Three PTT Plc units report robust performance on healthy demand

01-Aug-11

Two chemical business arms of PTT Plc PTT Chemical Plc and IRPC Plc saw healthy profit growth of over 100% in Q2-2011, mainly driven by high demand in the region. Another unit, PTT Aromatics and Refining Plc (PTTAR), also reported a good Q2, reversing a loss incurred in Q2-2010, as per BangkokPost. PTT Chemical’s Q2 net profit rose 180% y-o-y to 6.43 bln baht, with sales rising 59% to 38.19 bln baht. H1 consolidated net profit rose to 12.6 bln from 5.46 bln a year earlier. Higher product prices and production volume drove gains in the period to June 30. PTTCH recorded higher output on commencement of commercial operations at four new plants between Dec 2010 and Feb 2011. IRPC’s net profit in Q2 rose 156% y-o-y to 2.981 bln baht though sales rose only 19% to 67.63 bln. H1 consolidated net profit rose to 6.48 bln baht from 3.56 bln in 2010. Higher prices for crude and related products contributed to the improved results. Average selling prices in the Q2-2011 were 25% higher than in Q2-2010. Feedstock costs rose 27% but power and utility costs dipped 16% after a combined heat and power plant opened on June 1. PTT Aromatics and Refining Plc (PTTAR)’s Q2 net profit rose to 2.14 bln baht, compared with a loss of 522.3 mln in Q2-2010, because of rising sales. H1 net profit was 7.12 bln, up from 1.82 bln a year earlier. Outlook continues to be optimistic as petrochemicals are currently peaking cycle that would persist into 2013. Prices are expected to rise in 2012 because demand in Asia is estimated at 5 mln tons, outstripping supply of 3 mln tons. This could result in a better Q3 for the industry because there will be no new supply coming into the region while demand is still growing.