PTT Public Company (PTT) Q2 2024 earnings summary

Executive summary

• Strategic focus on core hydrocarbon business, decarbonization, and sustainability, with Net Zero 2050 as a key objective and ongoing portfolio transformation.

• Achieved strong financial performance in 2Q and 1H2024, with net income up 22% QoQ and 34% HoH, driven by E&P, power, and P&R segments, higher stock gains, and non-recurring items.

• Key investments include offshore wind, LNG terminal partnership, and expansion in renewables and international E&P.

Financial highlights

• 2Q2024 revenue rose 5–5.6% QoQ and YoY to Baht 821,943 million, with net profit up 22–22.4% QoQ and 76–76.4% YoY to Baht 35,469 million; 1H2024 net profit up 34–34.4% YoY to Baht 64,437 million.

• 2Q2024 EBITDA up 24.5% YoY to Baht 115,334 million, but down 2.8–3% QoQ; 1H2024 EBITDA up 19–25% YoY.

• Free cash flow for 1H2024 was +82,375 MB; cash and short-term investments at Baht 423–451 billion as of June 2024.

• Interim dividend declared at THB 0.8 per share, matching last year; payout ratio at 35%.

Outlook and guidance

• Oil and gas prices expected to remain stable or volatile; Dubai crude forecasted at $78–88/bbl, Singapore GRM at $4.7–5.7/bbl.

• E&P volumes projected to increase with stable margins; gas margins under pressure but demand improving; P&R faces margin pressure with possible 2H24 recovery.

• High competition in EV and non-hydrocarbon sectors; Thai GDP growth forecast at 2.0–3.0% for 2024.