Kongkrapan Intarajang, CEO and President of PTT Public Company Limited (SET: PTT), revealed at the 2025 Annual General Meeting of Shareholders that the business performance this year is expected to remain steady or slightly increase compared to the previous year, which recorded a total revenue of THB 3,138,378 million.
However, close monitoring of the trade war situation is crucial as it impacts the global economy and GDP growth, influencing oil prices and product margins, which can have both positive and negative effects.
In response to the U.S. import tax policy, PTT Group is proactively setting up a war room to analyze the situation.
This includes both internal capabilities and external expert consultations to assess the impacts of these policies, acknowledging that these issues are not just trade war-related but also significantly affect the global economy, GDP growth, oil prices, and product margins.
PTT Group must be well-prepared by examining the economic landscape, demand-supply dynamics, and trade restrictions since it operates businesses worldwide.
Kongkrapan further elaborates on the war room’s mission, stating that the first immediate step is to expedite internal improvements within PTT group, enhancing Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), strengthening the company against external volatility.
Investment strategies will also be revisited. PTT holds contracts to import 1 million tons of LNG annually from the U.S., and PTT Global Chemical Public Company Limited (SET: PTTGC) plans to import 400,000 tons of ethane from the U.S. within the next three years. These actions are crucial in leveraging negotiations with trade partners, Kongkrapan continued.
Investment in PTT Group continues to focus on the hydrocarbon business, a primary revenue source, aiming to ensure national energy security and growth while reducing greenhouse gas emissions.
The petroleum exploration and production sector will focus on both domestic and international exploration, while the natural gas business seeks growth through supply chains and investment expansion.
In the electricity sector, efforts are directed towards stability in power production, supporting greenhouse gas reduction targets, and seeking growth and profit abroad.
The petrochemical and refining business will undergo portfolio adjustments and seek partnerships for strength and synergy within PTT. Meanwhile, the international trading business aims for collaboration in sourcing cost-competitive raw materials.
The oil and retail business aspires to partner with the Thai community, focusing on strategic investments and maintaining market leadership.
For the non-hydrocarbon sector, strategic reviews emphasize agility to keep pace with global shifts, ensuring swift adaptation to world trends. Strong-performing businesses will be expanded, while underperforming ones will be strategically exited swiftly and wisely.
Regarding the Clean Fuel Project (CFP) of Thai Oil Public Company Limited (SET: TOP), in which PTT holds a major stake, the company oversees operations through PTT representatives on Thai Oil’s board, ensuring close monitoring of issues.
Delays in the CFP project do not impact PTT’s cash flow, as Thai Oil’s operating refineries contribute to profits and EBITDA, shielding PTT from financial effects.
As for the share buyback plan, it is an approach to manage excess liquidity for higher returns, instead of depositing funds at a 2% interest rate, by buying back shares with expected returns between 6-8%, benefiting shareholders overall.
PTT’s board approved a share buyback program in late March of up to THB 16 billion, intending to repurchase up to 470 million shares, or 1.65% of total shares, over six months from March 24 to September 23, 2025.
The repurchase price must not exceed the average closing price over the previous five trading days plus 15%. Purchased shares can be resold in the market after at least three months post-project, but not exceeding three years.
The share buyback program is anticipated to positively impact PTT’s share price, reinforcing investor confidence in the company’s solid financial standing and profit-generating capability.
