PTT PCL, Thailand’s state-controlled energy conglomerate, is seeking new partners to provide expertise and funding for some of its petrochemical and refinery units, according to chief executive officer Kongkrapan Intarajang.
PTT Global Chemical PCL, Thai Oil PCL and IRPC PCL are among the exchange-traded companies PTT is talking to potential investors about, he told a press briefing. Bringing in fresh ideas and capital will help PTT and its units, as there is currently fierce competition and difficult market conditions in industries such as chemicals and refining, he said.
While not giving names of potential investors or potential sale amounts, Kongkrapan said PTT would retain its controlling stakes. It directly owns 45% of each of Thai Oil, PTT Global Chemical and IRPC.
“We are in talks with several potential investors who are interested in taking stakes in subsidiaries to gain a gateway for expansion in Southeast Asia,” he said. “We will be quite careful about any new partners. They must have the technology and expertise that can add a lot of value.”
Thailand’s Ministry of Finance directly owns 51% of PTT, with additional shares held by state-controlled companies and funds. PTT itself is the second-largest company by value on the Stock Exchange of Thailand, with a market capitalisation of about 978 billion baht .
Shares of the parent company are down 4% is year, with refinery unit Thai Oil just behind at 5%. But PTT Global Chemical and IRPC have plunged 38% and 28%, respectively, compared to a 6% fall in the benchmark SET Index.
PTT will also divest unprofitable businesses and units in an effort to boost earnings, Kongkrapan said, without elaborating on specific companies. He took over as PTT’s CEO in May, after holding a similar position at PTT Global Chemical.
- Bloomberg
Created by Tan KW | Aug 20, 2024
Created by Tan KW | Aug 20, 2024
Created by Tan KW | Aug 20, 2024
Created by Tan KW | Aug 20, 2024
Created by Tan KW | Aug 20, 2024