Introduction
PTT Public Company Limited (PTT PLC), formerly known as the Petroleum Authority of Thailand, is the national oil and gas company of Thailand. Founded as a state owned enterprise in 1979, PTT is one of the country’s oldest and largest companies, with over $50 billion in annual revenues. PTT is the largest holder of hydrocarbon reserves in Thailand. It has long been the government’s strongest commercial interest and a major employer, with over 70,000 employees. In 2019, PTT was the world’s 40th largest energy company by market capitalization and one of the world’s largest public companies.
History
The predecessor of PTT was established in 1979 as the Petroleum Authority of Thailand (PTT). The company was created as a state owned enterprise in order to facilitate the exploration and production of oil and gas in Thailand. Through the 1980s, PTT grew rapidly as the country developed a larger and more sophisticated oil and gas industry. In 1995, PTT restructured itself as a publically listed company, the Petroleum Authority of Thailand Public Company Limited (PTT PLC). In 2006, PTT expanded its operations further when it acquired several Thai energy firms, making it one of the largest petroleum companies in Thailand.
Business Model
PTT is a vertically integrated energy firm. It is engaged in the exploration, production, transportation, refining and marketing of oil, natural gas and other petrochemical products. It is also involved in power generation, petrochemical production and a wide range of other related activities. Its business activities are divided into five main business segments – Exploration and Production, Refining and Supply, Marketing, Petrochemicals and Services.
PTT has an extensive network of operations in Thailand, Indonesia and other parts of Southeast Asia. It owns and operates oil and gas fields in Thailand, Indonesia, Vietnam, Myanmar, Lao People’s Democratic Republic and Cambodia. It also has refining and supply businesses in Thailand and Vietnam and a petrochemical production facility in Thailand.
Financial Performance
PTT has consistently recorded solid financial performance in recent years. In 2019, the company reported total revenue of THB 524 billion, a 3.2% increase from the previous year. This was driven by higher revenue from its Exploration and Production business segment as well as from its Petrochemical and Service business segments. At the same time, its operating profit increased by 4.4% to THB 44.4 billion, primarily due to improved margins in its Refining and Supply business segment.
Conclusion
PTT Public Company Limited is the national oil and gas company of Thailand and one of the largest companies in the country. The company is a vertically integrated energy firm engaged in a wide range of activities, including exploration and production, refining and supply, marketing, petrochemical production and services. PTT has recorded solid financial performance in recent years and is well-positioned to capitalize on the increasing demand for energy in the region.
