PTT Global Chemical Public Company Limited (PTTGC) has announced the company's operating performance for the third quarter of 2017, with a quarterly net profit of 9,955 million baht, bringing the company's total net profit for the first nine months of this year to 29,740 million baht, the highest in six years. The increase is partly due to higher product margins and a more efficient utilization rate of production capacity at its various production facilities. PTTGC continues to move ahead with its major investment plan for Thailand's Eastern Economic Corridor (EEC) area, while expanding its plastics business into the high-potential Cambodia, Laos, Myanmar, and Vietnam (CLMV) markets.

Mr. Supattanapong Punmeechaow, President and CEO of PTT Global Chemical Public Company Limited, announced the company's operating results for Q3/2017, with a net profit of 9,955 million baht (earnings per share of 2.23 baht). This is a 60% increase compared to a net profit of 6,226 million baht in Q3/2016 (earnings per share of 1.40 baht), and is also an increase compared to a net profit of 6,603 million baht in Q2/2017 (earnings per share of 1.48 baht). PTTGC's net profit for the first nine months of 2017 reached 29,740 million baht, an 88% increase compared to the same period in 2016.

PTTGC's sales revenue for Q3/2017 was 104,583 million baht, a 14% increase compared to Q3/2016, and a 2% increase compared to Q2/2017, due to higher sales volume and improved utilization of capacity because of a shortened maintenance downtime schedule and the more efficient operation of Aromatics Plant Unit 2, which had already completed its planned maintenance. This increased the average capacity rate compared to Q3/2016 and Q2/2017.

In addition, with a higher price for crude oil, product margins in the refinery business increased for every product compared to Q3/2016. For the aromatics business, the product margin for paraxylene decreased compared to the same period in 2016. The margin for benzene was higher than Q3/2016 due to an increased demand for downstream products such as styrene products, a trend that continues to develop. For PTTGC's olefin and derivatives business, the price of polyethylene decreased slightly compared to the same period in 2016. The price of monoethylene glycol (MEG) products increased 29% compared to Q3/2016 and increased 4% compared to Q2/2017.

For its operating performance for the first nine months of 2017, PTTGC attributes 2,010 million baht in profit to the implementation of Project MAX, a development program to improve the company's organizational efficiency, which started at the end of 2016. PTTGC also recognized increased profit sharing from its investments in associated businesses and joint ventures following the transfer of shares from PTT PLC for six companies in industry sectors including petrochemicals, propylene, biochemicals, and related services, which was completed on July 3, 2017. PTTGC had an increased profit from investments of 1,518 million baht plus profits from currency transactions. Combined, the company's net profit for the first three quarters of 2017 was 29,740 million baht, an 88% increase compared to the same period in 2016.

Performance highlights for PTTGC's business groups include:

  • The refinery's crude distillation unit (CDU) operated at a 103% capacity utilization rate;
  • The aromatics plant operated at an average 82% capacity of BTX (Benzene, Toluene, Xylenes) utilization;
  • The olefin plant operated at 96% capacity;
  • Polyethylene production had a 113% capacity utilization rate;
  • PTTGC's adjusted EBITDA for Q3/2017 totaled 14,802 million baht, an increase of 25% over Q3/2016 and 14% over Q2/2017, with a net profit of 9,955 million baht for Q3/2017, representing a 60% increase compared to Q3/2016 and a 51% increase compared to Q2/2017.
  • PTTGC's net profit for Q3/2017 was 9,955 million baht, an increase of 60% over Q3/2016.
Updates on PTTGC's investment projects:

