PTT has outlined the strategies to cope with low oil prices, which will include business consolidation as well as investment in value-added businesses.
Tevin Vongvanich, chief executive officer of PTT, said today that in this challenging period, the company would further increase efficiency of its key businesses and focus on cost cutting. Meanwhile, it will invest in downstream businesses which will increase risk management capability and add value to the company. Meanwhile, redundant businesses will be consolidated for greater competitiveness.
"We expect the (global) oil prices to average US$40 per barrel this year. The worst seems to be over," he said, adding that the strategies should sail the company through unexpected challenges.
PTT reported Bt2 trillion in net profit in 2015, a 22.2 per cent decrease from the previous year. The 47.3 per cent plunge in global oil prices boosted the impairment cost of Bt54.7 billion, compared to Bt28.6 billion in 2014.
Despite the poor financial result, the company insisted that it remained financially strong with cashflow of over Bt239 billion.