PTT readies investment plan
New ventures tackle transport, smart cities
PTT Plc, the SET-listed national oil and gas conglomerate, expects to receive the green light for massive investment in new businesses over the next decade under the continuous 342-billion-baht investment plan ending in 2022.
According to chief technology and engineering officer Chansin Treenuchagron, PTT's new businesses will focus on the transformation to fast-growing industries such as those under the government's S-curve policy.
"We will aim for the high-speed railway linking three airports, smart cities in Wangchan Valley and Bang Sue railway junction, energy storage, electric vehicles and more efficient management at PTT's existing production facilities," said Mr Chansin, who will become president and chief executive of PTT at the end of August.
PTT's board of directors will consider the massive investment plan in November.
Moreover, PTT is seeking business partners for the current auction of the 224-billion-baht high-speed railway, as PTT is one of the bidders.
Smart cities are being studied for feasibility by energy policymakers.
Other PTT subsidiaries will take part in the long-term investment plan, including PTT Global Chemical Plc, IRPC Plc, Thai Oil Plc and Global Power Synergy Plc.
"The new business is under the business concept of 'Design Now' in preparation for big growth in the future," Mr Chansin said.
Chief financial officer Nitima Thepvanangkul said the massive investment budget is unlikely to add to PTT's financial burden because the group has cash on hand of nearly 400 billion baht, enough for long-term investment.
Mrs Nitima said PTT's total debt equals 500 billion baht, 60% of which is baht debt and 40% is foreign.
Outgoing president and chief executive Tevin Vongvanich said the remaining months of the year will bring better performance in oil trading and the gas business as energy prices rise.
Meanwhile, oil refining and petrochemicals remain flat because new facilities in Asia-Pacific have yet to commence operation dates.
Yesterday, PTT reported that the group's revenue rose 12% to 1.111 trillion baht in the first half of 2018 as net profit fell by 10% to 69.82 billion baht.
PTT is expected to submit a filing for the spin-off of wholly owned PTT Oil and Retail Business Co to the Securities and Exchange Commission this year after PTT completes the transfer of oil and related assets to the subsidiary in the first half of 2018.
PTT shares closed yesterday on the Stock Exchange of Thailand at 51 baht, down 75 satang, in trade worth 2.7 billion baht.