PTT carries out stress test
Thailand's national oil company PTT has conducted a stress test to prepare itself for unexpected events, in light of uncertainties that may stem from violence in the Middle East and the eurozone debt problems.
Chief Financial Officer Tevin Vongvanich said yesterday that the company's revenue growth this year might not be as impressive as in 2011 when energy prices went up by roughly 20 per cent. Unlike last year, benefits from inventory may be nil, given greater volatility.
The stress test highlights different scenarios of oil prices which range from US$80 to $140 per barrel, which require different measures to counter risk factors. The ultimate goal is to keep the cost under control.
"We don't know exactly what the energy situation this year will be like. Our focus is on the operating cost and inventory. We have hedged half of our inventory," he said.
President and chief executive officer Pailin Chuchottaworn yesterday claimed that PTT is the first non-financial company which conducts the stress test. Such was first implemented in the second half of 2011 and it helped ensure the steady growth in the year.
"It's difficult to forecast the energy situation this year and PTT will not do so. All we can do is to prepare for all situations," he said.
