PTT Global Chemical Public Company (PTTGC) Q3 2024 earnings summary

Executive summary

• Q3 2024/2027 earnings declined due to lower margins in Intermediates and Performance Chemicals, with significant impairments for Vencorex, PTT Asahi, and PTTAC recognized.

• Portfolio transformation advanced with insolvency proceedings in France, withdrawal from PTTAC and Vencorex, and the decision to cease the PTTR JV.

• Strategic focus remains on high-value, low-carbon businesses, sustainability, and operational excellence.

• Cost-saving and holistic optimization initiatives target $168M annualized savings by 2030.

• Adjusted EBITDA for 9M 2024 remained resilient despite global volatility, outperforming many peers.

Financial highlights

• Q3 2024 revenue was THB 149,431 million, down 11% quarter-on-quarter and 7% year-over-year; 9M 2024 revenue up 4% year-over-year.

• Adjusted EBITDA for Q3 2024 was THB 8,387 million, down 13% sequentially and 31% year-over-year.

• Net loss after tax in Q3 2024 was THB 19,312 million, mainly due to impairments; excluding these, net loss was THB 1,801 million.

• Major impairments: Vencorex (THB 7,960–8,574 million), PTT Asahi (THB 8,937 million), and PTTAC (THB 8,937 million).

• Cash and equivalents at Sep 30, 2024: THB 26,132 million; net IBD to equity at 0.83–0.92x.

Outlook and guidance

• 2025 crude oil price expected at $75–79/bbl; refinery utilization at 91%.

• HDPE price expected at $1,030–1,060/ton, with spreads at $390–420/ton; demand recovery anticipated.

• Discontinuation of loss contributions from Vencorex and PTTAC to uplift EBITDA by THB 2.6 billion and NI by THB 5.0 billion from 2025.

• Key projects for 2025: NatureWorks Plant 2, AGC Vinythai expansion, and bio-refinery SAF.

• Performance chemicals demand expected to improve in 2025, but price competition will intensify.