analyst meeting q3/2016 - listed...

Analyst MeetingQ3/2016PTT Auditorium

16 Nov 2016

1

Safety and Sustainability:PTT has implemented several safety programs that really improve the safety performance

Aspiration = Zero Accident

• Total Recordable Injury Rate• IOGP = International Association of Oil & Gas Producer

1

Jan – Oct 2016 Performance

Policy and Standard

Process and Platform

Technology and Innovation

People and Culture

0.22

0.060

1

2

3

4

2009 2010 2011 2012 2013 2014 2015 Jan-Octl2016

Total Recorable Injury Rate (Injuries/Million hrs)

PTT: TRIR-employee PTT: TRIR-contractor

IOGP: TRIR employee IOGP: TRIR contractor

2

Rewards & Recognition

2

• Enterprises of the Year 2016 award • Award for Outstanding disclosure and transparency • Award for Outstanding Innovation (7th consecutive years)

SOE Award

PTT Business Continuity Management System: BCMS

• 1st large company in Thailand, certified by the international standard ISO22301 for the entire organization

• ranked "Excellent" for CGR Scoring, 8th consecutive years• categorized in Top Quartile among the companies with over 10,000 MB Market

Capitalization

Excellent CG Scoring Company (IOD)

• Most Organized Investor Relations• Strongest Adherence to Corporate Governance• Most Consistent Dividend Policy • Best Annual Report in Thailand

Alpha Southeast Asia Award

• selected as members of Dow Jones Sustainability Indices (DJSI) in 2016 (5th consecutive years)

Member of DJSI

9M/16 Overview

Q3 & 9M/16 Performance

Outlook 2017

Contents

3

Overview Performance Outlook

9M/16 Highlights:

Key Events Update (Q3)

• GSP – No major T/A

• NGV – selling price reflected actual cost with no

ceiling since Jul’16

• Oil – 1st Amazon franchise in Japan

• Trading – Cabinet approved the establishment

of London office

• PTTGC – resumption of Olefin 3

• TOP – Fully operation of LABIX and 2 blocks of

TOP SPP

• PTTGC’s – Fire broke out at Phenol

storage tank

Performance (YoY)

• PTTEP – No impairment and successful cost

saving

• GAS –performance improved from lower feed

cost

• Oil – profit increased from stock gain

• Trading – performance improved from domestic

condensate

• Power – performance improved from higher

sales volume, lower gas cost and dividends

received from RPCL

• Petchem – Improved Aromatics and Olefins

• Coal – Better performance from successful cost

reduction initiated

• Refinery – pressured performance from market GRM despite stock gain

Finance PTT group Loan drawdown ~ 12,000 MB (PTTGC & IRPC)

4


0

5

10

15

20

25

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16

LNG (JLC) ($/MMBTU) JKM Spot Avg. Pooled Gas ($/MMBTU)

31

32

33

34

35

36

37


100

300

500

700

900

1100


HDPE-Naphtha Spread PX-Naphtha Spread

10

50

90


NG Prices ($/MMBTU)

* JLC = Japan LNG Cocktail : Landed LNG price in Japan

Key Business Drivers: Oil price started to pick up while NG continued to decline

Note: Figures are average

741

Dubai vs FO ($/BBL)

HDPE and PX spreads($/Ton) FX (USD/THB)

Dubai

FO

HDPE

341

PX

JLC*

56.6

55.1 Avg. Pooled

43.0

36.6

720

346

11.4

8.1

JKM 8.2

33.1

35.9

5

Depreciated

1.6 THB/USD (4.6%)

759

5* Naphtha (MOPJ)

9.2

7.47.5

30.4

25.8

5.7

6.8

5.4

407

Appreciate

0.5 THB/USD (1.4%)

35.8

43.243.2

35.239.8

743 753

394421

35.535.0

Avg. 9M/15 = 33.87 THB/USD

Avg. 9M/16 = 35.43 THB/USD


TradingMargin increased from domestic condensateVol. decreased from out-out transactions

OilVol. increased from demand due to lower retail prices Margin improved from stock gain

Gas

GSP margin improved from lower feed costNGV loss decreased Increased TM performance Decreased Volume from EGAT & GSPs’ major T/A

PTTEPUnit cost reduced from DD&A and project SAVE to be SAFEOn track for 2016 sales volume target

938,330

12,180

49,7548,549

5,670

17,462

Margin

FX & Derivatives

OPEX* Depre & Amortiza-

tion

Other Income

Int. & CIT exp. & Other**

Impair

9M/2016 Performance: Improved performance in most businesses

6* including petroleum exploration expenses and royalties** including profit from discontinued operation

19,748

MMTHB

75,522

Net Income

49,835

Operating Performance

74,951

Extra Items

134%

1%

12%

18%

102%

Petrochem & Refining

Better Olefins performance from higher P2F Aromatics improved from spreads margin and volume increase Market GRM decreased

No Impairment of PTTEP & PTTGE

Insurance claim of PTTGC

Extra Items

Lower hedging Gain from PTTT

Others Affi

9M/15 9M/16

17,155

40,067 8,887

8,963

14,015

19,694

2,675

-

7,103

6,227

(30,087)

571

PTTEP

PTT

Others Affi.

P&R

BCP & SPRC


7

ContentsOverview Performance Outlook

9M/16 Overview


Outlook 2017

43.68 43.15

52.96

39.37

36.62 36.32

47.47

36.00

Q2/16 Q3/16 9M/15 9M/16

-79

81 43154

75 705

-1,691

345

E&P : No impairment and cost saving improved NI, while ASP drop

Product Prices

Net Income (100%)

Sales Volume

Key Highlights

Liquid ($/BBL)

Gas($/MMBTU)

Weighted Avg.

