Thai PTT Pcl to record increase in sales but a dip in profits

02-Jul-07

PTT Pcl, Thailand's biggest energy company, despite beating last year's record sales and net income, could record a dip in profits. This is because PTT calculates its revenue in terms of U.S. dollars and reports earnings in baht. This year, the baht has recorded a 11% rise against the dollar, and this will trim profits. A gain in the baht will erode the value of its dollar-denominated sales of fuels and petrochemicals. PTT Exploration & Production Pcl, 66 percent-owned by PTT, is benefiting from higher-than-expected oil and energy prices this year. Margins at PTT's refineries and petrochemical units have improved from a year ago. The company's refining margins, averaged US$10 a barrel in April and May. PTT has expanded its oil refineries and petrochemical plants and is adding a third natural gas pipeline to its nationwide network to take advantage of stronger energy prices.