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

[Presentation]

Good morning, analysts, fund managers, executives and PTT staff. I'm [indiscernible] from IR. Welcome to second quarter analyst meeting 2021. In light of the pandemic, we are still organizing this session online for everybody's safety. You can follow us via Facebook Live in both Thai and English. We have simultaneous interpretation available to ensure equal access to information and also through Microsoft Teams, and PTT were placed for all PTT staff. After the session, we will open floor for questions. You can ask questions via MS Teams, Facebook Live in the chat box features you are familiar with. We will start with the summary of operating results and then the CEO will share with you CEO's new strategic direction, and we close with Q&A. I would like to invite Khun Auttapol Rerkpiboon, CEO; and Khun Pannalin, the CFO, please.

Good morning, dear fund managers, analysts. Today, we are going to report results of half year 2021. May I start straight away? Next slide, please. These are key activities during the second quarter of 2021. We changed the approach of presentation a little bit. We put up this, something that looks like a donut divided into core business and future energy and Beyond Energy of the future. I will elaborate on future energy and beyond -- now let me start with core business. PTT and our subsidiary bond shares of GPSC from GC. So we increased the stake by 12.73% involving THB 25 billion investment fund. And following the purchase PTT and SMS will hold share 44.5% in GC and/or extend the contract with CPO or 7-Eleven to operate within the petrol stations by another 10 years. So we -- so this will take us through to 2023. And OR and BAFS jointly were selected to operate aviation fuel service at U-Tapao Airport. The initial investment fund is THB 2.3 billion. This Is expected to be COD-ed within this month. And thirdly, RPC approved the older green fuel project or UCF to more in response to Thailand's policy to commercialize Euro 5. So the investment money is THB 13 billion COD by 2024. And Thai oil bought shares in PT Gandra, which is an integrated petrochemical company in Indonesia to the tune of THB 39 billion. to at least are aware of this. Chandra as has a capacity of 4.2 million tonnes. So this is diversification of Thai oil into petrochemical on top of the refinery business. Now the green part of the donut future energy and beyond, first, PTT approved Innobic in which PTT holds 100% to buy shares of Lotus Pharmaceutical Company, 6.6%. USD 15 million in order for PTT to expand into this business, and it will enable us to learn this new business venture, which will be taken forward in the future. Secondly, Innobic Asia established a joint venture with Nove Foods 50/50 with registered capital of $300 million in order to operate plant-based protein. The manufacturing plant will use high tech capacity in Thailand, with a production capacity of 3,000 tonne per year to be COD-ed in the fourth quarter of next year. And this is the trend, the consumption trend. So this is something different from traditional vegetarian food. Plant-based meat is raw material that can be turned into hamburger and a number of other Thai dishes. That's the new trend new venture for us. Next, PTT signed an MOU with Foxconn for feasibility study of EV platform for Thailand. Clarity shall emerge this year whether we are entering into a joint venture together, but things looking good. The finalization shall come forth soon. As soon as there's any conclusion, we shall duly inform you. Now the term platform, why we use the term electric vehicle platform, the principle is that this technology doesn't have to manufacture an entire vehicle. But it's going to serve as a platform base. It's the chassis. It is going to produce the chassis, but it is an electronic chassis. Battery and the control circuits are led out and therefore, these factory is suitable to serve as platform for various brands that have not yet developed EV tech yet. And they can use this as a manufacturing base. They can codesign the body together, so it can manufacture EV for multiple brands. We can deem this a disruption technology for EV production. And from the initial study, we reckon that we can shorten the R&D period by 2 years and reducing cost by roughly 20%. And so if successful, we will proceed with joint venture and the investment shall be destined to Thailand. And fourthly, we established a company called EV Me Plus, which is a subsidiary of Arun, which is a company that we set up to invest in the whole value chain of electric vehicle. EV Me is the application to serve as platform to create an EV ecosystem. When you are not confident about going EV or not going to this platform, there are plenty of choices for you. You can lease for about 7 days, 1 month or 3 months for trial run until you are confident and then this platform is expanded to cover various fleets that wish to add electric vehicles onto the fleet. This is a new application launched recently. We are in the soft launch phase. the actual loan to be end of this year. Please keep -- we will keep you posted. And fifth, PTT jointly with Arrow dime from Malaysia and digital