($/BOE)

MMUSD

223 217 222 224

98 94 95 97

Q2/16 Q3/16 9M/15 9M/16

Liquid

Gas

KBOED

8

321

388

75156

*** Includes Deferred tax from Functional currency, Current Tax from FX Revaluation, Gain/loss from Financial instruments, Gain/(loss)on FX, H1 incident Insurance Claim, and etc.

1% YoY

Non-recurring***

Recurring NI

1% QoQ

23% YoY

119

Q1’16

1% QoQ

24% YoY

311 317 321

(986)

139% YoY

5.59 5.567.51

5.75

Q2/16 Q3/16 9M/15 9M/16

108% QoQ

E & P Gas Oil & Trading P&R Others

1% QoQ

26% YoY

3% QoQ

QoQ

• ASP remained low from slightly declined in oil & gas price

• Sales volume decreased mainly from Arthit

• NI increased, mainly from tax saving and oil price hedging

YoY

• Avg. selling price drop significantly from slump in oil & gas prices

• Sales volume increased mainly from Project B 8/32 & 9A

• NI improved from no impairment and cost saving program


9

E&P Strategy:

RESET Cost Structure REFOCUS for Future Growth

Actual9M’16

Guidance 2016

Avg. Gas Price ($/MMBTU)

5.75 ~5.5

Avg. Sales Vol. (KBOD/D)

320.6 ~320

EBITDA margin (% of Sale Rev.)

73 ~70

Unit Cost(USD/BOE)

29.98 ~31

2016 Full year guidance

9

Path to re-tendering of expiring concessions in the Gulf of Thailand

Aug Jan SepMar

20172016

Legislation of Petroleum Act and associated laws

Tendering Process (preliminary expectation)

Terms of Reference (TOR)

~5 months

~5 months

~2 months

~7 months

Process: Indicative target for dataroom in March

and concession award within September 2017

TOR: approval process by the Cabinet

TOR: under drafting by the MoE

Associated Laws: under drafting by the MoE• Details and contract models of alternate regimes

Petroleum Act and PITA: under the National Legislative Assembly’s review

M&A• Producing/ near-term

producing assets in SEA

Exploration Portfolio• Low risk• Known areas• Quick commercialization in SEA

LNG Value Chain• Evaluate feasibility to form

LNG value chain partnership with PTT

FID Candidates

Mozambique Area 1 (hold 8.5%)• Initial development for 12 MMTPALNG

(2 trains)Contract 4 (Ubon) (hold 60%)• Oil resources in the Gulf of Thailand• Proposed production capacity in 25-30

kbpd rangeAlgeria HBR (hold 24.5%)• Successful appraisal wells results• Fasten development plan


10


PTT EBITDA Breakdown by BU’s:

Business Unit Q2/16 Q3/16 QoQ 9M/15 9M/16 YoY

Gas- EBITDA 16,974 20,072 18% 34,062 51,610 52%

• S&M 2,028 3,458 71% 6,659 6,852 3%

• TM 8,364 8,154 -3% 18,140 24,949 38%

• GSP 4,881 6,454 32% 10,861 14,833 37%

• NGV -909 -1,173 -29% -8,263 -3,019 63%

• Others 2,610 3,179 22% 6,665 7,995 20%

Oil- EBITDA 6,941 6,413 -8% 11,068 19,229 74%

Trading*- EBITDA 1,758 1,029 -41% 2,718 3,895 43%

Total** 25,673 27,514 7% 47,848 74,734 56%

(Unit:MMTHB)

*MIS** Included Gas & Oil subsidiaries 10

%QoQ %YoY

FO 13% 35%PooledPrice 3% 26%

11.9 11.712.3 12.0

7.78 7.47

8.60 7.81

Q2/16 Q3/16 9M/15 9M/16Vol.

MMCFD280 268 309 281

1,081 876 1,177 1,010

1,0811,000

1,003 992

860903

746 857

882 999 945 922

697 711 665 693

280 268 309 281

Q2/16 Q3/16 9M/15 9M/16

Gas BU: Pooled gas cost continued to fall, though NG volume declined

NG Price VS FO NG Customer Breakdown

$/MMBTU

EGAT (21%)

IPP (21%)

SPP (18%)

GSP (19%)

Industry (15%)NGV (6%)

MMSCFD

4,881

NGV Price/Sales Volume

QoQ

• Pooled gas cost continued to decline, while F/O price picked up

• NG sales volume dropped from seasonal high power demand in summer (Q2), despite no major GSP’s T/A in Q3

• Lower NGV volume, though NGV prices slightly drop, due to demand switching to persistently-low-price gasoline

YoY

• Overall NG sales declined from power customers and GSPs major T/A’s

• NGV volume decreased, as a result of lower demand

Key Highlights

4,755

ที่เพ่ิมข้ึนเป็นของ

K.Ton/Day

11

9% YoY


4,757

$/Ton

Fuel Oil*

* MOPS HSFO 180 CST

Avg. Pooled gas price

LHS

RHS

2% YoY

•

THB/KG

NGV Avg. price

2% QoQ2% YoY

4,845

3% QoQ

4% QoQ


8.6 9.2

8.6 8.5 8.5

7.9 7.3

6.6 6.2 5.8 5.6

610 607591

437

318377

265

217

160

219247

-

100

200

300

400

500

600

700

5

7

9

11

13

15

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16

1,375 1,234 1,576

1,266 1,188

1,375

1,234 1,153 1,103

1,153

1,139

Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16

333 333 333 333

443 497

470 440 431

427 420 389 394 391 382380

359352

310 309 302284

2,028 3,458 6,659 6,852

8,364 8,154

18,140 24,949

4,881 6,454

10,861

14,833

(909) (1,173) (8,263) (3,019)

