PTT OR Reassesses Cambodia Investments Amid Border Tensions

 

PTT Oil and Retail Business Public Company Limited (PTT OR) is reviewing its business plan in Cambodia after recent border tensions and civil unrest have significantly impacted sales.

 

The situation has led to a rise in nationalism and boycotts of foreign goods, putting pressure on the company's retail outlets, including PTT petrol stations and its Café Amazon coffee shops.

 

Wilaiwan Kanjanakanti, OR' senior executive vice president for Finance, stated that despite the tensions, the company's overall performance in the first half of the year was strong.

 

The border issues, which lasted for only ten days in the second quarter, had a minimal impact on the company's operations in Thailand.

 

The company continues to operate as normal in border provinces, but is taking extra precautions and providing support to local dealers, while hoping for a quick return to normalcy.

 

In Cambodia, however, the situation has sparked a wave of nationalism, leading to a boycott of Thai brands and a slump in sales.

 

According to Wilaiwan, while some Cambodian dealers have expressed interest in rebranding to a local name to mitigate the nationalist sentiment, the number of such requests remains small.

 

She added that while dealers can rebrand if their contract allows it, any breach of contract would incur a penalty.

 

 

Wilaiwan anticipates that the company’s business performance in Cambodia will weaken in the second half of the year, particularly in the third quarter, due to the sales decline.

 

However, she believes the overall impact on OR will be minor, as Cambodian operations only account for 3–5% of the company's total earnings.

 

"We are monitoring the situation and expect it to return to normal soon. Once the situation improves, we will re-evaluate and review our business operations in Cambodia," she said.

 

Meanwhile, Pitirat Rattanachote, OR's Investor Relations Manager, expressed confidence that the company will meet its full-year target, with EBITDA returning to a normal level of 20 billion baht, up from 17 billion baht last year.

 

This optimism is based on the strong performance of its mobility and lifestyle businesses. The mobility segment, which includes fuel sales, remains within its projected volume and profit margin, while the lifestyle business continues to grow.

 

 

Pitirat also noted that the border conflict with Cambodia has had a limited impact on the company's overall global business, which is performing well in other markets like Laos.

 

The Lao PDR's GDP growth of around 2.5% is comparable to Thailand's, supporting sales volume and gross profit margins.

 

Overall, the company expects a 1-2% increase in revenue for the year, in line with Thailand's projected GDP growth of 1-2%.

 

The main driver of this growth is the strong performance of jet fuel sales, which have increased by over 18% in the first half of 2025 due to new partnerships, despite a slight decrease in tourist numbers to an expected 35 million for the year. Land-based fuel consumption, however, remains slow.

 

The company anticipates oil prices will be less volatile than last year, with Dubai crude oil prices projected to be between $66-80 per barrel for the year, compared to an average of $79.7 last year.

 

Looking ahead to the third quarter, Pitirat expects higher revenue, driven by the mobility business. The increase in crude oil prices to around $70 per barrel, up from the low $60s in the second quarter, is also a positive sign for revenue. OR remains focused on maintaining its market leadership with a 40.1% share.