PTT Global Chemical Public Company Limited (PTTGC) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;
PTTGC reported a net profit of 199 million baht in 2020, decreased 98.29% from a net profit of 11,682 million baht in 2019.
For 2020 performance, PTTGC had total sales revenue at 326,270 million baht, declined by 20% from the previous year, mainly due to the decrease in average product prices impacted by COVID-19 on global economic condition and lower demand for ended-products.
PTTGC had Stock Loss Net Reversal of NRV of 8,288 million baht, Gain from commodity hedging of 476 million baht, and Foreign Exchange gain of Baht 343 million, which led to the company recorded Net Profit of 200 million baht (฿0.04/share), declined from the previous year.
Meanwhile, olefins and derivatives Business Unit had planned maintenance shutdown of Olefin plant 2/1 and Olefin plant 2/2 for 39 days and 35 days, respectively.
However, in 4Q20, PTTGC had higher sales revenue than the previous quarter and 4Q19, which reported at 6,405 million baht, compared to a net profit of 908 million baht in 3Q20 and 374 million baht in 4Q19. T
he increase was mainly due to an increase in the overall products price as the recovery of demand. Moreover, there is less planned maintenance shutdown compared to Q3/2020 that improved sales volume. Whilst Fixed overhead and SG&A expenses increased from Q3/2020 due to higher sales volume, but less than Q4/2019 due to cost control policy and TFRS 16 implemented on January 1, 2020 as a result of increased in Right-of-Use assets.
The outbreak of COVID-19 is continuing its spread across the world since the last months of 2019, which simultaneously impacts the global economy. Also, the recent US-China trade conflict has caused substantial uncertainty. However, the company expected the global economy will gradually recover this year due to the new U.S. president’s energy policies, COVID-19 vaccine approvals, the racing to develop COVID-19 vaccines of many global companies, an impressive of China economy recovery, and stimulus packages to respond to the economic distress due to the COVID-19 pandemic in many countries.
PTTGC anticipated that the average price of Dubai crude oil will be within the range of 54-56 USD per barrel. The International Energy Agency (IEA) had estimated the crude oil demand (as of January 2021) in 2021 at 96.6 Million barrels per day, increased by 5.5 million barrels per day from the last year demand. Even there is a signal that the global oil demand recovery continues to increase steadily, however, the oil inventories are remained high, resulting in downward pressure on the crude oil price.