PTT chief dismisses allegations against largest, listed state firm

[webfact]

PTT chief dismisses allegations against largest, listed state firm
Pichaya Changsorn
The Nation


The CEO of energy giant PTT, Pailin Chuchottaworn, speaks to a press conference yesterday.

Airs warning against populist energy policy

BANGKOK: -- The chief executive of energy giant PTT, Pailin Chuchottaworn, yesterday called a press conference to deny several allegations against Thailand's largest state enterprise and publicly listed company - and warn against any plan to impose a populist energy policy.

The news conference was held after the National Council for Peace and Order's economic affairs head, Air Chief Marshal Prajin Chantong, last week reportedly ordered officials to complete a draft on energy structural reform this week "to address the high living expenses" of consumers.

Pailin said Thailand's energy policy hinged on two sides of an equation: a free market versus populist policy.

He is a director of PTT.

"Actually, the real meaning of 'reform' is to make things right, which means someone has to take some pains. It is not populism," he said.

The PTT chief reminded the public that before the deregulation of fuel prices executed by an unelected government in 1992, raising prices sometimes nearly resulted in the overthrow of a government.

"Unfortunately, an elected government changed a policy to cap the diesel price at Bt30 a litre, and since then nobody has dared touch it," Pailin added.

To reinstate price controls on fuel and liquefied petroleum gas (LPG) fully, "We would have to find a big budget, which we don't have. Many people may feel worried, like myself, that we are going back to populism."

Pailin said a populist energy policy could put the future of 67 million Thais at risk, because at current consumption rates the country's petroleum reserves would last for less than eight years - well below the international standard that calls for a minimum of 10 years.

"If you believe that we have oil that will last forever, then you can go for populism," he said.

Because of insufficient oil reserves, PTT has to drill for petroleum abroad, and that requires it to have sufficient profits to fund the huge capital investment requirements.

Pailin cited PTT Exploration and Production's recent deal in Mozambique, where it spent US$2 billion for an 8.5-per-cent stake in a petroleum block that has 65 trillion cubic feet of natural gas reserves.

To counter repeated attacks on PTT's business conduct, he said the company was looking at either spinning off its retail fuel business and listing it on the stock market or re-branding its products or something else.

He said the Oil Fund should be retained to help stabilise fuel prices and secure an additional oil reserve for the immediate future, although for the long run the country should consider establishing a strategic oil reserve. It should be a minimum of 90 days of the oil-consumption rate, using $10 billion out of the Bank of Thailand's $168 billion in foreign-exchange reserves.

He said that under an energy-reform programme, the interests of all Thais should be considered rather than only motorists or the 1.1 million consumers who drive LPG-fuelled vehicles.

He described as "totally groundless" an allegation that PTT was siphoning money through a "secret account" in the Cayman Islands, as well as a claim that he received a Bt4.7-million monthly salary. He said he received just over Bt1 million a month.

PTT booked a net profit of Bt94.65 billion on total sales revenue of Bt2.88 trillion last year.

-- The Nation 2014-06-10

[jaidam]

Did he give any updates on the Shin-Sen oil and gas deal that is alleged to cover a large area of the GOT?

I'm also wondering whether the Cayman govt will allow the Thai military junta to trawl through Pailin's offshore accounts. No, thought not, so his frantic denials are safe strategy for the time being.

[siampolee]

PTT chief dismisses allegations against largest, listed state firm

There may well be cause for speculation regarding why these comments were deemed necessary .

Perhaps the comments may be due to the fact that one of Thailand's ex leading wanna be political dynasty family has a rather large chunk of the company's stock.

[EricBerg]

Big news: PTT IS THAILAND'S FIRST CORRUPTION FREE STATE COMPANY!!!

Or isn't it?

[englishoak]

Ive heard some very unsavoury stories about PTT over the years. I try to avoid PTT stations whenever i can.

[thesetat2013]

Hard to believe that the director of the largest energy company in all thailand is only making a little more than the average foreign teacher.

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

[Oryx816]

Wasn't one of those Cayman trust accounts named "Ample Rich"? I think I read that in the NY Times some time back. Awkward name, but it gets the point across.

[terryp]

all energy profits should be capped under law to a max of 10%....if thats not enough then the business is flawed, these are natural resorces that belong to the people to start with

[MaxLee]

"PTT chief dismisses allegations against largest, listed state firm"

Yep, but you've got other problems ahead,...Iike "Why did your oil spill into the ocean?"

[mca]

Hard to believe that the director of the largest energy company in all thailand is only making a little more than the average foreign teacher.

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

I'd like some of that foreign teaching action then!

[chainarong]

The PTT chief's comment "we would need a large budget" is indeed correct , Thaskin tried to peg fuel prices and the treasury coffers simply flew out the window , to stem the blood flow, he close the service stations 6pm to 6am, then had to revert back to normal pricing, trucking and bus companies then went to the wall, on the price increases back to parity pricing , long term expats will remember this little bit of vote buying popular policy's..

