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New UserPTT board to consider future |of firm’s coal business
24 May 2016
The PTT management will seek the board’s consideration this month on the future direction of its coal business, said chief executive officer Tevin Vongvanich.
The business now has a positive cash flow as the company was able to lower operating costs, he said without elaborating on its future.
Chief financial officer Wirat Uanarumit said the company was in no hurry to divest the coal business, as it still has a long-term future.
Earlier, the company was reportedly considering whether it should sell out the operation amid a sharp drop in global oil prices.
The coal business made a profit of around US$7 million (Bt250 million) in the first quarter of this year, down from about $23 million in the same period last year. PTT also operates coal-mining activities in Indonesia and Madagascar.
The current price of coal is around $50 per tonne versus an operating cost of around $30 per tonne, down from between $35 and $40 per tonne earlier.
Meanwhile, the company believes that the global oil price has bottomed out and is expected to hover between $35 and $40 per barrel (Dubai) this year compared with $30 in the first quarter this year and an average of $51 per barrel last year.
PTT posted a consolidated net profit of Bt23.669 billion in the first quarter, up 4.8 per cent over the same period last year. The company has also seen positive signs of less volatility in global oil prices.
Source:nationmultimedia