45
Investors Presentation NDR in Singapore with CIMB October 7-9, 2014
Investors Presentation
NDR in Singapore with CIMB October 7-9, 2014
Disclaimer
This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. PTTGC has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and PTTGC does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.
2
Agenda
3
PTTGC’s Business Overview
Strategy and Execution
Market Outlook and Conclusion
Appendix
Financial Highlights
Agenda
4
PTTGC’s Business Overview
Strategy and Execution
Appendix
Financial Highlights
Market Outlook and Conclusion
4,509 mil shares
Overview of PTTGC
5
PTT Group’s Chemical Flagship Thailand’s largest ethane-base cracker with integrated aromatics and refining business Highly competitive cost structure with pricing arrangement for gas feedstock based
upon equitable return on investment for both PTT and PTTGC Fully integrated petrochemical and refinery operations with diversified product
portfolio covering full hydrocarbon chain Committed to operational excellence targeting best in class/ first quartile business
efficiency Ranked in Dow Jones Sustainability Indices’ Chemicals Sector for 2nd Consecutive
Year
PTTGC at a Glance
Strong footprint in fast growing regions with 6 operating countries
Shareholding Structure
Historical Dividend Payment
Dividend Policy >=30% Foreign Limit <=37%
• Incorporated on October 19, 2011 from the amalgamation of PTTAR and PTTCH
• 2013 Sales : $17.9 bn; EBITDA: $1.8 bn
• Asset size: $13.7 bn (as of Dec 31, 13)
• Number of employees: 3,660 persons
Our Business Structure 7 Business Units
6
LPG Light Naphtha Reformate Jet A1 Diesel Fuel Oil
Benzene Toluene Paraxylene Orthoxylene Mixed Xylenes Cyclohexane
Ethylene Propylene Mixed C4 Pyrolysis
Gasoline Butadiene Butene-1
HDPE LLDPE LDPE Polystyrene
Ethylene Oxide ( Ethylene Glycol Ethanolamines Ethoxylate
Methyl Ester Fatty Acid Fatty Alcohol Grycerin Specialty
Oleochemicals Bioplastics
Phenol Bisphenol A Toluene
Dilsocyanate
Hexamethylene Diisocynate and Derivatives
280 KBD (1) 2,259 KTA 2,988 KTA 1,590 KTA 495 KTA 863 KTA 556 KTA
Capacity & Key Products
Aromatics Olefins Polymers EO-Based Performance
Green Chemicals
High Volume Specialties Refinery
Thailand’s Largest Petrochemical Player
8.75 (Million Tons per Annum)
Petrochemical Capacity 280 (Thousand Barrels per Day)
Petroleum Distillation Capacity (1)
(1) Refinery = 145 KBD, Condensate Splitter Units = 135 KBD
Aromatics Olefins Refinery
1 2 7 3 4 5 6
Domestic / Export Volume Portion
Flexible Feedstock and Secured Product Offtake
Flexible Feedstock and By-Product Enhancement
PTTGC's refinery is one of the most complex refineries in Thailand, with Nelson Index of 10.17 and refining capacity accounting for 13% of country’s total capacity
Value enhancement from by-product exchange among Olefins, Aromatics and Refinery units highlights operational integration and efficiency:
-CR from Aromatics units sent to Refinery to produce middle distillates
-Pygas from Olefins unit sent to Aromatics for BTX -Offgas from Refinery sent to Cracker for Olefins products
Feedstock Supply Product Marketing
Refinery
Aromatics
Olefins & Derivatives
Others
Condensate
Crude Oil
Others
Ethane, Propane, LPG
C5-C9
C10-C25
C2-C4
66%
(1)
46%
54%
Feedstock Supply Commercial Agreements Product Marketing Commercial Agreements
Customers
Others
70%
30%
(1) PTT owns 50%, PTTGC and IRPC each owns 25% in PTTPM
7
Domestic 70% Import 30%
Others 34%
Captive Use EO Based/
Phenol
Polymers 79%
21%
Domestic 70% Domestic
60% Domestic 40%
Export 30% Export
40% Export 60%
Refinery Aromatics Polymers
Highly Competitive Cost Structure & Performance mainly driven by Olefins and Derivatives
8
94
244
1019 1030 1039 1107
1177 1199 1228
0
200
400
600
800
1000
1200
1400
MDEEthane
NAMEthane
WEPNaphtha
MDENaphtha
NAMNaphtha
MDELPG
NEANaphtha
SEANaphtha
NEA LPG
2013 Global Ethylene Cash Cost by Region USD/Ton
Source: IHS (formerly CMAI) average 2013. PTTGC cash cost takes into account the effect of the renewal of gas price agreement Note: MDE = Middle East, NAM = North America, NEA = Northeast Asia, SEA = Southeast Asia, WEP = Western Europe. MDE cash costs are average values of Iran and Saudi Arabia.
