PTT Public Company Limited (PTT) Earnings Call Transcript & Summary

Good morning, dear analysts, executives. On behalf of Investor Relations, I'd like to welcome you to the analyst meeting for year-end 2019. As always, we will ask our top executives to give you the overview. And towards the end, we are going to have a Q&A session, and we also take questions, queries via Facebook. I believe you have a lot of queries and points. To share first, I'd like to welcome on Khun Atikom, the Chief Operating Officer; and Khun Pannalin Mahawongtikul, Chief Financial Officer; and Khun Chansin Treenuchagron, CEO. So I will hand over the briefing to the top 3 executives.

Good morning, analysts, investors. We get a little bit closer today as we are here to share the year-end performance of 2019. Khun Atikom, who is in charge of upstream businesses, he will have a lot to update you in terms of upstream businesses, and CFOs will talk results, results from our operations and practices. And this morning, I would like to introduce Khun Auttapol Rerkpiboon. He is going to be the tenth CEO of PTT Group. Now he is supervising downstream, which are refineries petrochemicals and oil. Do you want me to click the slides myself or you will do it for me? I will do it. We have 4 items on the agenda, which is quite extensive and which plenty of information to share, starting with the awards and achievements. We -- well, in doing business, similar to ESG, environmental, social and governance considerations, we have been brainstorming from the Board level, top executives, management, staff, operational staff, top-down and bottom-up, and we a take year-long view and we place people at the center, our stakeholders. We emphasize our own people especially in education and sports. We want Thailand to be science and technology-driven. We built schools, VISTEC is an R&D university that is ranked first in major indexes. In a number of specializations we cover. We are also ranked third amongst ASEAN. And we are ranked 12 up and coming stars amongst institutions less than 30 years old. We are quite relatively new. In addition, we -- the PTT Group reaffirm our support in science and tech education. We provide full scholarships. We have IRPC technical college to provide vocational bilingual graduates. And also, we give scholarship to CLMV, where we invest for the students to study here as well as strengthening our operations in these countries. So those were what we have done and not doing it alone, it's a collaboration group-wide. And we focus on youth development as well, upscaling them. We do not aim at Olympics achievements, we work with the youngest 3 to 5 until 10 and whether they go as far as Olympics or not, doesn't matter. For example, swimming, we have a lot of accidents in rural Thailand. So we want to equip young people with at least basic swimming skill, and we aim at discipline. If we get 1 out of 100, we would be very happy. So swimming, football and various sports types. And the upper left, we do football camps for EEC. It's school recreation. Next is community-based energy. We've actually been working since the time of Khun Tevin as CEO. And the much-disputed waste from pig farms, we turn them into energy, so now villagers no longer have to buy LPG. They make materials, fertilizations out of materials around the farm, and we are upscaling it. And many households are making savings income as well as reduction of greenhouse gas is achieved. We have been awarded the ASEAN Energy Award. These aspects, we are driving towards the government's community-based energy policy. And solar, in the past, solar panels are based on the ground. Now we bring them to the water surfaces in 6 -- actually 7 pilot sites and 6 more in the pipeline. These will be models for the communities with solar biogas. These are community-based. So we are piloting a variety of models. And we empower the community as well as utilizing the result into energy. Now community-based enterprise. We received excellent cooperation, Khun Auttapol -- from Khun Auttapol in selecting producers from the north. And we are expanding to Chumphon as well as to the 3 southern border provinces for coffee plantation to -- this will connect our business with the communities for peaceful coexistence as well as generating economic growth. So that's about people. Next is about the planet. There are 3 themes that we pursue first. Reforestation. We are confident that trees are the solutions to global warming to sequestration of dust pollutants, oxygen generation, water resource conservation. So we have forest, wildlife, flora and fauna. We have been doing this for nearly 3 decades or actually 25 years. And in the meantime, we have been planting trees in urban centers in Wang Chan. All these are consistent. In order to plant the forest, in Thai people's heart, the fact that Thailand has experienced succession of droughts and floods because of deforestation. And so these 3 undertakings have drawn more than 1 million visitors. And we have been able to instill the green conscience amongst the younger generation. These are the FPT 49. This is not oil or gas pipeline, it actually stands for forest planting tracks. And the King -- and the current King used to plant this wild tree, which has grown to a big canopy on the left-hand side, so 20 years