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

Good morning, analyst fund manager and the executives of PTT. And to all of you including those who are present here and those who are at home, my name is [indiscernible] from Investor Relations of PTT. I'd like to welcome everyone to the analyst meeting of the third quarter of 2022. It is such a great opportunity for us to meet everyone again after 2 years as the COVID-19 situation has been getting better. But however, for those of you who will maintain the online channel for all of you which equipped with interpretation into English in line with good practice of PTT stakeholders. First, today, we will have the third quarter performance and results report. And secondly, we will have the net zero session and followed by Q&A session. Before we start today, I'd like to introduce to all of you our executives. First, Khun Wuttikorn Stithit. The Petroleum and Natural Gas business, Khun Noppadol; and Khun Buranin Rattanasombat, New Business and Infrastructure Business; Khun Pannalin Mahawongtikul, the Chief Financial Officer; lastly, Khun Auttapol Rerkpiboon, the CEO of PTT. And I will give the floor to Khun Auttapol.

Thank you. Good morning, analysts, fund managers. It's such a great opportunity to be -- to have this hybrid meeting today. Let me start with our content today. So here is the structure, our executive structure of our management. We already introduced 4 of us today. We categorize our department into Petroleum and Natural Gas. And Khun Noppadol, who is in charge of trading and petrochemicals. And Khun Buranin who is in charge of the New Business and Infrastructure department. And Khun Pannalin, everyone know her already, who is the CFO of PTT. We also have other members of the management who are in charge of different departments. Let me start with the key activities in the third quarter. First, we divest [indiscernible] of Indonesia. And the deal has been signed in August, and it is supposed to be finalized in the fourth quarter. This is in line with our position on divestment of core business. Next, PTTLsi LNG contracts with corporate history, which is a part of Cheniere, the American Cheniere company for 1 million ton per year beginning in 2019. And this will be imported to Thailand for the National Energy Security. Third, we have a cap NGV price at THB 16.59 per kilogram from September 16 this year. And for taxi, we kept the price at THB 13.62 per kilogram until December 15 this year. Fourth, we have paid the interim dividend at the rate of THB 1.3 per share, which is 58% of the total revenue. It is already -- they are paid on October 12. Next one, there was a change in the Yadana operator, which is in effect on July 20. And as we have known, that Yadana already left the location. So PTTEP has an increased share interest of 37%. Next, Petronas and PTTEP has merged -- merging contracts in the Malaysia, Thailand development area or MTJDA and which was approved by the government of Thailand and Malaysia. And this contract is to be extended for another 10 years. It is supposed to end in 2039. And it is also approved -- it was also approved to extend the survey area. And with additional 30 million tons of gas. So we have seen an increase in the volume -- in the gas volume for Thailand. Next, PTT EPI. PTTEP [ MENA ] has signed a contract for 25% of Sharjah Onshore Area A. It is expected to be finalized at the end of this year. This is our land natural gas located in central Sharjah province of UAE. This is in accordance with the PTTEP plan. Next, Thaioil, they have increased their -- increased additional stocks in October, which resulted in additional funds of THB 10,400 million. Next, PTT has established Innobic Nutrition Company or Innobic Asia, which will be in charge of lifestyle business, pharmaceutical, nutrition. And this newly established is a medical device company, which is aimed to focus on nutrition business. Next, we also established Global Multimodal Logistics company in October this year with the SMH of THB 230 million with an aim of logistic business. We intended to connect logistic networks, both in Thailand and neighboring countries. We -- there will be both rail, marine, land, and air freight transports. So this newly established company will be in charge of the logistics business of PTT. Next, I also would like to thank all the analysts and fund managers for your support and which awarded us with the Thailand Sustainability Investment and Innovation Awards. Both of these awards are given by stock Asian market of Thailand. We also received 3 awards, which are Master Entrepreneur Award, Inspirational Brand Award and Corporate Excellence Award. In addition, we have been voted by Institutional Investor Magazine for best CEO, best CFO, best IR program and best ESG awards. We have been also characterized as Most Honored Company. And these are our results and awards received in the third quarter. Next, moving on to key drivers. Let me start with crude oil price. Dubai crude oil price of the third quarter is at USD 96.9 per barrel, which is a result of OPEC+ adjustment of price and as well as the non-OPEC increase of demand. In terms of fuel oil, the price of the third quarter is at USD 74.6 per barrel which is a decrease of 29% Q-on-Q. In comparison, both Dubai crude oil and fuel oil, we saw an increase in terms of price of both of them due to the tension between Russia and Ukraine. As for pool gas petrol price, PTT price is at USD 12.73 Q-on-Q, which is an increase of 24%. This is due to LNG import, the increased price of LNG import and the quantity -- the import quantity. And for the second quarter, we have a 14. And for the third quarter, we have 19. As for the 9-month quantity, it has been increased to -- we saw an increase of 77% on both the price and the quantity increase -- have increased for LNG. This year, we have been imported 55 units. In the third quarter -- in the past third quarter, spot LNG JKM price also increased from $27.1 to $46.4. In terms of petroleum price on both olefins and aromatics price decreased around 14% to 21% due to demands increase and new demands, new supplies in the region. As all for Q-on-Q exchange -- currency exchange, we saw a loss due to exchange of THB 6,829 million. This is due to the depreciation of Thai baht. Next, let's give the mic to Pannalin further for the performance of the quarter.