48%
20%
21%
5%
5% 1%
Typical Adj. EBITDA Breakdown
16%
16%
56%
3%
3% 5%
Typical Revenue Breakdown
% Adj. EBITDA Margin
s
s
Natural Gas
Crude Palm Oil
Crude
Condensate
Cracker
Aromatics Plants
Refinery
Ethylene
HDPE
LLDPE
LDPE
MEG
Propylene
Oleochemicals
Paraxylene
Benzene
PTAPET Fiber / Resin
EO
Ethanolamine
Ethoxylate
Cyclohexane
CumenePhenol
Acetone
EB / SM
PS
BPA
Methyl Ester( B - 100 )
PC
Caprolactam Nylon 6
Fatty Alcohol
MMA PMMA
Epoxy Resins
ABS
SBR
PP
PTT Phenol
Petroleum Products
- LPG- Reformate- Light Naptha- Jet Fuel- Diesel- Fuel Oil
Reformate , Heavy
Naphtha
Pygas
Condensate Residue ,
Hydrogen
Light Naphtha
C 3 ,C 4
OffGas Mixed C 4 Butadiene
PO
PUTDI / HDI
Toluene
Polyols
Orthoxylene
Cracker Bottom ,
Hydrogen
PA Plasticizer
REFINERY & SHARED FACILITIES
AROMATICS OLEFINS POLYMERS EO-BASED
PERFORMANCE GREEN CHEMICALS
HIGH VOLUME SPECIALTIES
Feedstock Upstream Intermediates Downstream
Proximity to Suppliers and Customers
Exchange Stream Products By-Products
Fully Integrated Petrochemical and Refinery Operations
with Diversified Product Portfolio
9
1st Screen for Further Feasibility Study PTTGC does not currently produce these products
Not qualify for 1st Screen
PLA
Succinic Acid Succinic Acid Plant
PLA Plant Agricultural
Products
PTA
PA
EB/SM
Nylon 6
HDI
TDI
Nylon 6,6
PU
Polyester Fiber/ PET Resin
Plasticizer
Nylon 6 Caprolactam
Epoxy Resin
System House
Adipic Acid Phenol
HDMA
Oleochemicals
Experienced Management with Strong Track Record and Organization Structure to support Growth
PTTGC Board of Directors
VP – Internal Audit
EVP – Polymers Business
Unit
EVP – EO Based
Performance Business
Unit
EVP – Marketing, Commercial and
Supply
EVP – Finance and Accounting
EVP – Corporate Strategy
EVP – Strategic Execution and
Excellence
EVP – Corporate Affairs
EVP – Organizational Effectiveness
EVP – Project Executive Director
Head – Science and Innovation
EVP – GPC Olefins
EVP – GPC Refinery
and Shared Facilities
EVP – GPC Aromatics
EVP – Engineering
and Maintenance
SVP – Quality, Safety,
Occupational Health and
Environment
Audit Committee CG Committee Risk Management
Committee Nomination and
Remuneration Committee
President and CEO
COD – Down Stream Petrochemical Business COU – Up Stream Petrochemical Business
Mr. Supattanapong Punmeechaow*
Mr. Prasert Bunsumpun Chairman
Mr. Patiparn Sukorndhaman
EVP – Green
Chemicals Business
Unit
SVP - High Volume Specialties Business
Unit
10
EVP – International
Business Operation
* Effective October 1, 2014
Agenda
11
PTTGC’s Business Overview
Strategy and Execution
Appendix
Financial Highlights
Market Outlook and Conclusion
Strategic Direction
12
GREEN
CORE UPLIFT PROJECTS
1-STEP ADJACENCIES
Marketing Excellence
Debottlenecking
Operational Excellence
Synergy Excellence
NEW GEOGRAPHIES NEW PRODUCTS
ASEAN: Pertamina
CHINA: Sinochem
System House
Compounding
PC, PU, Nylon 6-6
Olechemical
PLA
Succinic Acid
PLA/PBS Compound
EXCELLENCE
EXECUTION
EBITDA Uplift
15-30% (2012-2017)
1st Quartile
Performance
ROIC > 14%
Listed in Globally
Sustainability Index
Target
* Debottleneck EBITDA uplift includes 1Q/14 BV project starts up 3Q/15 TOCGC Plant Improvement Project 4Q/15 PX Expansion starts up Not Including PTTPE Cracker Debottlenecking and LLDPE Expansion
Core Uplift Projects Excellence Programs Update : 2Q/14 EBITDA UPLIFT
(MUSD)
Excellence Programs (MUSD)
2014 Target
6M/14 Actual
Est. 2014
Synergy Excellence
83 16.8 58
-Heavy Gas (Offgas)
-Pure H2 via PSA
-C3/C4 Stream -3 Streams (Heavy Gasoline, LCB, CB) -Heavy Aromatics
Marketing Excellence
80 47.2 80 -Customer Portfolio Management
-Product Development
-Pricing Excellence
Operational Excellence
31.0 15.9 36 -Total 47 projects in 2014
-34 Energy Saving Projects
-7 Plant Reliability Projects
-6 Cost Reduction/Optimization Projects
Total 194 79.9 174
Core Uplift 1-Step Adjacencies Green Business
Excellence Programs 2014 Target
6M/14 Actual
Est.
(MUSD) 2014
Operational Excellence
31 15.9 36 -Total 47 projects in 2014
-34 Energy Saving Projects
-7 Plant Reliability Projects
-6 Cost Reduction/Optimization Projects
Marketing Excellence
80 47.2 80 -Customer Portfolio Management
-Product Development
-Pricing Excellence
Synergy Excellence
83 16.8 58
-Heavy Gas (Offgas)
-Pure H2 via PSA
-C3/C4 Stream
-3 Streams (Heavy Gasoline, LCB, CB)
-Heavy Aromatics
Total 194 79.9 174
13
Target COD: 2Q/14
Target COD: 4Q/14
Construction Progress at 99% But partially start up
Construction Progress at 84%
Phenol 2 Project
TOCGC Plant Improvement Project
Debottlenecking & Expansion
PTTPE Cracker Debottlenecking
PX Expansion
LLDPE Expansion
2013 2015 - 2020 2014 Synergy
Pure H2 via New PSA
Off Gas upgrading at Olefins
Target COD: 3Q/15
Target COD: 4Q/15
Target COD: 3Q/15
BEP
Target : 2016 BEP
Target : 2017
Construction Progress at 43%
Construction Progress at 38%
Construction Progress at 73%
BOD approved Project
BOD approved Project
BOD approve EPC BOD approve EPC
Construction
Construction
Seek for additional and opportunities Synergy Benefits
Note: Progress as of June 2014
Core Uplift Projects Execution of Core Uplift Projects According to Target
14
Increase Capacity
CAPEX (MUSD)
Expected EBITDA Uplift
(MUSD)
EOE +90 KTA
PX +115 KTA BZ + 35 KTA OX + 20 KTA
