Due to a sharp drop in oil prices and weak demand for petrochemicals amid the coronavirus outbreak, Thailand’s PTT Pcl said it planned to cut investment by up to 15 percent after booking quarterly losses.
Versus a profit of 29.3 billion baht in Q1 2019, the firm reported losses of 1.55 billion baht ($48.2 million) in Q1, its first loss in four years.
From $67.3 per barrel in Q4 2019, crude oil price plunged in Q1 2020 to $23.4 per barrel. As inventories build up globally, global oil demand has plummeted by about 30 percent.
Investments in 2020 would be reduced by 10 percent to 15 percent, PTT said. A drop in jet fuel demand affected the company’s petrochemical business. However, jet fuel production would be reduced by PTT. Refineries are expected to have a utilization rate of 90 percent to 100 percent for 2020. Oil and gas sales for the year are expected to be 7 percent lower than its previous forecast.
