil price was due to OPEC and its allies were able to reach the agreement in oil production cut together with the recovery on demand of crude oil according to improved demand of petroleum products after the easing of lockdown worldwide and the economic stimulus measures from the goverment. Gross profit excluding stock loss (Market Gross Refining Margin: Market GRM), increased due to the decreased crude premium according to the oil price war while most of petroleum product spreads decreased. However, the Olefins and Aromatics spreads gradually improved from the decrease in crude oil prices as the feedstock by the end of 2Q2020. In addition, the overall sales volume of both petroleum and petrochemical products dropped. The International trading business performed better mainly due to the ability to generate profit and increase cross-continent and cross-regional trade opportunities in a favorable market environment (Arbitrage Opportunity) under tight control of all aspects of risk. In addition, the Technology and Engineering (TEG) business had better performance mainly from Global Power Synergy Public Company Limited (GPSC) due to the lower feed gas cost of Small Power Producer (SPP)

/as well as the…

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as well as the increased in sales revenue of SPP and Very Small Power Producer (VSPP). The Exploration and Production (E&P) Business's performance softened from lower selling prices and sales volume from the Bongkot project and Contract 4 project. In addition, the Gas business recorded a decrease in its performance mainly from PTT's Gas Separation Plant (GSP) due to the lower sales volume from its maintenance shutdown and production turndown for the most efficiency in PTT Group according to the lower of both domestic fuel and petrochemical customers' demand which resulted from the impact of COVID-19 pandemic as well as for the reduction in water consumption according to the drought situation in the east of the country. Moreover, there was the decrease in average selling prices of GSP's products in line with the lower global reference prices. In addition, the Natural Gas Sales and Marketing (S&M) business had lower performance due to lower sales volume mainly from the power plants customers and GSP. The performance of Oil business decreased from lower sales volume due to impact of the COVID-19 pandemic.

In this regard, net income in 2Q2020 was Baht 12,053 million, increased by Baht 13,607 million or more than 100. 0% from 1Q2020 of net loss of Baht 1,554 million, which was in line with the increased in EBITDA as aforementioned. In the meantime, there was higher gain on foreign exchange rate from foreign currency loan due to to the appreciation of Thai Baht against US Dollar when compared to the previous quarter. Futhurmore, the income tax expenses were lower from E&P business due to the change of corporate income tax calculation currency in 2Q2020 and the decrease of tax expenses from the decrease of sales revenue, despite increase in loss on derivatives and impairment of assets of E&P business.

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

Compared to the second quarter of 2019 (2Q2019), Sales Revenue of PTT Group decreased by Baht 228,997 million or 40.2% mainly from lower sales revenue in all business groups from lower average selling prices and sales volume as aforementioned.

EBITDA in 2Q2020 decreased by Baht 19,596 million or 26. 6% when compared to the 2Q2019. This was mainly due to the E&P Business from both lower selling prices and overall sales volume despite the increase in sales volume from Malaysia project and the Partex in this quarter which were recongnized from the third quarter and fourth quarter of 2019, respectively. Likewise, the performance of Gas business group decreased mainly from the GSP's lower selling prices in line with the lower global referenced prices and sales volume from GSP's maintenance shutdown and production turndown. Moreover, the S&M business's reported soften performance due to lower sales volume mainly from power plant customers as well as the decreased fuel oil referenced selling prices. The performance of Oil business decreased from lower sales volume resulted from impact from COVID- 19 pandemic. However, the International trading business performed better mainly due to the ability to generate profit and increase cross- continent and cross- regional trade opportunities in a favorable market environment (Arbitrage Opportunity) under tight control of all aspects of risk. Petrochemical and Refining businesses had improved EBITDA due to its stock gain in 2Q2020 from the increase

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in crude oil price as aforementioned despite the drop of Market GRM from the decrease in most of petroleum product spreads as well as the decrease in petrochemical spreads.

Therefore, net Income dropped by Baht 13,885 million or 53. 5% in line with a decrease in EBITDA as well as an increase in loss on derivatives and the asset impairment of E&P business in this quarter despite an increase in gain on foreign exchange rate from foreign currency loan due to the appreciation of Thai Baht against US Dollar, and the decrease in income tax expenses from E&P business as aforementioned.