Phenol +250 KTA Acetone +155 KTA
12% Olefins Increase
New LLDPE +300 KTA
94.2
128.8
348
285
272
Integrated IRR
17-20%
16
34
IRR 17%
BOD approved EPC + Construction
BOD approved EPC + Construction
BOD approved EPC + Construction
Completed Butadiene +75 KTA Butiene-1 +25 KTA 262 58 BV Project Construction
Slight delay to Sep ‘14 from the delay delivery of re-specification tail gas compressor
Core Uplift 1-Step Adjacencies Green Business
1-Step Adjacencies : New Geographies Capturing Asian Demand : ASEAN & CHINA
15
Core Uplift 1-Step Adjacencies Green Business
Pertamina is Indonesia’s largest corporation, active in all segments of the energy value chain To capture strong domestic demand in Indonesia JV Marketing & Trading JV Manufacturing
Sinochem Corporation is a Chinese conglomerate primarily engaged in the production and trading of chemicals and fertilizer and exploration and production of oil. To secure access to China downstream market Signed MoU to jointly explore potential collaboration e.g., PU and PC chains
and Bio-based chemicals Strengthen sales & market in China
ASEAN
CHINA
New Geographies New Products
1-Step Adjacencies : New Geographies JV with Pertamina
16
Signed HOA JV Manufacturing
2013 2015 - 2020 2014
COD New Cracker + Downstream Petrochemical
Target: 2020
Distribution of PTTGC’s products
in Indonesia
To Setup JV Company Site Location : Balongan
Signed JV Marketing & Trading
Started up Marketing and Trading JV (ITT)
Competitive advantage over size and vicinity
World-scale integrated petrochemical complex covering upstream to downstream
Pave a way towards HVS product offering
Estimated investment of USD 4-5 bn
Expected COD 2018
HDPE, LDPE LLDPE, MEG
Customers
Supply Chain in Indonesia
PP
Product Source
Annual Volume Sales Target
Unit : KTA
Others Others
49% 51%
Marketing and Trading JV with Pertamina – Indo Thai Trading (ITT)
ITT Organization Pertamina PTTGC Pertamina, PTTGC or local new hire
ITT Office Grand Opening in Jakarta
New Geographies New Products
Core Uplift 1-Step Adjacencies Green Business
1-Step Adjacencies : New Geographies JV with Sinochem
17
2013 2015 - 2020 2014
Study for Backward
Integration
Cooperation on Trading activities in China
Study of possible of downstream Petrochemical
To secure access to China downstream market Signed MoU to jointly explore potential collaboration e.g., PU and PC chains and Bio-based chemicals Strengthen sales & market in China
New Geographies New Products
Core Uplift 1-Step Adjacencies Green Business
1-Step Adjacencies : New Products Execution > 5 Growth Projects in the next 5 years
18
PC Compounding
Commodity Compounding
1st Screen for Further Feasibility Study
Not qualify for 1st Screen
New Application Compounding
Using additives and modifiers to result with a particular color, texture,
strength, and etc.
Blending two or more types of
polymers together
Polymer Compounding
PU Chain System House HDI Derivatives
Bio-plastics Compounding
Ethylene
HDPE
LLDPE
LDPE
MEG
Propylene
Oleochemicals
Paraxylene
Benzene
PTA
Polyester Fiber
EO
Ethanolamine
Ethoxylate
Cyclohexane
Cumene
Phenol
Acetone
EB/SM
PS
BPA
Methyl Ester(B-100)
PC
Caprolactam Nylon 6
Fatty Alcohol
MMA PMMA
Epoxy Resins
ABS
SBR
PET Resin
PTT Phenol
- LPG- Reformate- Light Naptha- Jet Fuel- Diesel- Fuel Oil
Toluene
PO
Mixed C4 Butadiene
Polyols
PP
SystemHouse
HDI
TDI
PU
HDMA
Orthoxylene PA
Plasticizer
PLA Plant PLA
Succinic Acid Plant Succinic Acid
Petroleum Products
Nylon 6,6
Adipic AcidPhenol
New Geographies New Products
Core Uplift 1-Step Adjacencies Green Business
1-Step Adjacencies : New Products PU Chain Strategic Move
19
By Applications
By Region
Market
Year 2013: >13.5 Mil.Tons
Asia Pacific has the largest demand.
System House
Formulation & End-use
Foam (67%)
CASE (33%)
Broad and diverse end-use applications
Polyols -Polyether
Polyols
Propylene Oxide (PO)
Isocyanate
TDI
MDI
HDI
PU Building Blocks
Isocyanate is a key building block.
1
2
3
Transport 15%
Construction 25%
Furniture 30%
E&E 9%
Footwear 6%
Other 15%
NAFTA 17% LA
5%
EMEA 35%
APAC 43%
New Geographies New Products
Core Uplift 1-Step Adjacencies Green Business
PU
20
1-Step Adjacencies : New Products Vencorex Business Restructuring
New Geographies New Products
Acquiring stake in Vencorex
Vencorex Transformation
Deploy Vencorex Technology to build PU complex in Asia Step I
(2012)
Step II (2015-2017)
Step III (2018 onward)
• Platform for growth in PU Business
• Accessibility to: - Production & Technology - R&D Capability - Strong market presence in EU/US/MEAF
• TDI conversion to world-scale HDI monomer
- Restructuring Provision at 51% of 1,142 MB • Step up investment in
Vencorex from 51% to 85% • New HDI derivatives plant in
Thailand - Investment EUR 40 million - Expected IRR > 15% • Global technology center
• Utilize Vencorex’s TDI/HDI technology
• JV/M&A with strategic partner to build PU complex
85% 15%
Core Uplift 1-Step Adjacencies Green Business
Green Business Biochemical to Support Future Growth
21
PTTGC holds 50% in NatureWorks. A manufacturer of polylactic acid (PLA) and lactides, plant-based biopolymers with world scale PLA capacity of 150,000 ton/year. To expand PLA sales and application To grow sales volume by approximately 10-15% p.a.