2,610 3,179

6,665

7,995

Q2/16 Q3/16 9M/15 9M/16

Propane (13%)

Gas - EBITDA

MMTHB

Others

TM

GSP

34,062

16,974

S&M

NGV

661 730

1,935 2,072 175 190

524 533

447 552

1,596 1,449

187 237

636 611

3 9

22 18

Q2/16 Q3/16 9M/15 9M/16

GSP Sales Volume

LPG (44%)

kTon

1,718

17% QoQ

1% YoY

Gas BU: Performance improved from all segments

NGL (11%)

Ethane (31%)

Key Highlights

GSP Feed Cost vs Petchem price

USD/Ton

Feed Cost**

LPG Ex-GSP*

* Effective on February 2, 2015** Revised feed cost calculation from per sale volume to per GSP production volume

Pentane (1%)

1,473

20,072

12

HDPE

52% YoY QoQ

• S&M margin increased from industrial sales due to rising F/O price and declining gas cost

• GSP margin improved from lowered feed cost with no major T/A

• Gas BU’s EBITDA is better from improvement in almost all segments, despite NGV

YoY

• Industrial performance improved S&M margin

• GSP’s margin increased from feed cost decline more than selling price

• TM performance increased from high TDC volume

• Subsidies on LPG & NGV removed

• Gas BU’s EBITDA continued to improve in all segments

4,713

18% QoQ

4,683

51,610



%QoQ %YoY

HDPE -1% -11%

LPG Ex-GSP -2% -9%

Feed Cost -6% -18%

13

Gas Business Roadmap

Gas transmission pipelinesDemand & Supply

GSP

Capacity

(MTA)

6.7 6.7 6.7 6.7

New Supply

6.7

LNG Ph#2

MajorProject

COD

LNGCapacity

(MTA)

5 10 10

• 4th

onshore

• Nakhon Sawan

• Offshore Comp.

• 4th

onshore Midline Comp.

7

6.7

• Comp Wangnoi

• Nakhon Ratchasima

LNG Ph#2(Early Sent Out)

11.5 11.5

LNG Terminal#1 - Extension



Project Progress @ Sep 2016

4th Onshore Midline Compressor 70.30%

NakornRatchasima Pipeline – Phase 1 93.94%

5th Transmission Pipeline Preparing for EPC Bidding

RA#6 – Ratchaburi Pipeline Preparing for EPC Bidding

Wang-noi Compressor Station EPC Bidding

1

2

3

45

13

1

2345

0.0

0.1

0.2

0.3

0.4

0.5

0.6

Q3/15 Q4/15 Q1/16 Q2/16 Q3/16

Import Industry Auto Household

9.00

9.50

10.00

10.50

11.00

11.50

12.00

12.50

13.00

0

5

10

15

Q3/15 Q4/15 Q1/16 Q2/16 Q3/16

Avg. Sales Vol. (K.Ton/day)Price (THB/Kg)

-50

0

50

0

500

1,000

1,500

Q3/15 Q4/15 Q1/16 Q2/16 Q3/16

Sales Vol. Export M.Litre

(50.00)

(40.00)

(30.00)

(20.00)

(10.00)

-

10.00

20.00

30.00

40.00

0

1,000

2,000

3,000

Q3/15 Q4/15 Q1/16 Q2/16 Q3/16

Sales vol. Export

14

Oil BU: Demand stabilizing after price liberalization

NGV - volume continues to fall despite price decline

M.Ton

Diesel - demand improved as price fallGasoline - demand surged, as a result of

price drop

THB/Litre

27.4324.19 23.55 23.76

M.Litre

THB/Litre

12.38

LPG – Overall volume falls from lower imports

THB/kg

20.29

23.07

11.7311.85

24.72 23.87

20.29

K Tons/day

0.51

0.40 0.38



10.00

40.00

70.00

100.00

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Jul-16 Aug-16 Sep-16

0.58

0.96 0.94 0.80

6,558 6,621

18,758 19,856

Q2/16 Q3/16 9M/15 9M/16

965 953 2,362 2,797

5,976 5,460

8,706

16,432

Q2/16 Q3/16 9M/15 9M/16

QoQ YoY

Oil 9% 89%

Non-oil 1% 18%

Oil BU : Better overall performance mainly from stock gain

MMTHB

THB/Liter

15

Oil

Non-Oil*

* EBITDA from Operating

Contribution margin1/Sales volume2

MM Liter

1/Excluded Non-oil and stock gain/loss 2/PTT only

15% YoY

6% YoY

3,572 42 (3,113) 4,300

Petroleum Prices

Stock Gain/Loss(MMTHB)

66% QoQ

1% QoQ

Oil - EBITDA

USD/BBL

(Average Prices)

Key Highlights

Gasoline

Diesel

Dubai

QoQ

• Sales vol. increased slightly, mainly from low LPG sales in Q2 (effect from GSP 6/PTTGC T/A )

• Improved contribution margin mainly from the absence of diesel imports in Q2’16

• EBITDA decreased from higher selling and operating expenses

YoY• Sales volume increased mainly from higher demand following

lower product prices

• Lower contribution margins mainly from higher diesel imports during PTTGC T/A in Q2’16

• Higher EBITDA mainly from stock gains & higher sales volumes

6,4136,941

11,068

19,229



*

*Excluded refund of oil fund

*

48.16 45.41 54.89

44.16

43.18 43.16

54.31

38.93

17,309 19,463

60,847 55,252

Q2/16 Q3/16 9M/15 9M/16

QoQ

• Contribution margin slightly declined mainly from lower domestic condensate margin

• Volume increased from higher crude supply to domestic refinery from the absence of PTTGC T/A

