Ptt Global Chemical Public Company Limited · SET:PTTGC
Ptt Global Chemical Public — Q4 2023 Earnings Presentation
46 slides from Ptt Global Chemical Public's earnings presentation, Mar 6, 2024
Slide 1: Investor Presentation
Investor Presentation March 6, 2024 1
Slide 2: Disclaimer
Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in par
Slide 3: The global recognized sustainable company
The global recognized sustainable company The only company in chemicals sector ranked 2019-2023: No.1 for 5 consecutive years and The 1st company in Top 1% S&P Global ESG Scores Thailand recognized in LEAD LEVEL The 1st and only Thai-own conglomerate to achieve Climate & 2022-2023: A LIST Climate Ch
Slide 4: Vision and Mission
Vision and Mission VISION To be a Leading Global Chemical Company for Better Living MISSION SHAREHOLDER SOCIETY BUSINESS PARTNER EMPLOYEE We deliver fair and sustainable We integrate social and We provide the best solutions We build an adaptable organization that returns for shareholders through env
Slide 5: Agenda
Agenda 1 Business Overview 2 Strategic execution 3 Market Outlook 5
Slide 6: Agenda
Agenda 1 Business Overview 2 Strategic execution 3 Market Outlook 6
Slide 7: Leading Integrated Chemical Player with Global Reach
Leading Integrated Chemical Player with Global Reach Upstream Intermediates Polymers & Chemicals Bio & Circularity Performance Chemicals 14 MTA Petrochemical Capacity 50 Local Sites 43 Global Operation Sites 25 JV companies Competitiveness #1 A LIST: CLIMATE CHANGE & Diversification of FOR 5 CONSECU
Slide 8: Products
GC Products portfolio groups Refining capacity of 280 KBD / Petrochemical Production Capacity of 14 MTA Upstream Intermediates Polymers & Chemicals Bio & Circularity Performance Chemicals Coating & Additives Diesel , LSFO EO , EG PE , PP , PS , PET , PVC Oleochemicals ▪ Liquid Resins & Additives (LR
Slide 9: Agenda
Agenda 1 Business Overview 2 Strategic execution 3 Market Outlook 9
Slide 10: Strengthening our resilience
Strengthening our resilience 1 Operation Optimization 2 Integration & Partnership • Competitiveness Enhancements • Partnership with industry leaders GCL (GC x WHA) • Market-Focus Backed Transformation • allnex growth and collaboration (MFBT) (Innovation hub) • Enhancement projects e.g. MAX, FiT, dEx
Slide 11: Olefins Feedstock flexibility
Operation 1 Optimization Olefins Feedstock flexibility Competitiveness Enhancement Feedstock flexibility enhancement • GC has continuously implemented feedstock flexibility 2021 2023 to Olefins plants • GC now has full capability to optimize based on economics of each feedstock type ORP OMP (OLE 4)
Slide 12: Partnership with WHA to enhance GC Logistics as full integrated logistics company
Integration & 2 Partnership Partnership with WHA to enhance GC Logistics as full integrated logistics company 50% 50% Transaction completed in Dec’23 GC Logistics to become full integrated logistics company • GC sells 50% shares in GC Logistics to WHA Corporation group for 2,640 MB • WHA brings expe
Slide 13: 2023 allnex Key Highlights
Integration & 2 2023 allnex Key Highlights Partnership Cost and Operation Improvement achieved target 2023 and continued to 2024 GC & allnex: Joint innovation & ✓ Accelerated footprint optimization in to minimize analyst visit in Rayong costs and capture demand in the growth regions. • Collaboration
Slide 14: 2023 Highlights: ESG Net Zero Pathway Performance Update
