BANGKOK: PTT PCL, Thailand's largest energy firm, warned that its 2014 net profit could be lower than the 94.65 billion baht ($2.9 billion) earned in 2013 due to sharply lower oil prices.
State-controlled PTT group, which uses global oil prices as a benchmark for its products, faced a drop in selling prices, while its refinery business would post inventory losses, Wirat Uanarumit, chief financial officer, told reporters on Friday.
"Our bottom line this year is likely to be lower than a year earlier. The drop in global oil prices will lead to stock loss," Wirat said, without giving a specific forecast.
The energy giant posted a nine-month net profit of 82.4 billion baht, up 5.3 percent from a year earlier. Its subsidiary PTT Exploration and Production PCL (PTTEP) contributed about 60 percent of the company's operating profit.
PTT plans to invest about 330 billion baht during 2015-2019. Including all major subsidiaries and petrochemical and refinery affiliates, the investment budget would be about 1 trillion baht, of which 40-50 percent was to be spent by PTTEP, Wirat said.
The budget is subject to approval from PTT's board later this month.
PTT was also in the process of business restructuring, which included a plan to sell its 27.22 percent stake in oil refiner Bangchak Petroleum PCL and the divestment should be completed in early 2015, he said.
PTT, which has interest in five of Thailand's six oil refineries, has long planned to dilute its 36 percent holding in Star Petroleum Refining Co via a public offering.
Wirat said the listing was pending an approval from the cabinet and expected to be launched the share sale in the second half of next year.
Comments
Comments are closed for this article.