• Lower EBITDA performance, mainly from paper swap timing mismatch

YoY• Margin improved mainly from domestic condensate following higher

demands

• Sales volume declined from out-out trading volume supplied to Indonesia

• Better performance, from better domestic condensate margins

0.11 0.10

0.06

0.09

Q2/16 Q3/16 9M/15 9M/16

* PTT only : FX Adjusted

1,758

1,029

2,718

3,895

Q2/16 Q3/16 9M/15 9M/16

Trading BU: Performance improved from better domestic condensate margin

Contribution Margin*

Trading - EBITDA*

Sales Volume

Key Highlights

MMTHB

MM Liter

16

* PTT only : FX Adjusted

43% YoY

Contribution Margin (THB/Liter)

NWS($/BBL)

28%

9% YoY

6%

41% QoQ

Dubai ($/BBL)

0%

20%

50% 9%

YoYQoQ

12% QoQ



EAST FLAGSHIP

LDN

SG

WEST

FLAGSHIPOut-Out

businesses in Western corridor

Trading BU & PTTT: Key Achievements in Q3/16

GROWTH

LONDON OFFICE

Nov 2016

Registered capital: £420,000

Incorporation Date: 24th Oct’16


17


234 253 241 253

405 402 373

407

Q2/16 Q3/16 9M/15 9M/16

83%

75%

77% 82%

7,753 2,941

8,432 15,420

3,706

1,307

8,955

8,027

4,925

6,225

15,812

15,857

2,003

1,557

3,329

4,209

(454)

640

(1,098)

312

6,382

1,933

Q2/16 Q3/16 9M/15 9M/16**

3.39 3.63

6.13

4.08

6.57

3.37 5.05 4.46

11.74

6.89 7.71 8.43

Q2/16 Q3/16 9M/15 9M/16

1,153 1,139 1,266

1,132 1,082 1,090 1,209

1,034

Q2/16 Q3/16 9M/15 9M/16

18

43.2 43.2 54.3 38.9

GRM/GIM

Olefins

USD/BBL

A/C GRM*

A/C GIM*

Mkt GRM

Dubai

Net Income (100%)

P&R BU : Soften GRM whilst better Aromatics and Olefins performance

3.73 -0.03 -1.41 0.75StockGain/Loss

43,745

17,93312,670

IRPC

TOP

SPRCBCP

*A/C GRM and A/C GIM include effect from hedging gain/(loss)

Unit : MMTHB

18** Sold out of BCP and SPRC

43,825

29%

QoQ YoY

QoQYoY

24% w/o BCP and SPRC

A/C GIM41% A/C GIM

9%

Olefins U-Rate 85%

93%93%

86%

USD/Ton

HDPEPrice

PPPrice

1% 1% 11%14%

QoQ YoY

Aromatics

BZ-Cond

PX-Cond

USD/Ton

8%

9%

5%

QoQ YoY



PTTGC

HMC

Others

1%

205 179 205 201AromaticsAcc P2F

2%

BTXU-Rate

13%

19

P&R : Strategic Project Update and Roadmap

Linear Alkyl Benzene (LAB)

• Successfully COD on 25 Feb 2016

• Capacity 120 Kton/annum

• Project cost 400 M$

TOP SPP (2blocks of SPP)

• Successfully COD 1st block of TOP

SPP (124MW) on 1 April 16

• Successfully COD 2nd block (115 MW)

on 1 June 2016

19



To be a Leading chemical company for Better living

Sustain Core

Project MTP retrofit

Olefins Reconfiguration

Project MAX

Improve productivity

Project Asset Injection

Reduce complexity & Maximize integration

Accelerate Growth Levers

International hub

Performance chemicals

Green business

Balance Business & Social Value

19

http://www.thaioilgroup.com/

http://www.thaioilgroup.com/

42

4755

44

35

36

47

36

52

67

61

56

Q2/16 Q3/16 9M/15 9M/16

2.0

6.5 5.6

9.3

Q2/16 Q3/16 9M/15 9M/16

Other Businesses : Coal - SAR Better performance from lower depreciation and cost, despite lower coal price

Net income

Sales Volume

Key Highlights

MMUSD

USD/Ton

2,153 2,040

4,519 5,639

414 384

1,335

1,415

2,567 2,424

5,854

7,054

Q2/16 Q3/16 9M/15 9M/16

kTon

Jembayan

Sebuku

Avg. Selling Price

Total Cash Costs

6% QoQ

Avg. Selling Price* & Cash cost*

New Castle

20% YoY

66% YoY

29%

3%

20%

8%

23%

20

QoQ YoY

QoQ

• Selling price increased by 12% following the rise in coal price from the effect of China coal production limit

• Sales vol. decreased by 6% mainly from bad weather

• Performance improved mainly from the price increase

YoY

• Cash cost declined by 23% from successful negotiation w/ contractors and reduction in fuel cost

• Sales vol. increased following the increase in coal production

• Performance improved mainly from lower depreciation & successful cost reduction

*Calorific value ~ 5,500 kcal/ton


12%

225% QoQ


http://www.straitsasia.com/


Combine Cycle : IPP

66.1%

Cogen : SPP

31.2%

Renewable2.3%

Combined heat: VSPP

0.4%

624 599

1,603 1,7971,475 1,492

3,604

4,287

Q2/16 Q3/16 9M/15 9M/16

Hydro Electricity

63%

Cogen: SPP 32%

Renewable5%

686 724

1,571

2,281

Q2/16 Q3/16 9M/15 9M/16

Net Income (100%)Sales Volume

Key Highlights

MMBahtGWh

Other Businesses : Power - GPSC Outstanding performance supported by dividend income from its affiliates

‘000 Ton

Committed Capacity

Power

Steam

21

QoQ YoY

Operating1,376 MW

Underconstruction

546 MW


QoQ

• Lower electricity sales vol. from both IPP and SPP due to lower vol. dispatched to EGAT and lower sales vol. to non-firm