Operating results: The first half of 2020 compared to the first half of 2019

In the first half of 2020 (1H2020), Sales Revenue of PTT Group was decreasing by Baht 296,304 million or 26.4% mainly from lower sales revenue in almost business groups from lower average selling prices and sales volume except for TEG business, the revenue from sales increased due to the acquisition of Glow Energy Public Company Limited (GLOW) by GPSC at the end of first quarter of 2019 (1Q2019).

In 1H2020, EBITDA dropped by Baht 67,734 million or 43.9% from the first half of 2019 (1H2019). This was primarily from Petrochemical and Refining businesses due to the stock loss in 1H2020 that crude oil price was sharply dropped from the end of 2019 at US$ 67.3 per barrel to the end of 1H2020 at US$ 42.1 per barrel due to oil price war, oversupply together with the lockdown amid COVID-19 pandemic leading to the drop on demand of both Petroleum and Petrochemical products. The dropped Market GRM resulted from lower spreads of almost all petroleum products as well as the olefins and aromatics spreads. Gas business group decreased mainly from the GSP's lower selling prices in line with the lower global referenced prices and lower sales volume according to the maintenanc shutdown and production turndown as well as the S&M business's lower fuel oil referenced selling price, and lower sales volume from power plant customers. Moreover, performance of E&P Business decreased from lower selling prices despite the increase in sales volume from Malaysia project and the Partex. The performance of Oil business decreased from the increase of stock loss and lower sales volume due to impact from COVID-19 pandemic. However, TEG business improved particularly from GPSC's performance according to the acquisition of GLOW at the end of 1Q2019. Moreover, the International trading business performed better mainly due to the ability to generate profit and increase cross- continent and cross-regional trade opportunities in a favorable market environment (Arbitrage Opportunity) under tight control of all aspects of risk.

In this regards, net income in 1H2020 was Baht 10,499 million, dropped by Baht 44,751 million or 81.0% from 1H2019 in line with the decline of EBITDA and higher depreciation and amortization expenses from E&P Business and TEG business's business aquisition as aforementioned. Furthermore, there was lower foreign exchange rate gain in 1H2020 due to the depreciation of Thai Baht against US Dollar and the assets impairment of E&P Business despite an increase in gain on derivatives and lower income tax expense according to the decrease in the performance.

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PTT and its subsidiaries' consolidated financial position as of 30 June 2020

As of 30 June 2020, PTT and its subsidiaries had the total assets amounting to Baht 2,449,277 million, decreased by Baht 37,688 million or 1.5% from 31 December 2019, mainly due to the decrease in trade accounts receivable and inventory by Baht 104,820 million following lower sales volume and selling prices. However, the right of use assets was increased by Baht 69,050 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 1,182,785 million, decreased by Baht 3,140 million or 0.3% which included a decrease in accounts payable and income tax payable around Baht 110,000 million offset by an increase in the interest-bearing debt amounting to Baht 102,992 million mainly from the increase in long- term loans and debentures and an increase in lease liabilities according to the adoption of Thai Financial Reporting Standard - the Lease. The total shareholders' equity was Baht 1,266,492 million, decreased by Baht 34,548 million or 2.7%, mainly from the dividend payment from the second half of 2019 performance.

The widespread of the COVID-19 pandemic as well as the the oil price war situations have severely affected the global economy in almost all industrial groups including the energy industry as well as PTT Group's performances. However, PTT group have closely monitored the situation and proceeded to manage and issue various measures by establishing the PTT Group Vital Center to plan and manage the overall responses in both short-term and long-term. PTT Group have implemented cost control measures "Decrease-Discard-Defer" policy and collaborate to have PTT group value chain optimization in the management of demand, supply, and inventory to maximize benefits including managing liquidity and maintaining the financial strength of PTT Group.

Please be informed accordingly,

Yours sincerely,

(Mr. Auttapol Rerkpiboon)

President & Chief Executive Officer

Investor Relations Department

Tel. [phone]

Fax. [phone]