PTT Group Denies Merger Rumours Amid Operational Improvements
PTT Group confirms plans to enhance operational efficiency across its subsidiaries without merging them.
PTT Group has officially dismissed speculation regarding the merger of its three subsidiaries—PTT Global Chemical Plc, IRPC Plc, and Thai Oil Plc.
Instead, the company has emphasized the need for these entities to enhance their operational efficiencies in a challenging market environment characterized by an oversupply of petrochemical products.
Kongkrapan Intarajang, the chief executive and president of PTT, reiterated that PTT will remain the majority shareholder in the subsidiaries and outlined their intent to seek new partners who may invest in these companies as part of a broader restructuring strategy.
However, details of any forthcoming partnerships were not disclosed.
Each subsidiary is expected to pursue its own business plans and revenue targets independently.
Given the current landscape of the petrochemical market, where an increase in exports from the Middle East and China has led to heightened competition, Mr. Kongkrapan stressed the importance of strategic operations for both PTT Global Chemical and IRPC.
He noted that the global supply of petrochemical products remains excessive, a situation exacerbated by ongoing trade tensions between the United States and China, which have prompted increased exports to Southeast Asia.
Among the products affected, paraxylene, a key feedstock for textiles, is projected to face a surplus in supply, while the pricing for olefins, another crucial petrochemical feedstock used to manufacture a variety of plastic products, is expected to see a slight increase.
In terms of investment, PTT has earmarked a total of 55 billion baht for its operations through 2029, with 25 billion baht allocated for 2025. The majority of this investment is directed towards enhancing the gas business.
Additionally, as part of its operational strategy, PTT aims to optimize its purchasing of raw materials and the distribution of its finished products, targeting a cost reduction of 3.3 billion baht for the current year.
The company is also planning to implement digital technologies to facilitate further savings, estimating a reduction of 2 billion baht annually by 2026.
Financially, PTT has set an ambitious goal to increase its earnings before interest, taxes, depreciation, and amortization (EBITDA) by 30 billion baht by 2027, starting from a base of 396 billion baht in 2024. The company reported revenues exceeding 3 trillion baht last year, a decline of 1.7% from the previous year, attributed to reduced international product prices despite an uptick in sales of refined products and liquefied natural gas.
Net profit for the same period was recorded at 90 billion baht, a decrease of 19.6%.
Instead, the company has emphasized the need for these entities to enhance their operational efficiencies in a challenging market environment characterized by an oversupply of petrochemical products.
Kongkrapan Intarajang, the chief executive and president of PTT, reiterated that PTT will remain the majority shareholder in the subsidiaries and outlined their intent to seek new partners who may invest in these companies as part of a broader restructuring strategy.
However, details of any forthcoming partnerships were not disclosed.
Each subsidiary is expected to pursue its own business plans and revenue targets independently.
Given the current landscape of the petrochemical market, where an increase in exports from the Middle East and China has led to heightened competition, Mr. Kongkrapan stressed the importance of strategic operations for both PTT Global Chemical and IRPC.
He noted that the global supply of petrochemical products remains excessive, a situation exacerbated by ongoing trade tensions between the United States and China, which have prompted increased exports to Southeast Asia.
Among the products affected, paraxylene, a key feedstock for textiles, is projected to face a surplus in supply, while the pricing for olefins, another crucial petrochemical feedstock used to manufacture a variety of plastic products, is expected to see a slight increase.
In terms of investment, PTT has earmarked a total of 55 billion baht for its operations through 2029, with 25 billion baht allocated for 2025. The majority of this investment is directed towards enhancing the gas business.
Additionally, as part of its operational strategy, PTT aims to optimize its purchasing of raw materials and the distribution of its finished products, targeting a cost reduction of 3.3 billion baht for the current year.
The company is also planning to implement digital technologies to facilitate further savings, estimating a reduction of 2 billion baht annually by 2026.
Financially, PTT has set an ambitious goal to increase its earnings before interest, taxes, depreciation, and amortization (EBITDA) by 30 billion baht by 2027, starting from a base of 396 billion baht in 2024. The company reported revenues exceeding 3 trillion baht last year, a decline of 1.7% from the previous year, attributed to reduced international product prices despite an uptick in sales of refined products and liquefied natural gas.
Net profit for the same period was recorded at 90 billion baht, a decrease of 19.6%.