creation established a company called AeroSkyto offer driven solution services in Thailand main clients are those in the telecoms, electricity, oil and gas exploration and maintenance of their assets. Next, GC has bought ordinary shares of -- Onyx Holding, EUR 4 billion, Onyx is into coating raising and additives. Currently, Onyx has the capacity of 1.2 million tonne. And this is the venture into high-value business by GC. Next, GRSE, which is the subsidiary of GPSC invested in Abada Energy Private Limited in India by buying shares equivalent to 41.6%, THB 14 billion investment. And these investment deals with solar power plant in India. It has the committed capacity totaling 4.5 gigawatts. Next, GPSC bought shares of Changfang and Xidao in the proportion of 25%, worth USD 500 million. The share transfer is expected within the second quarter next year. And this company operates offshore wind energy in Taiwan with combined generation capacity of 595 megawatts. And in the future energy area, also NatureWorks is doing the second poorly active acid or PLA, using sugarcane molasses as raw materials to produce PLA. The capacity is 75,000 tonnes per year. The investment value is USD 600 million. And to continue, if you listened to the PSA, you've heard about the activities during the pandemic. For nearly 2 years, we've been living with the pandemic. PTT is not sitting idle. We have been very active since the first wave. Early last year, we lacked alcohol and face masks, so PTT supported hospitals nationwide. We specifically supported 200 state hospitals and 5,000 local hospitals, more than 1 million liter of alcohol and various medical devices and equipment back then. And if you recall also, the last quarter of last year, when Thailand was looking good, 0 infection, we were talking about economic simulation. So we launched a campaign called Restart Thailand job creation across our group. We recruited both routine staff to operate ongoing projects, as well as recruiting fresh graduates to work in projects where we are collecting data for CSR. So altogether, we created -- well, we recruited about 25,000 people. Now by the third wave, the situation is serious, and therefore, we launched a project called Giving Breath project. The video clip showed ahead of the briefing showed one of the sub projects. The start of the project, we donated, we supported ventilators to hospitals nationwide. We donated 400 ventilators along with a funding liquid oxygen and donating medical equipment devices. The latest project, the video clip also showed yet one more activity under this project. We set up the end-to-end screening unit and field hospitals with the intention to -- well, we could do one look in that. We have a screening unit at the Enco terminal or the former Cruise Center of Thai Airways. Originally, we wanted to do office for lease more than half clients expressed interest, but now we put that on hold to turn that facility into a screening unit with the capacity of handling up to 2,000 individuals per day. We set up a home isolation care system. We distributed equipment for people in home isolation. We have Favipiravir medicine for all who were tested positive and requiring home isolation. For those who beyond home isolation, we put them in the field hospital, the 1,000 bed. And then for yellow cases, and wet cases, critical cases we have 120 beds. So we address the whole chain. The objective, we have to work with the government. We have to work with the public health authorities, and we have medical sector partners as well. We want to create a model for other big conglomerates. If these kind of -- if this kind of change can be implemented in key locations, it will help ease the public health burden on the government sector. And that's what I wish to share that apart from doing our business, we care for the community and the society to our full capacity. So I would like to end my part here. I would like to -- I'm sorry, I still have key business drivers to go through. May I mention about the key drivers for the first half year. I think you know these very well because you monitor almost on daily basis, the oil price as well as petrochemical increase in Q2 compared with Q1 or -- both Q-on-Q and half-on-half basis. Mainly, we all know that demand has picked up. Many countries around the world have eased their lockdown, except Thailand, of course. Thailand has just started imposing lockdown. For crude and fuel oil they are positive due to OPEC+ tight alliance. They monitor closely, they cut production stringently. And when situation improved, they increase. But they increased with prudence and gradually, and they agreed, everybody still complying with what's been agreed upon. And as a result, prices has been stable, not falling petrochemical higher on the back of improving demands in light of economic activities. Inventories in China remain low, even though new capacity keeps coming in to pressure the market. Natural gas Q-on-Q increased 8% from all sources in line with the increasing oil price half-on-half, down by 13% and in line with the benchmark oil prices still lower than last year. FX, you know well the baht has become weaker. Next performance, I would like to invite Khun Pannalin.

