Thai Chemical Powerhouse Looks Ahead to Acquisitions
Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on PTT Global Chemical Public Company Limited.
Background
PTT Global Chemical Public Company Limited is a 49%-owned subsidiary of PTT PCL.
It is Thailand’s largest, fully-integrated petrochemical and chemical company operating in refinery, olefins and aromatics sectors, which account for 37%, 31% and 18% of the company’s revenue, respectively.
Business Description
PTTGC’s refinery business is a leading petroleum refiner in Thailand, supplying refined petroleum products such as LPG, a petrochemical input. Additionally, it sells cooking, transport fuel and middle distillates like jet fuel and diesel.
Its olefins business, which accounts 31% of its revenue, manufactures and distributes products using natural gas and naphtha as feedstocks. Olefins are used to produce fibers, wires, cables and plastics.
Its somewhat smaller aromatics business deals in chemicals used to make automotive parts, electronic parts, clothing and food packaging.
The remaining 14% of its revenue comes from its Green Chemicals, High Volume Specialties and other chemical-related businesses.
Parent company PTT has a total of six acquisitions expected to be finalized by the end of 2017, awaiting various shareholder approvals. If successful, PTTGC should add propylene and biochemical lines. Furthermore, the integration paves the way for adding downstream product lines.
Leadership
Chairman Prasert Bunsumpun has held the position of chairman since 2011. The Harvard-educated titan has also held the chairmanship for Thoresen Thai Agencies and Krung Thai Bank.
The company has gone through several chief executives in the last few years. President & CEO Supattanapong Punmeechaow has held the position since late 2014 and has thus far seemed to right the ship.
The company is ranked well among its peers in terms of Profitable Growth.
World Class Benchmarking
Profitable Growth has returned to #2 in 2017.
PTTGC ranked among the top 150 of 750 large Materials companies worldwide.
Profitability has improved to #2 in the last year, a slight upgrade. Growth has improved to #4 from #9 in 2014, a clear positive trend during Supattanapong’s tenure as CEO.
Asset utilization has remained in the top 40% for the last five years, but has trended in a negative direction recently. Profit margin has improved to #3.
Sales growth has improved but still remains poor, while Margin change has remained in the top 40% since 2015.
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