in the next 3 year To built second Plant in Southeast Asia
PTTGC holds 84.02% in Myriant Corporation. A world class biotechnology R&D center. Lactic Acid , Licensed to Purac, business partner in
Spain, and is producing at commercial scale. Succinic Acid, 14 KTA Semi-Commercial Plant in
operation at Lake Providence, Louisiana
PTTGC holds 50% in Emery. A manufacturer of high quality, natural-based chemicals. To strengthen cost competitive position of Oleo Basic
Chemical To expand portfolio into Specialties Oleo Chemical
Synergy and Collaboration
Potential Product Opportunities (1)
1. PTTGC does not currently produce these products.
Core Uplift 1-Step Adjacencies Green Business
Aspiration Continues to Strive for Strong Profitable Growth
~800-900
~620-650
Green
563
Actual
2012
Target
2017
Target
2022
Expected EBITDA Benefit
Uplift 15-30%
Phase 1 : Foundation for Growth Phase 2: The Growth Mode
Green
HVS
New Global Hub
Debottleneck
Synergy Project Excellence
Operational Excellence Marketing Excellence Capital Expenditure Excellence
We aim to grow ~5 percent p.a. in the next ten years
Sales in THB Bn Based on constant Dubai crude year 2012 at USD 109 per bbl
22
CAPEX to Support Growth Approved and Uncommitted CAPEX Plan for year 2013 - 2017
23
5 Years Investment CAPEX Approved CAPEX Plan 2014 -2018
$ 4.5 Bn
$ 2.5 Bn Cash Flow
From Operation
$ 2 Bn Debt
Financing
$1 Bn secured from USD Bond issued in Sep’12
Green 5%
64% 1-Step Adjacencies
31%
Core Uplift
193 246 247 256 234 234
175 59 35
325 410
103
3
19 49
46
95
15 25
26 25
32
4
738 790
463
357
249 260
545 544
216
101 15 25
2013A 2014 2015 2016 2017 2018
Green1-stepCore upliftPhenolAnnual MaintenanceTotalTotal Growth Project
Unit: USD mn
Agenda
24
PTTGC’s Business Overview
Strategy and Execution
Appendix
Financial Highlights
Market Outlook and Conclusion
Financial Highlights Performance Soften from Weak Aromatics Market and Vencorex Restructuring
25
2013 Impacted by 3 incidents : - Unplanned Shutdown of LDPE - Oil spill (1,059 MB) - PTT’s GSP#5 shutdown, lack of gas feedstock for
PTTGC
1H/14 Impacted by : - Unplanned Shutdown of an olefins plant I4-1 - Unstable gas feedstock from PTT - PX price going through bottom of the cycle - Restructuring provision of Vencorex (1,142MB)
(Unit: MB) FY2012 FY2013 1H/13 1H/14
Sale Revenue 562,811 549,189 253,195 298,767
EBITDA 57,168 58,362 27,885 21,474
EBITDA Margin (%) 10% 11% 11% 7%
Net Profit 34,001 33,277 16,247 12,381
EPS (THB/share) 7.54 7.38 3.60 2.75
Adj. EBITDA * 56,993 55,333 29,950 23,108
Adj. EBITDA Margin (%) 10% 10% 12% 8%
21%
2%
70%
3%
1% 3%
Adj. EBITDA 23,108 MB
47%
20%
22%
6% 5%
Revenue 298,767 MB
1H/14 Revenue and Adj. EBITDA Structure 1H/14 Adj. EBITDA Margin
Business Unit %
Refinery 3
Aromatics 1
Olefins 25
Green 4
HVS 2
PTTGC's Average 8
Strong Financial Position
26
Interest Rate Currencies
58 % Fixed 45 % THB
42 % Float 55 % USD & Others
Loan Type
• Cost of long term debts ~ 4.58% (Include
W/H Tax)
• Average loan life after refinancing - 5.31
Years
Treasury policy Net IBD to Equity ratio of ≤ 0.7x Net IBD to EBITDA ratio of ≤ 2.4x
THB 106 Bn
THB Bn
* After Refinance, including New THB Bond of 10,000 million THB
Maturity of Financial Debt* as at Jun. 30, 2014 Key Financial Ratios
1.30 1.34 1.41
0.31 0.28 0.30
0
0.3
0.6
0.9
1.2
1.5
31 Dec. 13 31 Mar. 14 30 Jun. 14
Net IBD/EBITDA NET IBD/Equity
14.44%
11.51% 12.51%
9.42% 7.97%
8.64%
5%
10%
15%
20%
31 Dec. 13 31 Mar. 14 30 Jun. 14
ROE ROA
Success in Issuing new unsubordinated, unsecured debentures of THB 10,000 Mn
• Interest at 4.50%, Tenor 7 years
• Purpose to support investment and for general purpose
• Maintaining customer base.
New Baht Bond
Agenda
27
PTTGC’s Business Overview
Strategy and Execution
Appendix
Financial Highlights
Market Outlook and Conclusion
2015 Market Outlook
28
• Crude: Expected demand growth despite additional non-OPEC supply growth along with a
resumption of Iranian and Libyan production and exports. The oil market needs less call on OPEC
which contributes to an increase in OPEC spare capacity.
• Aromatics: New PX capacity in 2014 and 2015 will still pressure PX price but will be balanced by
plant cut run. PX margin should average to the same level as 2014. Positive outlook for BZ as
additional demand- mostly from Cumene/Phenol will be higher than additional supply in year 2015
boosting higher operating rates and Benzene spread of around $360 - 380/ton.
• Polymer: HDPE price will remain at high level but be slightly softer in 2015 in comparison to 2014
as additional capacity outweighs additional demand by around 500 KTA. Also, HDPE price may be
pressured by low cost coal and China market dumping, however, technology is still a question.
• MEG: MEG price is expected to be flat in 2015 despite additional demand from China’s coal to MEG
which is still a doubt if the new plants will be able to operate at high level and the quality of MEG
they produce.