For the key drivers, Q3 encountered many negative factors, including the oil price, which is down. Petrochemical products, which is down. While the gas, which is the material is higher because we have to import more LNG. So it's -- we are encountering higher costs, while the average selling price is lower. So it affects our Q3 performance quite a lot. Now in overview, Q-on-Q, revenue is down by 5% mainly from the lower average selling price like petroleum and petrochemical products from the concerns of global economic recession. But for the gas business, the revenue is increasing because of the higher pool gas price because of the import of LNG. EBITDA Q-on-Q, it's decreased by 50% because almost all of the sectors, starting from the PNR, GRM of the refining is down from Q2. GRM is quite high. That was about USD 21 while Q3 is getting down to only USD 7 for the GRM of PTT Group. For the stock in Q3, while oil prices down, Q3, we have encountered the stock loss about THB 25 billion, while Q2 is the stock gain of about THB 19 billion. Petrochemical spread of olefins and aromatics was down. Also, we faced the smaller sales volume, downstream demand is down and also there were some turnaround. For gas business, EBITDA also is down mainly from the natural gas trading because for the gas that we sell to industrial clients, it's linked with fuel oil price but the feed gas cost is quite high. So it affects our gas business quite significantly. For oil business, EBITDA is down because the gross profit is down due to benzene and diesel, which the cost is higher, while we have a lower sales volume. If you can remember, we face the flood situation and that affects our sales volume in the oil business and non-oil business altogether. So with the flood, sales volume is down, both the sales volume per day and per store. But EBITDA is up for E&P, even though the average selling price is down in line with crude oil price, but because we had higher sales volume, mainly from the MTJDA project which has a less turnaround than expected in Q2. And for G1/61, which started operation in April, so Q3, we can recognize the full quantity from the project. For the new business, EBITDA is increasing mainly from pharmaceutical business. We already have the contribution from that project already. We have LOTUS, which already launched the new anticancer treatment in the U.S. market in September. So we started to recognize the profit from LOTUS. So during the Q&A, Khun Buranin can share with us more about this project. For GPSC, it is affected by the natural gas and coal cars, which is significantly higher, and it affects GPSC's performance. For NI Q-on-Q, it's down by 77% to around THB 8.9 billion. For EBITDA, we also have the loss from FX. It increased about THB 68 billion, and that's because of more depreciation of the Thai baht currency in Q3. Onetime nonrecurring items in Q3. PTT equity in Q3, we had the loss of nonrecurring about THB 2 billion. While in Q2, we had the loss about THB 15 billion. So in Q3, what are our nonrecurring items? We have PTTEP that have the amortization and impairment of assets for sales and that's about THB 2.3 billion. Also, PTT had to pay into the oil fund and that's about THB 11 billion. And we also plan to give the money to the oil fund for another 3 months. For the positive factor, we have a discount for gas shortfall, and that's about THB 900 million. For derivatives in Q3, we have the relative gain and that's about THB 47 billion. In Q2, it's the loss of THB 34 billion. And Q3, it has the gain. So we have the final, about THB 47 billion. For 9 months this year. For the first half of the year, the performance of the group is quite good, but we encountered some negative impacts in Q3. While looking to the profit for 9 months, overall, it's higher by 64% due to higher average selling price, both on petroleum and petrochemical products. Also, we had higher sales volume because of the economic pickup. For EBITDA, 9 months is increased by 28% from almost all of the business group like E&P because of the average selling price and the higher sales volume. P&R market GRM in 9 months is quite satisfactory compared