Ptt Public Co., Ltd. · SET:PTT
Ptt Public — FY2003 Earnings Presentation
50 slides from Ptt Public's earnings presentation, Mar 3, 2004
Slide 1: Analyst Briefing 3 March 2004
Analyst Briefing 3 March 2004
Slide 2: Disclaimer and forward-looking statements
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 the Company’s current views with respect to future events and financial performance. These views are based
Slide 3: Highlights
Highlights 1. Brief Introduction to PTT 2. Business Overview 3. Consolidated Financial Results 4. Outlook, Future Plans & Capex 5. Conclusions 3
Slide 4: 1. Brief Introduction to PTT
1. Brief Introduction to PTT 4
Slide 5: PTT PLC: The Only Integrated Gas Company in Thailand
PTT PLC : The Only Integrated Gas Company in Thailand Listed Listed on on SET SET since since 66 December December 2001 2001 • The largest energy company by revenue, asset PTT Public Co. Ltd. size and Market Capitalization in Thailand • Shareholding Structure Gas BU Oil BU • ~87% EBITDA • ~9% EBITDA
Slide 6: 2. Business Overview
2. Business Overview 6
Slide 7: Thailand's Commercial Energy Consumption
Thailand’s Commercial Energy Consumption Unit : KBD 3,000 Hydro/ ’ Electricity 3’ - 16 2% 0 5% 2,500 GR= Coal/ Coal/ C A 19% Lignite Lignite 2% 2,000 15% Natural 3% - 03’ 85’ 5% 30% gas 1,500 = 8. 16% R 3% CAG 3% 33% 15% 1,000 15% 35% 3% 24% 36% 6% 500 10% 14% Oil Oil 21% 20% 62% 58% 46% 46% 50% 49%
Slide 8: Gas Business
Gas Business 8
Slide 9: Gas Sales - Consistent Volume Growth
Gas Sales - Consistent Volume Growth Quarterly Quarterly Gas Gas Sales Sales Customers Customers Type Type :: 2003 2003 3,200 Pipeline capacity with Volume (mmcfd) %Chg comp. = 3,170 (Actual Heat) 2001 2002 2003 02’ - 03’ (Portion) MMCFD (Heat 1,000) 2,800 2,709 2,685 EGAT 1,068 1,074 990 (38%) (8)
Slide 10: Gas Separation Sales
Gas Separation Sales LPG LPG Price Price 2002 Total Vol. = 2,558 2003 Total Vol. = 2,694 5.0% 667 699 700 647 651 659 653 675 46 400 601 52 7% 2003 Avg : 293 48 42 47 59 50 600 108 360 2002 Avg : 243 41 107 104 100 107 16% 350 2001 Avg : 260 Unit in 000 ‘s TPQ 108 104 500 95 324 Yr 2002 143 128 138
Slide 11: Oil Business
Oil Business 11
Slide 12: Oil Marketing: Dominant Position with Strong Brand Image
Oil Marketing : Dominant Dominant Position Position with with Strong Strong Brand Brand Image Image Sustainable Sustainable Refined Refined Product Product Sales Sales Oil Oil Marketing Marketing Margin Margin Baht / Litre PTT Other companies Yearly MM Litres 1.18 1.24 0.78 0.71 1.17 1.25 1.0 2.50 A
Slide 13: Oil Trading: Profitable Part of Oil Business
Oil Trading : Profitable Part of Oil Business & Readiness for Opportunities Current transaction : A fully coverage for Service Base Assets utilized by international hub standard trading transaction Source Refinery INDIGENOUS INDIGENOUS Crude NCPHET WB PTTEP Refined (Excess supply) THAIOIL product SP
Slide 14: Energy Hub: Potential and the Way Forward
Energy Hub : Potential and the Way Forward Thailand Thailand petroleum petroleum centre centre :: 22 Phase Phase One One Stop Stop Service Service :: Less Less Control, Control, More More Service Service Exporter / Importer Domestic Trader Thai Public Eastern Seaboard PTT Terminal Port Terminal Refi
Slide 15: Major Subsidiaries & Affiliates: E&P, Petrochemical & Refining
Major Subsidiaries & Affiliates: E&P, Petrochemical & Refining 15
Slide 16: Potential Growth through PTTEP
