PTT's net profit for the first quarter of this year jumped 186 per cent to Bt27.03 billion on year due to the improvement of oil prices and the outstanding performance of its subsidiary PTT Chemical.
In a filing with the Stock Exchange of Thailand yesterday, PTT reported revenue of Bt449.39 billion, up from Bt303.50 billion over the same period last year.
Meanwhile, PTT Chemical's earnings soared to Bt3.17 billion in the first quarter, up 907 per cent year on year and against a net loss of Bt393 million in the same period last year, due mainly to the rising crude-oil price.
PTTCH president and CEO Veerasak Kositpaisal said in a filing that the average Dubai crude-oil price in the first quarter was US$76 (Bt2,500) per tonne, up $44 from the same period last year. This resulted in an increase in the Mean of Platts Singapore (Mops) naphtha price from $410 a tonne to $712.
As such, the high- and low-density polyethylene Southeast Asia (HDPE SEA) price rose to $1,319 a tonne in the first quarter, from $934 in the same period last year. This led to a rise in the spread margin of HDPE SEA over Mops naphtha in the quarter to $607 a tonne, from $524 in the same period last year.
Ayudhya Securities yesterday said the rises were in line with rising demand, especially in China, while the crude-oil price boosted the prices of all of PTT Chemical's products.
The securities house has raised its forecast for PTT Chemical's net profit this year 33 per cent to Bt13.53 billion. Its estimated spread of ethylene and naphtha prices rose 26 per cent to $420 per tonne and propylene and naphtha 25 per cent to $445.
The brokerage has revised raised the net-profit forecast for next year 32 per cent to Bt20.32 billion, due to the expected rise in the spread.
It also changed its recommendation from "hold" to "buy", in response to the company's outstanding financial performance.