Thank you very much, the CEO. So for the operation result for Q2 compared to Q1, and I would like to just present the Q-on-Q performance. So you can see the overall picture in terms of revenue. You can see that PTT groups revenue increased by 12% as a result of the price of petrochemical and oil and as well as sales volumes which are increased. This is because the situation of COVID in several countries are better. In terms of EBITDA, you can see that our group EBITDA increased by 10% and mainly from the production and exploration business, whereas the performance of other groups are relatively the same as last quarter. In terms of net profit, it is down by 25% compared to Q1. So in a normal operation result situation, it is okay. However, in Q1, as noncurrent -- nonrecurring item and the PTTEP realized the profits from [ Oman USD 350 ], whereas include GC also recorded depreciation in Emery. As a result, because of these nonrecurring items. Therefore, profit increase compared to Q1. And if you see the price chart here, you can see that performance from upstream, midstream and downstream is quite in a balanced ratio. But in the future, we hope that we will be able to increase the proportion of new energy and new business in our group's performance. If you look at the first half year performance compared to first half year of last year, you can see that it is better, much better. Revenue increased by 23%, thanks to the price as well as sales volumes, which are increased in several business. EBITDA meanwhile also increased more than 100% mainly coming from the refinery business, which obviously the performance is outstanding. The first half year stock is more than THB 0.5 billion. So as a result, the performance of the refinery business is much, much better. While the petrochemical business or the products increased, sales volumes increased and the same happens in the aromatic business. And that's why the EBITDA in this group is higher. In the gas business, the main business is coming from TPSC, and the sales price is increased as well as sales volume. And cost of gas is also down. The production and exploration business is EBITDA is also increased as a result of sales increase. And thanks to the Oman field, the Bongkot field because of increasing sales volume. At the same time, CH in Malaysia also start its production in February. Sales volumes also increased. The net profit also increased as a result of the increase of EBITDA. And as I have already told you this year, the E&P recognized profit from the sales of Oman operation. And the negative factor is the impairment of GC, as well as a loss from the currency depreciation and the loss is around 6.8 million. And the depreciation is around -- this is a result of the depreciation of the Thai baht. At the same time, there was also a loss from delivery, totaling around THB 25 billion of PTTEP and PTT trading. At the same time, there was tax expenses of around THB 23 billion. GC also record profit from the sales. And starting from the E&P business, the Q-on-Q sales increase from sales price from 40.3 to 42.9 and mainly because of the increase of the [indiscernible] price. And at the same time, sales price of gas remained stable. Average sales increased by 16%, and this is mainly because of the Oman project and Malaysia field H. The net profit, however, is down by 47%, although EBITDA is increased. And this is mainly because in Q1, profit was recognized in the nonrecurring items. And at the same time, there is an increase of tax expense of USD 129 million. This is because of the increasing operation result. In terms of depreciation costs, it increased by THB 82 million. In terms of the first 6 months operation result, the net profit increased by 46% and mainly as a result of sales increase -- sale price, which increased by 3% and sale volume, which increased by 20%. In terms of net profit, this is not only a result of the sale price, which increased. The unit cost also went down as a result of the Oman and Malaysia operation, of which the cost is lower. And I have already told you from the tax income as well as the depreciation, and as a result, we have on half net profit increased by 46%. And in terms of the PTT EBITDA breakdown by business, so starting from the gas business Q2 as compared to Q1, you can see that EBITDA is slightly increased by 1% -- oh, by 2%, and mainly is because of the gas EBITDA. S&M EBITDA was down by 22% and S&M is the trading business, it was down by 22%. And this was mainly because in Q1, we record profit from the LNG export. And as a result, we recorded in Q1. However, this profit we need to return it to the state, and that's why we return it to the state at the end of Q2. And that's why we have to book it as an expense. We have to readjust the cost of sales in Q2. And as a result, it seems that EBITDA in Q2 was down compared to Q1. In terms of cost of gas was also down to 6.3 million. And from our sources from GCC and the price of sales volume increased by 3%. And this was mainly a result of the customers from the power sector. Their sales volume increased by 5% as a result of the increased demand of electricity, especially from the household sector. And at the same time, there were emergency shutdown for maintenance of coal-fired power plants. And that's why the increase for gas is also increased and at the same time. And for the average sales for us customer increased in line with the increased price of fuel oil. In terms of GM or the pipeline business, you can see that the EBITDA increased by 6%, and this was mainly because of the increase of sales resulting from IPP. There was new IPP in Q2. And there was no extra expense because in Q1, we had expenses to pay to department of rural highways. However, in this quarter, there was no such extra expense. At the same time, cost of sales also increased in line with the increase of the pool gas. GSP EBITDA in Q2, mainly because of the average price, volume and sales volume also up by 1%. Thanks to LPG in high demand of petrochemical sector, so prices are higher, but LPG price is down, and therefore, petrochemical plants that can use flexible fleet turn more to LPG. Feed costs increase on the back of rising gas price from the