Potential Growth through PTTEP Major Major Reserve Reserve Fields Fields Financial Financial Highlights Highlights VIETNAM L A O S (Baht MM) 2002 2003 %Chg MYANMAR Products Sales 101,736 107,229 5.4% Namphong (BOED) YANGON THAILAND Sales 29,587 34,037 15.0% M-7 EBITDA 22,211 24,998 12.5% M-9 Yadana
Slide 17: Petrochemical Affiliates - Olefin Products
Petrochemical Affiliates Olefin Products Affiliates Affiliates’’ Performance Performance Feedstocks Feedstocks vs vs.. Products Products’’ Price Price 3500 US$ / Ton 2500 600 573 Propylene Baht MM 473 1500 500 522 454 403 Ethylene 500 400 426 -500 2001 2002 2003 300 285 Naphtha 236 226 Utilization (
Slide 18: Petrochemical Affiliates - Aromatic Products
Petrochemical Affiliates Aromatic Products Affiliates Affiliates’’ Performance Performance Feedstocks Feedstocks vs vs.. Products Products’’ Price Price 6000 US$ / Ton 4000 700 Baht MM 613 Paraxylene 2000 0 500 428 448 2001 2002 2003 412 Benzene -2000 443 349 320 Mixed Xylene -4000 300 326 246 Utili
Slide 19: Refining Affiliates Performance
Refining Affiliates Performance EBITDA Net Income Baht MM (Company only) 6000 12000 9600 4000 7200 2000 4800 0 2400 2001 2002 2003 -2000 0 2001 2002 2003 -4000 Utilization (%) 89 94 104 Utilization (%) 93 96 91 Baht MM RRC BCP 6000 3000 4000 2000 2000 1000 0 0 2001 2002 2003 2001 2002 2003 -2000 -10
Slide 20: Average GRM For Refineries
Average GRM For Refineries US$ / BBL 8.00 • Even though GRM fluctuated at 7.00 Yr 2003 beginning of 2003, it has currently 6.00 Avg ~$4 / BBL moved back to level above $5.00 5.00 • Average GRM for 2003 turned out to 4.00 be higher than of 2002 and has 3.00 potential to rise further 2.00 • Average No
Slide 21: 3. Consolidated Financial Results
3. Consolidated Financial Results 21
Slide 22: Consolidated Income Statement
Consolidated Income Statement (Baht MM) 2001 2002 2003 %Chg Sales 377,902 399,752 494,009 24 • 2003 EBITDA S&A Expense 13,157 14,427 13,773 (5) increased due to EBITDA 51,127 54,173 62,368 15 higher sales volume EBIT 42,334 42,563 50,264 18 Interest 10,626 9,623 8,070 (16) and products prices Share
Slide 23: Strong Balance Sheet with Solid Financial Status
Strong Balance Sheet with Solid Financial Status Balance Balance Sheet Sheet Financial Financial Ratios Ratios Baht MM Times 300,000 Equity Int. Bearing Debt 8 7.7 ICR2 250,000 6 5.6 200,000 4.8 125,225 150,000 131,959 4 100,000 144,127 2.1 Net Debt/ 2 1.8 1.8 EBITDA 50,000 1.4 1.0 128,929 70,119 96
Slide 24: Consolidated Debt Outstanding with Lower FX Risk
Consolidated Debt Outstanding with Lower FX Risk Loan Loan Portfolio Portfolio (As (As of of Dec Dec 03) 03) LT-Debt LT-Debt Repayment Repayment Schedule Schedule mm Baht Equivalent JPY 9% 11,192 30,000 USD PTT PTTEP 18% Baht 25,000 22,153 73% 91,730 20,000 19,111 Baht MM 17,628 16,364 15,000 7,681
Slide 25: Hidden Asset From Take or Pay
Hidden Asset From Take or Pay Make Make Up Up Gas Gas from from Yadana Yadana and and Yetagun Yetagun • Total Advance Payment for TOP booked as asset value of 1000 about $ 830 MM in year 2001 900 800 Make up = Free cash • Additional cash from Advance MMCFD (Heat 1,000) payment for Take or Pay 700 Ta
Slide 26: Hidden Asset From Petrochemical Affiliates
Hidden Asset From Petrochemical Affiliates Strategic Strategic gas-base gas-base operations operations 1 1 Companies Main Capacity Total Debt PTT’s Market Cap.2 Projects Highlight (PTT’s Share) Products (TPA) Outstd. Book Value PTT’s Portion (MMUS$) (MMUS$) (MMUS$) TOC Ethylene 385,000 251.65 156.00
Slide 27: Hidden Assets From Refining Affiliates
