PTT turns to new investments as traditional business slows

PTT President and CEO Auttapol Rerkpiboon said on Thursday that the investment plan includes the setting up of a new gas separation plant, a gas pipeline, and a terminal for liquefied natural gas (LNG).

The company also planned to expand investment in EVs, set up a battery plant, provide EV rental service via a digital platform and expand EV charging stations by installing more than 400 chargers nationwide. 

The conglomerate is investing in the healthy nutrition business, setting up a plant-based food production plant, which is expected to start commercial production this year, and developing food supplements under the brand Innobic. 

Moreover, PTT aims to drive Thailand towards a low-carbon society with the reforestation of 2 million rai nationwide by 2030, of which 1 million rai will come from PTT and the other 1 million rai from its subsidiaries, he said.

Combined with the existing 1 million rai, the forest would absorb more than 4.15 million tons of carbon dioxide equivalent per year while also developing watershed areas, boosting biodiversity, and creating economic value for the community worth more than 1 million baht per year.

Auttapol said in the first half of this year, PTT and its subsidiaries generated revenue of 1.53 trillion baht. The first half net profit was 47.96 billion baht, down 4% year on year due to a decline in global petroleum and petrochemical prices, he added. The performance of petrochemical and refinery businesses has also dropped due to a decline in the gross refining margin from US$13.7 per barrel in the first half of 2022 to $6.3 per barrel in the first six months of 2023. The businesses also faced an increase in oil stock losses in the first half of this year, he said.

He added that the performance of PTT’s natural gas business has also dropped due to an increase in production costs and a decline in sales.