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Here you can find the most frequently asked questions to about PTT Investor Relation.

1. PTT Public Co. Ltd. (PTT) Revenue Sources

Part 1. PTT-controlled and-operated business

  • Natural Gas Business
    PTT natural gas activity ranges from supply procurement, transportation, gas processing, distribution of natural gas for vehicles via service stations. The procurement of natural gas derives from indigenous and neighboring countries as well as importation liquefied natural gas (LNG).
  • Oil Business
    PTT Oil Business sector not only distributes petroleum products, e.g. vehicle fuels, liquefied petroleum gas (LPG), lubricating oils, etc. but also provide supplementary services and operate oil terminals via its production terminals. This sector is also actively engaged in domestic and oversea-oil related enterprise, e.g. retail, lube oil blending, bottling operations, and aviation fuel services.
  • International Trading Business
    PTT trading business sector involves supply procurement and international trade of crude oil, condensate, petroleum products, petrochemical products, and logistical services of international, asset-based transportation vessels and carriers for PTT group. This sector is also tasked with seeking out various opportunities for trading, physical swap, entering into the forward and future market and hedging transaction in order to stabilize price fluctuation.

Part 2 Investment Business through Group of Companies

  • Petroleum Exploration and Production
    This upstream activity involves domestic and oversea exploration and production with additional investments in related value-chain businesses undertaken by its subsidiary PTT Exploration and Production Plc. (PTTEP) for the procurement of both liquid and natural gas at competitive prices to achieve more sustainable national energy security
  • Petrochemical
    PTT downstream activity includes petrochemical production via investment in PTT Chemical PLC (PTTCH) and other subsidiaries which includes but is not limited to the processing, distribution and marketing of assorted upstream/intermediate/and polymer products, marketing and distribution of polymers both domestic and overseas, integrated logistical services, and the supply of related public utilities.
  • Refineries
    PTT involves in oil refinement and the aromatics petrochemical business as well as olefins, which rely on refined products as feedstock, and is circumscribed to activity via five key affiliates TOP, PTTAR, IRPC, BCP and SPRC.
  • International Investment
    Through PTT International Co., Ltd., PTT is making great strides to achieve more sustainable national energy security and expand its value chain through the investment of both new and alternative energy opportunities afield, e.g. coal mining in Indonesia, a gas transmission project from Egypt to Israel, a hydro-power plant project in Laos, etc. Moreover, there is an investment in oil palm plantations in Indonesia via PTT Green Energy Co., Ltd.
2. Does PTT have a monopoly in natural gas transmission?
Amerada Hess (Thailand), Exxon Mobil Exploration and Production Company Limited, Korat Inc., Chevron Group, and PTT Public Company Limited each have an invested stake in onshore and offshore gas transmission pipeline (GTM) throughout Thailand. Any investment in GTM by private or public entities is possible with explicit permission from the Energy Regulatory Commission of Thailand Investment; however, due to high expenditures in both construction and operation, stringent rules and regulations, and regulated tariffs in compliance with the Energy Industry Act, B.E. 2550 (2007), GTM is perhaps limited to a short list of operators.
3. How has the usage of natural gas resulted in lower electricity costs for Thai citizens?
Natural gas is one of the least expensive forms of energy available. The natural gas pricing structure in power generation is regulated by the Energy Policy and Planning Office, determined by an aggregate of cost per unit, supply and marketing margins, and transmission pipeline tariffs. The cost of natural gas while linked to that of fuel oil and economic indices pertaining to gas and oil, generally amounts to only 50%-60% of actual retail fuel oil prices when used in power generation. Despite global upward trends in oil prices, power generation through the utilization of natural gas remains relatively unaffected, yielding much lower electricity costs to the customer.
4. Why does Thailand use Singapore oil prices as a reference?
As the center of Asian oil market, with more than 300 oil companies, Singaporean oil prices are the appropriate price reference for Asia. Since Singapore is largest oil exporter in Asia which is the nearest to Thailand. Import prices of finished products from Singapore are the competitive prices for Thai refineries to benchmark. Moreover, price movements in Singaporean market follow other major markets, with less volatility. These reasons lead to the fact that Singaporean oil prices reflect Asian oil demand and supply more efficiently. What if Thailand sets lower oil prices compared to those of Singapore? Such a development would most likely incite Thai refiners to export their oil which would, in turn, result in insufficient domestic oil supply.
5. What is the structure of retailing refined-product prices?

A retail price is mainly determined base on Singapore prices; however the oil price structure is another key factor, leading to different retailing prices among nations. In Thailand, 50-65% of the retail price is ex-refinery (excluding freight), another 30-45% dedicated to excise/ municipal taxes and oil fund subsidies, and the marketing margin the remaining 5%.

According to the oil price structure mentioned above, an increase in taxes and oil funding collection will raise retailing price level. In extent, taxes and oil fund consist of excise tax, municipal tax, VAT, oil fund, and energy conservation promotion fund. (http://www.eppo.go.th/petro/price/index.html)

6. Do petrochemicals drive economic value-added in Thailand?
Absolutely, Gas acquired from the Gulf of Thailand now creates a myriad of value-added petrochemical products in a wide variety of industry for a wide variety of purposes, e.g. packaging, textile, automotive, electronics, construction, agriculture, etc. Our primary focus at present is on supply chain optimization, group development, and commercial coordination to leverage the nation's competitiveness.
7.What is PTT's dividend policy?

Our dividend policy is to maintain a dividend payout ratio of no less than 25 % of net profit. This dividend payout ratio is nonetheless subject to the Company's investment plans and other appropriations. Over past 10 years, the average payout ratio has been approximately 30% - 44%.

8.Tax credit for PTT dividends utilizing different corporate income tax rates?

Any taxpayer, who received dividend income under section 40 (4) (b) of the Revenue Code from PTT received a tax credit for dividends under Section 47 of the Revenue Code, which is detailed as follows:

Tax Credit=
PTT' s Corporate Income Tax Rate
X Dividends Received before tax
100-PTT' s Corporate Income Tax Rate

Note: PTT makes corporate income tax rates explicit in withholding tax statements

9. What is the difference between a common share and an NVDR?
The NVDR (Non-Voting Depository Receipt) instrument is a security in place to stimulate trading activity within the Thai Stock Exchange (SET). Through investments in NVDRs, the shareholder enjoys equal financial benefits, i.e. dividends, right issues, or warrants, as ordinary shareholders or those who invest directly into the Company's common shares. As the name should suggest, however, the NVDR shareholder is without voting rights and is no way involved in Company decision-making, therein the underlying difference between the two.