Hidden Assets From Refining Affiliates: World-class World-class assets assets with with complete complete restructuring restructuring 1 1 2 Companies Refinery Capacity Total Debt PTT’s Market Cap. Highlights (PTT’s Share) Process (Kbd) Outstd. Book Value PTT’s Portion (MMUS$) (MMUS$) (MMUS$) Thaioil
Slide 28: 4. Outlook, Future Plans & Capex
4. Outlook, Future Plans & Capex 28
Slide 29: Gas Demand and Outlook in Thailand
Gas Demand and Outlook in Thailand MMCFD 5,500 4’ -10’ 5,000 0 % R ~7 Industry G 4,500 CA 4,000 GSP 3,500 8’ -03’ 9 3,000 R 10% CA G 2,500 760 mmcfd 2,000 1,500 1,000 Power 500 0 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 • New gas fired power plants during 2004-2010 = 5,345 MW or e
Slide 30: Development of All Major Projects
Development of All Major Projects BURMA THAILAND • 3rd Offshore Pipeline (Capacity : 1,750 mmcfd) Khaeng Khoi – Commence Date : Yadana Phase I 2006 Phase II 2008 Bangkok – Basic engineering design completed Ratchaburi Yetagun – To award contract for construction in the Rayong Thapsakae middle of 200
Slide 31: Capex and JV Investment: Focused on Gas
Capex and JV Investment : Focused on Gas 60,000 Gas Capex 50,254 Oil Capex 50,000 Other Capex 40,000 36,512 New JV Inv Baht MM 30,000 27,402 25,953 20,000 17,464 10,000 5,953 0 2003 2004 2005 2006 2007 2008 • 5 year total capex (04’ - 08’) is Baht 146,075 MM, equivalent to US$ 3,676 MM * • 80% of bu
Slide 32: 5. Conclusions
5. Conclusions 32
Slide 33: Conclusions
Conclusions • Year 2003 was an excellent year since the performance had improved significantly both in the operational side and bottom line, mainly from the gas business and Share of Investment Income, respectively. • Significant improvement in Net Income contributed from the affiliates was mainly b
Slide 34: Thank you
Thank you Any further questions please contact : PTT Investor Relations Division Tel : (662)537-2787-8 E-Mail : ir@pttplc.com 34
Slide 35: Appendix
Appendix 35
Slide 36: PTT's Vision
PTT’s Vision To be the pre-eminent Thai energy Corporation, operating a fully integrated oil and gas business, which encompasses gas-based petrochemicals and total energy services, confident of being a regional leader and a high performance organization with accountability, integrity, and optimum st
Slide 37: Corporate Structure
Corporate Structure PTT Plc. Gas Business Group Oil Business Group Petrochemicals and Refining • Exploration and Production: PTTEP Marketing Trading • Focus in Gas Based Petrochemical • Processing • Commercial • Crude and Condensate • Transmission and Distribution • Retail • Refined Products • Suppl
Slide 38: Fully Integrated Value Chain
Fully Integrated Value Chain Domestic Int’l Upstream Intermediate Downstream Downstream Natural Gas Natural Gas Mix EGAT Exploration and IPP & SPP Gas Chain Production (PTTEP) Transmission Gas Industries Network Separation Gas Products IPP IPP & & SPP SPP Future Future Natural Gas Plant Procurement
Slide 39: Strategy Going Forward: Leveraging on Core Competencies
Strategy Going Forward : Leveraging on Core Competencies Capture growth Gas Businiess: opportunities & maximize Integrated Business benefits from total gas value chains Capture regional growth Oil Business: opportunities, maximize Market Share Leader profits by leveraging on infrastructure and netwo
Slide 40: World-Class Performance: Growth, Efficiency & Stability
World-Class Performance : Magnificent Achievement of Growth, Efficiency & Stability MM Baht No. of Employee Assets 500,000 4000 Total Debt 450,000 Equity 3800 Manpower 400,000 3600 Sales Revenue 350,000 3400 300,000 3200 250,000 3000 200,000 2800 150,000 2600 100,000 2400 50,000 2200 0 2000 1980 198
