Mr. Bowon Vongsinudom, Chief Executive Officer and President of PTT Global Chemical Public Company Limited (PTTGC) stated that, in 1Q2014, PTTGC recorded sales of 146,366 MB, EBITDA of 10,999 MB, and net profit of 6,296 MB, equal to net profit per share of 1.40 THB/share.
In 1Q2014, PTTGC recorded net profit of 6,296 MB, mainly due to adverse movements of external factors, such as the price of Paraxylene (PX), which had declined as a result of its new added capacity being higher than its incremental market demand, and internal factors, such as the shutdown of two main Olefins plants, which significantly reduced the production of Olefins . Nevertheless, these two plants have now resumed normal operation. In addition, the cycle of Polyethylene is now on the upswing. Therefore, the company expects that the performance of its Olefins business will be improved in the coming 2Q2014.
The company was determined to reinforce its potentials through the implementation of Operational Excellence Project (OpEx), which aims to decrease energy consumption and increase plant reliability y, leading to higher competitiveness. It also participated in the project to develop operation inspection tools and the assessment of OpEx maturity (OpEx Maturity Assessment) with other companies in PTT group. The company was actually registered as OEMs Element Assessor, a recognition given to the group of persons with superior knowledge, capability and professional specialization needed to drive PTT group to be a leading energy corporation and to seize its top-quartile performance. Moreover, PTTGC was given several awards from PTT Group Operational Excellence Award 2014, including Best Practice Sharing Award, Process Engineer Award, Zero Unplanned Shutdown Award, and 6 other awards.
For PTTGC's investment in foreign countries and expansion into downstream industries, at present, the company is in the process of finding JV partners who have necessary technologies and production specialization. At the same time, it has engaged in a forward market to build up customer base and enhance its market share in downstream products consistent with PTTGC's strategic objectives.
Progress on foreign investment projects
- Indonesia: PTTGC signed a joint-venture agreement with Pertamina incooperate in the marketing and trading, , and signed on the Head of Agreement (HOA) to co-invest in the world-class capacity cracker to produce downstream products in high demand in Indonesia, which currently imports a significant amount of PP, PE, MEG The project investment is approximately 4,000-5,000 M.USD.
- China: PTTGC signed an agreement with Sinochem to cooperate on Trading activities in China and study of possible of downstream Petrochemical. since China's market is still expected to have high growth potential.
- R&D Technology Center: Currently the companies in group that have jointly developed technologies and innovative products include Myriant, Emery and Vencorex
PTT Global Chemical PCL conducts its business in Petrochemical and Chemical Sector. The company has 7 main business lines. It currently has the production capacity of chemical and petrochemical products of 8.72 Million ton/year and the refinery capacity of crude oil and condensates of 280,000 Barrel/Day. In addition, it places high value on making investment to expand to specialties chemical products and green chemicals.