Kongkrapan Intarajang, Chief Executive Officer of PTT Public Company Limited (SET: PTT), disclosed the operational performance of PTT for 2024 amidst various challenges, including geopolitical uncertainties, a slowdown in global economic growth, inflationary pressures, volatile exchange rates, concerns over U.S. economic and trade policies, and the pressures from declining demand and oversupply in the petroleum and petrochemical industries.
Over the past year, PTT realigned its strategy to refocus on its core Hydrocarbon business while reviewing its strategy for Non-Hydrocarbon businesses to emphasize related ventures with synergies within PTT Group. The company has also strengthened its internal capabilities to enhance competitiveness, improve operational efficiency, manage costs through group-wide Operational Excellence, and adopt digital technologies.
Furthermore, PTT adhered to principles of good governance, transparency, and fairness, reflecting in a net profit of 90,072 million baht and a dividend payout of 2.10 baht per share, yielding a 6.6% return for 2024. The company has also aided the government in managing costs during high energy price periods to mitigate impacts on the public.
Kongkrapan stated, “The strong performance stems from effective management and organizational synergy. The primary profits were driven by the Upstream business, which offset impacts from government policies affecting the Downstream sector. Crucial factors included cost management, controlled spending across PTT Group, and adept handling of special items and foreign exchange impacts.”
In 2024, Hydrocarbon and Power business, which significantly contributes to PTT’s return, involved investments through PTT Exploration and Production Public Company Limited (PTTEP). PTTEP increased gas production capacity at the G1/61 project (Erawan Field) in the Gulf of Thailand to 800 million cubic feet per day and acquired a 10% stake in the Ghasha Concession Project, one of the largest offshore natural gas fields in the UAE. The LNG business handled imports of 9.6 million tons per year through both long-term and spot agreements to meet domestic energy demands.
The downstream petroleum business created an added value of USD 110 million through internal collaboration and upgraded diesel production to Euro 5 standards to align with governmental pollution control policies for PM 2.5 particles. The power business, with construction underway, is expanding capacity to 15 GW, mainly through overseas renewable energy investments.
For Non-Hydrocarbon, strategies focus on related enterprises within PTT Group. In the EV sector, the emphasis is on expanding charging stations with OR, leveraging the available ecosystem.
Life Science, though sustainable, requires self-funding and expertise, with revenues recognized from the sale of investments in Alvogen Malta (Out-licensing) Holding Ltd. worth 4.5 billion baht through Innobic (Asia) Company Limited. In logistics, PTT exits non-aligned businesses to focus on those that can create synergies within the group.
Moreover, PTT aims for growth while reducing greenhouse gas emissions, moving towards NET ZERO through the C3 approach: C1 involves business portfolio adjustments for carbon reduction and growth, C2 enhances manufacturing efficiency using digital technology and clean energy, and C3 fosters stakeholder collaboration in greenhouse gas reduction infrastructure and technology development, employing Carbon Capture and Storage (CCS) and enhancing natural carbon dioxide absorption through reforestation.
PTT’s commitment to sustainable balance is recognized nationally and globally, evidenced by its Top 1% ranking in the Oil & Gas Upstream & Integrated (OGX) industry in S&P Global’s Corporate Sustainability Assessment (CSA) of 2024 and inclusion in the DJSI sustainability index for the 13th consecutive year, validating PTT’s sustainable journey. It is also the only Thai company in Brand Finance Global 500 and ranked by Fortune Southeast Asia 500 as Thailand’s leading company and second in Southeast Asia, continuingly reflecting operational efficiency across all dimensions.
Beyond its core energy mission, PTT focuses on enhancing Thai quality of life, creating economic, social, and environmental balance, continuously contributing to society. Last year, the Prem Pracha Vana Rak Park was opened in Laksi, Bangkok, as a new green landmark benefiting the public and improving the surrounding communities’ welfare.
“As this year remains challenging, PTT is dedicated to ensuring energy security and facilitating growth while cutting greenhouse gases, strengthening corporate resilience, minimizing risk, maintaining business stability, cautiously considering investments, and balancing stakeholder care, driving Thailand towards a sustainable future,” Kongkrapan concluded.
