PTT Global Chemical Public Co. Ltd.

This report does not constitute a rating action. Overview Key strengths Key risks Dominant market position in Thailand's petrochemical sector. Exposure to highly cyclical refining and petrochemical industry. Stable margins in olefin and polyolefin operations, backed by feedstock agreement with parent. Prospect of elevated investments over the longer term to achieve energy transition goals. Solid free cash flow through industry cycles. Wider refining and petrochemical spreads will expedite deleveraging for PTT Global Chemical Public Co. Ltd. (GC), if they persist. The conflict in the Middle East has led to a sudden drop in supply due to the temporary closure of various refining and petrochemical complexes. The situation remains fluid and the pace of reopening of these capacities alongside any resumption

...Wider refining and petrochemical spreads will expedite deleveraging for PTT Global Chemical Public Co. Ltd. (GC), if they persist. The conflict in the Middle East has led to a sudden drop in supply due to the temporary closure of various refining and petrochemical complexes. The situation remains fluid and the pace of reopening of these capacities alongside any resumption of trade flows in the Strait of Hormuz will have a huge bearing on refining and petrochemical spreads. Our base case assumes disruptions in the Strait of Hormuz will ease in the second half of the year, but with possible periodic interruptions and a slower, less complete recovery in flows than...

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