ESG Net Zero Pathway Performance Update 3 Leadership Multiple initiatives implemented towards 20% GHG reduction in 2030, net zero in 2050 Efficiency-driven Portfolio-driven Compensation-driven Emission reduction (MtCO2e) Emission reduction (MtCO2e) Carbon Credit Inventory (MtCO2e) 0.5 0.32 0.32 2022
Slide 15: 2023 financial initiatives through down cycle
Financial 4 2023 financial initiatives through down cycle Resilience 2023 Initiatives Benefits Deleveraging Executions Balance Sheet P/L • Maximize DLC (crude payment extension) • 4,017 Mil THB • 12,497 Mil THB • Working Capital Improvement from expedite tax refund debt reduction gain from GCL • 692
Slide 16: Outlook for 2024: Industry will continue through transition period
Outlook for 2024: Industry will continue through transition period External Factors Strategy Strengthen on Continue on enhancements 3 Steps Plus through bottom of cycle Efficiency Step Competitiveness Enhancement Megatrends Change Lean Cost control Market-Focus Backed Transformation (MFBT): Increase
Slide 17: Agenda
Agenda 1 Business Overview 2 Strategic execution 3 Market Outlook 17
Slide 18: Feedstocks & Refined Products Outlook
Feedstocks & Refined Products Outlook Global Crude Balance [MBD] : Supply - Demand Crude : ▪ Escalating geopolitical tensions in the Middle East likely continues OPEC+ cut supply, while demand 106 growth from China 4 through Y2024; however, no crude oil markets disruption yet. ▪ Tight supply from OP
Slide 19: End Use Market Outlook: Automotive
End Use Market Outlook Automotive GC Products : BZ, Phenol, BD, PE, PP, MEG, AN, PO, Polyols Million Car units Global Passenger Car Sales ▪ Strongly growth of Global car sales in 2023 are a consequence of the 120 release of demand linked to the easing of chip shortage issues. 95.3 94.3 100 90.2 87.3
Slide 20: End Use Market Outlook: Packaging & Film
End Use Market Outlook Packaging & Film GC Products : PX, BZ, PTA, PE, PP, PET, PS Consumer Goods PMI ▪ Chinese New Year still pose demand for end use for seasonal 65 60 packaging and gift. 55 ▪ No significant shift to recycle material. Supply limitation and cost issue 50 remain barrier for penetrat
Slide 21: Industry Outlook: Resilient Automotive demand, Packaging sector recovers gradually
Industry Outlook : Resilient Automotive demand, Packaging sector recovers gradually Q1/2024 vs Q4/2023 End Market (Exposure) Q1/2024 and 2024 outlook EU AMER AP GDP 0.9% 2.1% 5.2% • World GDP is maintain at 3.1% • Q1/24 shows improvement from Q4/23; thanks to demand ramp up prior CNY and strong EV s
Slide 22: Q&A
Q A 22
Slide 23: Thank You
Thank You PTT Global Chemical Public Company Limited 555/1 Energy Complex, Building A, 18th Floor, Vibhavadi Rangsit Road, Chatuchak, Chatuchak, Bangkok 10900 Thailand Tel: +66(0) 2265-8400 Fax: +66(0) 2265-8500 www.pttgcgroup.com For further information & enquiries, please contact our Investor Rela
Slide 24: Appendix
Appendix 6GC 24
Slide 25: Stable Adjusted EBITDA
Stable Adjusted EBITDA bolstered by extra gains regarding selling GCL’s stake and bond buy-back Unit: MB Adjusted EBITDA* Revenue Unit: MB 1% QoQ 30% YoY -9% YoY -8% QoQ 117% YoY -19% YoY 678,267 49,134 616,635 40,007 124,780 160,392 162,264 12,307 11,335 5,234 Q4/2022 Q3/2023 Q4/2023 FY2022 FY2023
Slide 26: Operating Performance analysis - Upstream
Operating Performance analysis - Upstream Diesel, LSFO, PX, BZ, Ethylene, Propylene Upstream Key products/spread Q4/22 Q3/23 Q4/23 FY2022 FY2023 Adjusted EBITDA Dubai ($/bbl) 84.8 86.7 83.6 96.3 82.1 Unit : MB Diesel 50 ppm.-Dubai ($/bbl) 41.4 28.7 24.4 39.0 24.3 30,000 8% 11% LSFO-Dubai ($/bbl) 14.
