Volatile global oil prices have prompted PTT Plc to revise down its average oil price forecast for use as a benchmark in aligning the company's business plan with the current unpredictable situation.
However, the national oil and gas conglomerate is keeping most of its business plan as is.
Remaining unchanged are PTT's five-year capital expenditure budget, a plan to list subsidiary Global Power Synergy Co on the Stock Exchange of Thailand by the second quarter and the shedding of its major stake in refinery Bangchak Petroleum Plc.
Chansin Treenuchagrorn, executive vice-president for corporate strategy, yesterday said this year's strategic average oil price outlook had been revised down to US$70-80 a barrel from $100-110 as oil prices continued to fall.
The lowest range of oil prices this year is now forecast at $40-50 a barrel, down from a previous prediction of $70-80, he said.
"Revising the forecast will facilitate adjustment of our group's business strategy," Mr Chansin said.
He said smaller revenue would be the inevitable consequence of collapsing global oil prices, and PTT must adjust its business strategy to survive.
Global oil prices have stayed below $50 a barrel since mid-2014 after falling from a record high of $147. And they are continuing to fall, hitting a low of $44 last month due largely to oversupply amid a gloomy global economy, geopolitical unrest and speculation in futures markets.
"It's quite difficult to estimate exactly where the equilibrium of oil prices should be, as the prices remain very volatile," chief executive Pailin Chuchottaworn said.
He said PTT would keep its five-year (2015-19) capital expenditure plan at 327 billion baht, as it entailed mostly long-term investment such as its fourth-phase gas pipeline project, a liquefied natural gas receiving terminal and an oil storage facility.
PTT shares closed yesterday on the Stock Exchange of Thailand at 356 baht, up two baht, in heavy trade worth 1.11 billion baht.