PTT Global Chemical Public Company (PTTGC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached 167,054 million THB, up 8% quarter-over-quarter and 14% year-over-year, with net profit at 1,846 million THB, reversing prior losses and supported by extraordinary gains from bond buybacks and divestments.

• Adjusted EBITDA was 9,662 million THB, up 47% year-over-year but down 13% sequentially, reflecting improved Intermediates and Polymers performance but weaker Refinery and Aromatics.

• Strategic focus remains on portfolio reshaping, specialty chemicals, decarbonization, and deleveraging, with a five-year business plan in place.

• Non-core divestments and bond buybacks supported capital structure optimization.

Financial highlights

• Revenue grew 14% year-over-year and 8% quarter-over-quarter; net profit improved by 133% year-over-year and over 200% quarter-over-quarter to 1,846 million THB.

• Adjusted EBITDA was 9,662 million THB, with Onex contributing nearly 30% of segment EBITDA.

• Free cash flow turned positive due to internal cost controls, asset monetization, and extraordinary gains from bond buybacks and divestments.

• Debt reduced by $1 billion through bond buybacks and loan prepayments.

• Feedstock costs increased 11% quarter-over-quarter, impacting margins.

Outlook and guidance

• Crack spreads and refinery margins expected to improve in H2 2024, with aromatics stable and olefins facing new capacity challenges.

• Utilization rates guided at 103% for refinery, 90% aromatics, 82% olefins, and 105% polymers.

• Alnex segment targets 15–20% market share in India within 4–5 years, with ongoing expansion in China and Southeast Asia.

• Decarbonization and sustainable product initiatives are on track for 2030 targets.

• Capex will remain at $200–250 million per year through 2027, prioritizing essential projects and growth in specialty chemicals.