Gulf. In NGV business, the loss is more by 92% mainly due to gross profit down on the back of less income more than less cost. We adjusted the NGV prices as there is a lag time of 45 days, so when gas price increase, it would result in squeezed margins. And decreasing sales volume could not stretch to cover the fixed costs, resulting in NGV in red. For others, mainly PTT LNG and PTT NGD, EBITDA stabilizing for trading EBITDA down by 20% compared to the previous quarter because of 22% downward adjustment, THB 9 per liter in Q1 to due to less spread of LNG, LPG and fuel in oil, which said very well in Q1, but in Q2, the spread became tight. -- but condensate discounts also down. And so condensate discount helped improve the margin slightly. Sales volume down by 4% due to falling demand of refineries as the pandemic accelerated in Q2. So those are PTT's -- results of PTT's own business. Now let's take a look at oil business or group Q-on-Q, net income has been down by 19%. So we look at it separately oil business. In fact, average selling prices higher in line with global oil price, but sales volume is down by 6%, mainly gasoline and diesel that decreased both in the retail and commercial sectors as the pandemic became more severe and profit also down because of gasoline we show up the price to reduce the burden on consumers during the Songkran holiday. For on oil business, actually, the performance has improved even if our sales revenue decreased mainly because of sales volume of Amazon from 73 million to 7 million cups on the back of shrinking consumer purchasing power. And other non-OR revenues increased gross margin and EBITDA are slightly higher due to optimal cost management efforts. Now half year results, net income of OR higher than 100% from THB 2 billion to THB 7 billion. The oil business average sales price is higher on the back of global oil price, but sales volume is down by 5%, specifically in the aviation fuel as travel is restricted. Profit per liter also increase resulting from retail and commercial clients whose -- well, the margin of gasoline and diesel are higher for non-oil business, sales volumes higher. For Amazon business sales volume increased from 128 to 143 due to expansion of branches by 368 branches gross margin EBITDA higher on the back of higher income and cost management. So those the performances of all our group for P&R. Starting from olefins, performance has improved both increasing product price on the back of higher demand and global recovery and Chinese inventories are in the lower level and hence, increasing purchasing power product spread also improved on the back of higher demand, especially sales plastic pellet Sales volume is slightly down on GC's part because of the impact of lightning and capacity went downwards slightly. Aromatics performance improved significantly mentioned spread and expert higher banking spreads higher by 64% reflecting the crude price, while supply is down due to shutdown maintenance and reduction of capacity amongst various plants in Asia and temporary pause of production in the U.S. due to snowstorms. PX spread higher than 13% for Textile and pet raising. And there are still pressures from the upcoming capacity from China in Q3. Let's take a look at refinery utilization rate of refineries group remain constant at 96% but market GRM is down from $1.9 to $1.6 per barrel in Q2 because of pricing premiums even though spread increase. If we look at the stock gain, which impacts P&R performance in Q2, a stock gain is down by THB 3.3 billion from gain in Q1 at about THB 10 billion to THB 8.7 billion in line with Dubai crude. The adjustment of Q2 is less than Q1, resulting in net income of P&R, higher from THB 18 billion to THB 22 billion in Q2 on the back of improved product and spread for the price and spread. Half-on-half performance has improved significantly. Performance is good. Product prices have picked up and sales volume also rose steadily because half year last year, there's a big shutdown maintenance for olefins and polymers Aromatics performance improved also both spread increased significantly on the back of crude price and as well as higher demand and tight supply, the expert also improving on the back of demand for downstream products in the textile and government refinery utilization rate of the group decreased from 99% to 96%. In the first half of this year, market GRM up from $1.1 to $1.7 per barrel in the first half, mainly due to spread of benzene and crude, which increased. So stock gain. I mentioned earlier, increased by about THB 50 billion, resulting in net income of the group higher significantly from last year at THB 27 billion to profit of THB 50 billion in the first half of this year. For GPSC or electricity, business. Q-on-Q, it is positive weather is the sales volume, which also increased. The sales following increased by 6%. The stream increased by 2%, and this is mainly because SPP sales volume overall increase as a result of sales to Gap and industrial users. -- volume -- sales volumes of IPP is slightly down because of the Serasa power plant gross profit increased by 3% from THB 5.3 billion to THB 5.4 billion, and this is mainly because of the growing IPP and where margin SPP down because of the higher cost of gas and because of the higher cost of maintenance cost. Net profit in Q2 increased by 17% from THB 1.9 million to THB 2.3 billion, and this is in line with the increase of the gross profit as well as the increased dividend and increase of share profit, thanks to the Xayaburi power plant. And then there are also other income mainly as a result of the recognition of the insurance compensation from the power plant. However, there's increase from increase of expense of around 179 million. For first half operation result, net profit increased by 23%. And this is mainly because of the increase of the average sale price. Electricity price increased by 1%; steam price by 2%; overall sales volumes increased, thanks to the increased sales of industrial users. And this is mainly from SPP, where sales volume of IPP is a bit down. And gross profit slightly down by 2%, and this is mainly because of the margin IPP, which is down as a result of the suspension of power