Higher sales and margins prop up Q1 profits of PTTAR and PTT Chemical

13-May-11

PTT Aromatics and Refinery Plc (PTTAR) and PTT Chemical Plc (PTTCH) have seen robust Q1 profits on higher sales and margins. PTTCH, Southeast Asia's largest olefins maker, posted a net profit of 6.18 billion baht, up 95% from the same period in a year earlier. Revenues rose 49% to 35.37 billion baht. The company has benefited from higher olefins production volume from the PTT Polyethylene Co (PTTPE) cracker, which started commercial operations last December. As well, it saw gains from high density polyethylene (HDPE) and ethanolamines (EA) production at Thai Ethanolamines Co (TEA) which started operations in January 2011, and the low-density polyethylene (LDPE) unit of PTTPE, which started commercial operations in February this year. Feedstock costs are reported to have risen 42% to 22.05 billion baht, due mainly to a rise in feedstock consumption of PTTPE, and for other products. PTTAR, Thailand’s largest integrated aromatics refinery, posted a quarterly net profit of 4.98 billion baht, up 111.9% year-on-year. An increase in product prices lifted total revenues 7% year-on-year to 68.75 billion baht, 81% from the local market and 19% from exports.