Conclusion Year of Excellence Execution
29
• Expect an uptrend of Petrochemical industry, especially for Olefins & Olefins Derivatives
• Expect better Plant Utilization Rate for the rest of the year, especially for Olefins and Olefins derivatives from increasing gas supply from PTT
• Focus on Excellence Execution
• Operational and Marketing Excellence
• Synergy Projects
• Debottlenecking/Expansion Projects • TOCGC Plant Improvement Project • PX Expansion • Phenol 2 • PTTPE Cracker Debottlenecking • LLDPE Expansion
• Vencorex Business Restructuring for growth and geographical expansion
• JV with Pertamina : Focus on Marketing & Trading activity of ITT, while studying for Manufacturing JV feasibility
• Strengthen cooperation between PTTGC and Sinochem
• Synergy & Collaboration in Downstream Products from Bio-based Feedstock
Agenda
30
PTTGC’s Business Overview
Strategy and Execution
Appendix
2Q/14 Performance by Business Unit
Market outlook Detail
Financial Highlights
Market Outlook and Conclusion
16.5 15.3 18.4
14.6 12.4
9.2 14.6 16.1
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
Refinery Performance Slight Decline of Mkt GRM
31
ULG
95
- D
B
JET
- D
B
Die
sel -
DB
FO
- D
B
Petroleum Product Spread (USD/BBL)
+10% YoY +10% QoQ
-7% YoY -16% QoQ
-5% YoY -10% QoQ
-190% YoY -25% QoQ
Gross Refinery Margin (USD/BBL)
Total Intake (KBD)
82% 102% 101% 63% 98% 103% 101% 103%
Sales Volume (KBD)
+63% YoY +5% QoQ
CDU U-Rate
+70% YoY +2% QoQ
Note: In 2Q/13, Refinery had Planned Turnaround of 38 days
17.8 15.6 20.3 15.3 17.0 17.3 17.0 14.3
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
18.2 16.9 19.6 16.8 17.3 17.7 17.8 16.0
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
(5.5) (9.6) (7.4)
(3.7)
(10.7) (10.5) (8.5) (10.7)
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
3.59 4.46 4.37 2.38
3.48 3.42 4.48 4.44
(1.51) (0.91) (2.45)
4.21
1.11
(0.69)
0.73 0.64
0.49 0.27
1.23
0.98
0.78 0.33 0.66
2.72
4.99 3.73
1.16
8.67
5.30 4.12
5.83
(10.00)
(8.00)
(6.00)
(4.00)
(2.00)
-
2.00
4.00
6.00
8.00
(3.00)
(1.00)
1.00
3.00
5.00
7.00
9.00
11.00
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
Market GRM Stock Gain/(Loss) Net NRV
Hedging Gain/(Loss) Accounting GRM
119.0 147.6 146.4
91.8 142.4 149.1 146.5 148.6
46.8 55.9 57.8
36.0
55.5 69.4 52.5 59.3
165.8
203.5 204.2
127.8
197.8 218.4
198.9 208.0
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
Crude Condenstate Residue & Others
8% 7% 9% 5% 9% 8% 5% 8% 14% 13% 15% 13% 15% 13% 14% 13%
52% 52% 51% 54% 52% 49% 52% 51%
11% 13% 11% 10% 12% 15% 13% 13%
15% 16% 14% 16% 12% 15% 16% 16%
147 187 183 111 176 196 185 188
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
Naphtha +Ref.Jet
Diesel
Fuel Oil
Aromatics Performance Soften PX hitting hard on Aromatic Business
Pri
ces
PX
FEC
P -
Co
nd
B
Z S
po
t -
Co
nd
Aromatics Products Prices and Spread (USD/Ton)
-38% YoY -14% QoQ
-11% YoY -3% QoQ
Products to Feed Margin (USD/Ton BTX)
BTX U-Rate and Sales Volume (KTons)
88% 90% 92% 84% 91% 93% 91% 89% BTX U-Rate
32
910 920 948 871
930 937 917 924
1,514
1,280
1,618
1,409 1,440 1,440
1,303 1,256 1,332
1,295 1,379
1,286 1,258 1,283
1,297
1,293
800
1000
1200
1400
1600
1800
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
Condensate Erawan PX FECP BZ Spot Korea
423 375 430 415 328 346 380 369
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
604
360
669 539 510 502
386 333
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
7% 7% 8% 5% 4% 3% 7% 6%
26% 26% 26% 26% 31% 30% 25% 28%
43% 43% 43% 42% 43% 43% 43% 43%
24% 24% 22% 26% 22% 24% 24% 23%
1,634 1,666 824 810 876 836 806 860
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
BZ Group
PX Group
Naphtha Group
Other By-Products
6% YoY 7% QoQ
359
125
394 325
260 222 165
86 (24.41)
16.52
(1.45)
(45.97)
84.10
26.94
(7.90)
40.44
(0.81)
335
142
393
278
344
249
157 127
(100)
-
100
200
300
400
(100)
-
100
200
300
400
500
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
Market P2F Stock Gain/(Loss) Net NRVHedging Gain/(Loss) Accounting P2F
Olefins and Derivatives Performance Strong HDPE Price
Pri
ces
MEG
AC
P –
0.6
5Eth
ylen
e H
DP
E -
Nap
hth
a
Olefins Derivatives Prices and Spread (USD/Ton)
-57% YoY -38% QoQ
+6% YoY +0% QoQ
Adjusted EBITDA Margin
U-Rate (%)
GAS : NAPHTHA Intake %
HDPE Price +9% YoY +1% QoQ
33
Sales Volume (KTon)
1,463 1,561 1,482 1,443 1,489 1,536 1,554 1,569 1,455 1,569 1,477 1,433 1,490 1,549 1,560 1,578
1,452
1,622
1,459 1,444 1,569
1,664 1,639 1,605
1,228 1,137
1,282 1,173 1,143
1,208 1,182 1,093
910 943
961 858 920 946 935 951 700
900
