Thailand’s PTT Global Chemical (PTTGC) registered a loss of THB7.1 billion ($227 million) in the first half of 2020 caused by a slowdown in global fuel consumption due to the COVID-19 pandemic. A year earlier, Thailand’s biggest petrochemical maker posted a net profit of THB8.6 billion. Revenue during the period fell from THB220 billion a year earlier to THB162 billion ($5.2 billion). For the second quarter, PTTGC’s revenue dropped to THB69.2 billion ($2.2 billion), from THB93 billion in the previous quarter.
PTTGC executive VP Duangkamol Settanung said the company operated its olefins and polymer production at a full utilisation rate but cannot offset the loss as spread prices between finished products and raw materials fell sharply amid weak global demand. Plunging jet fuel demand also prompted the company to produce diesel instead.
Despite the loss, PTTGC will maintain its plans to acquire new assets related to specialty polymer production. In July, the company acquired a 41.5% stake in Dyna Chisso Thai from Dynachem Hong Kong, a compound engineering plastic resins producer and distributor. The acquisition is part of PTTGC’s drive to improve competitiveness in Southeast Asia.
