PTT well-armed to face risks, boost liquidity, says new CEO

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PTT well-armed to face risks, boost liquidity, says new CEO

By THE NATION

 

PTT CEO Auttapol Rerkpiboon

 

The oil and gas conglomerate PTT Plc has plenty of ammunition to help it deal with business risks and boost its liquidity, the group’s new president and chief executive officer Auttapol Rerkpiboon said on Friday (June 12).

 

 

He said PTT is ready to issue debentures worth Bt64 billion, of which Bt44 billion will be direct debentures while the remainder will be bills of exchange (B/E). This move is to boost the company’s liquidity and refinance existing debt which is nearing its due date. He added that the debentures will be issued as and when the company sees fit.

 

Auttapol also said that PTT has to be well prepared despite its strong financial status and liquidity. The Covid-19 outbreak and the global oil price war were two factors that affected its financial performance in the first quarter.

 

However, the CEO believes the situation will get better in the second half of the year thanks to the gradual easing of lockdown measures in many countries. He also doesn’t expect the global oil-price war to intensify, like it did in March and April, which resulted in a steep decline in the global price of crude oil.

 

Auttapol estimates the crude oil price will range at US$40 per barrel this year.

 

He also said that the lifting of curfew in Thailand from June 15 will renew the demand for oil and will also benefit PTT’s retail of non-oil products. However, he expects the sale of jet fuel to suffer a sharp decline this year.

 

He went on to say that PTT’s main mission is to maintain its strength in core businesses as well as to initiate new businesses for growth.

 

As for the impact the pandemic has had on the global economy, PTT has adjusted its operations to cope with the crisis by executing a cost-control policy of “decrease-discard-defer” to cut down on unnecessary activities, collaborate within the group for value-chain optimisation in order to manage price risks, demand, supply and inventory, as well as maintaining financial strength and stability.

 

Auttapol is serving a four-year term as the 10th president and CEO of PTT since May 13 this year.

 

Source: https://www.nationthailand.com/business/30389539

 

-- © Copyright The Nation Thailand 2020-06-13

 

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