Thai PTTGC reports Q4 net loss on refinery turnaround, weak petrochemical demand

SINGAPORE (ICIS)–PTT Global Chemical made a fourth-quarter net loss of Thai baht (Bt) 968m ($29m), with revenues down more than 10% due to a scheduled refinery shutdown and weak petrochemical demand that reduced product prices, the Thailand-based producer said on Monday.

Its polymers and chemicals business segmentrecorded adjusted earnings before interest, tax and depreciation (EBITDA) of Bt53m, 98% down year on year, while performance chemicals fared better over the period, logging a 10.2% year-on-year rise in earnings.

in million baht (Bt)	Q4 2022	Q4 2021	% change	2022	2021	% change
Sales revenue	124,780	139,298	(10.4)	678,267	465,128	45.8
EBITDA	297	12,675	(97.7)	22,420	61,141	(63.3)
EBITDA margin (%)	0.2%	9%	–	3%	13%	–
Adjusted EBITDA	3,459	10,173	(66.0)	49,134	56,627	(13.2)
Net income	(968)	3,248	–	(8,752)	44,982	–
Polymers & Chemicals Adjusted EBITDA	53	2,418	(97.8)	7,580	11,819	(35.9)
Performance Chemicals Adjusted EBITDA	465	422	10.2	10,667	1,779	499.6

The company’s refinery was shut for most of October-December 2022, with the turnaround lasting 49 days, it said.

“The polymers market demand was under pressure mainly due to the zero-COVID policy in China, which led to lockdowns in many cities and impacted the slowdown in demand,” PTTGC said in a statement, adding that concerns about global recession also weighed down on the market.

“In addition, the inventory of buyers remains in a wait-and-see mode while the supply was adequate and increased from higher production in China, and imports from North America and the Middle East to Asia, despite some producers reducing their operating rates in this quarter,” it said.

For the whole of 2022, PTTGC made a net loss of Bt8.75bn, with chemicals’ adjusted EBITDA falling 36% to Bt7.58bn.

With the consolidation of the financial performance of German specialty chemicals producer allnex in 2022, full-year revenues jumped 46%.

($ = Bt33.88)

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