[shirtless]

I am sure he is telling the truth, as he has such an honest face.

[Chao Lao Beach]

To reinstate price controls on fuel and liquefied petroleum gas (LPG) fully, "We would have to find a big budget, which we don't have. Many people may feel worried, like myself, that we are going back to populism."

Anyone else think of Rice when hearing this ?????

[JesseFrank]

Many people may feel worried, like myself, that we are going back to populism."

Don't worry mate, your best friend Thaksin is gone and forgotten, so no risk to go back to populism which has ended just 17 days ago.

Wonder how long more it will take till you are removed actually.

[moe666]

Hard to believe that the director of the largest energy company in all thailand is only making a little more than the average foreign teacher.

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

What teacher do you know makes 30,000dollars a month

[Chris Lawrence]

PTT chief dismisses allegations against largest, listed state firm

There may well be cause for speculation regarding why these comments were deemed necessary .

Perhaps the comments may be due to the fact that one of Thailand's ex leading wanna be political dynasty family has a rather large chunk of the company's stock.

No. Name No. of Shares % of Total Shares 1 MINISTRY OF FINANCE 1 51.49 2 VAYUPAK FUND 1 BY MFC ASSET MANAGEMENT PLC. 217,900,000 7.70 3 VAYUPAK FUND 1 BY KRUNG THAI ASSET MANAGEMENT PLC.. 217,900,000 7.70 4 THAI NVDR CO., LTD. 60,673,152 2.14 5 STATE STREET BANK AND TRUST COMPANY 57,302,341 2.02 6 CHASE NOMINEES LIMITED 42 50,289,800 1.78 7 HSBC (SINGAPORE) NOMINEES PTE LTD. 50,042,615 1.77 8 NORTRUST NOMINEES LTD. 46,881,245 1.66 9 MELLON BANK, N.A. 26,854,435 .95 10 SOCIAL SECURITY OFFICE 25,360,400 .90 11 THE BANK OF NEW YORK (NOMINEES) LIMITED 16,205,856 .57 12 HSBC BANK PLC-CLIENTS GENERAL A/C 14,476,800 .51 13 GOVERNMENT PENSION FUND 14,072,350 .50 14 GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION C 12,539,300 .44 15 NORBAX INC.,13 10,871,540 .38

Thats the top 15.

The Admiral is on the Board of Directors?

Sounds very bold statement by PTT boss?

http://www3.pttplc.com/en/investor-relations-shareholder-capital-data-shareholder-structure.aspx

The table didn't turn out so I put the web page in.

Edited June 10, 2014 by Chris Lawrence

[Soutpeel]

Ive heard some very unsavoury stories about PTT over the years. I try to avoid PTT stations whenever i can.

Well you had better stop using your electricity as well then, as some your power comes from PTT supplied natural gas...

[Soutpeel]

Hard to believe that the director of the largest energy company in all thailand is only making a little more than the average foreign teacher.

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

I'd like some of that foreign teaching action then!

Obviously you wouldn't qualify for such a salary as a "teacher" cos ya can't read......which schools pay USD 30k/m for a scabby little runt in polyester work shirt and unpolished shoes ?

[Chris Lawrence]

Just on PTT web site looking at the Annual Report, its dated 2008? What happened to 2009, 2010, 2011,2012 and maybe 2013? Now thats a crime? The board and management team are also diiferent. Does the armed services got to have a seat on this board?

The fact that they are not accounting on their web page by showing information that needs to be up to date is very strange?

I know if you looked at a company here in Oz with that type of info on their home page, hard to think why one would invest in a company that seems to show contempt to the market place?

[lomatopo]

Random reflections:

nearly everything here is subsidized save rainbows, unicorns and snow; the Junta has ordered a price freeze on many/most items for six months, but this is not a populist policy of course.

petrol/cooking oil/gas has been subsidized for eons; likely coal/wood/kindling were subsidized previously.

the PTT board is littered with Military types, including current Economy supremo Air Chief Marshal Prajin Chantong .

and, it is the Junta ordering PTT to "to address the high living expenses" of consumers.

Air Chief Marshal Prajin Chantong, last week reportedly ordered officials to complete a draft on energy structural reform this week "to address the high living expenses" of consumers.

[mca]

Hard to believe that the director of the largest energy company in all thailand is only making a little more than the average foreign teacher.

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

I'd like some of that foreign teaching action then!

Obviously you wouldn't qualify for such a salary as a "teacher" cos ya can't read......which schools pay USD 30k/m for a scabby little runt in polyester work shirt and unpolished shoes ?

My point exactly....

