PTT BOARD GIVES NOD TO BT338 BN INVESTMENT PLAN

The plan emphasises the extension of investment in infrastructure and oil businesses, including natural-gas transmission pipelines, service stations and the capability to import liquefied natural gas. 
After yesterday’s board meeting, Tevin Vongvanich, president and chief executive officer of PTT, said the approved investment plan worth nearly Bt339 billion would run from the start of next year through 2021. 
Next year will see total investment of Bt83.66 billion, followed by Bt102.28 billion in 2018, Bt60.49 billion in 2019, Bt34.33 billion in 2020 and Bt58.09 billion in 2021. 
Tevin said that throughout the period, PTT would spend the budget in line with its three key strategies: the establishment of energy security, for which Bt186.52 billion has been earmarked; the creation of added value, at an investment cost of Bt150.67 billion; and environmental friendliness, for which Bt1.65 billion investment is being allocated.
Business restructuring will also be undertaken, for flexibility and efficiency of long-term operations, PTT’s chief said.
Moreover, PTT will press ahead with the continuous improvement of productivity with existing assets for optimal results.
 
TRIS AFFIRMS THAI RATINGS, PLANNED DEBENTURES GET ‘A’ 

TRIS Rating has affirmed the company rating of Thai Airways International and the ratings of THAI’s existing senior unsecured debentures at “A”. 
 At the same time, TRIS has assigned the rating of “A” to THAI’s proposed issue of up to Bt7 billion in senior unsecured debentures, while the company’s outlook remains “stable”. 
 The proceeds from the proposed debentures will be used to refinance THAI’s maturing debts and investments. 
 The ratings reflect the carrier’s leading position in Thailand in terms of international air routes, plus the benefits from being a member of Star Alliance, the largest airline alliance in the world, TRIS said. 
 The ratings are enhanced from THAI’s stand-alone credit profile, reflecting its status as a state enterprise and the flag carrier of Thailand, it added. 
 
SSI CREDITORS WON’T RETURN 
PROVISION TO PROFIT DESPITE DEAL 

Creditors of Sahaviriya Steel Industries (SSI) have no plan to reverse the loan-loss provision of the company to profits after the bankruptcy court on Thursday approved a US$1.94-billion (Bt63.4 billion) debt-restructuring plan for the steelmaker.
SSI and SSI UK have borrowed a combined Bt48.4 billion from Krungthai Bank (KTB), Siam Commercial Bank (SCB) and Tisco Bank. 
KTB and SCB lent Bt22 billion each, and Tisco Bt4.4 billion.
In the third quarter of last year, the three banks’ net profits were dampened by the full loan-loss provision, under which SCB set aside Bt11 billion for SSI, followed by KTB with provisioning of Bt6 billion, and Tisco with Bt2.16 billion.
Tisco and SCB believe the debt-restructuring plan will help them improve their financial status.
However, SCB will not reverse the provisioning from SSI debt to profit this year, because the trend of non-performing loans from other sectors is increasing and the bank wants to maintain its coverage ratio, chief financial officer Kittiya Todhanakasem said yesterday.
SCB’s coverage ratio stood at 128.9 per cent at the end of the third quarter. 
Analysts reported in their research that SCB’s coverage ratio is expected to reach159 per cent after the SSI restructuring is completed.
An analyst at Finansia Syrus Securities noted that SCB would gain most benefit from the restructuring plan, with its NPLs predicted to be below 2.5 per cent and its coverage ratio at 150 per cent.