PTT Oil and Retail Business Public Company (OR) Q2 2024 earnings summary

Executive summary

• Achieved sales revenue of THB 361,922 million for 1H24, EBITDA of THB 11,016 million, and net income of THB 6,260 million, with 2,681 stations and 4,652 Café Amazon outlets globally.

• 2Q24 sales were THB 183,989 million, up 3.4% QoQ but down 2.1% YoY; 1H24 sales were down 6.1% YoY.

• 2Q24 net profit was THB 2,537 million, down 31.9% QoQ and 8.0% YoY; 1H24 net profit was up 9.2% YoY.

• Mobility business faced lower sales volume, while Lifestyle and Global segments saw growth, especially in Café Amazon and international operations.

• Continued expansion in health & wellness retail and sustainability initiatives, including new store openings and community development projects.

Financial highlights

• Gross profit margin for 1H24 was 5.1%, slightly down from 5.3% in 1H23.

• Net profit margin for 1H24 was 1.7%, up from 1.5% in 1H23.

• Return on equity for 1H24 was 10.5%, up from 10.4% in 1H23.

• Basic EPS for 2Q24 was THB 0.21, and for 1H24 was THB 0.52.

• EBITDA for 2Q24 was THB 4,843 million, down 21.5% QoQ and 7.0% YoY; 1H24 EBITDA was THB 11,016 million, down 1.1% YoY.

Outlook and guidance

• 2024 GDP growth forecast: Thailand 2.3–2.8%, Cambodia 6.0%, Laos 4.0%, Vietnam 5.5%, Philippines 6.0%.

• Thailand's economy is expected to grow 2.6% in 2024, mainly driven by tourism and private consumption, but faces risks from global economic slowdown, rising living costs, and geopolitical tensions.

• Dubai oil price expected at $79–89 per barrel in 2024; FX rate projected at 34.5–37.5 THB/USD.

• Gasoline and diesel demand expected to grow, but gasoline prices may be pressured by EV adoption.

• Supportive factors include tourism recovery and strong private consumption; risks include global monetary tightening, high costs, and geopolitical uncertainty.