• Higher NI mainly came from the dividend income from RPCL amounting to 240 MB

YoY

• Higher sales vol. from SPP to industrial customers and also COD of IRPC-CP in Q4/15

• Higher NI as a result of higher sales vol, lower natural gas cost and better cost management

1% 12%

19%

45% YoY6% QoQ

Present 2019


4%





Other Businesses : Power – GPSC



To be Updated

Project Type Capacity SCOD Construction Progress

as of Q3/16

CHPP Solar Cooperatives(VSPP) Solar • Electricity: 5 MW Dec’16 8%

IRPC-CP phase 2 (SPP) Cogen • Electricity: 240 MW

• Steam: 180-300 T/HJun’17 90%

Bangpa-In Cogeneration Company Limited (BIC) Phase 2(SPP)

Gas-Fired Power Plant

• Electricity: 117 MW• Steam: 20 T/h

Jun’17 78%

Ichinoseki Solar Power 1GK (ISP1) Solar • Electricity: 20.8 MW Q4’17 84% land

preparation

Project Highlight: 4 Projects to COD in 2017

22

53%

27%

12%

8%

48%

17%

6%

28%

1%

24,879 26,974 19,748

75,522

26,403

49,835

74,951

Q2/16 Q3/16 9M/15* 9M/16

43.18 43.16 54.31 38.93

PTT Consolidated Performance: 9M/2016

Avg. Dubai (USD/BBL)

9M/169M/15

420,447 435,172

1,554,885

1,241,989

Q2/16 Q3/16 9M/15* 9M/16

PTT

P&R

Others

PTTEP

Net Income

Unit : MMTHB

EBITDA

Net Income/Operating Performance

Revenue Revenue

EBITDA

82,150 75,701

220,635 229,058

Q2/16 Q3/16 9M/15* 9M/16

23

46%

18%

6%

29%

1%

Revenue

PTT - Oil

& Trading

PTT - Gas

Others

PTTEP

P&R

20% YoY

* Included gain on BCP divestment and IRPC reverse allowance for doubtful debt

36%

23%

10%

30%

1%

EBITDA

P&R

PTT - Gas

Others

PTTEP

PTT - Oil

& Trading

Net Income

46%

15%

6%

31%

2%

97%

93%

-120%

30%


4% QoQ

4% YoY

0.04% QoQ 28% YoY

8% QoQ

QoQ8%6%

YoY282%50%

2424

PTT Group Performance : 9M/2016 (YoY)

*SPRC before disposed = 36%, **BCP divested in April 2015

% PTT

holding

9M/15 9M/16 YoY 9M/15 9M/16 YoY

PTT Net operating Income 19,241 40,067 108% 19,241 40,067 108%

E&P - PTTEP -36,284 13,732 138% 65.3% -23,688 8,963 138%

Petrochemical 18,043 20,378 13% 8,374 9,664 15%

- PTTGC 15,812 15,857 0% 49.3% 7,454 7,769 4%

- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 2,231 4,521 103% 920 1,895 106%

Refining 25,702 23,447 -9% 9,906 10,601 7%

Refining (Excluded SPRC & BCP) 17,387 23,447 35% 7,231 10,601 47%

- TOP 8,432 15,420 83% 49.1% 4,085 7,369 80%

- IRPC 8,955 8,027 -10% 38.5% 3,146 3,232 3%

- SPRC 6,382 0 -100% 5.41%* 2,122 - -100%

- BCP 1,933 0 -100% 0%** 553 - -100%

Others Business 8,591 10,493 22% 5,915 6,227 5%

Inter - PTTER, PTTGE -4,074 -860 79% 100% -4,086 -876 79%

Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 4,162 4,244 2% 3,659 3,649 0%

Utilities -GPSC/ TP/ DCAP 2,653 3,542 34% 752 903 20%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 5,850 3,567 -39% 5,590 2,551 -54%

Shared of Net Income from Affiliates 16,052 68,050 324% 507 35,455 6893%

PTT Conso. Net Income 35,293 108,117 206% 19,748 75,522 282%

Equity Method % PTTPerformance 100%

Unit : MMTHB

24


PTT Ratings at Sovereign Level

− FC : Moody’s (Baa1), S&P (BBB+),

JCR (A-), FITCH (BBB+)

− LC : Moody’s (Baa1), S&P (BBB+),

JCR (A), FITCH (BBB+)

Other Liabilities

PPE

Others Non-

currentAssets

OtherCurrentAssets

L/TLiabilities(incl. due within 1 yr)

TotalEquity

MMTHB

Cash & S/T Invest

31 Dec 13 30 Sep 14

1,805,041 1,818,746

Statement of Financial Position

1,118,677 1,096,860

375,617 371,658

332,977300,749

346,725345,201

1,087,687 1,132,043

632,834 585,921

453,475 396,504

1 2 3 4 5

3%

2,173,996 2,114,468

30 Sep 1631 Dec 15

25


0.290.24

1.09

0.91

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

YE15 9M/16

Net Debt/EBITDA ≤ 2.0

Net Debt/Equity ≤ 1.0

Assets/Liabilities slightly decreased :

• Decrease in AR and AP following lower ASP

• Decrease in PPE from depreciation expense

• Decrease in L/T liabilities from loan repayment

Free Cash flow

45,219 48,182

Investing9M/15

(158,930)9M/16

(134,942)

CAPEX (PP&E, Intangible asset) (129,116) (82,814)

Investment (Sub. &Affiliates) 13,993 (1,778)

Current investment (60,522) (53,025)

Dividend/Interest Received 12,135 7,506

Others 4,580 (4,831)

