Bulletin: PTT Global Chemical Public Co. Ltd.'s Track Toward Record Results Should Reduce Impact Of High Project Spend

SINGAPORE (S&P Global Ratings) Nov. 23, 2018--Higher production volume, efficiency gains, and favorable product spreads have put PTT Global Chemical Public Co. Ltd. (PTTGC; BBB/Stable/--) on course for record-high EBITDA in 2018. This strong performance should keep the company's leverage from deteriorating amid high spending on various projects in 2018-2020. In addition, we continue to expect the company's debt to gradually decline over the next two to three years, given positive discretionary cash flows. The Thailand-based company exceeded our expectations with EBITDA of Thai baht (THB) 49.1 billion for the first nine months of 2018. EBITDA rose 5% from the same period in 2017, excluding the impact from inventories. PTTGC's efficiency-enhancement program, Project Max, supported the performance. We expect PTTGC's

...SINGAPORE (S&P Global Ratings) Nov. 23, 2018--Higher production volume, efficiency gains, and favorable product spreads have put PTT Global Chemical Public Co. Ltd. (PTTGC; ###/Stable/--) on course for record-high EBITDA in 2018. This strong performance should keep the company's leverage from deteriorating amid high spending on various projects in 2018-2020. In addition, we continue to expect the company's debt to gradually decline over the next two to three years, given positive discretionary cash flows. The Thailand-based company exceeded our expectations with EBITDA of Thai baht (THB) 49.1 billion for the first nine months of 2018. EBITDA rose 5% from the same period in 2017, excluding the impact from inventories. PTTGC's efficiency-enhancement program, Project Max, supported the performance. We expect PTTGC's utilization rates to remain steady, at 95% at least across all business units, and this should continue to underpin EBITDA. Utilization rates at refinery, olefins, and polyethylene...

Bulletin