1,100
1,300
1,500
1,700
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
HDPE (FILM) SEA LLDPE CFR SEA LDPE CFR SE AsiaMEG ACP Naphtha MOPJ
553
619
521
585 568
590 620 618
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
363
198
375 351 284 281 245
152
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
29% 25%
30% 28% 26% 24% 24% 25%
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14HDPE (FILM) SEA 1,463 1,561 1,482 1,443 1,489 1,536 1,554 1,569 LLDPE CFR SEA 1,455 1,569 1,477 1,433 1,490 1,549 1,560 1,578 LDPE CFR SE Asia 1,452 1,622 1,459 1,444 1,569 1,664 1,639 1,605 MEG ACP 1,228 1,137 1,282 1,173 1,143 1,208 1,182 1,093 Naphtha MOPJ 910 943 961 858 920 946 935 951
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14 Olefins 419 302 200 218 147 190 134 168
HDPE 410 420 216 193 208 217 202 218 LLDPE 172 203 102 70 119 107 98 105 LDPE 146 164 75 71 25 47 72 92
Total PE 727 788 393 334 352 371 373 415 MEG 187 166 83 104 95 89 71 95
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14 Olefins 95% 84% 97% 93% 75% 93% 77% 91%
HDPE 103% 100% 109% 96% 106% 113% 93% 107%LLDPE 93% 105% 113% 72% 113% 114% 99% 112%LDPE 100% 104% 101% 99% 5% 101% 115% 93%
Total PE 99% 102% 109% 89% 88% 111% 99% 106% MEG 99% 82% 97% 100% 92% 86% 65% 99%
54% 57% 55% 54% 65% 53% 61% 54%
35% 31% 33% 36% 31% 35% 25% 35%
11% 12% 12% 10% 4% 12% 14% 11%
1,984 1,715 1,012 972 756 969 790 925
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
Ethane Other Gas NaphthaKton
Phenol and BPA Performance Improved U-rate and Margin
Pri
ces
BP
A-P
hen
ol
Ph
eno
l-B
Z
Phenol/ BPA Prices and Spread (USD/Ton) U-Rate and Sales Volume (KTons)
Phenol 126% 104% 126% 127% 124% 130% 78% 131%
BPA 90% 88% 64% 116% 116% 104% 70% 107%
U-Rate
34
Sales Volume (Kton)
1,332 1,295 1,379
1,286 1,258 1,283 1,297 1,293
1,463 1,440 1,523
1,402 1,352 1,387 1,424 1,456
1,799 1,645
1,880
1,719 1,630 1,605 1,638
1,653
800
1000
1200
1400
1600
1800
2000
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
Benzene Phenol BPA
130 145 145 116 95 104 126 164
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
48% 59%
40% 55% 65% 54% 60% 58%
52% 41%
60% 45% 35% 46% 40% 42%
139 114 63 76 69 69 48 66
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
Phenol
BPA
+41% YoY +29% QoQ
-38% YoY -8% QoQ 337
205
356 317 277 218 214 197
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14Phenol (CMP) 1,463 1,440 1,523 1,402 1,352 1,387 1,424 1,456 BPA (CMP) 1,799 1,645 1,880 1,719 1,630 1,605 1,638 1,653 Benzene 1,332 1,295 1,379 1,286 1,258 1,283 1,297 1,293
2% 6%
1% 4% 5% 4% 4%
7%
6M/13 6M/14 1Q/13 2Q/13 3Q/13 4Q/13 1Q/14 2Q/14
Adjusted EBITDA Margin
-13% YoY 38% QoQ
Income Statement Soften from Lower PX Spreads and Vencorex Restructuring
35
6M/13 6M/14 YoY MB % MB % MB %
1 Sales Revenue 253,195 100 298,767 100 45,572 18
2 Feedstock Cost (199,940) (79) (248,117) (83) 48,177 24 3 Product to Feed Margin 53,256 21 50,650 17 (2,606) (5) 4 Variable Cost (12,992) (5) (15,017) (5) 2,025 16 5 Fixed Cost (8,178) (3) (9,537) (3) 1,359 17
6 Stock Gain/(Loss) & NRV (2,065) (1) 605 0 2,670 129
7 Gain/(Loss) Commodity Hedging 567 0 605 0 38 7 8 Other Income 2,687 1 2,567 1 (120) (4) 9 SG&A (5,389) (2) (6,160) (2) 771 14
Extraordinary Item 0 0 0 0 0 0
10 Provision for Business Restructuring ** 0 0 (2,239) (1) (2,239) 100
11 EBITDA 27,885 11 21,474 7 (6,411) (23)
12 Depreciation & Amortization (8,140) (3) (8,617) (3) 477 6
13 EBIT 19,745 8 12,857 4 (6,888) (35)
14 Finance Cost (2,235) (1) (2,238) (1) 3 0
15 FX Gain/(Loss) (741) (0) 673 0 1,414 191
16 Shares of Profit/(Loss) from Investments (40) (0) 530 0 570 1,440
17 Income Tax Expense (711) (0) (972) (0) 261 37 18 Net Profit 16,019 6 10,850 4 (5,169) (32)
19 Profit/(loss) attributable to:
20 Owners of the Company 16,247 6 12,381 4 (3,866) (24)
21 Non-controlling interests (228) (0) (1,530) (1) (1,302) (572)
22 Adjusted EBITDA * 29,950 12 23,108 8 (6,842) (23)
Note: * Adjusted EBITDA = EBITDA – Stock Gain/(Loss) &NRV – Provision for Business Restructuring of Vencorex ** Vencorex business restructuring provision at 100% share *** Vencorex business restructuring provision portion of 49% for non-controlling interests or Baht 1,097 million
***
Income Statement Soften from Lower PX Spreads and Vencorex Restructuring
36
Note: * Adjusted EBITDA = EBITDA – Stock Gain/(Loss) &NRV – Provision for Business Restructuring of Vencorex ** Vencorex business restructuring provision at 100% share *** Vencorex business restructuring provision portion of 49% for non-controlling interests or Baht 1,097 million
