PTT power unit plans 2014 SET listing

PTT Plc, the national oil and gas conglomerate, plans to list its wholly owned Global Power Synergy Co (GPSC) on the Stock Exchange of Thailand next year.

The move is aimed at mobilising capital for expanding its power generation business in Southeast Asia.

Chief financial officer Surong Bulakul said GPSC will float 25-30% of its shares in an initial public offering in the first half of next year.

GPSC was formed earlier this year through a merger between PTT Utility Co and Independent Power (Thailand), with combined capacity of 1,038 megawatts.

Since then, the company has entered into joint ventures with both small power producers and a hydropower producer in Laos, raising its capacity to 2,000 MW.

PTT expects a tripling of GPSC's power capacity to 6,000 MW by 2020, with revenue from the power business comprising 5-10% at that time.

"We want to diversify into the power business, which is a cash generator, while our existing oil and gas business is affected by price fluctuations and the exchange rate," said Mr Surong.

He said the company will initially expand its power business in Thailand, Laos, Myanmar and Indonesia.

PTT chief executive Pailin Chuchottaworn said despite renewed political conflict weighing heavily on the Thai economy, the global economy is expected to improve.

The world's 10 largest economies are forecast to enjoy better growth next year, he said.

But the price of Dubai crude will drop slightly from this year's average of US$107 a barrel due to the huge supply of shale gas in the US.

Meanwhile, PTT will maintain its planned 360 billion baht in capital expenditures for the five-year period through 2018, said Mr Pailin.

Shares of PTT closed yesterday on the Stock Exchange of Thailand at 289 baht, up three baht, in heavy trade worth 1.65 billion baht.

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Writer: Yuthana Praiwan
Position: Business Reporter