PTT Public Co., Ltd. · SET:PTT
PTT Public — Q1 2006 Earnings Presentation
36 slides from PTT Public's earnings presentation, May 19, 2006
Slide 1: 1st Quarter/2006 Analyst Meeting
1st Quarter /2006 Analyst Meeting 19 May 2006 1
Slide 2: Disclaimer
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 base
Slide 3: 1Q/06 Activities & Operational Results
1Q/06 Activities & Operational Results Financial Highlights Growing the Future Conclusion 3
Slide 4: Recent major Developments
Recent major Developments PTT • The Central Bankruptcy Court issued an order of termination of the Business Reorganization Plan for TPI (on April 26, 2006). • Fund raising from AFLAC on April 5, 2006 in an amount of $197 million. Gas Business • The third pipeline construction is on schedule and expe
Slide 5: Performance Highlights: Strong 1Q/2006 results
Performance Highlights : Strong 1Q/2006 results Revenues 1Q/05 1Q/06 Unit : Bt mn 270,371 Gas Group Revenues Gas Group 23% 20% + 42% Petchem Oil Group Oil Group &Ref 13% 17% 64% 63% Petchem&Ref 190,122 Petchem&Ref Petchem&Ref TM ~ 11 % EBITDA Mkt ~ 3 % GSP ~ 14% 23% Oil 13% Gas TM ~ 16% Gas 8% Mkt ~
Slide 6: Pipeline Business: Stable Incomes & Solid Growth
Pipeline Business : Stable Incomes & Solid Growth 3rd Pipeline will be commercially start up in mid 2006 Gas sales volume + 2%YOY, Gas demand remains strong and growing Gas sales volumes (mmscfd) Customer Profile 2006 2005 2004 EGAT IPP SPP GSP Industry + 1.5% yoy 2,970 2,940 3,016 3,016 + 2.6% qoq
Slide 7: Gas Separation Plants: Strategic Value Creators
Gas Separation Plants : Strategic Value Creators Natural gas is utilized to the fullest potential through gas separation plants. Product Prices ($/ton) 1,050 1,097 1,114 HDPE • Sales volumes increased 1,087 1,109 PP 16%yoy due to the 1,050 increase of GSP#5 utilization rate 578 LPG 531 • LPG and eth
Slide 8: PTTEP: Growth Engine & Cash Generator
PTTEP : Growth Engine & Cash Generator PTT hold 66.31% in PTTEP (as of 31 Mar 2006). %yoy %qoq %yoy %qoq Revenues + 65% + 3% Sales Vol. (boepd) + 20% + 0.1% Operations EBITDA + 55% + 8% Avg. Sales Prices ($/boe) + 35% + 9% NI + 84% + 15% 31.59 34.28 25.42 Revenues 21,594 20,967 142,685 171,333 171,5
Slide 9: Oil Business: Strong Leadership Position
Oil Business : Strong Leadership Position PTT is a market leader in oil retails at 38% market share with 1,258 gas stations nationwide. Oil Marketing : sales volume ~ 235 kboe/d Unit : million liters + 0.5% yoy Thailand’s total gas stations ~ 18,388 + 5.4% qoq (as of 1Q/2006) 3,346 3,362 3,191 LPG P
Slide 10: Refining Affiliates
Refining Affiliates Cooperation among refineries improves security of supply and helps helps manage supply chain more efficiently. PTT Group represents 38% of total refining capacity by equity portion TOP* 1Q/05 4Q/05 1Q/06 RRC 1Q/05 4Q/05 1Q/06 RRC (145 kbpd) : Revenues 27,366 29,081 37,375 : Reven
Slide 11: Petrochemical Affiliates
Petrochemical Affiliates PTT focuses on gas- gas-based petrochemical business to create more values from natural gas assets. Capacity expansion and diversified portfolio Ethane, Propane, Ethylene HDPE PTT GSPs LPG, NGL PTTCH 1,146 kta 250 kta Propylene Light Naphtha Naphtha & Raffinate 377 kta Pygas
Slide 12: Financial Highlights
1Q/06 Activities & Operational Results Financial Highlights Growing the Future Conclusion 12
Slide 13: Consolidated Income Statements
Consolidated Income Statements THB (Bt mn) USD Equivalent ($ mn) 1Q/05 4Q/05 1Q/06 %YOY %QOQ 1Q/05 4Q/05 1Q/06 Sales 190,122 244,814 270,371 42% 10% 4,882 6,287 6,943 - S&A expenses 5,410 6,190 6,573 21% 6% 139 159 169 EBITDA 24,894 27,196 36,766 48% 35% 639 698 944 EBIT 21,220 22,233 30,704 45% 38%
Slide 14: Balance Sheets: Financial Philosophy – Solid & Secure
Balance Sheets : Financial Philosophy – Solid & Secure PTT is fully committed to maintain strong financial position. Balance Sheets Financial Ratios 13.2 12.9 ICR Unit : Bt mn • GSP#5 startup • Consol. PTTCH 9.4 1.4 Acquired RRC + 6% 691,610 1.3 Net Debt/EBITDA 649,807 Other 0.9 + 33% Liabilities 1.