onward. So we carried on. We sustained development of these sites, and they have been turned into cycling track. And we -- so this has resulted in CO2 sequestration, 1.0003 million ton CO equivalent. Again, this is a long-term effort to green people's heart and awareness. We partnered with the Bangkok Metropolitan Administration. We aim to raise awareness and change people's behaviors. We are in charge of the areas within the vicinity. And Phahon Yothin, where all the cables have been taken underground, and we are looking after greening those urban areas. This is Khung Bang Kachao. This is a megaproject. PTT Group, as a group were originally EP and later Chaipattana Foundation brought together 40 organizations, and we've been tasked with tree planting, given our expertise. We have planted to date 400 rai. And this coming year, the aim is to add another 600. If you've been to Khung Bang Kachao lately, you will see the sites for 6 sustainability. So for waste management, lots of plastic waste. TDC has been in to help with upcycling. And when it comes to community livelihood central group joined over education, ThaiBev. And for communications, it's True Group. So large corporations joined hand in the 6 thematic works, working with the community. All these are meant to keep the so-called the lung of Bangkok. The King used to cycle from the equestrian statue all the way to Khung Bang Kachao. This is a major social cooperation, in which we are proud to be part of. Now air. We persevered in R&D. PTT and -- together, we enhanced the share of 7% to 10% for B100, and we tested in 20% of public transport system. We did it at our Wang Noi lab, and it has shown to reduce PM2.5 by 4%. And NGV, replacement of diesel can bring down the pollution by 98%. So tomorrow, if you -- well, PM2.5 will be exacerbated by use of fossil fuel. So for over 40 years, we have been making efforts to increase the share of natural gas. So I have covered people and planet first in order to impress upon you what PTT Group has been doing. Next is prosperity, which has to do with governance and how we run the business. So in the last 20 months or so, we have implemented change, continuity, improvement. We build upon what we have, refineries, gas operation plants, gas pipelines, and the network of petro stations, Amazon coffee and achieve excellence in every strand of the business. So we continue to improve all business lines. Anything that is not energy efficient, we try to improve the processes and debottleneck and stuff in order to achieve savings and efficiency. And second aspect is honesty. Everybody must be transparent, accountable. And alignment, we need to align upstream to downstream businesses undertakings and we need new innovation. Same old fossil fuel mentality is no longer tenable. And everything we do, if we have to pay tax royalties, whatever, we pay. We do not -- for example, people blame us for not returning the gas pipeline. That's incorrect. We have been following good governance. We have done things by the book. And people move the organization. People move and drive the organization. The entire workforce must be able to work together into general harmony as well as different competencies, must be able to work together. So that's my work for the last 20 months. And different rewards, we cannot just congratulate ourselves, but we've been recognized by SET Award as the best sustainability. We've been doing that for the last 20 years as well as Best IR awards. We have kept excellent relationship with institutional investors. And next is the royal award. I myself received the TMA award for management leadership, marketing, sustainability, HR management. And we are also awarded 8 out of 10 state-owned enterprises award. We missed the ninth award because I served only 20 months, less than 3 years. So we have managed to sweep virtually all categories we are qualified for. And next is the achievement I like to share. Business achievement starting with gas. Normally, the peak used to be 4.7 billion. But last year, the peak gas demand stood at 5 billion, 5.8 billion, which means we have such capacity, and we can accommodate even more. Upon the completion of the second and third LNG terminal and the additional pipeline, so this we can -- this will help us achieve the clean energy target for the country. And secondly, we incorporated a joint venture with the world-class U.S. company called Map Ta Phut Air Products. We separate -- and we turned them into products to be sold to industry users. This is under construction. And for productivity improvement, we are very, very proud that our gas separation plants were able to apply AI data analytics to do predictive maintenance. As a result, we managed to prevent unplanned shutdowns. We started by learning from world-class IT digital suppliers. And later, we can develop, our engineers can develop our algorithms. And this is being expanded to plant number 2, 3, 4, 5 and group-wide. Because within us, we have an OpEx committee. Gas pipeline progress. The fifth transmission line 80%; Ratchaburi-Wangnoi, 92% COD next year is anticipated. And therefore, gas security, east, west is reissued. Next is LNG terminal 2. From 11 million plus another 7 million , all together 19 million ton multiplied by 160, so nearly 3 billion cubic meter or about 20 million