Slide 27: Operating Performance analysis - Intermediates
Operating Performance analysis - Intermediates EO, EG, Phenol, BPA, Acetone, PTA, PO, AN, MMA Intermediates Key products/spread Q4/22 Q3/23 Q4/23 2022 2023 PHN spread ($/ton) 355 295 293 357 252 6,000Adjusted EBITDA & equity incomes 10% Unit : MB BPA spread ($/ton) 351 200 243 553 230 5,000 6% MEG s
Slide 28: Operating Performance analysis – Polymers & Chemicals
Operating Performance analysis – Polymers & Chemicals PE, PP, PS, PET, PVC, Compound, Polyols Polymers & Chemicals Key products/spread Q4/22 Q3/23 Q4/23 FY2022 FY2023 Adjusted EBITDA & equity incomes PE price ($/ton) 1,047 1,005 1,001 1,280 1,033 Unit : MB HDPE-Ethylene ($/ton) 128 210 86 148 155 10
Slide 29: Operating Performance analysis – Bio & Circularity
Operating Performance analysis – Bio & Circularity Oleochemicals, Bioplastics, Recycle Resins Bio & Circularity Key products/spread Q4/22 Q3/23 Q4/23 2022 2023 Adjusted EBITDA & equity incomes ME spread (THB/kg) 4.2 4.3 4.3 3.4 4.3 3275 3235 3195 3155 Unit : MB 7% 8% FA spread ($/ton) 595 358 394 51
Slide 30: Operating Performance analysis – Performance Chemicals
Operating Performance analysis – Performance Chemicals Coating resins & Additives Engineering Plastic Performance Chemicals Key products/spread Q4/22 Q3/23 Q4/23 2022 2023 Adjusted EBITDA & equity incomes Adj.EBITDA margin (%) 9% 8% 8% 9% 7% Unit : MB 12,000 11% 9% 9% 10,000 8% 8% 9% Market highligh
Slide 31: Consolidated Statement of Income – Q4/23
Consolidated Statement of Income – Q4/23 Negative Positive impact to P/L impact to P/L YoY QoQ YoY Unit : MB Q4/2022 1 Q3/2023 Q4/2023 2022 2023 % + /(-) % + /(-) % + /(-) YoY highlights (FY23 VS FY22) 1 Sales Revenue 124,780 160,392 162,264 30% 1% 678,267 616,635 -9% (A) P2F 2 Feedstock cost (92,80
Slide 32: Consolidated Statement of Cash Flow (FY2023)
Consolidated Statement of Cash Flow (FY2023) Unit: MB CAPEX & Investment (9,240) Operating 48,649 - CAPEX – net (19,586) - Net gain (Include NCI) 865 - Investments in debt instruments (2,134) Paid -21,846 - Depreciation 28,487 + - Investments in equity instruments - Sale Asset (126) 4,503 - Other Ad
Slide 33: Strong Financial Position
Strong Financial Position Statements of Financial Position Long Term Debt Portfolio Dec 31, 2023 Dec 31, 2022 Interest Breakdown Currency Breakdown Cash & Cash equivalents THB 719 Bn THB 720 Bn + Current investments 46 32 in financial Assets 133 119 Liab. 38% 140 62% 42% 141 CA 58% 290 302 IBD 286 2
Slide 34: Committed Capex to support GC's sustainable growth
Committed Capex to support GC’s sustainable growth GC Group (Consolidated entities) Total Estimated Annual CAPEX (M.USD) Projects 2024-2028 2024 2025 2026 2027 2028 1) PTTGC group excl. allnex 192 151 37 3 1 0 2) allnex expansion & growth Capex 474 111 114 95 91 63 total 666 262 151 98 92 63 Notes:
Slide 35: Maintenance Shutdown Schedule 2024
Maintenance Shutdown Schedule 2024 Plant 2024 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cracker 60 OLE2/2 OLE Oleflex HDPE 15 HDPE2 LDPE 24 POL LLDPE I 4 LLDPE II PS 3 TOCGC 49 EOB EA 55 Phenol I PHN Phenol II BPA 30 Refinery GCO ARO2 ARO1 REF Aromatics I Aromatics II PO 35
Slide 36: Upstream - Refinery
Upstream - Refinery Refinery Intake (KBD) Refinery Sales Volume (KBD) Utilization rate 101% 98% 100% 56% 103% 103% 105% 106% 89% 104% 154 155 166 84 166 171 176 197 139 177 0% 1% 5% 0% 10% 9% 6% 8% 12% 6% 1% 10% 0% 3% 3% 3% 13% 4% 3% 7% 174.6 165.1 175.1 177.2 179.9 179.4 183.3 180.0 153.4 28.0 30.0
