Wednesday, October 21, 2020

PTT to raise Bt44 billion through bonds for debt refinancing and augmenting liquidity

May 18. 2020
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By The Nation

Energy conglomerate PTT plans to issue corporate bonds worth Bt44 billion this year and next year, in order to refinance its debt and increase liquidity, PTT chief financial officer Pannalin Mahawongtikul said. 

PTT needs to raise funds for debt refinancing, increasing liquidity and raising working capital, she said 

Debentures worth Bt 27 billion will reach maturity over the next two years -- Bt1 billion this month, Bt1 billion more in July, Bt22 billion in September and about Bt15 billion more next year, she said.

Due to the Covid-19 fallout, some of PTT's debtors, like airlines and those in the gas industry, have delayed their debt payments, she said. However, the delay in payments by clients has not adversely affected PTT's cash flow, she reassured.

The company currently holds Bt50 billion cash despite its reported net loss of Bt1.6 billion in the first quarter. The losses stem from oil stock loss (cost of oil stockpile) , foreign currency borrowings and weakening of the baht.

PTT Group has losses from oil stock if Bt70 billion from business operations in the first quarter worth Bt17 billion. 

The company is optimistic about the outlook for the rest of the year; refinery margins are likely to rise with crude oil price estimated at between $30 to $40 per barrel. The group’s chemical products, however, are under pressure as new suppliers from China have entered the market.

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