Thailand's PTTGC Q2 net profit slumps 90% on lower prices

08 August 2012 03:27  [Source: ICIS news]

SINGAPORE (ICIS)--Thailand’s PTT Global Chemical posted a 90% drop in its second-quarter 2012 net profit to baht (Bt) 851m ($27m), partly weighed by softer demand and declining crude oil prices which led to lower polymer prices, the firm said late on Tuesday.

The company’s overall sales were up by 5% year on year at Bt139.2bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 57% to Bt6.71bn, the company said in a statement.

The overall plant utilisation rate at its olefins business was at 89% in the second quarter, up from 84% in the same period last year, as there were no shutdowns during the period, it added.

PTTGC also saw price decreases for its paraxylene (PX) and benzene products in April-June this year, the firm said.

“[The] price decrease was in respect to the weakening demand for intermediate and downstream derivative products from the economic crisis in Europe and economic slowdown in the US and China which resulted in high inventories among intermediate and downstream derivative producers and pressured those producers to lower their operating rates,” it added.

($1 = Bt31.5)

By: Nurluqman Suratman

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