PTT Global Chemical Public Company Limited (SET: PTTGC) has announced its 3Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;
PTTGC recorded a net loss of Baht 13,384 million in 3Q22, compared to a gain of Baht 7,005 million in 3Q21 and Baht 1,388 million in 2Q22.
| Quarter | 3Q22 | 3Q21 |
| Net Profit (Loss) Million Baht |
-13,384.18 | 7,005.21 |
| Earning Per Share (Baht) |
-2.9700 | 1.5600 |
| 9 Months | 2022 | 2021 |
| Net Profit (Loss) Million Baht |
-7,784.25 | 41,734.81 |
| Earning Per Share (Baht) | -1.7300 | 9.3000 |
PTTGC had a net operating profit recurring of Baht 813 million. However, the oil price and exchange rates fluctuated due to the economic uncertainties. As a result, the company had stock loss net NRV of Baht 8,108 million, loss from commodity hedging of Baht 2,111 million as the products spread was higher prices compared to the hedged prices of the commodity hedging which consists of realized loss of Baht 5,660 million and unrealized gain of Baht 3,549 million. Meanwhile, foreign exchange loss during the period was Baht 4,426 million, and gain from financial derivatives was Baht 1,128 million.
In the third quarter of 2022, PTTGC had higher sales revenue of Baht 181,536 million than 3Q21 as the overall products price increased due to higher crude oil price and consolidation of allnex’s financial performance.
The company anticipates that the average price of Dubai crude oil will be within the range of 85-90 USD per barrel. The International Energy Agency (IEA) had estimated the crude oil demand (as of October 2022) in 2023 at 101.3 million barrels per day, increased by 1.7 million barrels per day from the 2022 demand. However, downside risk exists. The energy crisis continues to be a major concern, along with a recovery in demand, especially in China, the increase in OPEC supply, and global economic trends and prospects.
As for the intermediate business unit, Phenol market trend in 2023, the Company anticipates that Phenol P2F spread will be at 300-320 USD per ton, new supply is predicted to enter the market, along with new capacity from Bisphenol A (BPA). The demand for end products recovery is continuing from policies launching in China to stimulate vehicle and construction markets.
For the MEG and PTA market, PTTGC stated that it expects that the average MEG price will be 660-670 USD per ton which is higher than the current average market price. PTA price is expected to be stable. The expected demand from downstream business is expected to gradually recover, same as Paraxylene products.
For Polymers and Chemical Business, the company anticipates that the average HDPE price is expected to be 1,210-1,220 USD per ton. This supported by the stronger demand for packaging, along with the decrease of new capacity, even there are concerns about the economic uncertainty. The Company expects that Polyethylene plants utilization rate will be around 102% in 2023.
Lastly, the end markets industry such as automotive industry, and construction industry are expected to recover next year as the launch policies to expand and stimulate both industries in China. The packaging industry is expected to grow following an upward economic growth trend.