[Estrada]

I did business with PTT in 1994 when the Democrats were in Power. It was very corrupt then and my Thai Chinese CEO refused to pay an "Incentive". Because I was foreigner the Manager quite openly explained the corruption within PTT and told me that the Minister and the head of PTT insisted on payment of incentives to place an order or let a contract. Those that think that corruption has got worse are dreaming, Since 1932 when Thailand became a Democracy, the Military directly, or by a party appointed Military officer wearing a suit, has run the Government for all but 11 years. In those years I see no change in the level of corruption under military or the brief civilian controlled government rule of 20-40%. Research into corruption was carried out by Chulalongkorn University between 1960 and 1990 which confirmed these figures, which are still the going rate. It would be nice to think that there would be an end to corruption on this scale, but I very much reserve my judgement based on previous history.

[Chris Lawrence]

Did he give any updates on the Shin-Sen oil and gas deal that is alleged to cover a large area of the GOT?

I'm also wondering whether the Cayman govt will allow the Thai military junta to trawl through Pailin's offshore accounts. No, thought not, so his frantic denials are safe strategy for the time being.

Pailin won't be investergated. This company sounds like an elitis club of old boys. The Admiral is steering the ship.

Jai what do you mean Shin-Sen oil deal?

[Baerboxer]

Hard to believe that the director of the largest energy company in all thailand is only making a little more than the average foreign teacher.

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

I'd like some of that foreign teaching action then!

Obviously you wouldn't qualify for such a salary as a "teacher" cos ya can't read......which schools pay USD 30k/m for a scabby little runt in polyester work shirt and unpolished shoes ?

PTT's CEO says he earns over 1m ThB per month (wonder what he really means by 'over"?).

TS2013 conpare that salary to that of the average foreign teacher. Must be joking, no one would pay that.

MCA makes another joke.

Your post - ??? Maybe you need to chill and read more slowly

[Deez]

Hard to believe that the director of the largest energy company in all thailand is only making a little more than the average foreign teacher.

Sent from my GT-S5310 using Thaivisa Connect Thailand mobile app

Foreign teachers make 1 million baht /month? Where do I sign up for that

[Morch]

Ive heard some very unsavoury stories about PTT over the years. I try to avoid PTT stations whenever i can.

Well you had better stop using your electricity as well then, as some your power comes from PTT supplied natural gas...

Not sure one can opt out of that.

When it comes to filling the tank in the car, yes - we do try to avoid PTT.

Not necessarily to do with corruption (guess all big gas/oil companies do their bit there), more to do with quality of product.

Could be wrong, but cars seem to run better with other brands.

[Soutpeel]

Ive heard some very unsavoury stories about PTT over the years. I try to avoid PTT stations whenever i can.

Well you had better stop using your electricity as well then, as some your power comes from PTT supplied natural gas...

Not sure one can opt out of that.

When it comes to filling the tank in the car, yes - we do try to avoid PTT.

Not necessarily to do with corruption (guess all big gas/oil companies do their bit there), more to do with quality of product.

Could be wrong, but cars seem to run better with other brands.

Hate to burst your bubble as regards "quality" of product irrespective of who you buy it off its basically the same product just rebranded

[JesseFrank]

Ive heard some very unsavoury stories about PTT over the years. I try to avoid PTT stations whenever i can.

Well you had better stop using your electricity as well then, as some your power comes from PTT supplied natural gas...

Not sure one can opt out of that.

When it comes to filling the tank in the car, yes - we do try to avoid PTT.

Not necessarily to do with corruption (guess all big gas/oil companies do their bit there), more to do with quality of product.

Could be wrong, but cars seem to run better with other brands.

Hate to burst your bubble as regards "quality" of product irrespective of who you buy it off its basically the same product just rebranded

You don't believe that yourself, do you ?

[Soutpeel]

Ive heard some very unsavoury stories about PTT over the years. I try to avoid PTT stations whenever i can.

Well you had better stop using your electricity as well then, as some your power comes from PTT supplied natural gas...

Not sure one can opt out of that.

When it comes to filling the tank in the car, yes - we do try to avoid PTT.

Not necessarily to do with corruption (guess all big gas/oil companies do their bit there), more to do with quality of product.

Could be wrong, but cars seem to run better with other brands.

Hate to burst your bubble as regards "quality" of product irrespective of who you buy it off its basically the same product just rebranded

You don't believe that yourself, do you ?

Yes because I am in the business

[Thaddeus]

Ive heard some very unsavoury stories about PTT over the years. I try to avoid PTT stations whenever i can.

Well you had better stop using your electricity as well then, as some your power comes from PTT supplied natural gas...

Not sure one can opt out of that.

When it comes to filling the tank in the car, yes - we do try to avoid PTT.

Not necessarily to do with corruption (guess all big gas/oil companies do their bit there), more to do with quality of product.

Could be wrong, but cars seem to run better with other brands.

Hate to burst your bubble as regards "quality" of product irrespective of who you buy it off its basically the same product just rebranded

Like Thai beer.