PTT Fourth-Quarter Net Misses Estimates as Global Slowdown Narrows Margins

PTT Pcl (PTT), Thailand’s biggest company, posted fourth-quarter profit that missed analyst estimates as the weakening global economy narrowed profit margins on sales of oil and gas.

Net income fell 26 percent to 16.6 billion baht ($539 million), or 5.83 baht a share, from 22.5 billion baht, or 7.90 baht, a year earlier, Bangkok-based PTT said in a regulatory filing. That compared with the 18.1 billion-baht average estimate of nine analysts surveyed by Bloomberg.

PTT will spend 720 billion baht over five years to develop gas pipelines and oil and gas fields in Thailand and overseas, Chief Executive Officer Pailin Chuchottaworn said today. The state-run company plans to supply 50 percent of the nation’s energy needs by 2020, up from about 18 percent, he said.

“This year we have to work very hard to be able to achieve performance at the same level as last year due to lots of volatility and high energy costs,” Chief Financial Officer Tevin Vongvanich said at a media briefing.

The company plans to raise oil and gas output to 900,000 barrels of oil equivalent per day by 2020.

PTT said sales jumped 21 percent to 595.4 billion baht in the quarter ended December on higher oil prices and sales volume. The share of income from its investments and affiliates dropped 56 percent to 3.34 billion baht, mainly due to narrower refining margins and lower petrochemical prices, it said.

Full-year profit rose 25 percent to a record 105.3 billion baht as revenue surged 28 percent to 2.43 trillion baht. PTT’s units and investments contributed 29.4 billion baht, a 57 percent increase from a year earlier.

Bond Sales

PTT will pay an interim dividend of 7 baht a share, bringing the total dividend for 2011 to 13 baht, Tevin said. The company will sell 15 billion baht of baht-denominated bonds in May and will raise a further 10 billion baht through loans or by selling debt in the third quarter, he said.

“Net income this year should beat last year’s level as oil prices remain high and the growing economy should boost energy demand,” Sutthichai Kumworachai, an analyst at Kim Eng Securities Thailand Pcl, said by phone today.

PTT Exploration & Production Pcl, Thailand’s biggest energy explorer, reported an unexpected 2.1 percent gain in full-year profit on Jan. 31 because of higher product prices. Net income was 44.7 billion baht, compared with the 43.7 billion-baht average estimate of 23 analysts surveyed by Bloomberg.

To contact the reporters on this story: Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net; Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net

To contact the editor responsible for this story: Tony Jordan at tjordan3@bloomberg.net

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