Thailand's PTT Global Q2 profit down 45%, hit by shutdowns

[BANGKOK] PTT Global Chemical Pcl, Thailand's largest petrochemical maker, posted a 45 per cent drop in quarterly net profit on Wednesday due to a 2-month scheduled shutdown of its refinery and an unplanned stoppage of an olefins cracker.

Net profit was 4.92 billion baht (S$187 million) for the April-June period, slightly lower than the average 5.13 billion baht forecast of eight analysts surveyed by Reuters.

But profit rose 5 per cent from the previous quarter mainly because of an inventory gain of 2.2 billion baht after a rise in benchmark Dubai crude prices, PTTGC said in a statement.

Its refinery run rate dropped to 35 percent from 100 per cent a year earlier, while gross refining margin fell 25 per cent on year to US$4.05 a barrel, the company said.

PTTGC is the flagship petrochemical business of PTT Pcl, Thailand's largest energy firm. Its operations are expected to improve in the second half because no maintenance shutdown will weigh down earnings, analysts said.

On Monday, Thai Oil Pcl, the refinery flagship of PTT, reported a better-than-expected 24 per cent rise in quarterly net profit due to strong performance of the refinery unit and an inventory gain after an increase in global crude oil prices.

Thai Oil's 275,000-barrel-per-day (bpd) refinery ran at 109 per cent in the second quarter, up 2 per cent from a year earlier.

Another oil refiner, Bangchak Petroleum, posted second-quarter net profit of 2.4 billion baht, down 13 per cent on year but up 51 per cent from the previous quarter thanks to a higher crude run and gross refining margin.

REUTERS