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Introduction & Market Context
PTT Global Chemical Public Company Limited (PTTGC) presented its Q1 2025 investor update on May 21, 2025, highlighting the company’s financial recovery and strategic initiatives amid ongoing global trade uncertainties. The presentation revealed how Thailand’s leading chemical company is navigating the complex landscape of US-China trade tensions while implementing structural changes to enhance long-term competitiveness.
The company’s stock has experienced significant volatility over the past year, with a 52-week range of 14.2 to 38 baht. On the day of the presentation, PTTGC shares rose 8.11% to close at 20 baht, suggesting positive market reception to the company’s strategic direction and improved quarterly performance.
Quarterly Performance Highlights
GC reported a substantial improvement in its Q1 2025 adjusted EBITDA, which reached 5,377 million baht, more than doubling from 2,663 million baht in Q4 2024. This recovery comes despite relatively flat sales revenue, which stood at 132,547 million baht in Q1 2025 compared to 132,372 million baht in the previous quarter. Year-over-year, however, sales revenue declined from 155,187 million baht in Q1 2024.
As shown in the following detailed breakdown of the company’s EBITDA recovery:
The improvement was driven by multiple factors across various business segments. The circular diagrams illustrate how different sectors contributed to the overall EBITDA growth, with notable improvements in the refinery and aromatics chains.
A more detailed analysis of the quarter-over-quarter EBITDA improvement reveals the specific contributions from each business segment:
Strategic Initiatives
GC has positioned itself as a leading integrated chemical player with global reach, boasting 14 million tons per annum of petrochemical capacity, 49 local sites, 43 global operation sites, and 24 joint venture companies. The company has maintained its position as #1 in Thailand and has been recognized in the Dow Jones Sustainability Indices for 11 consecutive years.
As illustrated in this overview of the company’s global presence and sustainability achievements:
A key component of GC’s strategy involves performance enhancement initiatives, with the company raising its 2025 target from 4,500 to 5,500 million baht. This includes OPEX savings, holistic optimization, and portfolio transformation efforts that are expected to deliver increasing benefits throughout 2025.
The company is also implementing an asset-light strategy to unlock up to 30 billion baht from selected non-core assets, with proceeds directed toward deleveraging and maintaining investment-grade credit ratings. This approach aligns with PTT Group’s broader strategy of reshaping its petrochemical and refining assets.
The asset-light strategy is outlined in the following slide:
Another significant strategic development is the progress in the Vencorex reorganization. Following court approval for liquidation proceedings in May 2025, GC expects an accounting gain from deconsolidation of approximately 30-40 million euros in Q2 2025. The company is also negotiating the sale of US and Thailand assets, with closings expected in the second half of 2025.
Tariff Impact and Mitigation Plans
A central theme of the presentation was GC’s response to global trade tensions, particularly the potential impact of US tariff policies. While the direct impact on GC is described as negligible due to minimal exports to the US, the company acknowledges significant indirect effects through trade flow shifts, impacts on customers exporting to the US and China, and overall GDP slowdown.
The company has established comprehensive mitigation plans, as detailed in this slide:
These proactive measures include establishing a "Tariff War Room" to monitor market developments, optimizing internal efficiency, maintaining market share through customer collaboration, reducing inventory levels, and strengthening trading business capabilities.
The US-China trade situation has seen some temporary relief with both countries cutting reciprocal tariff rates for 90 days, as shown in this detailed breakdown of tariff impacts:
Allnex Performance and Resilience
GC highlighted the resilience of its coating resins producer Allnex, which has demonstrated strength despite market challenges. With 33 manufacturing sites globally and over 90% local-to-local value chains, Allnex is well-positioned to withstand tariff pressures.
The following slide illustrates Allnex’s global footprint and growth strategy:
In Q1 2025, Allnex’s sales volume improved by 3% quarter-over-quarter, though it weakened by 5% year-over-year. The company is pursuing long-term growth through capacity expansion in India, China, and Southeast Asian hubs.
Forward-Looking Statements
Looking ahead, GC maintains a cautious outlook on the global economy, noting that the IMF revised down its 2025 world GDP forecast to 2.8%. The company is closely monitoring US consumer confidence, which dropped to 86.0 in April amid rising fears of tariffs.
GC’s financial position remains strong, with 650 billion baht in cash and cash equivalents plus current investments, and total long-term debt of 226 billion baht with an average loan life of 5.99 years. The company is committed to maintaining its investment-grade credit ratings.
The total capital expenditure planned between 2025 and 2029 is 952 million baht, with 657 million allocated to Allnex. This investment approach reflects GC’s balanced strategy of maintaining core operations while pursuing strategic growth opportunities in higher-margin segments.
As global chemical markets continue to face uncertainties from trade tensions and economic headwinds, GC’s presentation demonstrates a comprehensive approach to navigating these challenges while positioning the company for sustainable long-term growth.
Full presentation:
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