PTT moves forward with a 5-year investment plan in core businesses and energy transition projects.

Germany, PTT Public Company Limited announced the move forward with its 5-year investment plan between 2024 - 2028 as notified to the SET. and invested more than 89 billion baht in 5 main business groups. Most of it is still a natural gas business. Ready to prepare another budget of over 100 billion baht to expand investment into clean energy during the energy transition. Mr. Atthaphon Rerkpiboon, Chief Executive Officer and President of PTT Public Company Limited (PTT), said PTT drives operations under the vision of 'Powering Life with Future Energy and Beyond, driving every life. With the power of the future' to create energy security and to support the operational plan to grow into a future energy business and a new business that goes beyond energy. Along with announcing its intention to operate its business to achieve carbon neutrality by 2040 (2040) and net zero greenhouse gas emissions (Net Zero Emissions) by 2050 (2050). ) by increasing the proportion of investment focusing on new business is - Clea n energy business or the energy business of the future (Future Energy), including renewable energy energy storage system Electric vehicle supply chain including hydrogen - Businesses that support driving people's lives beyond the energy business (Beyond), such as life science businesses such as medicine, nutrition, medical equipment and diagnostics. Business supporting mobility and lifestyle (Mobility and Lifestyle), which includes non-oil retail business, AI, Robotics and Digitalization business, logistics and infrastructure business, including high value chemicals (High Value Business) 5-year investment plan (2024-2028) which has been reported to the Stock Exchange of Thailand (SET) by the PTT Board meeting. Approved the 5-year investment budget of PTT and companies in which PTT holds 100% of shares, totaling 89,203 million baht in 5 main business groups (Core Business), consisting of: 1. Natural gas business Total investment amount is 30,636 million baht or equivalent to 34%. 2. Natural gas pipeline bu siness Total investment amount is 14,934 million baht or equivalent to 17%. 3. International trade business and downstream petroleum business Total investment amount is 3,022 million baht or equivalent to 4%. 4. New business and infrastructure and headquarters Total investment amount is 12,789 million baht or equivalent to 14%. 5. Investing in companies at PTT Holds 100% of the shares. Total investment amount is 27,822 million baht or equivalent to 31%. For investments consistent with PTT's vision. 'Powering life with future energy and beyond' in which the core business is an investment to create sustainable growth. Including creating energy security for the country, accounting for 51% of the 5-year investment budget, with main projects including Natural Gas Separation Plant Unit 7 to replace Natural Gas Separation Plant Unit 1 and Natural Gas Separation Plant Unit 8, including the Bang Pakong Natural Gas Pipeline - South Bangkok Power Plant project. and the 5th onshore natural gas pipeline project In ad dition, PTT It also invests in new businesses through companies in which PTT holds 100% of its shares, including investment projects in the integrated electric vehicle business such as the EVme project, which provides digital platform services for the use of fully integrated electric vehicles. Construction project for an electric vehicle manufacturing plant, Horizon Plus, investment project in a battery assembly plant using Cell- To-Pack (CTP) technology, including Map Ta Phut Industrial Port Development Project Phase 3 and Laem Chabang Port Development Project Phase 3. Mr. Atthaphon said PTT has also prepared an investment budget for projects that are seeking future investment opportunities (Provisional Capital Expenditure) over the next 5 years, another 106,932 million baht, which is an expansion of investment during the transition period. Energy includes Expanding investment in the natural gas business, which is a transition fuel, focusing on expanding the natural gas pipeline network and expanding invest ment in the complete liquefied natural gas business (LNG Value Chain) both domestically and internationally. abroad as well as expanding investment in the downstream petroleum business in building product storage tanks. Including focusing on clean energy businesses to reach a low carbon society, including Investing in life science businesses, including the pharmaceutical business Nutrition business Medical equipment and diagnostics business, AI and Robotics business, with the goal of being a leader in AI and Robotics services in the future, including investment in logistics and infrastructure business, focusing on connecting all transportation network systems. of the country Mr. Atthaphon said that PTT has operational goals in 3 areas: 1. Business Growth adjusts investment portfolio in energy business Focusing on low carbon business 2. New Growth, new energy business and other businesses Beyond Energy must make a profit of more than 30 percent by 2030, ready to invest and increase the proportion of profit s from businesses that are Future Energy and those beyond the Beyond Energy group. 