Slide 41: Performance: Sales, EBITDA and Net Profit
Performance : Sales, EBITDA and Net Profit EBITDA Breakdown Baht MM GAS PTTEP OIL TOC Net Profit (LH) Revenues (RH) Baht MM 70,000 600,000 2,745 62,368 60,000 4% 54,173 5,510 4% 9% 500,000 51,127 1,965 50,000 5,742 12% 6,314 41,962 11% 24,998 400,000 40,000 10% 4,221 40% 21,195 40% 22,211 27,135 41%
Slide 42: Gas Business: Key Strength Highlights
Gas Business : Key Strength Highlights PTT operates in a continuously growing market and benefits from operational synergies throughout the entire gas value chain from integration of upstream to downstream Upstream Intermediate Downstream Gas Gas Supply & Transmission Marketing, Gas PTTEP Network Se
Slide 43: Natural Gas Sales Structure
Natural Gas Sales Structure : Provides Stable and Fixed Return • Sales price with volatility passthrough provides fixed and stable returns • Contract periods from 25-30 yrs. or until depletion of gas field or expiration of concession Sales Price Structure Customers Gas Pool Price + Supply Margin + P
Slide 44: Natural Gas Demand in Power Sector
Natural Gas Demand in Power Sector Electricity Electricity Demand Demand (PDP (PDP 2003) 2003) Natural Natural Gas Demand Demand BPK CC5 New IPP SOUTH CC UPDC2 GULF1+ 2 SB CC3 UPDC 1 ‘000 GWh NB MMSCFD@1,000 BTU/SCF S.CC KANOM 200 6% KANOM GULF1+ 2 3,000 CAGR = Renov. UPDC 1 EPEC Renov. 180 Import B
Slide 45: Natural Gas Demand in Gas Separation Plant
Natural Gas Demand in Gas Separation Plant Natural Natural Gas Gas Products Products MMSCFD @ 1,000 btu/scf KTon 700 GSP 5 2003 600 Stab.NGL Products 1999 2000 2001 2002 Startup 500 = 9% Ethane 422 487 543 491 533 AGR GSP 5 C 400 Propane 168 185 206 177 207 GSP 4 300 GSP 3 LPG 1,220 1,281 1,396 1,47
Slide 46: Natural Gas Demand in Industrial Sector
Natural Gas Demand in Industrial Sector Industrial Industrial Customer Customer Groups Groups as as of of Dec Dec 03 03 Unit : MMSCFD @ 1,000 btu/scf 400 NGD 10% 350 Glass 300 11% NGV R= 11% 250 CAG Petrochem./ Refinery & Cogen 200 Metal/ 49% Construction 150 9% 100 Industry 50 Ceramic 18% Others/ 0
Slide 47: Natural Gas Supply
Natural Gas Supply VIETNAM L A O S (As of Dec 03) MYANMAR Gas Fields DCQ (mmcfd) PTTEP’s % Operator Production actual heat Nam Phong Unocal 1 230 0 Unocal YANGON Unocal 2,3 510 5 Unocal THAILAND Yadana Bongkot 550 44.44 PTTEP M-7 Pailin 353-368 45 Unocal M-9 B8/32 TW/BJ 230 0 Chevron Nam Phong 60 20
Slide 48: Oil Business: Key Strength Highlight
Oil Business : Key Strength Highlight The national oil company with leading position in retail outlets Market - leading position, network supremacy and experienced personnel provide a solid platform for PTT to enjoy economy of scale, cost-efficient operations and readiness to capture growth opportun
Slide 49: Predominant Infrastructure & Networks
Predominant Infrastructure & Networks : Allow for Profit Maximisation & Well Positioned for Organic Growth Chiang Rai • A fully extended net work and Chiang Mai infrastructure enables PTT to gain Lampang Udon Thani advantages over its competitors and Den Chai Nakorn Panom Pitsanulok maintain its lea
Slide 50: Oil Marketing: Leader in Retail Service Stations
Oil Marketing : Leader in Retail Service Stations • Market leader in outlet share of service stations • Strategy to expand only profitable service stations • Improve throughput per station by enhancing and reinforcing consumer confidence in brand image • Complement by non-oil value added business na