ton. So today, Thailand is using 4.7 billion. So as a result, we will be able to have adequate gas to accommodate national economic growth. Don't look at short terms, corona outbreak and et cetera, the country must move forward. And this, as a result, COD in 2022. So these projects take time because it involved EHIA, financing, seaport. If we do not prepare, it's not feasible. And given the performance this year, probably slightly lower than last year, but we already forecast a lot of problems and you will see soon the spreads, the labor relations at compensation. And normally, now the refineries all 3 have to do turnaround. So that explained the missing value, but still, our profits stay at THB 92 billion, and we paid a dividend, a dividend pay out 62.5%. According to our rule, only 25%, but we paid out 62.5%. And we also -- the dividend yield stands at 4.5% better than banks as well as better than other shares, which have high capital gains and capital loss. If you hold our shares, our shares are sustained -- are sustainable. We are paying to -- we already paid interim THB 0.90, THB 1.10 will be paid after the AGM. So this what we have done and achieved. And we have divested the palm oil business, the palm oil plantation in Indonesia. We have divested completely at a perfect timing. The palm oil price has plunged and also Europe no longer uses biodiesel. They are turning towards benzene and EV, so we've divested completely, nothing left, no issue left. Next is the one is the Wang Chan Valley developments. It's 96% completed. With a view to generating new innovations and trading volume, we have grown more than 20%. We've expanded to London, and we received a lot of goodwill in doing our business. We are very proud to have been able to sell to airlines in Heathrow Airport. And there have been out, out sales on seat. When there's imbalance in Europe or Africa, then we could do mutual trading. And so the sun doesn't set within PTT Group. We know pricing movements here and there and everywhere, and we can also do first LNG cargo. We used to be good at other things in LNG, but we are making headways into LNG. Almost 10 cargoes have been sold to date. So that will allow us to take chance in spot LNG. Next is Project One, which is the collaboration group-wide in order to do -- to use free stocks and products to value optimization, both inside and abroad, led by trading, so that's PTT. So this is the group-wide highlight. I believe you will have listened. In a nutshell, EP is the hero. It's increased R/P ratio to 7.5 years. And with these 3 concessions Bongkot Erawan and acquisitions of Murphy, Partex and additional stake in Sinphuhorm in Khon Kaen. And 2 new areas that have been pending for a very long time, Mozambique Area 1 as well as Algeria Hassi Bir Rekaiz. So investment decision has been made with production volumes shall increase. Next is GLOW. GPSC acquired GLOW. In 5 years, it has raised its profile to #4. We only entered into the power sector 5 years ago. And going forward, we will -- we look at gas to power in Indochina. Another one is Nam Lik project, already COD-ed, Xayaburi, COD-ed as well. So GPSC will have a larger portion of energy generation. For oil, we have secured B10 in Indochina. Amazon has also operated 2,213 stations in 9 countries. So we have expanded the popularity of our favorite brand. And also, we use PTT site to implement the SAI JAI station, implementing digital technology to promote public health in PTT station. People who live far away from hospitals can conduct health check there and connect to doctors. And they can also pick up their prescription at the station. Currently, we have 2 sites. If the pilots work, it will be of great help to the community, and the communities will love PTT stations more. This will give us a greater grasp if Khun Auttapol want to do medicine business, then we can do that in the future. Next is petrochemical refinery. This year -- well, last year and this year will be the period when we have to struggle quite a bit due to global economic slump affecting this business. Nonetheless, the business is able to implement productivity improvement by at least 22%. We have no control over spreads or pricing. Those are external uncontrollable factors, but we have to look after our own resilience. So from 24 to 29 achieved out of all 3 refineries. The key drivers to date, you will see that the underlying -- the average petroleum price, oil price has plunged, Dubai at least 9%, FO, IMO by last Q, nobody buy -- nobody bought FO. So the brown line at the bottom, it used to deep dive to 43. So refineries with high sulfur, FO suffer a lot of deficit. But still, well, IRPC, so FO has been turned to propylene. And GC has shifted, ThaiOil is also shifting. If we continue, then we can distillate to and mix diesel into it. So that's the average petroleum price that is not good. And the GRM is also very, very low with this kind of structure, the CFO, will elaborate each of these 4 sectors. Next, petrochemical. This is due to global GDP trade war and export problem due to baht appreciation and these affect industry plants, especially plastics and other, and therefore, the spread has gone completely. Prices have taken nosedive, you see by every high -- every item, high HDPE, PP, PX and BZ. So all of them suffer a deficit. I