Operating9M/15

204,1499M/16

183,124

Net Income 19,748 75,522

Changes in assets & liabilities 19,551 (19,150)

Income Tax (40,969) (29,073)

Non-Cash Adjustment 205,819 155,825

Ending Cash & Cash Equivalents

169,678 185,429

Ending cash incl. S/T investment

312,745 345,201

Beginning Cash and Cash Equivalents

234,212 239,978

Cash In/(Out)

(64,534) (54,549)

Adjustment

11,805 65

Financing (121,558) (102,796)

Repayment Loans (98,294) (64,052)

Interest paid (25,338) (23,238)

Dividend paid (43,332) (44,374)

Received from share issue 9,990 102

Received from loans/Bonds 35,504 23,610

Others (88) 5,156

Statements of Consolidated Cash Flows : 9M/16

26


27

Contents

9M/16 Overview


Outlook 2017


Bull : - Strong housing market’s recovery, - Stimulus measures help support growth

Bull : - Strong labor market Rising household spending

28

Global Economic Outlook : Uncertainty in the Aftermath of the US Presidential Election

US economy : Continuous Growth

Bear : - Trump presidency and policy uncertainty

Euro Area economy: Resilient GrowthBull : - QE and low interest rate support growth

Bear : - Brexit negotiations impact on trade, migration, and investment in Europe

Thai economy: Growth continues at a Moderate PaceBull : - Increases in public spending & Tourism Growth

Bear : - Weak exports & private investment slowdown growth

Bear : - Industrial overcapacity persists

- High corporate debt

China economy: Government Stimulus and Steady Growth

28


- Strong US dollar, low oil price Weak business investment

- New Elections in EU Policy risks following US Election

Summary: Outlook 2017

Business 9M/2016 2017 (Forecast)

Reason

Gas Price ($/mmbtu)- Henry Hub- JKM

2.905.38

Range 2.9 – 3.35.9 – 7.2

• Growing domestic consumption & higher pipeline exports to Mexico

• New projects delay and uncertainty of nuclear situation in South Korea

Oil Price ($/bbl)Dubai Price 38.9

Range50-55

• 2017 Global oil demand will grow 1.2 MMBD• Non-OPEC supply is tightened due to

delayed investments• Geopolitical uncertainties

Refinery Margin ($/bbl)Singapore GRM 5.91

Range6.6-7.7

2017 Singapore GRM is expected to be higher than 2016• Higher gasoline crack spread from less

oversupply than 2016• Higher Jet/IK demand from higher air travel

demand and return to normal weather

Petrochemical ($/ton) - Olefins (HDPE, PP)

- Aromatics (PX, BZ)

HDPE-Naphtha =750

PP –Naphtha = 630

PX-Naphtha = 406BZ-Naphtha = 233

HDPE-Naphtha = 670-680PP –Naphtha = 580-590

PX-Naphtha = 365-375BZ-Naphtha = 215-225

Olefin• New capacity additions (ME) exceed

demand growth • Stronger naphtha price squeezed margin

Aromatics• Large additional capacity of PX from India

and Korea exceed demand growth.• BZ spread will be closed to 2016 estimated

spread ($223/T). The additional capacity and demand growth grow at same pace.

29


9M/2016

Improved performance in most businesses

• Oil price remain low & NG further decline

• PTTEP - No impairment/ SAFE to be SAVE

• Gas - Lower feed cost improved margin

• Oil - Enhanced Oil performance from stock gain

• P&R - Better aromatics & olefins despite lower

refineries

• Power - improved from sales volume &

dividend income

• T/A GSPs and PTTGC’s Refinery

Looking Forward (2017)

• Global growth slightly increase

• Oil price gradually improve to be 50-55 $/bbl

• Re-tendering of expiring concessions in the

Gulf of Thailand

• Approval of Petroleum Act

• Feed gas cost expected to be further declined

• Major T/A for IRPC and PTTGC

• Petrochemical prices tend to be weaken

Key Takeaways

30

Thank youPTT Public Company Limited – Investor Relations Department

Tel. +66 2 537-3518, Fax. +66 2 537-3948, E-mail: [email protected] Website: http://www.pttplc.com

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 our current views with respect to future events and financial performance. These views are based on assumptions subject to various risks and

uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ

materially from those projected.

Petroleum Reserves and Resources Information

In this presentation, the Company discloses petroleum reserves and resources that are not included in the Securities Exchange and Commission of Thailand (SEC) Annual

Registration Statement Form 56-1 under “Supplemental Information on Petroleum Exploration and Production Activities”. The reserves and resources data contained in

this presentation reflects the Company’s best estimates of its reserves and resources. While the Company periodically obtains an independent audit of a portion of its

proved reserves, no independent qualified reserves evaluator or auditor was involved in the preparation of reserves and resources data disclosed in this presentation.

Unless stated otherwise, reserves and resources are stated at the Company’s gross basis. This presentation may contain the terms “proved reserves”, “probable reserves”,

and/or “contingent resources”. Unless stated otherwise, the Company adopts similar description as defined by the Society of Petroleum Engineers.

Proved Reserves - Proved reserves are defined as those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable

certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government

regulations.

Probable Reserves - Probable reserves are defined as those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be

recoverable.

