PTT Public Company (PTT) Q3 2024 earnings summary

Executive summary

• 9M2024 net income increased 2% year-over-year, supported by upstream gains, FX gains, and lower derivative losses, despite higher stock losses and impairments; 3Q2024 net income dropped 54% sequentially and 47.8% year-over-year due to non-recurring losses and margin pressures.

• Revenue for 9M2024 rose 1% year-over-year to ฿2,366,080 million, with EBITDA up 2% to ฿338,925 million, though 3Q2024 saw a sharp decline in both revenue and EBITDA.

• Upstream, gas, and trading segments contributed most to revenue and EBITDA, while downstream and oil & retail faced margin pressures.

• Strategic focus remains on decarbonization, digital transformation, and operational excellence.

Financial highlights

• 9M2024 net income: ฿80,761 million, up 2% year-over-year; 3Q2024 net income: ฿16,324 million, down 54% sequentially and 47.8% year-over-year.

• 9M2024 revenue: ฿2,366,080 million (+1% YoY); EBITDA: ฿338,925 million (+2% YoY); 3Q2024 revenue: ฿761,858 million, down 7% sequentially; EBITDA: ฿302,943 million, down 11% sequentially.

• Extraordinary items in 3Q2024 included impairments and losses totaling ~฿9,500 million, mainly from GC, PTTEP, PTTAC, and Vencorex.

• Gross profit margin for 9M2024 was 10.74%, net profit margin 4.32%.

• Dividend payout ratio at 35% for 9M2024; interim dividend of Baht 0.80 per share paid in September 2024.

Outlook and guidance

• 2025 global GDP growth forecast at 3.2%, Thailand at 3.0%; oil (Dubai) price expected at $70–85/bbl, Singapore GRM at $3.7–5.2/bbl.

• Upstream volume expected to increase, but with softer average selling prices; downstream margins to remain pressured by surplus supply.

• Power demand in Thailand set to recover, while petrochemical prices are expected to decline due to increased supply and weak demand.

• Thai economy projected to accelerate in 4Q2024, driven by tourism and government spending, but faces risks from geopolitical tensions and weather events.

• Continued restructuring of the life science portfolio and focus on EBITDA uplift, portfolio rationalization, and asset monetization.