want them up, but I have no control over the global market. And at the same time, for NG prices, it's good that they have come down, but we see the average pool price, about 7, which is the security that the government has given for contracts, but the pool price is -- well, 60% -- 70% of them are from the Gulf of Thailand, 15% from Myanmar and LNG only this 15%. So you will see that Japan, Korea -- the markets of Japan, Korea have been down from the beginning of the year until midyear. And as of today, the government has open asset over line pipe and allowing utilities or allowing EGAT to import 1 cargo and next cargo in April in order to test the system, and it also allow PTT to bring in spots. Now our take is that if spot is lower than pool price, so after royalties deduction and et cetera, we can bring in spot so that electricity price doesn't increase. So that has happened. Next is the value of the baht. It is favorable to PDT's investments because we import a lot of machineries then we enjoy the boon of the baht, and we accelerate our investments, ThaiOil and et cetera as well as EP. So we turn crisis into opportunity to drive investments according to our own strategy. But at the same time, it's not good for our export because we export, for example, 10% of oil, 30%, 40% of plastic pallets. So this affects us. But overall, we would like the baht to be not too strong, on the weaker side will be great for us. Next will be the performance. I will ask the CFO to elaborate, please?

Well, the CEO has just explained about key business drivers. May I now lead you back a little bit to the oil prices, which is dropping quite significantly, especially FO. In Q4, it nosedived, so it is reflected that when we sell natural gas to industrial customers, the price will also drop because it's linked with the market price of fuel oil. If we have -- if we look at a glance of the feedstock on your right-hand side, natural gas price is still high, the pool price here. So it means that the selling price is dropping quite a lot. At the same time, the cost of the selling price is still high. If you look at LNG spot price, it's quite fluctuating. So when the pool price is blending between Gulf gas and LNG, it would help stabilize pool price, not too much volatile. So the price is quite stable. It may be up and down a little bit at some point of time. So it's resulted in the cost of our customers not to be too fluctuating. For petchem price, spread is getting down quite significantly. Petchem reference price for our GSP is dropping quite a lot. So performance of our GSP would be highly affected. For FX for the whole year, it's appreciated by THB 2.28 compared to last year, baht appreciated only THB 0.24. If you go to the balance sheet, the FX gain is going up. But like the CEO has just mentioned, we would like our baht to be a little bit weak. When it's weakened, FX would show at a loss, but we would gain when we sell our products. Because when we sell things, the selling price is linked with U.S. dollars. So when the baht is weakened, our initial profit is getting more. We use natural hedge concept to stabilize our gain and loss. So this is how we manage our accounting. Now looking at PTT consolidated performance Q4 compared to Q3, Q-on-Q. Looking at the revenue, Q-on-Q is getting up by 4%, mainly because selling price of oil in Q4 is getting up by 2%. For our trading businesses, oil business, especially PTTEP business, we get higher selling prices. And also, the sales volume was getting higher so that's why we saw higher revenue. For EBITDA Q-on-Q, net decreased by 1%. Net income decreased by 14% Q-on-Q, resulting from the net margin. Spread is quite narrow, and selling price was dropping quite significantly compared to the cost. While we have higher expenditures and also some items which is onetime, like NACAP case, we have to pay compensation in Q4 and that's about THB 1.2 billion. And also, we have to reserve for our depreciation and amortization for the speed train, the project, and that's about THB 400 million. And also for PTTEP, the volume sale is higher so it will be recognized as higher production and then higher DD&A, resulting in net income in Q4, Q-on-Q to be down by 14%. Looking at the whole year, revenue is decreased by 5%, mainly from the oil price and petchem price, which is dropping quite significantly, resulting in cut of the revenue. But looking at the volume, later on, we would see that sales volume of PTTEP, electricity of GPSC, which are quite low, selling of natural gas, GSP products and trading is getting higher. Volume of P&R and oil volume, it is decreasing in the P&R because they have the shut down for the maintenance, resulting in decreasing EBITDA by 5%. The revenue down by 5%. Net income down by 12%, resulting from a decrease in net margin. Also, we have to book the compensation for the labor law, and that's about THB 4.2 billion for the whole group, PTT only, it's THB 2.8 billion. So we would have higher expenses from this adjusted law. For NACAP case, that's also increasing our expenditure. And in Q4, PTTEP, they also wrote off about USD 70 million, resulting in the decrease in net income by 22%, even though stock loss is lower by THB 10 billion. But for the previous year, that was 1.2 billion. But this year, it's about 2 billion. But even