Contingent Resources – Contingent resources are defined as those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from

known accumulations, but which are not currently considered to be commercially recoverable. The reasons for non commerciality could be economic including market

availability, political, environmental, or technological. 31

31

mailto:[email protected]

http://www.pttplc.com/

2016 2016(revised)

2017 2018 2019 2020

11,118 4,993 10,850 6,619 5,698 5,2827,315 7,868

5,4664,430 3,191 3,272

827 833609

502 342 325

10,96710,872

17,60712,106 13,245 13,586

20,61218,741

32,983

34,64946,042

29,008

Infrastructure

Investment in JV andits subs

Head Office andOthers

Oil and InternationalTrading

Natural Gas

Infrastructure55%

Gas13%

Oil & Trading

8%

M&A and Oversea

investment8%

LNG15% R&D, Others

1%

PTT: CAPEX (PTT and Wholly Owned Subsidiaries) PTT plans to invest ~Bt 297bn ($8bn) during 2016-2020

By Business UnitJV &

Investment in

Subsidiaries

23%

67,514 68,517

51,47350,83958,306

* 2016-2020 budget approved by BOD on 17 Jun 16

5th pipeline & extension

LNG, M&A and Investment Oversea

Unit: MMTHB

43,307*

CAPEX revision Y2016: lower by ~ THB 7.5 bn mainly from

• Increase efficiency:

Natural gas: Early completion & lower land cost

• Project cancellation/postponement:

Natural gas: Terminated GSP capacity expansion,

Postpone Hybrid NGL project

Infrastructure: Delayed Offshore compressor

PTT 5-Years CAPEX Plan ̴Bt 297 bn

32

204,595

89,085

2,969

Energy Infrastructure

69%

Green, 1%By Strategy

PTT Group Performance : Q3/2016 (QoQ)

*SPRC before disposed = 36%, **BCP divested in April 2015 33

% PTT

holding

Q2/16 Q3/16 QoQ Q2/16 Q3/16 QoQ

PTT Net operating Income 13,115 14,985 14% 13,115 14,985 14%

E&P - PTTEP 2,661 5,446 105% 65.3% 1,734 3,558 105%

Petrochemical 6,474 8,422 30% 3,062 4,030 32%

- PTTGC 4,925 6,225 26% 49.3% 2,453 3,074 25%

- HMC/PTTPL/PTTPM/PTTAC/PTTMCC/PMMA 1,549 2,197 42% 609 956 57%

Refining 11,459 4,248 -63% 4,897 2,092 -57%

Refining (Excluded SPRC & BCP) 11,459 4,248 -63% 4,897 2,092 -57%

- TOP 7,753 2,941 -62% 49.1% 3,466 1,537 -56%

- IRPC 3,706 1,307 -65% 38.5% 1,431 555 -61%

Others Business 3,288 3,833 17% 2,071 2,309 11%

Inter - PTTER, PTTGE -354 -158 55% 100% -355 -157 56%

Gas - PTTLNG/PTTNGD/ TTM(T)/ TTM (M) 1,294 1,601 24% 1,144 1,277 12%

Utilities -GPSC/ TP/ DCAP 1,058 1,173 11% 265 322 22%

Oil & Oth. - PTTT/SBECL/THAPPLINE/PTTRB/PTTANK/Others 1,290 1,217 -6% 1,017 867 -15%

Shared of Net Income from Affiliates 23,882 21,949 -8% 11,764 11,989 2%

PTT Conso. Net Income 36,997 36,934 0% 24,879 26,974 8%

Equity Method % PTTPerformance 100%

Unit : MMTHB

Statements of Cash Flows (PTT Only) : 9M/16

34

Operating9M/15 9M/16

48,094 55,861

Net Income 43,355 62,788

Changes in assets & liabilities 10,965 (3,997)

Income Tax (4,589) (5,073)

Non-Cash Adjustment (1,637) 2,143

Investing9M/15 9M/16

1,346 (12,497)

CAPEX (PP&E, Intangible asset) (27,881) (16,806)

Investment (Sub. &Affiliates) 12,067 323

Current investment (8,047) (17,391)

Dividend/Interest Received 23,724 24,098

Others 1,483 (2,721)

Free Cash Flow

49,440 43,364

Financing (63,745) (65,462)

Repayment Loans (23,268) (27,702)

Interest paid (9,076) (9,956)

Dividend paid (31,401) (28,560)

Received from share issue

- -

Received from loans/Bonds

- 756

Adjustment

28 63

Beginning Cash and Cash Equivalents

58,018 67,525

Cash In/(Out)

(14,277) (22,035)

Ending Cash & Cash Equivalents

43,741 45,490

Ending cash incl. S/T investment

71,638 97,349

35

Debt Profile : Control Cost & Manage Risk

Debt Portfolio

Managed debt according to financial risk and policy

ConsolidatedPTT OnlyUnit : MMTHB

: Cost of debts ~ 4.69%: % fixed-rate ~ 71%: Avg. debt life ~ 8.52 years

: Cost of debts ~ 4.47%: % fixed-rate ~ 68%: Avg. debt life ~ 7.35 years

204,560 184,091 156,799

384,548 368,733333,439

83,98581,154

81,361

305,127256,588

245,665

288,545265,245

238,160

689,675

625,321579,104

31 Dec 14 31 Dec 15 30 Sep 16 31 Dec 14 31 Dec 15 30 Sep 16

USD&Other

THB

(29%)

(71%)

(34%)

(66%)

(44%)

(56%)

(42%)

(58%)

Note : Data as of 30 Sep 16 (THB/USD = 34.8755 THB/JPY = 0. 347041) Excluding liabilities from finance leases; Cost of debts includes withholding tax.

35Cost of debts, % fixed rate, and avg. debt life took into account the derivative transactions. Debt outstanding is reconciled with accounting.

