PTT: We can withstand US$20 oil

[webfact]

PTT: We Can Withstand $20 Oil
BY JACOB MASLOW



BANGKOK: -- PTT, the Thai national oil company, stated that it can withstand oil dropping to as low as $20 per barrel. Oil prices declined to $30.68 a barrel on Tuesday, after falling to a 12-year low the previous session. Many analysts, including Morgan Stanley, predict that oil could drop down to $20 a barrel in 2016.

According to Tevin Vongvanich, CEO and president of PTT, the company could survive at $30 a barrel. After conducting a stress test, the CEO also believes that PTT could also withstand oil falling to $20 a barrel for one to two years without having to seek out funding or stop oil production.

PTT CFO Wirat Uanarumit stated that the company remains financially stable. Its biggest issue is determining what to do with its ample liquidity, which now totals Bt300 billion.

Full story: http://ethailand.com/business-news/ptt-we-can-withstand-20-oil/1361/

-- eThailand 2016-01-14

[taiping]

As a shareholder in PTT I hope they are right.

[AyG]

Just as we read that analysts predict oil could fall to $10 per barrel - back to 1998 crisis levels.

http://citywire.co.uk/wealth-manager/news/bp-slashes-4000-jobs-as-analysts-warn-oil-could-fall-to-10/a873314

[weegee]

Oh no it Cant withstand $20 a barrel...

[lujanit]

One can only assume that PTT's cost of production is about $20 a barrel. If this is so then they have reaping unreal profits when the price was $100+ a barrel. Then again assume will make a ass of out you and me.

[Seismic]

I seriously doubt that PTT is producing Oil from any Thai fields for that low price, perhaps some of their acquisitions overseas. Even then I find it questionable.

[Srikcir]

Thailand's cost for drillling oil is irrelevant. Thailand is a NET OIL IMPORTER by a wide margin.

From the perspective of crude oil, PTT's ability to withstand oil dropping to as low as $10-20 per barrel is simply meaningless. But for crude oil exporting nations whose production costs exceed $10-11 per barrel (only three nations can produce at that cost), the current and declining world price for oil is a financial disaster.

Where Thailand is vulernable to dropping oil prices is in its EXPORT of oil-based products. Other than crude oil, the cost to manufacture oil-based products is largely fixed. Dropping oil prices can plunge profit margins to zero or in the red. PTT does manufacture refined oil products for export and that will be affected by $20 pbl oil prices.

[trogers]

Oh dear, what would happen when price becomes 19.99?

[mojorison]

Average price at the pump for one liter benzine in LOS 2014 was $1.29. In Australia it was $1.26 per liter. In Malaysia it was 60 something cents per liter. Thailand pump prices are ludicrous. They are unquestioned by the "electorate", and no doubt include massive "commissions" to certain "groups" within the "elite" classes. Inexcusable "accounting" methods to be sure. There you go. Thai People... please wake up. This hubris from PTT is disdainful. /RANT

[diehard60]

Well let's face you can afford it because of all the millions you made before

[slapout]

I wonder what background Mr. Tevin has, hands on in the oil sector? The key word ''withstand' leaves a lot of wiggle

room for him and really does not approach the cost of PTT oil at the wellhead.

In fact I am not sure what his point is in this statement. Guess that is why he has his job and others do not.

[AyG]

I wonder what background Mr. Tevin has

The problem here isn't Khun Tevin, but Jacob Maslow who is utterly clueless and absolutely no relevant background for writing business reports.

His (Maslow's) previous experience includes:

- Payroll Accountant at Young Adult Institute

- Owner at Liberty Scooters

- Franchise Owner at Snappy Auctions

- Marketing Director at Rainbow Appliance

- Marketing Consultant (Sprocket Staffing) at TABcom,LLC

- Consultant at Big Apples Supplies

- SEO Strategist at Allergy Be Gone / Today's Concept.

Source: http://jacobmaslow.brandyourself.com/

[ExpatOilWorker]

Just as we read that analysts predict oil could fall to $10 per barrel - back to 1998 crisis levels.

http://citywire.co.uk/wealth-manager/news/bp-slashes-4000-jobs-as-analysts-warn-oil-could-fall-to-10/a873314

$10????

Now I will not be able to sleep tonight. THANKS!

OPEC is having an extraordinary meeting in March, but this outfit is run by a Nigerian and all members usually never show up outside the usual get-togethers.

How could Matthew Simmons be so wrong in he "Twilight in the Desert" book?

[theguyfromanotherforum]

Just as we read that analysts predict oil could fall to $10 per barrel - back to 1998 crisis levels.

http://citywire.co.uk/wealth-manager/news/bp-slashes-4000-jobs-as-analysts-warn-oil-could-fall-to-10/a873314

Are these the same analysts that were predicting a peak oil that would never go below $100 just a few years back?

This is just another transfer of wealth.

Never trust these clowns. All it takes is another event and it could shoot right up.

There is no such thing as oversupply.

[CantSpell]

Rubber farmers not going to be happy...

[trogers]

Rubber farmers not going to be happy...

Why? When oil is that cheap, more tyres would be burnt..

[AyG]

Rubber farmers not going to be happy...

Not so sure. The government has just announced it's going to buy rubber at 45 baht a kilo whether it needs it or not.

[Chicog]

Irrespective of the falling oil price, refining margins have been very good this year. And PTT has more than a million BPD of refining capacity. The price can drop to $20 a barrel but, if margins stay good, it will be fine.

[Strangebrew]

Supply and demand is where it is at US demand has dropped People are using less, Also US has stated exporting LPG gas which is good news US oil companies are investing less in drilling for oil .Also US is moving more towards electrical vehicles and others forms of energy driven Power. In 10 years or less oil will go the way of the DODO bird. Open your eyes read what APPLE and TESLA are doing also GM and Ford motor company writing is on the wall folks. I was right about the Baht and I will be proven right about this. US took in the arse from OPEC now OPEC going to take it up the Wahzoo from the US Without any lube. If you read what I wrote you might think of investing in companies mentioned.