PTT to postpone overseas debentures, investments
PTT will put off a plan to issue debentures overseas as well as plans to invest in overseas upstream petroleum business this year because of concerns on the sluggish global economy, said chief financial officer Surong Bulakul.
He noted that Europe’s economy had yet to recover while China’s was cooling off.
He declined to specify which investment plans would be postponed, as they require the PTT board’s approval first. But he added that most involved upstream petroleum business overseas.
When PTT will launch debentures in overseas markets depends on demand, he added. Currently the oil and gas company still has sufficient cash liquidity, refinancing Bt60 billion every year.
One of the key investment plans for upstream petroleum business includes the joint-venture establishment of a refinery and petrochemical complex in Vietnam, which has already received the nod from Hanoi. The refinery will have production capacity of at least 600,000 barrels per day, while the complex will also have olefin-production capacity of at least a million tonnes per day.
Surong said China’s economic slowdown had affected PTT’s petrochemical business as the company had exported huge amounts of plastic pellets to that market.
The political unrest in Egypt does not affect PTT’s energy business, he added.
He is also concerned about the rapid flows of capital in and out of Thailand, which has affected the foreign exchange. However, he said Thailand still had strong economic fundamentals and still attracted foreign investment.
NEW BOARD CHAIRMAN
In a separate matter, PTT’s board of directors yesterday approved the appointment of Parnpree Bahiddha-nukara, a veteran member of the Pheu Thai Party, as its new chairman, replacing Vichet Kasemthongsri, who resigned last month to become natural resources and environment minister. In 2005, Parnpree was appointed a Thai Trade Representative in the Thaksin Shinawatra administration. From 2008-2010, he was a deputy leader of the Pheu Thai Party.
Parnpree, 56, graduated from Chulalongkorn University with a law degree before earning a master’s in public administration from the University of Southern California and a doctorate in public management from Claremont Graduate University, also in California.
PTT’s share price yesterday closed at Bt348, up 1.75 per cent.