though with lower stock loss, net income still decreasing by 22%, mainly from prices like I explained before. Looking at the pie chart of the net income, contribution either from upstream, PTT itself, which is in the middle and then to the downstream, the portion is quite similar, that's about 1/3. This would result in the overall picture of the businesses of PTT Group, not so fluctuating because it -- sometimes in the past, like a few years ago, upstream was affected quite high, while downstream was doing good. But nowadays, upstream is good, but downstream was not so good. But anyway, all in all, it is not too fluctuating. So the picture looks quite nice, resulting in the performance which is not too fluctuating. Now to PTTEP's business, probably you would've heard from PTTEP's analyst meeting so I would not go into too much detail. But looking at the Q-on-Q, selling price like liquid and gas was getting higher, and average selling price of Q4 is getting up by 4% -- by 5%. Sales volume also is getting higher Q-on-Q. It's increasing by 12%, mainly from the acquisition of Partex last November, resulting in higher volume. And in Q3, there was Bongkot shut down, resulting in the volume of Q3, which was not quite high, resulting in the net income of PTTEP in Q4 to shoot up by 7% regarding to the volume and the price, like I explained before. For the whole year, liquid, the price was down by 9%; while gas, cost is still high because of the lag time, resulting in the average selling price still higher by 1%. Looking at the volume. Volume increased by 15%, quite significantly because they benefited from Bongkot full year recognition in 2019 and the volume from Murphy and Partex, resulting in higher sales volume and net income in 2019 higher by 40% from THB 1.1 billion to about THB 1.6 billion despite the DD&A which is higher and despite the write-off. Now getting to PTT EBITDA breakdown by business. In Q4 compared to Q3, EBITDA decreased from almost all of the business unit. For some unit, it increased, for example, transmission line, which is up by 1% and NGV with lowest loss. But for the overall picture, EBITDA for all of the businesses was down. Starting from S&M, EBITDA down by 6%, mainly from FO price. FO price was dropping quite significantly, and that was linked to the selling price, while the cost is still high. For transmission, performance is up by 1%, mainly from the rent that we have to pay to the Department of Treasury. It's at count level in October. So the expenditure reduced by THB 90 million, resulting in higher EBITDA. GSP, down by 37%, mainly from petchem price, which was down and resulting in lower selling prices. NGV, lower loss by 5%. Average selling price was up because PTT also cut the price. That's why the average selling price is up, resulting in lower loss. For others, it's down by 32%, mainly because of PTT NGV. They sold gas to industrial customers as well, and average selling price was down because of the fuel oil-linked price. Oil EBITDA is down by 22%, mainly because of higher SG&A expenses, higher stock loss in Q3. They have stock loss at THB 917 million, but in Q4, stock loss was at THB 1.9 billion, which is higher by THB 1 billion, resulting in the oil EBITDA to be down by 22%. Trading EBITDA was down by 21%, mainly, like you may all know, sales of condensates has higher discount because MAX oil price was down. So the demand of condensate was down accordingly, resulting in the higher discount in the price formula. So in total, EBITDA is down by 16%. For the whole year, EBITDA was down by 27%. And for all of the units except NGV and oil EBITDA, all the other business was down. S&M was down. Pooled gas price is up by 9%, while selling price was down by 16%. That was S&M. For TM, the transmission business, it was down by 3%, mainly because of the TDC of EGAT which was down from the previous year. GSP is down quite significantly by 53% because of slow -- lower petchem prices, which is used as the reference. And also, we're faced with higher feed cost gas by 10%, resulting in lower EBITDA of GSP, even though we have the higher sales volume of 6%. In NGV, the loss was lower by 14%. Sales volume was down by 12%, which is good for us because if we sell more, we would be more at a loss. Consumer also switched to use oil instead of natural gas. Selling -- average selling price is higher by 10%. That's why we saw less loss. Others was down by 4%. NGV FO price was down quite much. So that's why PTT NGV was down by THB 2 billion. PTT LNG increased by THB 1.7 billion with the committed volume form 8.4 million to 10 million tons per annum. Our EBITDA was up by 17%, mainly because the higher margin and lower stock loss, resulting in higher performance. Trading was down by 64%, mainly, like I explained before, that the discount of condensate was quite high, resulting in the performance of trading. So EBITDA was down -- total EBITDA was down by 21%. Now I would like to -- details per business. Please study the slides. Now I would like to go straight to P&R. As the CEO said, if you look at the broad picture, the utilization rate, Q4 compared with Q3 or year-on-year, you will see that utilization rate has decreased compared with the previous quarter be it Aromatics refinery due to shutdown maintenance, or volumes being down, whereas spreads have