PTTGC posts staggering B7.1bn H1 loss, mulls new assets

09-Aug-2020 Intellasia | BangkokPost | 10:13 AM Print This Post

PTT Global Chemical (PTTGC), Thailand’s biggest petrochemical maker by capacity, suffered a loss of 7.1 billion baht in the first half of the year because of a slowdown in global fuel consumption caused by the pandemic.

The company made a net profit of 8.6 billion baht in the same period last year, but it failed to maintain momentum as prices of petroleum products fell during the coronavirus crisis.

Revenue in the first half dropped by 26 percent to 162 billion baht from 220 billion baht in the same period last year.

In the second quarter, the revenue fell by 35 percent to 69.2 billion baht from the same period last year. This was a 26 percent drop from 93 billion baht in revenue made in the first three months of 2020.

PTTGC executive vice-president Duangkamol Settanung said that while the company operated at a full utilisation rate for its main businesses, including olefins and polymer production, it could not offset the loss.

Weak global demand resulted in a sharp fall in spread prices between finished products and raw materials.

Declining demand for jet fuel caused the company to reduce its production and turn to making diesel instead.

Despite the loss, PTTGC will not alter its plans to acquire new assets related to specialty polymer production, as it wants to benefit from such purchases amid the ongoing economic recession.

PTTGC chief executive Kongkrapan Intarajang said the company expects many polymer businesses to reduce their asset value, making for tempting investment targets around the globe.

Many specialty polymer makers lack cash after the pandemic wiped out purchase orders.

“The new assets we plan to acquire will enhance our competitiveness and add value to our downstream petrochemical production because these new assets belong to high-priced polymer producers,” Kongkrapan said.

The company especially wants to add value to its commodity-grade polymers to make high-quality polymers used in many businesses.

Last month, PTTGC acquired 41.5 percent of Dynachisso Thai from Dynachem Hong Kong, a maker and distributor of compound engineering plastic resins.

The move is aligned with PTTGC’s Step Change strategy to improve the company’s competitiveness in Southeast Asia by focusing on providing value-added products to meet the various requirements of customers.

https://www.bangkokpost.com/business/1964743/pttgc-posts-staggering-b7-1bn-h1-loss-mulls-new-assets

 


Category: Thailand

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