PTT Plc, the country's largest energy company, reported a stronger-than-expected third-quarter net profit on Friday, boosted by a robust performance from its gas-and-oil businesses, lower gas costs and foreign exchange gains.
Net profit came in at 26.97 billion baht for July-September, exceeding the average 25 billion baht forecast by nine analysts polled by Reuters.
This compared with loss of 26.6 billion a year earlier when it booked an impairment loss of nearly 50 billion baht, according to a statement.
A gradual decline in gas costs following a drop in global oil prices helped its third-quarter net profit to increase by 8.4% on the previous quarter, PTT said. The net profit also improved from the same quarter last year, when it posted a loss of 26.58 billion baht.
For the nine months to September this year, the net profit surged 282.43% year-on-year to 75.52 billion baht.
Benchmark Dubai crude prices stood at $43.2 a barrel in the third quarter, down 13% from a year earlier.
Oil prices dropped on Friday as the market refocused on a persistent fuel supply overhang that it is not expected to stabilise unless Opec and other producers make a significant output cut.
PTT's profit from its natural gas business, which accounted for 36% of operating income, doubled to 15 billion baht, while earnings from petrochemical and refining business jumped 87% on year.
PTT has stakes in three of six oil refineries in Thailand.
It also posted an income of 1.16 billion baht from investments versus 263 million baht a year earlier, and foreign exchange gains of 2.36 billion baht, versus a loss of 6.9 billion a year earlier.
PTT, also Thailand's largest biggest company by market value, is expected to produce strong earnings in the fourth quarter as its core gas business should benefit from the low level of gas costs and its oil retail business will enjoy improved margins.
Before the earnings announcement, PTT shares closed down 1.76% to 335 baht on Friday, while the main SET index was 1.3% lower.