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PTT's first-quarter net income drops 23.3% year on year

PTT and its subsidiaries saw net income decrease by Bt8.35 billion or 23.3 per cent from Bt35.8 billion in the first quarter of 2013 to Bt27.44 billion in the first three months of this year.

This resulted from the lower performance of petrochemical and refining associates, the group reported to the Stock Exchange of Thailand late on Monday.

Meanwhile, the group reported revenue of Bt716.57 billion, up 2.4 per cent from the same period last year. The increase was mainly due to higher sales volume of oil products and international trading, despite the decrease in the average Dubai crude-oil price from US$108.20 per barrel in the first quarter of 2013 to $104.50.

Consequently, earnings before financing costs, income taxes, depreciation and amortisation expenses (EBITDA) and other non-operating income and expenses increased by Bt7.15 billion or 12.5 per cent. This was principally because of the better performance of PTT's gas business from lower feed costs and international trading from a higher condensate margin, the company reported.

In the first quarter, the company's share of gain from investments in associates of PTT and its subsidiaries was Bt4.58 billion, decreasing by Bt4.98 billion or 52.1 per cent from the same period last year.

The main reason was the lower performance of petrochemical and refining associates. The performances of aromatics petrochemical associates were affected by the sharp drop in spread margins of paraxylene because of oversupply from new aromatics plants in China and Saudi Arabia. Moreover, demand for paraxylene slowed in line with lower demand for purified terephthalic acid (PTA).

The performance of olefins petrochemical associates also decreased, mainly because of shutdowns of two PTT Global Chemical plants, one planned (for maintenance) and the other unplanned. As well, one of PTT's gas separation plants was hit by lightning. These incidents caused lower production and sales volumes despite higher spread margins.

The performance of refining associates decreased because of lower spread margins of all refined products, mainly from the economic slowdown in China and lower demand for imports in North Asia and Europe as a result of a warm winter, and higher stock losses compared with the same period last year.

The foreign-exchange gains of PTT and its subsidiaries were Bt2.69 billion in the first quarter, decreasing by Bt4.32 billion or 61.7 per cent from Bt7 billion a year earlier because the baht's appreciation rate was lower.

In addition, the income taxes of PTT and its subsidiaries in the first quarter of this year were Bt13.06 billion, up year on year by Bt3.55 billion or 37.4 per cent.

As of March 31, PTT and its subsidiaries' total assets were Bt1.77 trillion. Total liabilities were Bt932 billion, and total equity was Bt846.45 billion.


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