Slide 37: Upstream - Aromatics
Upstream - Aromatics Aromatics Intake (KTons) Aromatics Sales Volume (KTons) Utilization rate 101% 98% 100% 56% 103% 103% 105% 106% 89% 104% 154 155 166 84 166 171 176 197 139 177 0% 1% 5% 0% 10% 9% 6% 8% 12% 6% 1% 10% 0% 3% 3% 3% 13% 4% 3% 7% 174.6 165.1 175.1 177.2 179.9 179.4 183.3 180.0 153.4 28
Slide 38: Upstream - Olefins
Upstream - Olefins Olefins Intake (KTons) Olefins Sales Volume (KTons) Utilization rate 100% 80% 88% 82% 89% 90% 69% 83% 88% 83% 676 581 567 565 536 528 385 460 2,389 1,909 5,710 5,729 34% 35% 36% 29% 24% 22% 25% 25% 1,421 1,408 41% 37% 1,526 1,279 1,504 1,402 1,417 1,573 1,246 1,494 55% 61% 63% 72%
Slide 39: Intermediates / Polymers & Chemicals sales volume
Intermediates Polymers & Chemicals Intermediates Sales Volume (KTons) Polymers & Chemicals Sales Volume (KTons) 727 767 709 672 612 615 699 676 2,874 2,602 599 545 515 541 535 574 632 590 2,199 2,331 12% 15% 15% 13% 12% 11% 14% 15% 14% 13% 3% 3% 3% 3% 3% 2% 2% 2% 3% 2% 49% 49% 48% 47% 55% 54% 48% 52
Slide 40: Utilization rate
Utilization rate Utilization rate Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 2022 2023 Upstream - Refinery 101% 98% 100% 56% 103% 103% 105% 106% 89% 104% - Aromatics 100% 80% 88% 82% 89% 90% 69% 83% 88% 83% - Olefins 85% 75% 83% 76% 72% 81% 89% 78% 80% 80% Intermediates - MEG 66% 88% 84% 79% 13
Slide 41: Market Prices
Market Prices Y. 2021 Y. 2022 Y. 2023 Y. 2024 Change Highlight Product Unit [Actual] [Actual] [Actual] [Forecast] Y. 24 - 23 Y. 24 Crude : Dubai $/bbl 69.2 96.3 82.1 75 - 85 ▪ Slow economic growth [-] Petroleum Product : ▪ Non-OPEC ▪ Diesel 10 PPM - supply growth [-] $/bbl 8.4 39 24.3 18 – 22 Dubai
Slide 42: Crude price market commentary
• Geopolitical tensions in the Middle East, while tighten oil supply from OPEC+ through year-end • Economic concern, which expects oil demand growth slower than Y2023 Crude Price, $/bbl Market Commentary : Crude 2H2023 DUBAI 120 ▪ Geopolitics tension among Israel-Hamas war, but limited impact 108 as
Slide 43: Refined products margins outlook
Strong margins in 2H 2023 seen due to robust diesel & gasoline, with 2024 likely mirroring the trend despite contrasting demand forecasts. Refined Products Price, $/bbl Market Commentary : Refinery 51.6 2H 2023 50 41.5 41.1 Diesel 10 ppm ▪ Strong diesel crack supports overall refined product margins
Slide 44: Market Commentary: Aromatics
• Global economic concern amid geopolitical conflicts & logistics disruption • Upcoming new capacities of Aromatics chains still challenge the markets Market Commentary : Aromatics Paraxylene Value Chain Spreads, $/T 2H 2023 ▪ PX market supported from S/D maintenance, Gasoline cost push & PET Resin
Slide 45: Market Commentary: Olefins
Fundamental to improved from slower capacity addition. Uncertainty remain on economics. Ethylene Derivatives Price, $/T Market Commentary: Olefins 2H 2023 HDPE-Naphtha J HDPE Price MEG Price ▪ Buying interest capped by continue slow global demand recovery and 1600 feedstock volatility. Sentiment als
Slide 46: International business Outlook - Partial volume rebound expected in 2H24
International business Outlook - Partial volume rebound is expected in 2H24, driven by demand recovery in key market segments and supported by growth in key regions Supporting factors Factors to be monitored • Favorable GDP outlook in key emerging • High-interest rates and persistent inflation, mark
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