Thailand's PTT Reports 5% Rise in Profit Due to Lower Gas Costs
Thailand’s largest energy company PTT Pcl has reported a 4.8 percent increase in first quarter profit due to drop in feed gas costs in line with crude oil price which had fallen since mid-year 2015.
The company reported net income of 23.67 billion bhat ($669.78 million) for the quarter that ended on March 31, 2016.
“PTT’s performance increased, especially natural gas business from better performance of products sold from Gas Separation Plant (GSP) and the decrease of NGV losses,” the company said on Friday.
First quarter sales stood at 387 billion bhat, down 24.9 percent on year. According to PTT, the main reason was the sharply drop in average selling prices following the decline in crude oil price which dropped by 41.4 percent compared with first quarter of 2015 resulting in the drop in sales revenue of all business groups.
Natural gas business
Sales revenue of natural gas business was 118 billion bhat, down 15.6 percent on year due to lower sales revenue of PTT Natural Gas Supply and Trading (GSM), Natural Gas Transmission (GTM) and Natural Gas Distribution (NGR) business units, as a result of the drop in average selling prices in all customer groups. Moreover, the average natural gas sales volume decreased by 204 million standard cubic feet per day (MMSCFD), 4.2 percent to 4,628 MMSCFD.
Sales revenue of PTT’s GSP decreased from the lower sales volume. The sales volume of all products from GSPs decreased from 1,620,238 tonne in first quarter of 2015 to 1,492,241 tonne in first quarter 2016, especially ethane.
Moreover, sales revenue decreased in line with the drop in product selling price following global product reference prices. EBITDA of natural gas business in first quarter 2016 was 14.56 billion bhat, increasing by 58.2 percent mainly from the decrease of feed gas costs which decreased more than the drop in selling prices.
Therefore, gross profit of PTT’s natural gas business increased mainly from GSPs as a result of the rise in the sales margin of ethane and LPG as well as less loss from NGV.