plants for maintenance purpose, and at the same time, the net profit, as I have already increased by 20%. And also thanks to the share of profit from Simhapuri plant and thanks to the increased volumes of water compared to last year. And at the same time, we also recognize a compensation from insurance of the growth phase our plant. So now we are moving to the consolidated state financial statements compared to on a Q-on-Q basis. you can see that it seems that net income seems to be down by 25%. However, the operating net income actually increased by 20%. And positive factors are margins. You can see that margins are positive factors as it accounts for THB 15 billion from gas from AP and PR businesses as trading and oil, the margins are down. Stock gains also down by THB 3.7 billion as a result of this year, slightly down decline of the increase of oil price. OpEx also increased by THB 13 billion, and this is a result of the increase of petroleum royalty. Depreciation costs and amortization also increased by THB 1.5 billion, and this is mainly because of the depreciation cost of production and exploration. Other income is a negative factor of around THB 6 billion. And this is net with the Brazil project of E&P. Impairment also increased by THB 3 billion, and this is because of the recognition of GC of Emery Oleochemicals, FX and derivatives is also negative by THB 1.7 billion. And if we look into detail, you can see that derivative is higher by THB 500 million. However, FX is also down by THB 1.4 billion because of the Thai baht depreciation. Interest and corporate income tax expenses that is negative by THB 3.4 billion. CIT expenses is higher by THB 9 billion because of the GPSC sales profit sale and the E&P operation is also increased. The interest expense also increased by THB 200 million. And this is the waterfall presentation. Now the balance sheet, you can see that total assets of the PTT Group increased by 11%, and this is mainly because cash and short-term investment, which is THB 20 billion. AR and other current assets also increased by about THB100 billion, and this is a result of the higher oil price. And when oil price is higher, AR is also higher. Noncurrent assets is up by THB 48 million, and this is a result of the assets following the purchase of Oman projects and PPE also increased as a result of the acquisition of the Oman projects and the projects of Thai oil. In terms of liabilities, you can see that AP and other liabilities increased by THB 70 billion, and this is a result of the increase in oil price. Interest-bearing debt increased by THB 79 billion as a result of higher loans. And in terms of equities, it increased by THB 130 billion as a result of the net profit in the first quarter of around THB 57 billion, as well as the noninterest equity which is a result of the capital increase of OR. In terms of financial ratio, you can see that net debt to EBITDA is down from 1.6 to 1.23. And this is because of the increase of the long-term loan, which is lower than the debt. And the net debt equity is also remains relative stable. In terms of the cash flow statement at the beginning of the period, we have cash on hand of around THB 330 billion and cash flow received from the operating of around THB 150 billion. Free cash flow, however, is down by THB 88 billion because we have investment activities and mainly as a result of the PTTEP's acquisition of Oman. And financing, we received of around THB 50 billion as a result of the issuance of the IPO of OR and new loans. And as a result, during the first half of the year, the cash, we have cash out of around THB 40 billion. And combined with the beginning of the period, we have cash around THB 291 billion. So at the end of the, at the end of the period, we have cash of around THB 438 billion.

May I continue with the outlook, starting with the global economic outlook, which everybody is monitoring closely. IMF projected global economic growth at 6% and increase and adjust the GDP growth of U.S. and Eurozone to 7% and 4.6%. At the same time, adjusting downward growth of countries such as China at 8.1% from 8.4%; Japan, 2.8%; India, 9.5% from plus of 12%. Now it's revised downward due to the outbreak. Thailand, likewise, projection adjusted downward to 2.1%. Factors, positive factors and economic activities are likely to gradually pick up or increase and the fiscal stimulus packages of industrialized country will have impact on recovery. And -- in order to stimulate economic recovery, negative factors include the delayed vaccine rollout in many countries or in many countries, there are vaccine deniers, especially in the U.S., they constitute quite a sizable group of operation. And the outbreaks of new variants, we have to watch closely and the pent-up demand bottleneck of value chains as well as weakening currency will drive inflation in many countries -- It may lead to early plugging off of seamless measures. Now let's take a look at Thailand, various institutions have come up with projection of the -- the state of the Thai economy, that this year, it will expand between 0.5% to 2%, the latest. The National Economic and Social Development Council has revised it downward to between 0.7%. And I reckon that next round, we can anticipate another downward adjustment. For Thailand, the main engine of the economy is export, which is recovering on the back of global demand, especially auto parts, electronics, machineries and agricultural products. In fact, during the latter half now petrochemical products energy fields that PTT export have improved significantly and improved price factors. So these are contributors to the economy. Still, we have to watch out for negative factors, the very high infection rates and delayed vaccine roll out the lockdowns in major cities and the plan to open up the country to welcome tourists in the latter half of the year, we have to closely monitor a lot of challenges remain to get the Phuket sandbox hasn't proceeded as planned. Next, petroleum and gas outlook. This year, we project that all petroleum products price will increase. Can you please bring up the slide? I think we are trying to synchronize slide presentation. Okay, our Petroleum product outlook for 2021 