PTT Global Chemical revealed its operating performance in the third quarter of 2013, which showed increasing profits even againt the impact of three major events which had placed constraints on its operations, the incidents included an oil spill due to pipeline leakage, production suspension due to lightning strike on the waste incidents of Heat Recovery Unit or WHRU of PTT's GSP#5 to shutdown, and suspension of the operation of LDPE plant. The company has adjusted its management structure forward planning for future growth, expanded its production capacity, created maximum value from integratingits production line, and enhancing the organization's position as an internationally ranked organization by global institutes.
Mr. Bowon Vongsinudom, CEO and President of PTT Global Chemical Public Company Limited said that the operating performance in Q3/2013 showed that the company had net profit at 9,610 million Baht, an increase of 130 percent from Q2/2013, this was in spite of the company's operation quarter being affected by three unexpected factors i.e., 1) Oil Spill Incident, 2) Plant Shutdowns, and 3) production suspension at LDPE plant for 2.5 months. The company resumed its operation one month ahead of schedule due to greater allocation of resources and efficientcy improvements to ensure that the LDPE plant was brought back online as quickly as possible.
Moreover, the company's position was elevated to international level as ranked by a number of global institutes. The company was: 1) Selected by Dow Jones Sustainability Indices (DJSI) of S&P Dow Jones to be one of the ten leading chemical companies recognized by worldwide investors, 2) Awarded the Best CDP (Carbon Disclosure Projects) in the category of management of climate change 3) Ranked no. 18 (previously no. 24) in the world by ICIS Top 100 Chemical Companies 2013, ICIS is a leading analysis institute for petrochemicals and chemicals businesses. The company is the only company among Asian countries ranked in Top 20.
The growth guidelines under the strategic plan includes business supplements for building profits from increased efficiency and maximizing value from integrated production within the current business base, and investment expansion into markets with potential growth. There are five key projects completed or under development to be completed by 2016 as follows:
- One million ton Olefin Cracker Debottlenecking Project scheduled to be completed by 2016
- TOCGC (Ethylene Oxide)Plant Improvement Project , scheduled to be completed by 2015
- PX (Aromatics) Expansion Project , scheduled to be completed by 2015
- C4 Value Enhancement (BV Project) - will enhance PTTGC's C4 value chain by upgrading to Butadiene and Butene-1, which will pave a way towards Butadiene derivatives scheduled to be completed by 2013
- Quench oil tower modification project to reduce naphtha to gas portion in I 4-1 mixed feed cracker the project has already been completed
The expansion of the business into oversea markets aims to expand the production base of High Volume Specialty (HVS), which has a high price and relies on a range of technologies and innovations, and make investments that will support the demand from a new generation of urban societies as well as to directly access customer groups in the countries where the company has made investments. Below is the summary of the progress of key investment projects:
- Joint investment project with PT Pertamina (Persoro), a national oil company of Indonesia, aiming to jointly study and invest in petrochemical plants, both in up-stream and down-stream industries, in Indonesia. This project has an investment value of 4-5 billion USD. The joint venture agreement is expected to be signed before the end of 2013.
- Joint investment project with Sinochem International of China, aiming to jointly study opportunities to cooperate an expand our respective petrochemical businesses through the establishment of a polyurethane and polycarbonate production plant in China, where the demand and the growth rates are high. This joint investment is expected to be concluded by the end of 2013.
Adjustment of management structure to support business expansion
The adjustment of the company's management structure was aimed at supervising the production and business operations to ensure suitability and consistency with the organization's strategic direction, and increase competitiveness as well as support sustainable growth, comprises of the following:
- Appointing Mr. Kun Patumraj, Vice President of Engineering and Maintenance as Chief Operating Officer - Up Stream Petrochemical Business (COU), to supervise the operations at the oil refinery plant and Up Stream Petrochemical Unit, consisting of Aromatics Plant Units and Olefins Plant Units.
- Appointing Mr. Athavudhi Hirunburana, Vice President of Polymer Business Unit as Chief Operation Officer - Down Stream Petrochemical Business (COD), to supervise the operations of the Polymer Business Unit, EO-Based Performance Business Unit, Green Chemicals Business Unit and High Volume Specialties Business Unit.