Tear Sheet: PTT Global Chemical Public Co. Ltd.

PTT Global Chemical Public Co. Ltd.'s (GC) leverage will likely remain elevated for longer amid weaker profitability. We have revised downward our EBITDA expectations for GC by about 10% over 2024-2025 due to continued sluggish global demand for refined and petrochemical products. Without a surge in global demand, the industry would likely remain in excess supply. Geopolitical and trade risks uncertainties will also stay. That said, we expect GC?s profitability to modestly improve in 2025. Increased ethane flow from the group should lower feedstock cost and raise its olefin plants? utilization. We believe GC will have to depend more on inorganic measures to achieve its stated target of reducing reported debt to THB200 billion by the end of 2025. The

...November 14, 2024 Slow deleveraging. PTT Global Chemical Public Co. Ltd.'s (GC) leverage will likely remain elevated for longer amid weaker profitability. We have revised downward our EBITDA expectations for GC by about 10% over 2024-2025 due to continued sluggish global demand for refined and petrochemical products. Without a surge in global demand, the industry would likely remain in excess supply. Geopolitical and trade risks uncertainties will also stay. That said, we expect GC's profitability to modestly improve in 2025. Increased ethane flow from the group should lower feedstock cost and raise its olefin plants' utilization. Debt strain. We believe GC will have to depend more on inorganic measures to achieve its stated target of reducing reported debt to THB200 billion by the end of 2025. The company is already operating at lean levels of capital expenditure and has drastically cut dividend payouts. Reorganization plan. GC took on THB17.5 billion of non-cash impairments in the third...

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