National oil and gas conglomerate PTT Plc expects a better business performance in the latter half of 2024, thanks to an improving Thai economy and an increase in energy demand typical of year-end festivals and the tourism season.
People tend to travel more, while foreign tourist arrivals are expected to increase. Factories will also be busier producing more goods for sale, said Tanapon Prapapan, vice-president for investor relations at PTT.
Other factors contributing to economic growth in the remaining months of 2024 include the government's ongoing efforts to speed up budget spending.
The Bank of Thailand's Monetary Policy Committee (MPC) expects Thai GDP to continue growing in the second half of this year, tallying roughly 3% in the third quarter and 4% in the fourth quarter.
On Aug 19, the National Economic and Social Development Council reported GDP growth of 2.3% for the second quarter of 2024, consistent with the MPC's assessment.
Mr Tanapon said PTT's oil refinery business recorded a decline in the gross refinery margin (GRM) by 24% to US$4.7-5.7 per barrel, attributed to higher production capacity of diesel and gasoline.
GRM, the difference between prices of crude oil and refined oil, refers to costs added to the crude oil price during the refining process.
He said he expects higher demand for diesel and gasoline in the US and Europe during the tourism season later this year, easing the impact of PTT's surplus of refined oil.
In the petrochemical business, Mr Tanapon said PTT's sales of petrochemical products would remain sluggish because of increasing supplies in the global market.
PTT announced earlier the company needs to revisit its oil and non-oil businesses, including its electric vehicle (EV) businesses, to align with the evolving economic landscape and increasing competition.
The company's life science businesses remain strong, but in the EV segment the company has yet to conclude the direction of car assembly, battery manufacturing, and its role as a sales agent for Guangzhou-based Chinese EV maker Xpeng.