2Q/13 1Q/14 2Q/14 YoY QoQ MB % MB % MB % MB % MB %
1 Sales Revenue 111,887 100 146,366 100 152,401 100 40,514 36 6,035 4
2 Feedstock Cost (87,594) (78) (121,151) (83) (126,966) (83) 39,372 45 5,815 5 3 Product to Feed Margin 24,293 22 25,215 17 25,435 17 1,142 5 220 1 4 Variable Cost (6,204) (6) (7,416) (5) (7,601) (5) 1,397 23 185 2 5 Fixed Cost (4,163) (4) (4,633) (3) (4,904) (3) 741 18 271 6
6 Stock Gain/(Loss) & NRV (1,422) (1) (575) 0 1,180 1 2,602 183 1,755 305
7 Gain/(Loss) Commodity Hedging 419 0 194 0 411 0 (8) (2) 217 112 8 Other Income 1,362 1 1,318 1 1,249 1 (113) (8) (69) (5) 9 SG&A (2,820) (3) (3,104) (2) (3,056) (2) 237 8 (48) (2)
Extraordinary Item
10 Provision for Business Restructuring ** (2,239) (1) (2,239) 100 (2,239) 100
11 EBITDA 11,466 10 10,999 8 10,475 7 (991) (9) (524) (5)
12 Depreciation & Amortization (4,187) (4) (4,202) (3) (4,415) (3) 228 5 213 5
13 EBIT 7,279 7 6,797 5 6,060 4 (1,219) (17) (737) (11) 14 Finance Cost (1,120) (1) (1,141) (1) (1,097) (1) (23) (2) (44) (4) 15 FX Gain/(Loss) (2,726) (2) 602 0 71 0 2,797 103 (531) (88)
16 Shares of Profit/(Loss) from Investments (22) (0) 240 0 290 0 312 1,423 50 21
17 Income Tax Expense 509 0 (373) 0 (599) (0) 1,108 218 226 61
18 Net Profit 3,919 4 6,126 4 4,725 3 806 21 (1,401) (23)
19 Profit/(loss) attributable to:
20 Owners of the Company 4,172 4 6,296 4 6,085 4 1,913 46 (211) (3)
21 Non-controlling interests (252) (0) (170) 0 (1,360) (1) (1,108) (440) (1,190) (700)
22 Adjusted EBITDA * 12,888 12 11,574 8 11,534 8 (1,354) (11) (40) (0)
***
2Q/14 Financial Highlights Margin soften from unstable gas flow and change in feed mix
37
2Q/14 Change in Olefins and Derivatives adj. EBITDA Unit: MB Revenue and Adjusted EBITDA Structure
EBITDA Margins
Adjusted EBITDA
Margin at 30% Adjusted
EBITDA Margin at
25%
% Adj. EBITDA Margin 2Q/13 1Q/14 2Q/14Business Unit :
Refinery 2 3 4Aromatics 12 3 -2Olefins and Derivative 28 24 25Green 3 4 4HVS -2 3 1
Average 12 8 8
Note: Adjusted EBITDA = EBITDA – Stock Gain/(Loss) &NRV – Provision for Business Restructuring of Vencorex
Agenda
38
PTTGC’s Business Overview
Strategy and Execution
Appendix
2Q/14 Performance by Business Unit
Market outlook Detail
Financial Highlights
Market Outlook and Conclusion
101.4 100.67
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 2015
Q1/1
3
Q2/1
3
Q3/1
3
Q4/1
3
Q1/1
4
Q2/1
4
Q3/1
4
Q4/1
4
2015
Crude Oil – Geopolitics and Gradual Economic Recovery Keep Oil Price High
• Global geopolitics: • Ukraine: Leading to sanction on Russia which may affect
global economy and Russia’s oil supply in future • Iraq: No impact to oil export so far (2.5 mbd in September)
• Impact after QE ends in October 2014 • Rising of Libyan oil output • China’s economy
• Manufacturing PMI reached 51.7 in July, highest in 2014
EIA Forecasts oil Demand Growth 1.04 MBD This Year from Economic Recovery
Supply from Non-OPEC Keeps Growing
Geopolitics Keep Oil Price at High Level Factors to be Watched in H2/14
Source: EIA, September 2014
2013 2014 2015
Non- OPEC
OPEC* • From increasing of shale oil,
U.S. will have total output for August estimated at 11.8 mbd
• By rising output, US import demand is decreasing 0.37 mbd comparing with last year
• Supply disruption from geopolitics is inevitable
0.07
108.2
100.8
106.3 106.8
104.5
106.1 101.5 105.7
103.0
UNIT: USD/BBL
54.08
36.02 35.77 35.86
55.91
57.16
Source: PRISM, September 2014
Average 2013 (A) 2014 (F) 2015 (F)
Dubai 105.5 102.8 103.0
39
UNIT: MBD
89.4
91.0
92.4
• Oil demand usually grows in Q3 and Q4 due to seasonality
Source: EIA, September 2014 *OPEC Supply includes crude and NGL
92.4 92.9
90.1
91.2 91.4
90.4
GDP Growth (%)
2013 (A)
2014 (F)
U.S. 1.9 1.7
Euro -0.4 1.1
China 7.7 7.4
World 3.2 3.4
Refinery – Margin Will Be Recovered in Q4 from Rising Demand and Refinery Turnaround
New Capacity Has Been Rationally Cancelled or Delayed U.S. Refiners Tend to Run Lower Rate in Q4/14
Refinery Maintenance in H2/14 Will Boost Margin Asian Demand for Middle Distillates to Pull Spread in Q4
40
Apr May Jun Jul Aug Sep Oct Nov Dec
UNIT: KBD
Source: JBC, August 2014
6,878 6,350
4,830
3,508
2,030
3,242
UNIT: USD/BBL
U.S. refiners take advantage of low-price domestic crudes to run high O/R for exporting to Europe, pressuring Asian refining margin.
In last three months, there are significant drops in additional refining capacity, mostly in China.
U.S. O/R will be reduced after end of gasoline season.
4,309
4,943
3,207
Heavy turnaround in Asia Pacific and North America during Oct – Nov.
