PTT Global Chemical Public Company (PTTGC) Q4 2024 earnings summary

Executive summary

• Maintained top 1% global sustainability ranking in chemicals, with multiple ESG awards and recognitions in 2024.

• 2024 marked by significant portfolio restructuring, including Vencorex and PTT Asahi/PTTAC, with all provisions booked and expected EBITDA and NI uplift in 2025.

• Q4/24 saw a sharp decline in EBITDA and net income due to lower petrochemical spreads, seasonality, and one-time restructuring provisions.

• Strategic focus on short-term performance, long-term competitiveness, and sustainability, with ongoing cost optimization and asset-light strategies.

• Portfolio transformation advanced with restructuring of Vencorex and PTTAC, resulting in significant provisions and asset impairments.

Financial highlights

• FY2024 revenue down 2% year-over-year; Q4/24 revenue down 18% YoY and 11% QoQ, mainly from lower upstream revenues.

• Adjusted EBITDA for FY2024 at THB 31.8bn, down 17% YoY; Q4/24 Adjusted EBITDA at THB 2.7bn, down 74% YoY and 69% QoQ.

• Net loss for FY2024 at THB 29.8bn, mainly due to impairments and provisions related to Vencorex and PTT Asahi/PTTAC.

• Gross Refinery Margin dropped from $9.4/bbl in 2023 to $4.7/bbl in 2024.

• Performance Chemicals and Bio & Circularity segments showed resilience in some areas, but overall margins compressed across chains.

Outlook and guidance

• Petrochemical industry expected to remain under pressure in 2025 due to global economic slowdown, new capacity, and geopolitical risks.

• Fed anticipated to cut rates twice in 2025; China and US trade tensions may impact tariffs and demand.

• Aggregate performance enhancement target of THB 4.5bn for 2025, with further cost and capex savings planned.

• Capex reduction by 23% YoY in 2024; 2025 capex savings target set at THB 4bn.

• Polyethylene prices projected at $980–1,010/ton in 2025, with utilization rate at 107%.