3. Clean Growth: Reduce greenhouse gas emissions compared to 2020 by 15% by 2030. Mr. Atthaphon emphasized that PTT operations In 2024, important challenges must be faced: The world economy continues to expand and inflation slows, entering a soft landing, while the Thai economy expands better. But may face many obstacles. World energy prices are another challenge as they are still volatile due to the economic situation and geopolitical factors. The fluctuating world energy prices are a result of the economic recovery. Monetary policy of each country production control OPEC+ crude oil, increased supply from non-OPEC groups, and geopolitical risks As for PTT's operating results In 2023, there was a net profit of 112,024 million baht, accounting for 3.6% of sales, higher than 2022, which was a result of the cooperation of the PTT Group. To increase the efficiency of the production process and reduce operating costs It can reduc e expenses by more than 13,000 million baht. As for the proportion of profits, the majority comes from investments made by companies in the PTT group. This is a business that competes freely both domestically and abroad. Divided by business type includes Petroleum exploration and production business 45%, petrochemical and refining business 9%, new business and infrastructure and other subsidiaries 17%, which has increased operating results from the future energy business and new businesses from Avaada Energy Private Limited (Avaada), which has invested in a solar power plant project in India, from Lotus Pharmaceutical Company Limited (Lotus) which operates the business of producing and distributing generic drugs in Taiwan. and the oil and retail business group, 7%, which consists of the oil business and non-oil businesses such as coffee and convenience stores that have a profit per revenue of only 1%, while the profit is from the natural gas business and international trade business. of PTT 22% In 2023, PTT Group's losses from derivative instruments to hedge against commodity price risk decreased. But there was an increase in foreign exchange profits. following the strengthening of the baht in 2023, although operating profits before depreciation and amortization Financial costs and income tax (EBITDA) of PTT Group decreased, mainly from the petrochemical and refining business groups. with gross profit from refining (Market GRM) decreasing from 2022. In addition, in 2023, the PTT Group has increased oil stock losses. following the direction of falling oil prices In addition, the operating results of the petroleum exploration and production business decreased from a decrease in average selling price and average sales volume. together with other business groups has decreased operating results The PTT Board of Directors It was resolved to pay dividends for the 2023 operating results at the rate of 2.00 baht per share, having already paid an interim dividend of 0.80 baht per share in September 2023, with remaining d ividends to be paid at the rate of 1.20 baht per share, which the Ministry of Finance, as Major shareholders and the Vayupak Fund receive dividends totaling approximately 36 billion baht, and when combined with corporate income tax of PTT and its subsidiaries, another approximately 42 billion baht, including the PTT Group, remit income from business operations. In 2023, approximately 78 billion baht has been given to the state. Mr. Atthaphon said that in 2023, PTT will participate in creating energy stability. Power point for improving quality of life Driving the economy to grow together sustainably Through the development of future energy businesses and new businesses that go beyond energy. In terms of energy of the future, there is the expansion of hydrogen fuel stations. Bang Lamung District Chonburi Province supports transport trucks and tractor-trailers. Established NV Gotion factory to produce battery packs together with KYMCO Group to establish Aionex to sell electric motorcycles. Increase the install ation of EV Charging Stations under the on-ion brand to cover the entire country. In a new business area that goes beyond energy, NRPT launches Plant and Bean Thailand, a contract factory for producing 100% plant protein that meets world-class food safety standards, BRCGS Plant-based, the first and largest in the Asia Pacific region. Innobic Nutrition launches food products. Supplement for good health of Thai people For the logistics business Open rail freight transport route 'Thailand-Laos-China' connects the transportation system of Thailand and the ASEAN region. In the past, PTT Participated in relieving the suffering of the people to overcome the crisis period. Through operations including One Breath and Breath for Children Project Oil reserves of 4 million barrels, NGV price fixing, LPG price assistance for hawkers and low-income earners through state welfare cards. Supporting money into the oil fund Extending credit terms to EGAT, etc., representing a total assistance value from 2020 - 2023 of more tha n 31,060 million baht. In terms of society, community and environment, PTT has planted a total of 86,173 rai of forests in 25 provinces, stimulating the local economy. Strengthen the community Through the Creating Smiles Innovation Project that brings knowledge and innovation of the PTT Group. Transferred to agricultural communities in 45 areas in 29 provinces nationwide. By increasing community income by more than 31.59 million baht and the project to strengthen social enterprises that can increase income for communities participating in the project by more than 5.75 million baht. Source: Thai News Agency