PTT Public Co., Ltd. · SET:PTT
PTT Public — FY2005 Earnings Presentation
36 slides from PTT Public's earnings presentation, Mar 2, 2006
Slide 1: 2005 Analyst Meeting
2005 Analyst Meeting 2 March 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: Activities & Operational Results / Financial Highlights / Growing the Future
Activities & Operational Results Financial Highlights Growing the Future 3
Slide 4: PTT: The Largest Public Company in Thailand
PTT : The Largest Public Company in Thailand Ownership : Ministry of Finance ~ 52%, Public ~ 48% PTT Group represents a significant portion of Thai economy Total Market Cap. ~ Bt5.4tr ($136bn) TPI 9.8% TOP 8.5% PTT PTTEP 23.6% PTTCH 6.7% 13.0% PTT Group ATC 1.9% BCP 0.6% Others ~ Bt1.4tr ($37bn) Oth
Slide 5: Recognition: Confidence & Credibility
Recognition : Confidence & Credibility PTT is widely recognized among business community both local and international. PTT ratings are comparable to sovereign ratings • Foreign : Moody’s (A2) / S&P (BBB+) • Local : Moody’s (A2) / S&P (A-) Rewards & Recognitions 373rd : World’s Largest Corporation 1s
Slide 6: Major Developments in 2005
Major Developments in 2005 PTT • Acquired 31.5% stake in TPI for Bt20.3bn. • Total bond issuance of Bt38bn in both domestic and international markets. Gas Business • PTTEP jointly acquired assets (Blocks B8/32 and 9A) from Pogo for Bt20bn. • Acquired 26% stake in Thaioil Power (TP) from PTTEP Intern
Slide 7: Performance Highlights: Larger, Stronger, and Better PTT
Performance Highlights : Larger, Stronger, and Better PTT 2005 performance (Baht per share) : Revenues ~ 332.4, EBITDA ~ 40.8, Net Income ~ 30.6 Revenues 2004 2005 Unit : Bt mn 929,716 Revenues Gas Group Gas Group 22% 30% + 44% Oil Group Oil Group 13% 66% 4% 65% Petchem Petchem&Ref &Ref 644,694 Petc
Slide 8: Pipeline Business: Stable Incomes & Solid Growth
Pipeline Business : Stable Incomes & Solid Growth Pipeline network is under expansion to enlarge customer base and secure leadership position. Gas sales volume + 8%, Gas demand remains strong and growing Gas sales volumes (mmscfd) 2005 Customer Profile 3,061 3,013 Industry 2,970 2005 average 2,996 9
Slide 9: Gas Separation Plants: Strategic Value Creators
Gas Separation Plants : Strategic Value Creators Natural gas is utilized to the fullest potential through gas separation plants. Sales volume + 26% driven by GSP#5 Product Prices in 2005 ($/ton) Sales Volume (x 1,000 tons) 1,081 1,097 PP 1,050 1,015 1,087 HDPE 3,462 1,050 % 985 1,016 26 221 (6%) + 2
Slide 10: PTTEP: Growth Engine & Cash Generator
PTTEP : Growth Engine & Cash Generator PTT hold 66.32% in PTTEP (as of 31 Dec 2005). Unit : Bt mn Revenues Operations Sales Vol. (boepd) Avg. Sales Prices ($/boe) 68,355 31.47 31.59 29.37 28.14 25.42 23.38 % 43 + 142,685 139,035 160,678 171,333 134,070 153,531 EBITDA 1Q 2Q 3Q 4Q 2004 2005 50,011 47,
Slide 11: Oil Business: Strong Leadership Position
Oil Business : Strong Leadership Position PTT is a market leader in oil retails at 35% market share with 1,277 gas stations nationwide. Oil Marketing : sales volume ~ 255 kboe/d Thailand’s total gas stations ~ 18,407 + 6% (as of 4Q/2005) 13,937 14,802 LPG PTT 7% 6% BCP 2,572 2,183 1,987 3% ESSO 1,92
Slide 12: Refining Affiliates
Refining Affiliates Cooperation among refineries improves security of supply and helps manage supply chain more efficiently. PTT Group represents 84% of total refining capacity TOP* 2004 2005 %Chg. RRC* 2004 2005 %Chg. : Revenues 184,801 249,111 35% RRC (145 kbpd) : Revenues 97,399 123,347 27% : EBI
Slide 13: Petrochemical Affiliates
Petrochemical Affiliates PTT focuses on gas-based petrochemical business to create more values from natural gas assets. PTT has become a regional player in petrochemical industry Ethane, Propane, Ethylene HDPE PTT GSPs LPG, NGL PTTCH 1,146 kta 250 kta Propylene Light Naphtha Naphtha & Raffinate 377
Slide 14: Activities & Operational Results / Financial Highlights / Growing the Future
Activities & Operational Results Financial Highlights Growing the Future 14
Slide 15: Consolidated Income Statements
Consolidated Income Statements THB (Bt mn) USD Equivalent ($ mn) 2004 2005 Chg. %Chg. 2004 2005 Chg. %Chg. Sales 644,694 929,716 285,022 44% 15,658 22,580 6,922 44% - S&A expenses 18,618 22,586 3,968 21% 452 549 97 21% EBITDA 79,296 114,045 34,749 44% 1,926 2,770 844 44% EBIT 65,025 96,566 31,541 49
Slide 16: Balance Sheets: Financial Philosophy – Solid & Secure
Balance Sheets : Financial Philosophy – Solid & Secure PTT is fully committed to maintain strong financial position. Balance Sheets • GSP#5 startup Financial Ratios ICR 12.9 Unit : Bt mn • Consol. PTTCH Acquired RRC 9.4 Net Debt/EBITDA 649,807 1.4 7.7 1.3 + 33% 1.0 Other 149,564 Liabilities 1.2 0.8