1) Map Ta Phut Retrofit Project

  • This project involves improving the efficiency and competitive advantage of PTTGC's plants in Map Ta Phut to enter the new S-Curve industries in response to the Thai government's policy of moving towards the Thailand 4.0 Industrial Initiative.
  • Construction of a naphtha cracker plant with a production capacity for ethylene of 500,000 tons/year and propylene of 250,000 tons/year.
  • Commercial production is expected to start in 2018.
  • The project is currently under a review process for an investment decision, which is expected to be completed by the end of 2017.
2) Propylene Oxide (PO) /Polyols Project: A fully-integrated Investment in polyurethane (PU)
  • The PO and Polyols and PU System Projects are an integrated investment in the category of performance materials & chemicals and the performance chemical group of the company's polyurethane business. This means the PO and Polyols & PU System Projects can be considered as a fully-integrated investment in polyurethane.
  • There is increasingly high demand for polyurethane in the market in line with global economic growth, especially in industry sectors such as automotive, construction, electronics, and electrical appliances. PTTGC has formed a partnership with business partners from Japan to establish subsidiaries and joint venture companies to operate the polyurethane business.
  • Production capacity for PO will be 200,000 tons/year and Polyols will be 130,000 tons/year. The project value is USD 888 million.
  • Construction starts in 2017 and commercial production is expected to start in 2020.
3) Metallocene Linear Low-density Polyethylene (mLLDPE) Project
  • Production capacity will be 400,000 tons/year, with commercial production expected to start in Q1/2018.
  • Project value is USD 288 million.
4) US Petrochemical Complex Project
  • PTTGC America LLC and JobsOhio, the state's investment promotion agency, signed a Memorandum of Understanding (MOU) to study, plan, and conduct a community infrastructure development plan to enhance the well-being and quality of life for communities in the area surrounding a planned petrochemical complex in Belmont County, Ohio, United States.
  • This cooperative project will start after PTTGC commences operations of the petrochemical complex, which is currently under the investment consideration process.
5) Market expansion in CLMV countries
  • PTTGC arranged business matching between its Thai plastic industry clients and Myanmar traders at PROPAK Myanmar 2017, which took place in Yangon from September 21-23, 2017. The company aimed to promote and provide Thai entrepreneurs in the plastics industry with opportunities to connect and establish relationships with entrepreneurs in Myanmar's plastics industry.
  • PROPAK Myanmar 2017 was a major event that attracted 149 companies in Myanmar's plastics industry which included business matching with 61 Myanmar companies interested in jointly doing business. This reflects a positive trend towards the plastics industry in Myanmar that is expected to grow and continuously expand.
  • PTTGC signed a MOU and a Shareholders' Agreement (SHA) with customers in Myanmar's plastics industry as part of its investments in the country:
  • A MOU with A.K. Pack And Machinery Co., Ltd. to develop the plastic packaging industry in Myanmar.
  • A SHA with TPBI International Company Limited and Myanmar Star Group to establish a joint venture business in Myanmar, investing in a plastic forming plant for production and conducting sales in the country.
2018 Plan
  • Establish a service company to operate a polymer business in Yangon, Myanmar.
  • Establish a sales office to handle the distribution, sales, and logistics for a polymer business in Ho Chi Minh City, Vietnam.
6) Customer Solutions Center (CSC)
PTTGC set up a Customer Solutions Center (CSC) to meet the needs of customer groups in the plastic industry. The center will encourage, support and act as an intermediary for customer groups (from start-ups to large companies) to pursue business opportunities in the plastics industry, helping them grow and compete. PTTGC recently signed the MOU described below:
  • PTTGC signed a MOU for a research and development partnership with the Faculty of Medicine, Siriraj Hospital, Mahidol University, to create medical device innovations to enhance the development of plastic medical equipment. This coincides with assistance and support for the development of innovative medical devices and equipment to enhance the well-being of people.
  • PTTGC signed a MOU with Thai Union Group PCL (TU) for a research & development partnership for biodegradable plastic packaging to be used for both petroleum-based and bio-based packaging in Thai Union's products.
PTTGC delivers high-quality petrochemical and chemical products to a wide range of customers. It operates within eight areas of business, which are the Group Performance Center - Refinery and Shared Facilities; Group Performance Center - Aromatics; Group Performance Center -

Olefins; Polymers Business Unit; EO-Based Performance Business Unit; Green Chemicals Business Unit; Performance Materials & Chemicals Business Unit; and Phenol Business Unit. PTTGC is Thailand's largest integrated petrochemical and refining business and a leading corporation in the Asia-Pacific region, both in size and product variety.

PTT Global Chemical pcl published this content on 15 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 November 2017 03:09:01 UTC.

Original documenthttp://www.pttgcgroup.com/en/updates/press-release/692/pttgc-announces-net-profit-of-almost-10-billion-baht-for-3rd-quarter-of-2017-results-show-9-month-net-profit-for-2017-of-2974-billion-baht-the-highest-in-6-years

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