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Introduction & Market Context
PTT PCL (SET:PTT) presented its second quarter and first half 2025 financial results on August 20, 2025, revealing a 30% year-over-year decline in net income amid challenging market conditions. The company is navigating a complex landscape of geopolitical tensions, global economic uncertainty, and declining oil prices while implementing strategic initiatives to enhance future performance.
The presentation highlighted several external challenges affecting PTT’s operations, including prolonged conflicts in the Middle East, the Russia-Ukraine war, and Thai-Cambodia tensions. Additionally, the company noted that while Thailand successfully negotiated a reduction in U.S. import tariffs to 19%, global economic uncertainty and declining oil prices continue to pressure performance.
As shown in the following slide detailing key achievements and challenges, PTT is focusing on strengthening its existing business, enhancing synergies, monetizing assets, and accelerating restructuring to address these headwinds:
Quarterly Performance Highlights
PTT reported a net income of 44,848 million baht for the first half of 2025, down 30% from 64,437 million baht in the same period last year. The decline was primarily driven by lower average Dubai crude prices, which fell 14% half-on-half from $311/BBL in 1H24 to $306/BBL in 1H25.
Despite the challenging environment, the company maintained a stable dividend yield of 6-7% and an average stock price of approximately 31 THB. Cash preservation from divestments in 1H25 amounted to approximately 8,000 million baht, including the divestment of Neo Mobility and shareholding restructure of Lotus.
The following slide provides a comprehensive overview of PTT’s performance metrics for 1H25 compared to 1H24:
The company’s consolidated financial performance for 2Q25 and 1H25 shows total revenue of 1,376,977 million baht and EBITDA of 172,320 million baht for the first half of 2025:
A detailed breakdown of the half-on-half performance comparison reveals the specific factors contributing to the 30% decline in net income:
Quarter-on-quarter, PTT’s net income decreased by 8% from 23,315 million baht in Q1 to 21,533 million baht in Q2 2025:
Strategic Initiatives
In response to the challenging market conditions, PTT has reaffirmed its Group Strategy (STS2024), which focuses on five key areas: competitiveness enhancement, growth, sustainability, enablers for transformation, and foundation. The strategy aims to balance economic growth with sustainability goals, including a target of net zero emissions by 2050.
The following slide outlines the comprehensive PTT Group Strategy:
A key component of PTT’s strategic initiatives is enhancing EBITDA through various short-term, medium-term, and long-term initiatives:
The company is also reshaping its Petrochemical & Refinery (P&R) portfolio through Project Genesis, which aims to optimize the P&R portfolio, strengthen flagship businesses, and engage long-term strategic partners while maintaining PTT’s controlling stakes. The project is currently in discussions with potential strategic partners, with a target to shortlist partners by the end of 2025 and close transactions within 2026:
Asset monetization is another strategic focus, with objectives to enhance profitability, increase asset utilization and optimization, unlock cash, and accelerate decarbonization capability. PTT aims to unlock approximately 100 billion baht in cash during 2025-2026 through synergy and optimization initiatives, improve ROIC by 5-10%, and maintain investment grade credit ratings:
Segment Performance
PTT’s performance varies across its business segments, with detailed breakdowns provided for each division. The following slide offers a comprehensive view of the group’s performance by segment for Q2 2025, comparing both quarter-on-quarter and year-on-year changes:
Similarly, the half-on-half comparison by segment provides insights into the longer-term performance trends:
To better understand the company’s structure and how these segments relate to each other, PTT provided its accounting structure:
Forward-Looking Statements
Looking ahead, PTT provided guidance for the remainder of 2025, acknowledging ongoing challenges while highlighting potential areas for improvement. The company expects its Gas business to benefit from lower gas costs and improved GSP utilization rates, while the Power segment may face pressure from downward gas prices despite lower FT. The Oil segment is anticipated to improve sales volumes.
The following slide summarizes PTT’s outlook and guidance for 2025:
In the longer term, PTT is positioning itself for the energy transition, focusing on balancing energy security, sustainability, and affordability. The company is expanding its LNG value chain with targets of 10 MTPA by 2030 and 15 MTPA by 2035, while also investing in hydrogen and carbon capture and storage (CCS) technologies as decarbonization tools.
Digital transformation is expected to contribute significantly to future performance, with a target of 12 billion baht in digital value creation annually by 2029. The company has already realized approximately 60 million baht in AI and digital value in 1H25, against a 2025 target of 200 million baht.
Overall, while PTT faces significant challenges in the current market environment, the company is implementing comprehensive strategic initiatives to enhance performance, restructure its portfolio, and position itself for the energy transition, aiming to maximize shareholder value while pursuing sustainability goals.
Full presentation:
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