Slide 17: Debt Profile: Control Cost & Manage Risk
Debt Profile : Control Cost & Manage Risk Debt portfolio is structured to minimize financial risks. Debt Portfolio Consolidated debt ~ Bt222bn ($5.4bn) Unit : Bt mn USD 221,810 PTTEP THB 8% PTTCH 201,593 10% 84,285 PTT RRC (38%) 155,228 70% 6% 92,599 (46%) Others : TTM ~ 5% 123,885 41,694 6% : BPE ~
Slide 18: Activities & Operational Results / Financial Highlights / Growing the Future
Activities & Operational Results Financial Highlights Growing the Future 18
Slide 19: CAPEX & Investments: Growing the Future
CAPEX & Investments : Growing the Future PTT plans to invest Bt239bn ($6bn) during 2006-2010, mostly into expanding gas business. Gas Oil JV Others PTTEP PTT’s CAPEX ~ Bt238,794m ($6.0bn) Unit : Bt mn 79,620 during 2006-2010 Others 71,085 1% JV 21% 21,993 64,140 Oil 5% Gas 10,464 73% 53,626 33,780 3
Slide 20: 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 5,000 00 9) ~ 12% CAGR (2005-2 Industry ~ 17% 4,000 GSP ~ 18% 3,000 2,000 Power ~ 65% 1,000 0 2005 2006 2007 2008 2009 3rd Pipeline #2 Project c
Slide 21: 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 Olefins & Plastics Debot I4/1 Debot I4/2 : Ethylene 1,146 kta Ethylene 130 kta, Ethylene 100 kta, : Propylene 377 kta Propylen
Slide 22: 2006 Outlook: Look Forward to Another Solid Year
2006 Outlook : Look Forward to Another Solid Year Favorable Environment Key Drivers Strong and Rising Demand • Continuing economic expansion • Higher demand for petroleum products Enhanced Operation • Additional pipeline capacity : 3rd pipeline / larger network • Higher utilization : GSPs, refinerie
Slide 23: 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/ 23
Slide 24: Supplement
Supplement 24
Slide 25: 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 26: 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 27: 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 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 Industry 21% 5,000
Slide 28: Petroleum Demand/Procurement: 2005
Petroleum Demand/Procurement : 2005 Demand ~ 1,157,000 boepd (+ 3.2%) 2005 boepd %Chg. Total 1,157,000 + 5.1% - Gas 437,900 + 5.1% : EGAT 180,900 + 1.9% Diesel 29.3% : IPP/SPP 212,800 + 8.0% EGAT ~ 15.6% Gas Oil : Industry 43,200 + 1.9% IPP/SPP ~ 18.4% : NGV 1,000 + 67.7% 37.8% 62.2% - Oil 719,100 +
Slide 29: 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 30: PTT Group Strategy
PTT Group Strategy Roles in Portfolio Business Areas Business Missions Strategic Intents • Maximize domestic resource utilization Protect, defend and grow E&P • Secure reserves beyond Thailand aggressively in Thailand and beyond “Core value creators” • Ensure sufficient gas supply for Protect, defen
Slide 31: Schedule: Major Projects
Schedule : Major Projects Key projects are strategically linked and timely corresponding 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 – A
Slide 32: Natural Gas Price Structure
Natural Gas Price Structure Gas prices are mostly agreed under long-term contracts and volatility pass-through to ensure stable returns. Sales Price Structure Customers Gas Pool Price + Supply Margins + Pipeline Tariffs Power Producers ~ 75% : EGAT ~ 34% 1.75% Average Purchased : IPP ~ 27% 1.75% ~ 1
Slide 33: Refining Industry
Refining Industry Strong leadership position ensures stable supply to downstream and related businesses. PTT Group represents 84% of total refining capacity Total refining capacity ~ 1,012 kbpd RPC 2% ESSO 14% ESSO (145 kbpd) TOP TOP (220 kbpd) 22% (PTT 49.54%) RPC (17 kbpd) TPI RRC 21% 14% BCP (120
Slide 34: Gross Refining Margins
Gross Refining Margins High oil prices create favorable environment for refining industry. High Refining Margins for Complex Refineries Strong Demand Supply Constraints Lower Crude Quality • Economic growth in USA and • No major investment in refinery • Declining production of light & China • Reduci
Slide 35: Dividend Policy & Historical Payments
Dividend Policy & Historical Payments PTT is firmly committed to pay dividend at no less than 25% of 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 af
Slide 36: Reference: Product Prices
Reference : Product Prices 2004 2005 2004 2005 %Chg. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FX – THB/USD (@end period) 39.5485 41.0305 41.5942 39.2025 39.2543 41.4091 41.1075 41.1746 39.2025 41.1746 Crude ($/bbl) : WTI 35.24 38.31 43.86 48.26 49.63 53.03 63.05 59.99 41.42 56.42 36% : Dubai 29.45 33.28 36.25 35.54