MOSCOW (MRC) -- Thailand's petrochemical maker, PTT Global Chemical Pcl said its first-quarter net profit dropped 16 percent from a year earlier because of an olefins plant shutdown and weak refining margins, reported Reuters.
Net profit was 4.71 billion baht (USD133.73 million) for the January to March period, in line with a 4.75 billion baht forecast by 13 analysts polled by Reuters.
First-quarter revenue fell 19 percent, while its crude distillation unit ran at 93 percent in the quarter, down from 102 percent the same period a year earlier, it said in a statement.
Gross refining margins fell to USD4.77 a barrel, down from USD5.98 a year earlier, and lower crude prices also made the company book an inventory loss of 486 million baht in the quarter, it said.
We remind that ss MRC reported earlier, in 2013, Indonesian state-owned energy company Pertamina signed an agreement to purchase petrochemical products from PTT Global Chemical. The agreement serves as a pre-marketing strategy for Pertamina and PTT’s joint Indonesian petrochemical business. Under the agreement, PTT will deliver at least 5,000 tonnes of polyethylene (PE) and polypropylene (PP) products each month to Pertamina for sale in Indonesia.
Besides, Pertamina and PTTGC were to start joint shipments of PE to the Indonesian market from 1 July 2014, but they were posponed till September 2014.
PTT Global, the petrochemical flagship of PTT Pcl PTT.BK, Thailand's top energy firm, currently has a petrochemicals production capacity of 8.75 million tonnes a year and runs a refinery with a crude and condensate refining throughput capacity of 280,000 barrels per day. The company has planned to boost its annual petrochemical production capacity by an average of 4 percent over five years to 2020.
MRC