PTT expects to post Q3 loss from crude oil stock

Phichin Aphiwantanaporn, PTT vice president for investor relations, said the losses from its crude-oil stock occurred after the Dubai oil price dropped to $38 per barrel. Although the price rebounded to more than $50, that was still below PTT’s average cost of $61 per barrel in the second quarter.
“It’s quite difficult to forecast the [average] oil price for the whole year. The company foresees the average oil price in a broad range of $50-$60 per barrel for this year. Now, the price is within the company’s estimate at $54 per barrel,” Phichin said.
PTT’s first-half performance dropped by more than 20 per cent, but that was less than the decline in global oil prices by more than 50 per cent from the previous year, he said.
PTT usually suffers a loss from NGV sales. Last year, the company lost Bt20 billion on this product as the selling price was below the cost of production. Given the government plan to raise the NGV selling price to match the production cost, the company expects the Bt1 rise in the NGV price will reduce its loss this year.
“This year, we expect a loss of no more than Bt10 billion from NGV sales. In the first half, we recorded a loss of more than Bt5 billion. In 2016, we hope there will be no loss from this business,” Phichin said.