higher across the board. -- due to increasing demands on the back of global economic recovery. In any case, we have to closely monitor new variants. And OPEC+, they are complying, but they still crank up the production volume. So between now to end of the year, the production is about 2 million barrels per day. We have to watch whether demand can match with the crank up supply or not? And also we have to monitor Iran which may increase production. And Iran itself right now, we have to keep an eye on the new round of nuclear negotiation. In terms of numbers, Dubai averaging at $63 to $68 per barrel compared with $22 per barrel last year for oil price spread, GM Singapore GRM in 2021, we anticipate it to be $2 to $2.5 compared with $0.4. So that's quite remarkable improvement. Gas price, Asian spot LNG, we reckon it will be in the range of $12 million to $13.8 million compared with $4.3 per million Btu due to higher gas demand in China in response to recovery. And European countries also pay close attention to carbon emission and coal. Coal use is being reduced and gas is replacing that. So that's a trend for petroleum products. For petrochemical, olefins, aromatics this year, prices are up across the board compared with last year because of economic recovery. In any case, we -- there will still be pressure from COVID-19 outbreaks. And supply is likely to increase due to capacity coming into the pipeline in the latter half and the return of U.S. export to Asia following the polar storm. So HDPE up 28% year on year, well, from last year, $180 per ton. So we reckon it will be up to 1,500 PP up 28% from $963 to $1,200 per tonne. Benzene up quite significantly, 83% from $400 to the tune of $800 or $900. PX, up 48% from $577 to $830 to $880 per tonne this year. Now let's take a look at the guidance for PTT Group. For the latter half of the year, we look forward to performance recovery gas business. Gas demand is expected to increase by roughly 1% from industry and power generation on the back of recovering Thai economy. Again, we have to keep an eye on it very closely. This is improvement compared to last year, but whether growth is sustained or not, we have to wait and see. In any case, gas demand growth projection is at about 3.1% compound annual growth rate. The sales volume in petrochemical higher on the back of increased capacity of gas suppression plant, utilization rate higher from 87 to the range of 92 to 94. Average gas price stabilize as oil price improve and then it will be averaging retroactively. So it doesn't peak that much. Now for PTT Group's business for EP oil price is recovering. And sales volume of EP high by 16% due to acquisition of new assets and costs have become more competitive for EP. Previously, $30.5 per barrel. Now it's down to $28 to $29 per barrel. Thanks to acquisition of the Oman 61 Block. And our business OR, it will be impacted by the COVID-19 outbreak and lockdown measures of various provinces. And so consumers purchasing power shrinks in any case OR has plans to expand and strengthen its network consistently with the plan to expand the network from 192 in Thailand and overseas. It will increase, it will add on EV charging stations to complete 100% target by end of the year. Non- OR Amazon still expanding continuously. This year, 552 branches, in country, 400; overseas 132. Refinery is expected to recover. I already mentioned GRM to 2.5 year rate is projected at 95% to 97%, close to last year's figures. For petchem, for the latter half, again, we have to watch closely on the pandemic outbreak situation. In any case, the overall picture of 2021 is higher spread. Trend is higher. The production capacity, both aromatics and olefins higher on the back of increasing demand. These products are exported as well and demands are rising. Power Generation business, GPSC, power demand, power and steam demand from industry clients in Map Ta Phut up by 4.5% compared to 2020. Projects to be COD towards end of the year, the fifth gas pipeline divided into 3 phases. -- first phase. It's due in Q3 Phase 2 Q1 next year and third phase December next year. The Ratchaburi-Wangnoi gas pipeline construction completed. We are testing the system, COD expected in September this year. For OR, they established a central bakery and beverage mixing in order to enhance quality control and optimize efficiency of the business. And it will start to roll out in September this year. plus high-quality plastic recycling project of GC. The production capacity is 45,000 tonnes per year or the Q4 this year for IRPC, joint venture with Innobic, the wholly owned subsidiary of PTT to manufacture nonwoven fabric. Innopolymed that's the name of the venture for use in face mask. When we call it face mask, they just assemble, they have to import the raw materials. But this factory for the first time, will manufacture in Thailand to supply raw materials for face mask to substitute import. Production capacity 2.1k tonne per year COD end of this year. So that's good news for you, GPSC, Aveda, the solar power plant, I refer to total committed capacity of 4,500 megawatts. For GPSC portion, it is 1,900 megawatts. This -- they have already COD 1,500 and under construction about 3,000 megawatts. COD will be gradual next year and the year after that, it's already committed. Shutdown maintenance plant, as shown on screen, our routine work. Next, today, I would like to talk more about the vision of PTT Group. So we have a new vision, earlier this year, and I would like to share our new visions to you today. So on this page, you can see that we have been evolved starting from 1978 when we first established at that time, we were tasked to oversee the charters of the National Energy. And then we evolved. And in 1984, we tried to upgrade ourselves from the state enterprise into a conglomerate. And in 1997 to 2001, that was the period of our IPO. And following the IPO, we went into M&A and tried to resolve the economy. And we got fund and in 2005, we adjust our mission and tried to strengthen ourselves in the international market. And at that time, we set our vision to become a Thai premium of the national energy company. And whether that mission this mission, which we have been