(31%)

(69%)

(41%)

(59%)

Subsidiaries ConsolidatePTT (Cambodia) Co., Ltd. PTTCL 100.00%PTT Retail Business Co., Ltd. PTTRB 100.00%Thai Lube Blending Co., Ltd. TLBC** 48.95%PTT Tank Terminal Co., Ltd. PTTTANK 100.00%PTT Oil Myanmar Co., Ltd. PTTOM 100.00%

Associates EquityKeloil-PTT LPG Sdn. Bhd. KPL 40.00%Thai Petroleum Pipeline Co., Ltd.THAPPLINE 40.40%PetroAsia (Thailand) Co., Ltd. PA(Thailand) 35.00%

Others CostPetroAsia (Maoming) Co., Ltd. PA(Maoming) 20.00%PetroAsia (Sanshui) Co., Ltd. PA(Sanshui) 25.00%Intoplane Services Co., Ltd. IPS 16.67%Fuel Pipeline Transportation Co., Ltd.FPT 0.00024%

Others Fair ValueBangkok Aviation Fuel Services Plc. BAFS 7.06%

Others

Subsidiaries ConsolidatePTT Exploration & Production Plc. PTTEP 65.29%PTT Natural Gas Distribution Co., Ltd. PTTNGD 58.00%PTT LNG Co., Ltd. PTTLNG 100.00%Thai Oil Power Co., Ltd.* TP 26.00%Global Power Synergy Co., Ltd* GPSC 22.58%

Joint Ventures EquityTrans Thai-Malaysia (Thailand) Co., Ltd. TTM (T) 50.00%Trans Thai-Malaysia (Malaysia) Sdn. Bhd. TTM (M) 50.00%District Cooling System and Power Plant DCAP 35.00%

Petrochemical Subsidiaries ConsolidatePTT Polymer Marketing Co., Ltd. PTTPM 50.00%PTT Polymer Logistics Co., Ltd. PTTPL**50.00%PTT PMMA Co., Ltd. PTTPMMA 100.00%PTT Global Chemical Plc.* PTTGC 49.42%PTT Maintenance and Engineering* PTTME 40.00%PTT Energy Solutions Co., Ltd.* PTTES 40.00%

Joint Ventures EquityHMC Polymers Co., Ltd. HMC 41.44%PTT Asahi Chemical Co., Ltd. PTTAC 48.50%PTT MCC Biochem Co., Ltd. PTTMCC 50.00%

Refining Subsidiaries ConsolidateThai Oil Plc.* TOP 49.10%IRPC Plc.* IRPC 38.51%

Others Fair ValueStar Petroleum Refining Co., Ltd. SPRC 5.41%

Others Fair ValueDhipaya Insurance Plc. TIP 13.33%

Subsidiaries ConsolidateEnergy Complex Co., Ltd. EnCo 50.00%Business Service Alliance Co., Ltd. BSA * 100.00%PTT Regional Treasury Center Pte. Ltd. PTTRTC 100.00%PTT ICT Solutions Co., Ltd.* PTTICT 20.00%

International Trading Business Group

Subsidiaries ConsolidatePTT International Trading Pte. PTTT 100.00%

Remark : *The companies have changed their status to subsidiaries due to impact from PACK5** Subsidiaries that PTT holds less than 50% but being consolidated because PTT has the power to control the financial and operating policies.

Petrochemicals & Refining Business GroupE&P and Gas Business Group Oil Business Group

Data as of 30 Sep 2016

International Investment

Subsidiaries ConsolidatePTT Energy Resources Co., Ltd. PTTER 100.00%PTT Green Energy Pte. Ltd PTTGE 100.00%

36

36

3737

Natural Gas Price Structure : Jan-Sep 2016

CustomersSales Price Structure

Gas Pool Price Supply Margins Pipeline Tariffs+ +

Average Purchased Gas Price

1.75%

1.75%

9.33%

21.9 Bt/MMBtu

Charged at the same price structure of power producers

Reference to Saudi Aramco’s contract price

Charged at prices comparable to fuel oil

Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns.

Profit-sharing mechanism based on market prices of petrochemicals

Reference to Naphtha market price

At GSPs cost (adjusted every 3 months)

• Contract periods are ~ 25-30 years or until depletion of gas fields or the expiration of concessions

*

*

*

GSP 20%

Petrochemicals Feedstocks

Industry 14%

Ethane, Propane, LPG

NGL

Local Cooking Gas

Export Cooking Gas

Power Producers 60%

: EGAT 21%

: IPP 21%

: SPP 18% * EGAT IPP and SPP Supply Margins not more than 2.1525 and 11.4759 respectively

• 21 Jan -15 Jul 2016: Capped at 13.50 Baht/Kg. If cost is less than 13.50 Baht/Kg, retail price will be set to reflect the cost.

• Since 16 Jul 2016 : The retail price is set to reflect the cost.• NGV retail Price as of 30 Sep,16 = 12.46 Baht/Kg.

NGV 6%

37

Gas demand forecast (CAGR during 2016-2030): Total ~ 1%: Power ~ 2%: GSP ~ -3%: Industry ~ 2%: NGV ~ 0%

Natural Gas : A steadily growth of natural gas upon Government fuel diversification policy for power generation

38

39

Thailand’s Projected Energy Demand

39

Primary Energy Consumption

Sources : EPPO/ DEDE/ PDP 2015/ PTT analysis as of Nov 2016

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

KBD

Oil

Natural Gas

Coal/Lignite

Hydro/Import

Renewable

27%

27%

15%

3%

28%

4,187

2,613

29%

35%

14%

20%

2%

2,501

29%

36%

13%

20%

2%

2.0%

1.0%

2.8%

4.0%

6.5%

Gas Business Generates Stable Returns

Sole owner and operator of entire

gas transmission pipelines in

Thailand (~ 4,000 km), a regulated

business

• IRROE ranges between

12.5% - 18% for transmission

pipeline investment

Supply & marketing of natural gas

provides fixed margin with long-term

contracts of 25-30 years

6 Gas Separation Plants; Total

production 6.7 MTA; are on

petrochemical market price-linked

profit sharing basis

Overview Gas transmission pipeline capacity

40

analyst meeting q3/2016 - listed...

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