Despite market rumors, PTT Group has confirmed that its subsidiaries—PTT Global Chemical Plc, IRPC Plc, and Thai Oil Plc—will not be merging. However, the company emphasizes the necessity for operational improvements across these businesses.
As Thailand’s largest oil and gas entity, with 51% ownership by the Ministry of Finance, PTT is actively seeking partnerships and is open to offering shares in its subsidiaries as part of an overarching restructuring strategy, according to company CEO Kongkrapan Intarajang.
“PTT will remain a significant stakeholder in these three subsidiaries,” he stated during a recent briefing.
While specific details on potential partnerships were not disclosed, Kongkrapan reaffirmed that each company will pursue its operational plans to achieve revenue objectives.
Both PTT Global Chemical and IRPC, which focus on petrochemicals, face challenges due to a global oversupply of petrochemical products—a trend anticipated to persist throughout the year. This surplus is largely attributed to increased exports from the Middle East and China.
The ongoing trade tensions between the US and China have led to higher petrochemical exports from China to Southeast Asia, according to Kongkrapan.
Products like paraxylene, used in textiles, are expected to face a supply glut, while olefins, essential for various plastic items, are projected to see slight price increases this year. Demand for olefins remains robust.
PTT is set to invest 55 billion baht from 2025 to 2029, with 25 billion baht earmarked for this fiscal year, primarily directed towards enhancing its gas operations.
The company aims to optimize its raw material procurement and finished product distribution, anticipating savings of 3.3 billion baht this year. Additionally, PTT plans to implement digital technologies to reduce costs further by 2 billion baht annually by 2026.
PTT has also established a target to elevate earnings before interest, taxes, depreciation, and amortization by 30 billion baht by 2027, increasing from 396 billion baht in 2024.
In the previous year, PTT reported earnings exceeding 3 trillion baht, reflecting a 1.7% decline compared to the prior year, largely due to decreased product prices in its international trading operations, despite an uptick in overall product sales, especially in refined goods and liquefied natural gas. The company’s net profit fell to 90 billion baht, marking a 19.6% decrease.