implemented up to the -- up to earlier this year. So we have already achieved it as a Thai Premier and energy company. And yes, we are Thailand's leading energy company and we leading multinational energy company because we are one of the companies in the 100 DJSI. And that's why we feel that we have already achieved our vision. And that's why it's time that we revamped our vision, and this time has been going on for a while. And this is a result of the disruption what is going on in the world's energy situation as well as what is going on socially. Because of these factors we feel the need to readjust our vision. And as you can see now in the next slide, that is our vision. Our new vision is powering life with future energy and beyond. And if you look at this vision, there are 2 parts. Powering Life is our organization's purpose, meaning that this is the purpose, this is the price on debt of our organization. So powering life represents our drive, powering. And life has a wide meaning which refers to life of an organization of the country and of the world. So powering life means that we intend to drive everyone to make sure that everyone can live happily. And with future energy and beyond, which is the second portion, this represents our strategy. So how can we take care of the society, we will take care of the society through future energy. So fossil fuel energy alone may not enough. And then beyond means that may further in mission businesses outside the energy sector. And when I said beyond we mean mainly from the country's S curve. So coming back to the vision, powering life with future energy and beyond. This is going to also increase or add to the creation of the country's S curve. So all in all, this is our vision. Now I wish to go into detail for powering Life, we intended to have the sustainable growth. We will invest through partnerships and platforms. And PTT to be able to grow in the future, we may not be able to grow alone. We have to do it with our partners -- And we are making enough to become a platform for start-up companies or SME so that we can grow together. The second one is we intend to have a positive contribution to enhance livelihood to the society. And this will be done through our business and our CSR activities. And finally, the third one is the low carbon society. And this means that we will conduct our business that respond to social and environmental needs. So now for the portion of future energy and beyond. And you can see that there are 2 colors in this slide. Future Energy is in blue and Beyond is in yellow. Of course, future energy will focus on future energy businesses and FOS new businesses. So for future energy, we will focus on the renewable energy storage and EV value chains. And right now, we are conducting a facility study on hydrogen. For beyond portion, there are 5 to 6 business that we will underline, the first one is the life science business. And in a while, I will go into details. So of the 6 business beyond business, they are life science, which in closer pharmaceutical business. Mobility, lifestyle is the second high-value business is the third. Next is logistics and infrastructure, AI, robotics, digitalization -- And finally, new business that we are ready to explore. And you can see that these 6 platforms will help increase the platform in order to realize the countries S curve. Next slide, please. I'll just try to take you to our -- the direction -- the future direction. So currently, we are very familiar with the upstream and downstream, and we will increase the future energy. And for the upstream energy. When we talk about future energy, of course, we are talking about renewable energy. But then from now up to 10 to 20 years, this is the transition period. This is not going to turn everything from 1 thing to the other overnight. So because it sees the transition period, so the best transition field right now is natural gas. So of course, we will continue to be in this business, and we will expand the investment in this business. And of course, in the we will act the LNG value chain we will continue to expand our LNG portfolio, and we will focus on the LNG portfolio with if we acquire a business, it will mainly an acquisition of gas fields, as well as the medium goal is the portfolio will be around 3 million to 4 million tonnes and 29 million tonnes in 2030. For the downstream business, we use the word power in downstream along with future energy. This means we will adjust ourselves in the existing business in order to comply with the trend of the world and for the downstream business, we will reduce our exposure in the refinery business, and we will increase the proportion in the new business. And in addition, we will focus on energy through Project One within the group. And we will also upgrade our management in the access from -- the excess of the internal domestic production from the refinery business. So we will introduce optimization tools in order to manage the access. We intend to become a player so that we will have a bargaining power in the region. And this is about the downstream that we envision. And of course, in this downstream business, we will continue to expand in the petrochemical business, especially in the specialized branch business. For future energy, as I said before, the focus will be on the RE renewable energy company called Arun Plus is established in order to invest in the entire value chain and we will also focus on the energy storage system GPSC pilot plant is already starting using the semi-solid technology, and now the market is being studied. There is a possibility to expand further. The next slide is talking about Beyond Energy that I mentioned earlier that we have in place, 6 businesses. For life science, there will be 3 main business, whether it's about pharmaceutical business, about the mutation business, a while ago, I talked about a joint venture to operate -- to produce plant-based meat -- And for pharmaceutical business, we acquired Lotus stake in Lotus in Taiwan in order to study -- to acquire the know-how. And actually, it is quite useful because just recently, the medicine, which is required for treatment for COVID-19 treatment. Actually, at the time, Favipiravir