PTT expects uptick next year

National oil and gas conglomerate PTT Plc expects a better business performance next year thanks to higher energy demand and an improving Thai economy, though energy prices are likely to decline.
Domestic oil consumption is projected to grow during the tourism high season as foreigners and locals travel more, while factories will produce more goods to serve higher demand during festivities, said Tanapon Prapapan, vice-president for investor relations at PTT.
Lower oil and gas prices can be offset by higher energy demand, driven by more travelling and business activities during the year-end festivals, he said.
The Dubai crude oil reference price is expected to hover between US$70-80 per barrel on average next year, while liquefied natural gas in the US market should range from US$2.5-3.5 per million British thermal unit.
In the oil refinery and petrochemical business, PTT expects its gross refinery margin (GRM) to fall because of lower prices for petrochemical products, notably olefins and aromatics, as well as lower capacity utilisation in its oil refinery and petrochemical production.
GRM, the difference between prices of crude oil and refined oil, is used to measure the profitability of the oil refinery and petrochemical business. A higher GRM means an increase in profit.
Mr Tanapon attributed the drop in GRM to an oversupply of petrochemicals in the market, causing sales of petrochemical products to remain sluggish.
The average prices of ethylene and propylene are likely to decrease by 1-2% next year to less than $1,000 per tonne, while the average prices of paraxylene and benzene should decrease by 4-6% to less than $1,000 per tonne, he said.
PTT expects its revenue in 2024 to be on par with the 3.1 trillion baht it earned last year.
Mr Tanapon said he believes the economy next year will be improved by government spending and new stimulus measures.