PTT annouced growing operating result in the 2nd quarter of this year, posting a net profit of around THB1.2 billion due greatly to strict financial policy. The half year operating, however, still experienced a decrease in profit as the results of factors including oil price war, oversupply of crude oil and lower demand for refined products and petrochemical products due to the economic slowdown from the impact of the COVID-19 pandemic. In order to maintain growth, thus, PTT stated to adjust its investment portfolio to focus on businesses with growth prospect like LNG and renewable energy and technology.
Mr. Auttapol Rerkpiboon, President & Chief Executive Officer, PTT Public Company Limited, revealed that PTT has monitored the situation and assessed the impact of the coronavirus 2019 (COVID-19) pandemic on the global economy and industry, for business sectors and Thai entrepreneurs. Countries around the world still use epidemic control measures, which leads to passive economy with no improvement when compared to the previous year. In order to maintain energy stability, a short and long-term operation plan has been executed through the PTT Group Vital Center, which in turn bringing business partners and business alliances back to operation as planned. Moreover, with the strict financial policy, the performance in the second quarter of 2020 of PTT and its subsidiaries reported a net profit of 12,053 million baht, up 13,607 million baht compared to a net loss of 1,554 million baht in the first quarter of 2020.
However, PTT and its subsidiaries companies half year performances decreased from the first half of 2019 due to the oil price war, oversupply of crude oil and lower demand for refined products and petrochemical products due to the economic slowdown from the impact of the COVID-19 epidemic. Resulting in PTT and its subsidiaries companies the net profit in the first half of 2020 was 10,499 million baht, with a decrease of 44,751 million baht from the first half of 2019. In 2019. PTT group delivered income to the state in the form of dividends and income taxes of 70,259 million baht from 2001 – 2019, totaling about 9.6 hundred billion baht.
In terms of business direction and investment plan, to create a stable and sustainable growth and help drive the country’s economy, PTT Group has designed businesses to support the changes that will become the Next Normal for both current and new business opportunities, including investments for society and the environment. An investment portfolios has been redesigned to better corporate with the potential businesses growth prospects thus in line with long-term energy consumption trends with the expansion of the business to the full-cycle liquefied natural gas business.
A target is set to become a key player in the world’s liquefied natural gas market. PTT also aims for investing in renewable energy and technologies such as Energy Storage System (ESS), Smart Energy Platform, and EV Charging Station. Currently, PTT EV Charging Station has already been put into operation with two commercial businesses, True Digital Park and the BITEC Exhibition and Convention Center. Moreover, PTT has plans to expand its EV Charging Station further in various areas with potential to support the growth of the country’s electric vehicle market.
“PTT focuses on the potential development of personnel to support changes by using the Upskill – Reskill – New skill principles. The Inside-Out strategy is used to strengthen from the inside by developing technological capabilities along with conceptual reform, be open to learning new things, and organize working teams to strengthen the existing core business groups to support the development of new businesses. There is also an Outside-In, which is to be open minded, adopt shifting society, technologies, marketing and environmental contexts to shape business models, and build relationships with partners and business parties in all sectors. State enterprises, private entrepreneurs, Thai entrepreneurs and SMEs are all weaved into a new business plan and New Ecosystem that will create added value for consumers,” said Mr. Auttapol.
Throughout the past years, PTT Group has continued to stand alongside Thai society and assessed the impact of COVID-19, in various forms such as, promoting LPG discounts to low-income people, hawker groups, food stalls with state welfare cards, and reduce the retail price of NGV for the public buses. Furthermore, PTT Group also supported research and development program by supplying protective equipment and alcohol gels for medical personnel, including donations to the hospital which add up to a total value of 851 million baht.
PTT also has developed a plan for economic recovery for Thai society under the concept of “Community Economic Development“, which focus on generating or increasing income for communities to be self-reliant in the long run. The “Happy Community Project” was adopted to operate in 3 areas. The first one is Supporting public relations channels, by creating marketing channel for community products through various PTT Group media channel such as Facebook / Line / Website www.YimyimCommunity.com .The second one is Stimulating the economy …through Educational Voyage, which promotes community potential development through PTT network by raising the community management to be a community tourism attraction. The last of three is Enhance skills … create careers opportunities while collecting and disseminate skills for the community in the field of agriculture, product and energy processing.
In addition, to promote quality life for Thai people PTT has expanded Café Amazon for Chance, a coffee shop for the disadvantaged in society such as the disabled; hearing and learning disability, and the elderly. Its profits will be used to further expand branches for the disadvantaged. Currently, 9 branches has been in operation with a goal of 12 branches by the end of 2020. Another business model has been incorporated with the Government Pharmaceutical Organization to develop factories to manufacture medicines with an aim to reduce the cost of imported medicines. Therefore, Thai people can have access to medicines at an affordable price and opportunities are opened to export these medicines to neighboring countries in the future as well.