-12
-8
-4
0
4
8
12
16
20
24
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 2015
Diesel
Gasoiline
Fuel Oil
Source: PRISM, Sep 2014
GRM 2013 (A) = $6.7/bbl GRM 2014 (F) = $5.9/bbl
UNIT: USD/BBL
16.72
11.79
-9.36
PTTGC has 30% hedging in H2/14
19.61
16.81 17.32 17.73 17.80 16.04
18.39
14.62
12.41
9.22
14.56 16.06
13.99
12.27
-7.31
-3.62
-10.66 -10.40 -8.46
-10.60 -10.35
17.40
13.10
-8.30
1379 1286 1258 1283 1297 1293
1351 1290 1275
1635
1443 1485 1432
1284 1259 1303 1246 1310
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 2015
PX-MOPJ BZ-MOPJ
• JX Nippon Oil announced running at 60-65% for Q3 but to increase in Q4
• TPPI remains offline with no plan to restart • Guandong Refinery to be shut down late Aug for two
months, impacting its 820-KTA PX plant • Zhenhai Refinery to be shut down in Sep for one month,
impacting its 620-KTA PX plant • Mizushima’s (370 KTA) and Idemitsu Kosan’s (270 KTA) PX
plants shutdown in Sep and Oct
Lower PX Capacity Loss in Q4
BZ to Help Support Aromatics Margin
Aromatics – Paraxylene to Be in Down Cycle Benzene to Be an Unsung Hero
Lower BZ Capacity Loss in Q4
Production Cutbacks Ease an Impact of New PX Capacity
41
Source: IHS
Source: IHS
USD/MT Source: PRISM, Sep 2014
674
417
585
428
565
337
486
338 350 363 307 341 402 387 375 366 365 360
1483 1443 1489 1536 1554 1569 1586
1515
1395
1265 1322
1427 1441 1447 1355 1367 1400
0
200
400
600
800
1,000
1,200
1,400
1,600
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 2015
HDPE-Ethylene Ethylene-MOPJ
HDPE Ethylene
Ethylene/PE – Well Balanced Demand/Supply and Seasonal Demand Support Margin
42
Ethylene and PE Margins Continue Strong
Ethylene Capacity Loss to Supports Prices China’s PE Demand Continued Growing, Resulting in Increasing Import in H1/14
0%
5%
10%
15%
20%
Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14Source : Argus Dewitt
• Seasonal demand for agricultural season and for manufacturing before New Year will support ethylene/PE prices
• Together with ethylene tight supply due to upcoming turnaround in Asia • Japan’s Tonen 515 KTA (Sep for 1 month) • Singapore’s Shell 800 KTA (Oct for 3 months)
• Operating rates of PE are higher than 82% throughout 2015 • Possible delay of ethane cracker projects in U.S. could extend
up-cycle period of ethylene/PE
Seasonal Demand, Tight Supply and Delayed U.S. Crackers Support Prices
USD/MT Source: PRISM, Sep 2014
Source: IHS
0
2
4
6
8
10
12
Tota
lD
em
and
Ch
ina
Pro
du
ctio
n
Imp
ort
Exp
ort
ME
NEA SE
A
NA
FTA
EU
2013 2014
+12%
+6%
+9%
22%
-3% 10% 33%
Sources : Global Trade Information Services, Chemease Production Data
+20%
28%
UNIT: MT
521 585 568 591 620 617
773 717 605
434 407 402 481 507 496 524 497 508
255 182 232
159 55 29 42 38
375
1,134
979 1,064 1,045
963 941 973 957
1,257
0
200
400
600
800
1,000
1,200
1,400
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 2015
MEG-(0.63 x Ethylene) MEG
MEG – A Series of T/A in H2
43
Expect to See Recovery in 2015
USD/MT
Demand Outpaces Capacity in 2014-15 A Series of Turnaround Will Tighten Market in H2
• Heavy turnaround in Saudi Arabia during H2/14 • Textile manufacturing peak season during Sep-Nov • Global operating rate sustains above 80% • China still needs to import 7.2 million tons during
2014-15 • Coal-based-MEG plants still run at low operating
rate as well as new capacity might be delayed
Positive Outlook for MEG
Source: PRISM, Sep 2014
Thousand MT
0
20
40
60
80
100
0.0
0.5
1.0
1.5
2.0
2011 2012 2013 2014 2015
Global Additional Capacity Global Additional Demand % ORMillion MT
0.30 0.42
1.58
1.25
1.45
373 325 287 329 358 287 509 395 358
271 222
178 99 103 112
226 217 212
1,880
1,719 1,630 1,605 1,638 1,653
1,883 1,742 1,713
1,523
1,402 1,352 1,387 1,424 1,456
1,582
1,438 1,407
1,133 1,105 1,091 1,181 1,171 1,095 1,126 1,092 1,101
0
250
500
750
1,000
1,250
1,500
1,750
2,000
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 2015
BPA Margin Phenol Margin BPA
Phenol Acetone
0
200
400
600
800
1,000
2013 2014 2015 2016 2017 2018
Phenol New Capacity BPA New Capacity
Phenol Additional Demand BPA Additional Demand
Turnaround in Q4 Should Help Support Margin Delays of New Supply Relieve Mkt Sentiment
Phenol/Acetone/BPA – Struggle for Survival
44
New Capacity Still Pressures Margin
Effective Capacity
0
20
40
60
80
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
PH BPA
UNIT: KTA
• Market sentiment is relieved by delays of new capacity from 2014 to 2015 • FCFC Ningbo’s new phenol plant (300 KTA) • Nan Ya Plastics’ new BPA plant (150 KTA) and • Changchun Plastics’ new BPA plant (135 KTA)
• Despite of heavy expansion, maintenance shutdowns and delayed commissioning still make market tightened • Changshu Changchun Chemical (300 KTA) to shut down in
Oct • Shanghai Sinopec Mitsui Chemicals (250 KTA) postpones
start-up in Aug for more than one month
Better Sentiment from Project Delays and Capacity Loss
USD/MT Source: PRISM
UNIT: KTA
45
For further information & enquiries, please contact our Investor Relations Team at [email protected]
Thank You
1 Thitipong Jurapornsiridee VP - Corporate Finance & IR [email protected] +662-265-8574
2 Puvadol Vasudhara IR Manager [email protected] +662-140-8712
3 Panugorn Puengpradit IR Analyst [email protected] +662-140-8714
4 Prang Chudasring IR Analyst [email protected] +662-265-8327
5 Supika Charudhanes IR Analyst [email protected] +662-265-8533
6 Chutima Jarikasem IR Coordinator [email protected] +662-140-8713
