Street Calls of the Week
Introduction & Market Context
PTT Oil and Retail Business PCL (OR) revealed a significant decline in financial performance during its Q2 2025 analyst meeting held on August 15, 2025. The company faced headwinds from Thailand’s economic slowdown, with the country’s GDP growth forecast for 2025 revised downward to 1.3-2.3%, alongside challenges from global geopolitical tensions and ongoing energy transition pressures.
Despite these challenges, PTTOR maintains a strong market position with a 40.1% share of Thailand’s oil market and is actively pursuing diversification strategies to offset weaknesses in its core mobility business.
Quarterly Performance Highlights
PTTOR reported substantial quarter-over-quarter declines across key financial metrics for Q2 2025. Total revenue decreased by 8.4% QoQ and 9.1% YoY, while EBITDA fell by 29.8% QoQ. Most notably, net profit plummeted by 49% compared to the previous quarter.
As shown in the following revenue breakdown:
The mobility segment, which remains PTTOR’s core business, was particularly affected with a 9% QoQ revenue decline to 150,656 million baht. The global business segment also suffered, with revenue dropping 9.9% QoQ to 13,060 million baht. The lifestyle segment provided the only bright spot, showing 7.1% QoQ growth to 6,333 million baht.
EBITDA performance reflected similar trends across segments:
The mobility segment’s EBITDA fell dramatically by 41% QoQ to 2,448 million baht, while the global segment saw a 25.8% QoQ decline to 438 million baht. The lifestyle segment again demonstrated resilience with a modest 2.7% QoQ EBITDA increase to 1,815 million baht.
Segment Analysis
The mobility business, which includes PTT Stations and EV charging infrastructure, faced volume challenges with sales volume declining 4.9% QoQ. However, PTTOR continues to expand its infrastructure, adding two new PTT Stations in Thailand during the quarter, bringing the total to 2,348 stations nationwide.
The company’s EV charging network has grown significantly, with 2,576 total DC connectors across 1,285 locations, positioning PTTOR well for the ongoing energy transition despite current pressures on the traditional fuel business.
The lifestyle segment, anchored by Cafe Amazon, showed encouraging growth with 40 new stores opened during the quarter and a 2.9% QoQ increase in cups sold. This segment now comprises 4,547 Cafe Amazon outlets and 2,357 convenience stores, demonstrating PTTOR’s successful diversification beyond its traditional fuel business.
PTTOR’s global business continues to expand, particularly in Southeast Asia, with additions across all three core brands:
The company added 5 PTT Stations internationally (bringing totals to 191 in Cambodia, 170 in Philippines, and 59 in Laos), 6 new Cafe Amazon outlets, and 7 new Jiffy convenience stores. International sales volume increased 16.4% YoY, highlighting the growth potential in regional markets despite the quarterly revenue decline.
Strategic Initiatives
Facing challenges in its core business, PTTOR is accelerating its strategic transformation with six key initiatives for 2025-2030:
Digital transformation stands at the forefront of PTTOR’s strategy, with six digital themes (6Ds) aimed at enhancing customer experiences, optimizing operations, and creating new revenue streams. These include digital customer landscape analysis, intelligent site/outlet development, digital channels and loyalty programs, digital supply chain optimization, cloud infrastructure modernization, and diversification into new digital revenue streams.
The company is also strengthening its core business through brand building while simultaneously expanding its retail ecosystem through strategic partnerships across retail spaces, F&B, health and wellness, and hospitality sectors:
Recent initiatives include the launch of the blueplus+ application, designed to become the digital hub of PTTOR’s business ecosystem, and the introduction of Selected Cup premium coffee to elevate Cafe Amazon’s position in the premium coffee market.
Forward Outlook & Strategic Challenges
PTTOR faces several significant challenges as outlined in its presentation:
The company must navigate geopolitical uncertainties, potential reciprocal tariffs affecting global trade, Thailand’s GDP growth slowdown, and the ongoing energy transition that impacts its core fuel business.
For 2025, PTTOR operates within a challenging economic environment with Thailand’s GDP growth projected at just 1.3-2.3%, inflation at 0.2-0.5%, and Dubai oil prices expected to range from $66-80 per barrel.
Financial Position
Despite performance challenges, PTTOR maintains a strong financial foundation with current cash of 47,263 million baht and negative net debt ratios (NET IBD/EQUITY of -0.2 and NET IBD/EBITDA of -1.0), providing financial flexibility to weather current challenges and fund strategic initiatives.
The company’s first-half 2025 performance shows cumulative sales revenue of 349,588 million baht, EBITDA of 11,036 million baht, and net income of 6,611 million baht. Daily traffic visitors to PTTOR’s various retail touchpoints remain strong at 3.9 million.
PTTOR’s stock price has remained relatively stable despite the quarterly performance decline, trading at 13.9 baht with a recent change of +0.1 (+0.72%). The stock has traded between 10.1 and 17.1 baht over the past 52 weeks, suggesting investors are taking a measured view of the company’s long-term prospects despite short-term challenges.
As PTTOR navigates this challenging period, its diversification strategy, strong balance sheet, and ongoing investments in future growth areas position the company to potentially emerge stronger when economic conditions improve, though near-term pressures on performance are likely to persist.
Full presentation:
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