PTT Oil and Retail Business Public Company (OR) Q3 2024 earnings summary

Executive summary

• Sales revenue for 9M24 was THB 538,054 million, with EBITDA at THB 12,779 million and net income at THB 4,651 million, reflecting a challenging environment and a 57.3% YoY decline in net profit.

• 3Q24 total revenue was THB 176,131 million, down 4.3% QoQ and 8.1% YoY, with a net loss of THB 1,609 million due to lower gross profit per liter, higher FX losses, and extra item expenses.

• Daily traffic averaged 3.4 million visitors, with 2,690 stations and 4,721 Café Amazon outlets, highlighting strong retail presence.

• Cost-control measures targeted a 15% reduction in expenses (~THB 3 billion) and strategic portfolio reviews to discontinue non-profitable investments.

• Digital transformation and supply chain management enhancements were prioritized to improve efficiency and mitigate price volatility.

Financial highlights

• 3Q24 total revenue was THB 176,131 million, down 4.3% QoQ and 8.1% YoY; 9M24 revenue declined 6.8% YoY.

• EBITDA for 3Q24 was THB 1,763 million, down 63.6% QoQ and 76.6% YoY; 9M24 EBITDA fell 31.6% YoY.

• Net profit for 3Q24 was negative THB 1,609 million; 9M24 net profit was THB 4,651 million, down 57.3% YoY.

• Gross profit margin for 9M24 was 4.5%, down from 5.3% in 9M23; net profit margin for 9M24 was 0.9%, down from 1.9% in 9M23.

• Return on equity for 9M24 was 4.5%, down from 10.4% in 9M23; return on total assets was 2.3%, down from 5.0% in 9M23.

Outlook and guidance

• 2024 GDP growth forecast: Thailand 2.7–2.8%, Cambodia 5.5%, Laos 4.1%, Vietnam 5.5%, Philippines 5.8%, World 3.2%.

• Supportive factors include tourism uptrend and gradual export sector growth; risks include energy crisis, monetary tightening, and geopolitical uncertainty.

• Dubai oil price expected at $73–$89 per barrel in 2024; FX rate projected at 31.5–34.0 THB/USD.

• Crude oil prices in 4Q24 expected to be slightly lower than 3Q24 due to weak Chinese demand and increased supply.