we had only 4,000 bottles of that medicine. And thanks to this company, we were able to import an additional 2,000 and donate it to the government. And next month, we plan to import another 4,000 bottles. So this is like an extension or expansion into the pharmaceutical business. If you ask us about the know-how where the know-how is coming from in our group, there are people who graduate here from -- in pharmaceutical and chemical businesses. And so these people are very competent in that knowledge. And in addition, the way that we expand our business from our expertise, for example, in the nonwoven fabric client, this is also an extended investment, which is coming from what we produced in our petrochemical business. In terms of it, it will be high-value business. GC is the main leader by acquiring 100% in Annex. And in terms of AI robotics, we are currently studying the feasibility. We have established -- we have established a company and we do not sell only cloud storage, but also solutions, and we have collaborated with Microsoft in order to acquire the know-how in relation to cloud and PTTEP also established a subsidiary to overseas AI robotics undrawn. And for the infrastructure business, the target is to enter this business as a third-party logistic partner, we will manage the warehouse, rail and terminal as well as value-added services in packing and assembly. The operation has partially started, for example, PTT Tank has collaborated with its partner and get concessions at Lam Chabang Phase 3 terminal, and this has already been approved as well as in Map Ta Phut phase 3. And one area that we focus is the rail business and also the -- and finally, the mobility and lifestyle OR will be a leader in this business. OR is not only just sales gas or gasoline, but we try to set up our position as in the mobility business? So this slide shows actual activities during the brief period after the revision of our region and future energy, GPSC acquired 41.6% shares in Indian solar power developed other 25% share of offshore wind farms in Taiwan shares in solar power plant that rooftop project or EV value chain, we signed MOU with Foxconn. Whether to enter into the JV or not, please stay tuned, we will know soon or the establishment of Arun Pus subsidiary Swap & Go. Swap batteries for motorbikes for new business. I already explained. Buying shares in Taiwanese pharmaceutical company Lotus, plant-based meat of no food. Actually, a number of collaborations with the pharmaceutical organization, with the R&D center in order to upscale the production of Favipiravir. Actually, what we have right now is the pallet maker not manufacturing the actual pharmaceutical properties. That project is to bring about pharmaceutical supply and also oncology drug. It is progressing well or the collaboration to produce herbal medicine with Siriraj Hospital to commercialize. High-value business, I mentioned mobility and lifestyle I touched upon. So you will see a range of novel activities by OR, for example, buying shares in flash or joint venturing with [indiscernible]. So these can be added on chains, especially the network of petrol station during the pandemic. Of course, the fuel sale, the oil sale itself has decreased, but non-oil food fortunately, they are not subject to shutdown orders. So on food outlets in petrol station, even though people cannot dine in, they can order take out. So these are examples of activities we have implemented following the unveiling of the revised vision a few months ago. In terms of investment direction and long-term goal, we have done have completed strategic thinking sessions, and we have come up with the big picture. The macro direction of the future that I would like to share with you today set the target of new growth, i.e., net income from future energy and beyond undertaking. -- at the tune of more than 30% net profit share by 2030. And businesses, for example, LNG, we set the target of 9 million tonne in our portfolio. Power generation, if you remember, we revised figures to be more ambitious. For example, power from conventional sources, same as before at 8 gigawatt renewables. We revised upward from 8 to 12 gigawatt. So big deals have already happened. As you can see, claim growth, we set the target of reducing greenhouse gas emission by 15% from the base year of 2020. Now whether we achieve net 0 target, as we speak, we are conducting intensive revision in order to set PTTs emission targets. We heard the terms net 0 carbon neutrality. We are scrutinizing these, and very soon, we will announce something. Of course, it has to be compatible with the national strategy. Thailand itself is examining these targets. In terms of CapEx, the percentage of CapEx, we will invest in new business and future energy roughly to the tune of 32% and strategic direction by business for you to see the picture, E&P expand growth for high growth and focusing on gas for gas build global LNG portfolio and our supply chain integration, the synergy and moving up to high value chain, more specialization. We start a petrochemi for refineries, which is actually is supposed to be in Indonesia. The plant is still lacking in terms of capacity. So there are rooms for growth in Indonesia. And of course, we will build upon the existing network, which has strength in solvents, oil and retail. I mentioned already, focusing on customer-oriented businesses. and power business, generating growth domestically and regionally new energy. As I said, we focus on renewables, energy storage and EV new chain new business. We will -- we are on the verge of scaling up following a feasibility study and close scrutiny for a while. I'm not sure whether I can say or not, but within this year, that we should be able to announce some deals to this effect. So that's the direction now. I well, originally, my staff have prepared slides to talk about clean and green strategic execution, but I requested that as we are in the process of reviewing, we need to incorporate updates and changes. So please hold. Allow us to crystallize and come up with something more solid. We will share with our analysts and fund managers, friends in the future. So that's all I am going to present today.