The broker evaluates the government’s adjustment to the gas price structure. To reduce electricity costs for the period January-April 2024, it will affect PTT’s operating results by approximately 20 billion baht per year. Highlighting the fact that there is another risk of government intervention. Most recently, PTT shares fell 2.19%, the highest volume in the market at almost 2 billion baht.
Commercial banks are expected to see profits reach 230 billion baht in 2023, benefiting from rising interest rates.
Potentially affecting PTT-PTTGC profits by tens of billions after the government ordered gas prices to be adjusted based on Pool Gas.
He informed Mr. Atthaphon Rerkpiboon, CEO and President of PTT Public Company Limited or PTT, Stock Exchange of Thailand. to the facts about the Cabinet Decision on 19 December 2023 regarding measures to reduce electricity costs. which will affect the operating results of PTT, which includes the adjustment of the natural gas price structure and the transmission of natural gas prices in the Gulf of Thailand In the event that the producer is unable to deliver gas Is able to meet the conditions of the gas purchase contract (Deficit )
By restructuring the price of gas. As a result, the cost of gas separation works Change from gas in the Gulf of Thailand is the average cost of gas from all sources, including the Gulf of Thailand, Myanmar and liquefied natural gas (LNG), which will affect the operating costs of the equipment business gas separation. that will increase, except for liquefied petroleum gas being used as fuel in the country
The above measures It is a short term measure until the gas price structure is officially determined. From the Energy Regulatory Commission (ERC), which, from the preliminary estimate of the impact during January – April 2024, will cause the overall performance of PTT’s gas business to decrease. Down about 6,500 million baht.
However, PTT has planned to find measures to reduce the effects, such as modifying the operation plan of the gas separation plant. Propose guidelines for sourcing LNG and will discuss with the Ministry of Energy the effects arising from the restructuring of gas prices in all aspects.
While in the deficit section, the Energy Regulatory Commission has ordered that PTT incorrectly calculated the price of Pool Gas and if PTT had taken the deficit from October 2020 – December 2022 with a total value of about 4,300 million baht to be calculated in the Reserve Gas price from PTT. It is believed that the Company has calculated the Pool Gas price correctly and in accordance with the decisions of the National Energy Policy Committee (NEPC) and related ERC publications. Including always complying with the gas purchase agreement.
PTT filed an appeal against the said order to the Energy Regulatory Commission, but it appears that the Energy Regulatory Commission has made a decision to reject PTT’s appeal and that the order must be complied with immediately If PTT does not agree with the decision, diagnosis You have the right to file a lawsuit with the administrative court. or submit a matter to the Office of the Attorney General According to the regulations of the Office of the Prime Minister regarding the determination of dispute resolution between government agencies and litigation, BE 2018, within 90 days from the date of being informed of the ERC’s decision.
On 12 January 2024, the PTT Board held a special meeting. A decision was made to approve PTT complies with the ERC’s appeal decision PTT will continue to consider procedures or the exercise of legal rights that are necessary and appropriate.
Asia Plus Securities It is said in the analysis that I believe that the new structure of the Energy Regulatory Commission should be based on what the government has in place. The Energy Regulatory Commission gives guidelines And has been implemented to reduce electricity bills for the period January-April 2024 by adjusting the gas price structure according to government measures, which will lead to the cost of the work gas separation. A change from gas in the Gulf of Thailand to the average cost of gas from all sources (Pool Gas), including the Gulf of Thailand, Myanmar and liquefied natural gas (LNG), which will affect the operating costs of the gas separation equipment Business which will increase And excluding liquefied petroleum gas used as fuel in the country.
This results in maintaining the forecast and PTT’s previously reduced underlying value. Under the principle of care And there is a chance that the government will continue to intervene in this way, so it is a risk that must be taken into account. In addition, the impact figure for 4 months was published at 6,500 million baht, which, if calculated annually, would be almost 20 billion baht according to the framework that the research department has revised down the annual estimate . However, PTT will plan to find measures to reduce the effects that occur.
PTT shares most recently closed on January 15, 2023, down 2.19% at 33.50 baht per share. Lowest in 2 months. Highest trading value in the market 1,988 million baht.
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