PTT Q1 2025 slides show >100% net income growth amid rising commodity prices

Introduction & Market Context

PTT PCL (SET:PTT) presented its first quarter 2025 financial results on May 13, 2025, revealing substantial net income growth despite facing revenue challenges. The Thai energy conglomerate benefited from rising commodity prices across its business segments, with particularly strong performance in its gas and trading operations.

The company’s shares closed at 31.25 baht on the presentation day, down 0.25 baht or 0.8%, as investors digested the mixed results showing revenue declines offset by significant profit improvements.

Quarterly Performance Highlights

PTT reported a remarkable increase in net income for Q1 2025, more than doubling quarter-over-quarter while also posting a solid 20% year-over-year improvement. This performance came despite a 3% quarterly decline in revenue, highlighting improved operational efficiency and favorable commodity price movements.

As shown in the following consolidated performance chart, PTT achieved a net income of 23,315 million baht in Q1 2025, compared to 9,311 million baht in the previous quarter:

The company’s EBITDA remained relatively stable at 93,527 million baht, showing a marginal 0.3% increase from the previous quarter but a substantial 21% growth year-over-year. Revenue declined to 700,223 million baht, representing a 3% drop quarter-over-quarter and a more significant 10% decrease year-over-year.

Detailed Financial Analysis

The significant improvement in PTT’s bottom line can be attributed to several factors, as illustrated in the following bridge analysis comparing Q4 2024 to Q1 2025 performance:

The company’s performance was driven by favorable commodity price trends across its key business segments. The following chart shows the upward movement in critical commodity prices that serve as key drivers for PTT’s operations:

Dubai crude oil prices averaged $82 per barrel in Q1 2025, representing a 4% increase quarter-over-quarter and a 5% year-over-year improvement. Similarly, the Pool (NASDAQ:POOL) Price increased by 5% quarter-over-quarter to 83.4 THB/MMBTU, while HDPE and PX prices rose by 1% and 3% quarter-over-quarter, respectively.

Breaking down PTT’s EBITDA by business segment provides further insight into the company’s performance drivers:

The gas business remained the largest contributor to PTT’s EBITDA, generating 16,440 million baht in Q1 2025, an 11% increase from the previous quarter. This improvement was supported by higher natural gas prices and volumes, as detailed in the following gas business drivers:

PTT’s trading business also delivered solid results, with an EBITDA of 2,639 million baht in Q1 2025 and a gross margin of 0.14 THB/Liter:

Financial Position and Cash Flow

PTT maintained a strong financial position in Q1 2025, with healthy balance sheet metrics and solid credit ratings. The company’s net debt-to-EBITDA ratio stood at 1.67, while the net debt-to-equity ratio was 0.37, both indicating a conservative financial approach.

The following chart illustrates PTT’s financial position as of March 31, 2025:

The company’s total assets reached 3,450,293 million baht, supported by strong credit ratings from major agencies: Baa1 from Moody’s and BBB+ from both S&P Global Ratings and Fitch Ratings.

PTT generated robust operating cash flow of 68,662 million baht in Q1 2025, while investing 27,659 million baht primarily in capital expenditures. The company’s financing activities resulted in a cash outflow of 36,646 million baht, largely due to loan repayments:

Forward-Looking Statements

Looking ahead, PTT appears well-positioned to benefit from the continued upward trend in commodity prices, particularly in crude oil and petrochemicals. The company’s diversified business model, spanning traditional hydrocarbon operations and newer sustainability initiatives, provides resilience against market volatility.

The strong cash flow generation and solid balance sheet give PTT ample flexibility to pursue growth opportunities while maintaining financial discipline. The company’s capital expenditure of 25,348 million baht in Q1 2025 indicates ongoing investment in future growth.

While revenue challenges persist, PTT’s ability to significantly improve profitability demonstrates effective cost management and operational optimization. Investors will likely focus on whether the company can sustain this earnings momentum in the coming quarters, particularly if commodity price trends remain favorable.

Full presentation:

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