Bangkok, Aug 9 - PTT Global Chemical Public Company Limited (GC) reveals Q2/2023 net loss of 5,591 million baht, total income of 146,731 million baht, close to the quarter in 1/23, but decreased by 25%. from the same period of 2013, according to sales contraction global economy slows down
GC informs the SET of the global economic outlook in 2023 There are still challenges from various situations. Both the prolongation of the situation Conflict between Russia and Ukraine economic and energy sanctions against Russia which It affects both global energy supply and prices and leads to inflation and economic concerns in many countries around the world. Moreover, consumer demand after the opening of China since the beginning of 2023 has not recovered. a lot Based on this overview, the IMF has revised its forecast of global GDP growth in 2023 at 3.0 percent (as of July 2023).
It is expected that the demand for various products Both petroleum and petrochemicals are expected to grow slowly. But there are still uncertainties from economic problems and monetary policies of each country. Upstream Petrochemical Business The company forecasts the trend of Dubai crude oil prices in 2023. stay average USD 75-85 per barrel, there are still factors that must be monitored closely next year, including the world's energy shortage situation. recovery in particular demand China's opening up and policies to stimulate the economy in the second half of the year OPEC+ production control, economic growth numbers and pressure from Situation of concern about economic recession
For refinery petroleum products, the company expects that the price situation and product price spread in 2023 will tend to weaken from 2022. The company still manages the production model. and sales contracts in order to continually comply with the situation, as well as closely monitor the market situation for appropriate management. while the petrochemical products of the company's aromatics plant It is expected that the spread of paraxylene over naphtha in 2023 will improve to 380-400 USD per ton
The total revenue in the second quarter of 2023, revenue and profit The decline was mainly from the upstream petrochemical business, especially the refinery business, where petroleum product prices dropped in line with the decline in crude oil prices. The decline in GRM (GRM) from $10.3/barrel in the previous quarter. to $5.7/barrel this quarter. Although petrochemical revenue increased in line with higher sales volume and capacity utilization in this quarter.
The company reported Adjusted EBITDA at 6,835 million baht, a decrease of 28% from 1Q23, mainly from the weakening performance of the upstream petrochemical business. In particular, the refinery declined due to the decline in main product spreads. While the aromatics business weakened mainly from the decline in by-product spreads.
In addition, the performance of the Polymers and Chemicals business group's performance was weaker due to the full opening up of China, the demand recovery was slower than previously expected. Meanwhile, the performance of intermediate petrochemical products improved mainly from the phenol business. The performance of the Specialty Chemicals business unit remained at the same level as the previous quarter.
However, the overall petrochemical business is still in a continuous weak state. It has been pressured by factors such as the economic recession which affects the downstream demand for petrochemical products. and the launch of new production capacity in the market, especially from China. As a result, the operations of joint venture companies, especially in the petrochemical business, were affected. As a result, the company Still recognized the share of loss from investments in this quarter in the amount of 405 million baht, a decrease from the previous quarter.
and there is a loss from normal operations (Excluding loss from oil stocks and loss from adjusting the value of inventories to net realizable value Accounting losses on exchange rates and gains on financial derivatives Profits from derivatives for hedging other special items) in the amount of 2,620 million baht.
The Company recognized items that did not occur from normal operations, such as losses from oil stocks and losses from adjusting the value of inventories to be equal to the net realizable value (Stock Loss Net NRV), totaling 2,659 million baht. Result Gains on derivatives for hedging of 327 million baht, accounting losses on foreign exchange and gains on financial derivatives totaled a loss of 1,047 million baht. net of allnex by selling and leasing back As a result, the net profit from such transactions was realized at 485 million baht.-Thai News Agency
Source: Thai News Agency