PTT

PTT Plc
What's new? Last Friday, we joined a PTT field trip to Phuket, during which management shared insights into the conglomerate’s business plan and 5-year CAPEX budget, which are aimed as ensuring sustainable long-term growth. Mr Tevin Vongvanich, CFO, and Mr Supattanapong Punmeechaow, Senior Executive VP of Corporate Strategy, were the keynote speakers.
PTT group’s strategic direction—a new growth phase: The PTT executives laid down the key business plans for all business units—E&P, PTT International, Gas, Oil, Petrochemicals, and Trading. PTT will expand its international footprint in the energy industry across coal, gas, electricity generation and other investment themes. The firm will pursue organic growth for its coal business through Straits Asia Resources Plc (which has assets in Brunei and Madagascar). Moreover, the components of PTT group will enter target countries jointly as an integrated player in order to optimize the scope for synergy-building. The conglomerate has set concrete production targets for its core businesses to be achieved by 2020: petroleum production of 900kbd, coal production of 70mtpa and plantation area of 500kHA (for its bio-energy business).   
Production expansion prioritized: PTT will continue to explore opportunities to expand its gas business internationally (both conventional gas and LNG) in order to continue to meet domestic demand requirements. The oil business will be used as an entry vehicle to the ASEAN market when the AEC is established in 2015. The firm will expand its oil business both domestically and internationally—Indochina is the first priority. At home, PTT will build and manage new LPG facilities to support increasing demand (dependent on PTT and the govt agreeing on a pricing formula and reimbursement for the investment cost).
The E&P operation will continue with its expansion strategy—maintaining production in Thailand and finding and developing assets elsewhere. PTTEP will focus on commencing FLNG production at Cash Maple, Australia. It will move aggressively in core areas—Thailand, Myanmar and North America. Petrochemical subsidiaries will maintain their focus on consolidation and expansion into related and green businesses and group land management (there are plans for a “green” industrial estate).