Slide 15: Debt Profile: Control Cost & Manage Risk
Debt Profile : Control Cost & Manage Risk Debt portfolio is structured to minimize financial risks. Debt Portfolio Consolidated debt ~ Bt225bn ($5.8bn) Unit : Bt mn USD PTTEP PTTCH 221,482 224,653 8% THB 8% 201,526 RRC 84,285 91,842 10% PTT (38%) (41%) 155,094 151,812 : TTM ~ 5% 80,561 68% : BPE (40
Slide 16: Growing the Future
1Q/06 Activities & Operational Results Financial Highlights Growing the Future Conclusion 16
Slide 17: CAPEX & Investments: Growing the Future
CAPEX & Investments : Growing the Future PTT plans to invest Bt239bn ($6bn) during 2006- 2006-2010, mostly into expanding gas business. Gas Oil JV Others PTTEP PTT’ PTT’s CAPEX ~ Bt238,794m ($6.0bn) Unit : Bt mn 79,620 during 2006- 2006-2010 Others 71,085 1% JV 21% 21,993 64,140 Oil 5% Gas 10,464 73
Slide 18: Strategic Roadmap: Core Value Creators
Strategic Roadmap : Core Value Creators Infrastructure is under expansion to enhance capability to meet rising gas demand. Gas Demand Outlook Unit : mmscfd 6,000 -2 0 1 0 ) ~ 11% 005 5,000 CAGR (2 Industry ~ 18% 4,000 GSP ~ 20% 3,000 2,000 Power ~ 62% 1,000 0 2005 2006 2007 2008 2009 2010 3rd Pipeli
Slide 19: Strategic Roadmap: Integrated Value Enhancers
Strategic Roadmap : Integrated Value Enhancers New businesses are under development to utilize assets, enhance competitiveness, and diversify risks. 2005 2006 2007 2008 2009 2010 Olefins & Plastics Debot I4/1 Debot I4/2 : Ethylene 1,146 kta Ethylene 130 kta, Ethylene 100 kta, : Propylene 377 kta Pro
Slide 20: Conclusion
1Q/06 Activities & Operational Results Financial Highlights Growing the Future Conclusion 20
Slide 21: Outlook for 2006
Outlook for 2006 • Growing demand and fear of supply interruption continue to support high oil prices, favorable to E&P and refining businesses. • Gas demand expected to grow by 7-8% this year driven by continuing economic expansion and the completion of the 3rd pipeline. • Petrochemical affiliates
Slide 22: Thank you
Thank you PTT Public Company Limited – Capital Market & Investor Relations Department Tel. +66 2 537-2792, Fax. +66 2 537-2791, Email: ir@pttplc.com, http://www.pttplc.com/ 22
Slide 23: Supplement
Supplement 23
Slide 24: PTT: The Largest Public Company in Thailand
PTT : The Largest Public Company in Thailand Ownership : Ministry of Finance ‘Direct and Indirect’ Indirect’ ~ 68%, Public ~ 32% PTT Group represents a significant portion of Thai economy Total Market Cap. ~ Bt5.6tr ($144bn) TPI 10.3% TOP 8.7% PTT PTTEP 25.9% PTTCH 6.3% 12.9% PTT Group ATC 1.7% BCP
Slide 25: Recognition: Confidence & Credibility
Recognition : Confidence & Credibility PTT is widely recognized among business community both local and international. PTT ratings are comparable to sovereign ratings • Foreign : Moody’s (A2) / S&P (BBB+) • Local : Moody’s (A2) / S&P (A-) Rewards & Recognitions 373rd : World’ World’s Largest Corpora
Slide 26: PTT Group Structure
PTT Group Structure PTT Value Creator Value Enhancer Petrochemical & Gas Business Group Oil Business Group Refining Exploration and Petrochemical Marketing Trading production subsidiaries Commercial Crude and Transmission and (upstream and condensate Retails distribution downstream) Re
Slide 27: Hydrocarbon Value Chain