taken quite a considerable dive, resulting in -- the whole P&R group performance has decreased. Actually, they were cushioned by stock loss for Q-on-Q in Q4 from 2.2 billion loss turned in to 2.3 billion gain. So throughout the year last year, they had stock loss of about 7 billion. It's now a gain of 3 billion and turned into a positive factor, but those were outperformed by prices and other factors resulting in net income of P&R. If you look at year-on-year, it's down by a significant 71% Q-on-Q. They get help from the stock gain. So net income in Q4 compared with Q3 was higher from THB 745 million to 9 billion (sic) [ THB 1.935 billion ] largely attributable to the stock gain. For coal business, if we look at Q-on-Q, first and foremost, the sale price, average selling price is down by 11%, whereas cash costs remain the same, meaning that the margin is very narrow. Volume-wise, Q-on-Q has decreased by 5%. So predictably, net income for Q4 compared with Q3 has decreased from $10 million profit in Q3 to loss of $1 million in Q3 -- year-end as well. The average sales price, average down by 19% from $78 to $63. If you look at New Castle, you will see the slant downward. And cash costs, they stabilized from $56 to $54, and therefore, the margin is wafer-thin. Volume-wise, down by 5%, resulting in the performance as well. And so operating net income has decreased from $90 million to $58 million in 2019. But in fact, in 2019, it is helped by the winning of a lawsuit and $30 million compensation. And the overall performance is $58 million, so 36% down compared with 2018. For GPSC, they have acquired GLOW last year. So throughout the year, sales volume increased, mainly from the consolidation of the GLOW as well as COD of Xayaburi and Num Lik and CUP-4 and CCE, resulting in the hike in sales volume. But Q4 compared with Q3 sales volume has decreased due to shutdown for maintenance factor as well as seasonal demand, which has decreased. And therefore, volume-wise, Q4 was lower. Sale price Q-on-Q, slightly up by 1%, whereas cost increased by 1%, similarly. And year-on-year, the sales price remained the same, roughly from THB 3.02 to THB 3.03. The cost is higher, from THB 268 to THB 281. And so the impact Q4 compared to Q3, from the figures reported, Q3 is slightly higher -- well, 28% higher due to the reducing financing costs due to capitalization. So they paid back short-term loans to acquire GLOW. So throughout the year, net profit is higher from THB 3.3 billion to THB 4.061 billion, or 21% increase, largely due to the consolidation of GLOW and COD, resulting in higher net income. If we look from waterfall point of view to demonstrate different cost items, which increased or decreased, Q4 compared with Q3, we see that net income has gone down by 14%. And for sure, margin has gone down as well by THB 876 million, mainly due to P&R gas and GPSC, whereas for stock, stock is a positive factor. This is on the basis of 100%. So the stock in Q3, stock loss of about THB 3 billion, by Q4, the stock loss is THB 600 million, and hence, positive factor. OpEx has been higher group-wide by THB 2.36 billion due to expenses of -- various expenses as well as EPs and depre higher mainly due to EP as well for higher sales volume. Other income here, this is the -- we booked the NACAP liability here. And NACAP, THB 2.1 billion plus the contingency for the depre of the handover to high-speed train, THB 500 million, and hence, this is a negative factor. FX improved due to stronger baht, and this is better by THB 342 million. Interest, CIT expenses and other, that's another positive factor, mainly due to less tax on the back of less loss. So that's a positive factor, and therefore, Q4 net income is at THB 17 billion. For the whole year, the performance from nearly THB 120 billion to nearly THB 93 billion, down by 22%. In terms of margin, quite heavily affected, mainly because of P&R. Their margin has plunged significantly. P&R is -- some of the margin is down almost similarly, THB 61 million. And our gas business, the margin has decreased likewise due to gas separation plant. Trading, margin also smaller, coal, but we -- the positive factors, GPSC, EP and OR, which enjoyed positive factors, but net is still negative of about THB 61 billion. Stock loss decreased by THB 10 billion: 2018, THB 12 billion; last year, THB 2 billion. So that's a positive factor of about THB 10 billion. OpEx, higher by nearly THB 11 billion, largely due to Labor Relations Act, which THB 4.2 billion in compensation as well as EP, which has written off the dry well and the external contracts of OR PTTG Labor Relations Act cover. And so OpEx has been higher by nearly THB 11 billion and depre, higher THB 9.6 billion due to GPSC consolidation of GLOW and EP. Other income improved by THB 35 million, netted by the factors just explained. The NACAP, the potential loans. But last year, PTTEP had loss from the divestment of Montara, nearly THB 2 billion and inventory loss of GC about THB 2 billion. And after opposite, seeing it's improved by about THB 35 million. FX gains, higher, as I mentioned already, higher than -- higher by THB 11 billion. And the final column mainly from the -- from less income tax on the back of less profits. And therefore, that explains the net income of last year of THB 93 billion. So in terms