PTT shareholders nod to Bt250-bn funding plan

Pailin Chuchottaworn, CEO and president of PTT, said that Bt150 billion would be for refinancing existing loans due for repayment in the period, and the rest for investment, which would be focused on natural-gas business and joint ventures.
PTT will also continue to explore new business opportunities in oil, electricity and coal, he said.
Chief financial officer Surong Bulakul said Bt368 billion would be spent under the five-year investment plan, with Bt100 billion being financed by loans and the rest by its cash flow.
The plan to borrow Bt250 billion will not, however, affect PTT’s debt-to-equity ratio of 0.4 times, given that part of the planned borrowing is for refinancing existing debt, he said.He added that the company would not seek any loans in the first half of the year, as it had no need to use investment capital during the period. It will consider borrowing between Bt40 billion and Bt60 billion during the second half.
It has yet to make a final decision on whether to seek funding via debenture issuance or loans from financial institutions, he said, adding that if the baht continued to rise, the company might consider raising its proportion of dollar-denominated borrowings.
PTT has total debt of Bt970 billion, of which 66 per cent is baht-denominated and the remainder dollar-denominated. The dollar-loan ratio last year was lower, at 20 per cent. The company has accumulated profit of Bt330 billion over the past 10 years, indicating its solid financial status, said the CFO.
The baht’s appreciation has reduced the cost of energy imports. PTT spends Bt100 billion every month on oil purchases, he said.
PTT board chairman Vichet Kasemthongsri said he had already handed down a policy to company executives that the new investment should focus on its main businesses.