Hydrocarbon Value Chain PTT Group has strong presence in various sectors throughout the hydrocarbon value chain. Fully Integrated Portfolio & Strong Leadership Position Upstream Intermediate Downstream End Customers Natural Gas Mix Electricity Power Plants Natural Gas Industry Gas Gas Products Gas S
Slide 28: Corporate Structure
Corporate Structure PTT Petrochemical & Gas Business Group Oil Business Group Refining • Exploration and production Marketing Trading • Gas-based petrochemicals • Transmission and distribution • Integrated and complex refineries • Processing • Commercial • Crude & Condensate • Retails • Refined prod
Slide 29: Energy Consumption: Growing along with Economic Expansion
Energy Consumption : Growing along with Economic Expansion Oil and gas are major sources of energy and likely to remain so for many years. Energy consumption forecast (CAGR during 2006-2015) kboed : Total ~ 5% 3,500 : Gas ~ 8% : Oil ~ 2% : Coal ~ 5% 3,000 2,863 Hydro/Others 3% 2,500 Coal 14% 1,740 2
Slide 30: Natural Gas: Strong and Increasing Demand over Long Term
Natural Gas : Strong and Increasing Demand over Long Term Natural gas is a fuel of choice for power producers and increasingly increasingly transportation industry. Gas demand forecast (CAGR during 2006-2015) mmscfd : Total ~ 8% 8,000 : Power ~ 6% : GSP ~ 11% : Industry ~ 17% 7,000 6,750 6,000 Indus
Slide 31: Natural Gas Price Structure
Natural Gas Price Structure Gas prices are mostly agreed under long- long-term contracts and volatility pass- pass-through to ensure stable returns. Sales Price Structure Customers Gas Pool Price + Supply Margins + Pipeline Tariffs Power Producers ~ 74% : EGAT ~ 33% 1.75% Average Purchased : IPP ~ 2
Slide 32: Schedule: Major Projects
Schedule : Major Projects Key projects are strategically linked and timely corresponding to to meet demand. PTT’s Natural Gas Pipeline Network • 3rd Pipeline (Onshore & Offshore) COD ~ 1H/2006 • Pipeline : Sainoi – S. Bangkok COD ~ 2H/2006 Karnchanaburi Ban I Tong Taluang Kaeng Koi • Pipeline : JDA
Slide 33: Refining Industry
Refining Industry Strong leadership position ensures stable supply to downstream and and related businesses. PTT Group represents 38% of total refining capacity by equity portion Total refining capacity ~ 1,012 kbpd RPC 2% ESSO 14% ESSO (145 kbpd) TOP TOP (220 kbpd) 22% (PTT 49.54%) RPC (17 kbpd) TP
Slide 34: Gross Refining Margins
Gross Refining Margins Continuing demand growth while tight supply creates favorable environment environment for refining industry Gross Refining Margins for Complex Refineries GRM ($/bbl) 12 10.2 10 9.2 9.2 8.5 7.9 8.0 7.7 8 6.8 2003 (avg) 6.7 6.2 2004 (avg) 6 4 3.3 2 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2
Slide 35: Dividend Policy & Historical Payments
Dividend Policy & Historical Payments PTT is firmly committed to pay dividend at no less than 25% of net net income. EPS DPS % Dividend Payout 32.4% 32.6% 29.8% 30.1% 30.3% PTT’s minimum payout ratio 25% 30.57 22.40 13.43 8.75 9.25 7.71 6.75 4.00 2.50 2.85 2001 2002 2003 2004 2005 Note : All figures
Slide 36: Reference: Product Prices
Reference : Product Prices 2005 2006 YOY QOQ 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FX – THB/USD (@end period) 39.2543 41.4091 41.1075 41.1746 38.9417 (0.01%) (5.42%) Crude ($/bbl) : WTI 49.63 53.03 63.05 59.99 63.32 + 0.28% + 5.55% : Dubai 41.21 47.89 55.32 52.85 57.89 + 0.4% + 9.54 Refined Products (@retails – B