of balance sheet, the overview, our assets are higher by 6%, mainly due to PP&E that is higher, the consolidation of GLOW, the acquisition of Murphy, Partex, resulting in PP&E higher. And looking at cash and short-term investments, are lower because we are in the investment mode, and we have appetite for investment. And so we keep less cash and short-term investments. AR and other current assets have gone down and the advanced payments for Bongkot in 2018. But in '19, we had none. Other noncurrent assets, higher due to goodwill booked for GLOW and Murphy, Partex and deferred tax assets -- higher deferred tax assets. And therefore, this chunk is higher. For the liability side, AP and other liabilities increased, mainly because revolving debts were lower, but they have the pending income tax, mainly due to GLOW, Partex and Murphy and long-term decommissioning of Partex and Murphy, which was higher; and the long-term advance receipt of GLOW and the Labor Relations Act payment. Interest-bearing debt is higher because of consolidation of GLOW's liabilities to the tune of THB 36 billion. And PTT Group itself, as you all know, we have borrowed as well as we paid back. So all together, it's higher by THB 16 billion (sic) [ THB 116 billion ] or so. Total equity is slightly down because we booked the -- even though we booked the 93, but we paid dividend, and EP also redeemed the papers by about 23. So after netting, total equity is adjusted downward. Cash flow statement. The -- last year, we -- cash flows from generation, sort of similar to the year before, THB 265 billion. But that's investment we paid quite considerably. As I said last year, we were in the mode of investment for CapEx to the tune of THB 150 billion or for the investments of PTT CFP of ThaiOil and petrochemical investments of GC. They are all booked here. And THB 160 billion has to do with acquisition, GLOW, Partex and Murphy. Current investment, that's positive because we used the termed -- well, we received the deposits and the papers we invested in, we redeemed them. The dividend interest received, THB 11 million (sic) [ THB 11 billion ] and others, THB 2.9 billion. We received the loan paybacks amongst the group. So all together, that translated into investing of nearly THB 190 billion. For financing, we paid out about THB 70 billion, and we paid back the loans, THB 103 billion. And we borrow, and therefore, we paid interest. We paid dividend. And GPSC capital falls. And so all together, financing totaled about THB 70 billion, and so our net cash situation is slightly positive at THB 358 million. When combined with the beginning cash at THB 290 billion or so, ending cash is still at THB 292 billion. But if we add current investment plus higher than a year investment resulting in ending cash at THB 337 billion. Our dividend, the CEO has just covered this, so I'm going to skip this. For the plan for our investment for the next 5 years, it is still close to last year's plan. If you still can remember, PTT 5-year is about THB 200 billion. Still, we have a new one, about THB 189 billion. Starting from gas business at 6% or about THB 11 billion. So that's for GSP maintenance mainly because when we are confident that the volume of the gas in the Gulf is enough then GSP plant would improve their plant to produce more. Investment in pipeline like the fifth pipeline, that's about THB 31 billion. For LNG, Terminal 2 still needs about THB 29 billion. Infrastructure -- other infrastructure like in the EEC, that's about 8% progress and required about THB 15 billion. The other portion 52% of that's oil businesses, which is our major business. Map Ta Phut Phase 3 is also in this portion. We haven't disclosed the portion of OR because they are now preparing for the filing to be listed. So they are still under this caution. In each year, the pattern is similar to the old one. In the initial years, there are committed portion, which is quite clear. In the first few years, the investment would be quite high, then it would be revised and would be down continuously. This year, it's THB 69 billion then would THB 40 billion and THB 30 billion. So this is the investment each year for PTT. This is PTT only, not including other flagships. So this is our 5-year plan for our investment. For the whole year, only for the committed CapEx, it is at THB 865 billion for the whole group. PTT only is about 12%. PTTEP will get 49%, mainly for the development in several areas, new investment in Mozambique, Algeria. PTTEP would be investing continuously and quite significantly in those area. To the downstream businesses like ThaiOil CFP project, GC, IRPC, MARS. MARS is still is delayed for the decision-making to put the investment. We have to wait and see for PTTOR. It is considered, in downstream, that's 34%. GPSC is 5%. They tried to capture the synergy after the consolidation of GLOW. Yes, so we have planned for the renewable energy, both solar and wind, that's GPSC, and that's 5%. Shall we pause for a bit to digest a lot of information as well as taking some questions before we cover the outlook section as we see a plenty of changes. And well, we have 2 missions for investment for us: energy security focusing on gas and petro stations. And within oil, there is the Map Ta Phut project and the Lam Chabang, which is provisional project as well as investment to restructure refinery to convert from fossil fuel towards clean energy, the clean fuel project for ThaiOil and for high-valued petrochem for GC. So that is -- those were decisions made and being implemented. And we also focus on electricity, gas to power the sourcing of oil. And gas that can bring instant cash in because we still have demand, and gas will become the increasingly important source because it's environment friendly. So that's the trend. So now getting into the outlook. In short, there might be a trade negotiation with USA. This includes Thailand as well. But for the U.S., then labor market would be better. Trade would be better with the negotiation. And the trade war, there are lessons learned for every party. With the outbreak of coronavirus, it affected quite a lot with tourism industry and airline industry. That would be Q1. But after that vaccine could be developed, then tourism would come back in Q3, and Q4 is our high season. For Eurozone -- these 3 groups take major roles in the world GDP. So the world GDP would be dropped a little bit in 2020. In Japan, they would hold the Olympics, and that would be in August. So it's likely to happen. But for some countries, they would declare that they don't want their citizens to join. But I think everything would be fine, and Tokyo would have to adjust themselves because Japan, they are quite good in managing their health issues. India, still, there are growth because of their population, and that population is middle class. For the income tax policy and monetary policy, Indian government supports it quite well. They also have a lot of potential like in R&D and also the language proficiency. They also have the connection with the U.K. and some countries in Europe. So there are no major concern. In Thailand, we have politics issues, government expenditures and government investment. We just hope that in March, reimbursement can be out. And I think the government need to make sure that disbursement would be out as planned. The growth, it wouldn't be as big as in 2018 because we linked quite a lot to China economy, and with the trade war, it would affect us for sure. And for the outbreak, it would affect tourism and trade, but for the second half of the year, everything should be picking up. For the water shortage, I already gave some replies, but anyway, we have to wait and see. But the price, after economy pickup, petroleum crude oil price might be dropped a little bit. For GAR and GRM, it is better than Q4 of last year. It is getting down. Singapore GRM is 3.7. That's actual. But in Q4, it's 1.6. At 1.6, many refineries have to shut down like the old refineries, like 70 years old, 100 years. Refineries in Europe, they close themselves down like the old refineries in Japan. In Australia, they don't have refineries anymore. So for the new refineries coming up, they have new capacity like ThaiOil. They are investing to be a modernized refinery with lower cost per unit. For gas, it is still low concerning usage is not higher than the GDP. U.S., they have shale oil and shale gas, the volume is still big. Right now, we have the plan to open an office in Houston to look at the feasibility of fossil fuel. Is it going to be in -- out-out or out-in activities we can do. And for the gas price, we might have spots importing when the spot price is down. Gas demand, for renewable, we need to have feeding tariff and other, and it's not fixed, but for gas is a baseload, which is quite be stable. We also would have the major turnaround Q1 GSP 5, 20 days; Q2 GSP 1, 25 days; and for NGV, we are now negotiating with the government in that price, can it be linked to diesel or benzene. So that it's up and down but not lower than the cost. At the same time, we would give the subsidies for the public vehicles. So subsidies would go to the one really in need. LPG subsidy that's already done. Only subsidy would give through state welfare smart card. And it's THB 10 million a month for 3 consecutive months. So that's THB 30 million all together, and that's done. For the upcoming projects, this is the agreement in that PTT is now looking into the reply from the Attorney General office. PTT and GC, that's done. Map Ta Phut, the investment with PTT Tank and Gluf. Now land reclamation is to start soon. If there is no unexpected circumstances, Lam Chabang project would be announced, which are enhanced with Tank, GULF and China Harbor. For the proportion of the shareholding, it can be changed because it's still flexible. Our LNG regional hub, we try to support it, but we are geared more towards green fuel, gas to power. We try to utilize our experience in more than 40 years in this field to sell gas to Indochina countries. We are working as one team, PTT, PTTEP and GPSC. Environmental situation, how do we manage our waste used in short term, optimization of plastic waste and desalination. It is in our medium-term studying for the plant in the future. Our productivity improvement, we would do it continuously, either for reliability and efficiency. And also, we would try to travel less. People don't want to travel. So we depend on digitalization more. We have a digitalized signature. So many countries, they don't have to fly to see us. So that's all. Thank you very much for all the analysts to come.