to 9 months last year. Market GRM of PTT is increasing from USD 1.8 per barrel last year to USD 11.4 this year for the first 9 months. But the stock gain is decreased by THB 17 billion, because last year, we have a stock gain about THB 38 billion. But for this year, it is about THB 21 billion. Petrochemical EBITDA is down because of the spread of both olefin and aromatics, which is down. So it is quite tiring for petrochemical business this year because people have the concerns over global economic recession. Trading EBITDA is up comprised of 2 components: unit margin is better and also with higher sales volume, we have the activities of imports of LPG and LNG per the demand which is higher and also out of activities is getting better. For coal, EBITDA is getting better for the average selling price and higher sales volume. But even though the cost is a little bit higher. For gas business, we would give you more details for PTT-owned activities. For the first 9 months, it's down because of the out-out activities. And for NGV business, feed gas cost is significantly higher. And for the industrial clients, NGV [ steel ] price is fixed, while the price is not -- average selling price is not getting higher. So it affects our business quite a lot. For New Business is down because of higher GPSC's cost. For net income, for the first 9 months is down by 9% compared to last year, and that's about THB 73 billion. Apart from the EBITDA, which is the positive impact, we have the negative impact from the loss of derivative and that's about THB 38 billion. Last year is THB 31 billion. For the tax expense, is increased by THB 25 billion due to better performance of PTTEP and TOP or Thai Oil with higher market GRM. Also TOP has tax expense more when they sell their shares in GPSC. For FX loss, and that's increased by about THB 15 billion due to the depreciation of the Thai baht compared to last year. For nonrecurring items, we recognized loss. For PTT equity, that's about THB 26 billion, 9 months last year, it's only THB 50 million. So it's up by THB 1.5 billion. So that's mainly due to tax expense which is onetime item. TOPs sold out shares from GPSC, that's about THB 21 billion, the tax oil fund and cash from gas shortfall. Now to the waterfall, this screen shows that for PTT's group net income, which is decreasing by category, mainly it's from lower margin and stock. For the margin, we get less margin from almost all of the business units like petrochemical, refining, gas business of PTT. So it affects margin to the negative factor of about THB 45 billion. For stock loss, it's increasing by THB 44 billion. OpEx is higher by THB 790 million mainly from the exploration cost of PTTEP. For depreciation and amortization, it's the negative factor of about THB 4.8 billion, mainly from PTTEP, Bongkot project, G1/61 with higher sales volume and S1 assets for ready-to-use is getting bigger. For other income, it's decreasing by THB 327 million, mainly from the money injection into the oil fund. For the impairment, it's higher by about THB 3.1 billion, mainly from PTTEP. For FX and derivatives, we have derivative gains better by THB 47 billion. And for FX loss, it's higher by THB 6.8 billion. So net is the positive factor of about THB 40 billion. And for the last category, interest and corporate income tax and noncontrolling interest, it's decreased by about THB 28 billion. So that's the positive factor from the decreasing tax factor. NCI also is decreased by THB 13 billion. So that's Q-on-Q impact. To the next slide, breaking down to our own activities under PTT Group. So we have seen the red results Q-on-Q. EBITDA decreased by 59%, mainly is the gas and trading. So altogether, it decreased by 59% Q-on-Q. Looking into the Gas business. S&M, EBITDA decreased more than 100%. As we face the higher gas costs which we cannot transfer to our industrial clients and NGV also is highly impacted. Sales volume decreased by 4% -- 5% to about only 4,000 MMCFD. -- mainly from the gas separation plants and industrial clients. For the gas operation plants, sales volume decreased by 8% because they also switched to oil from hydropower plants. And when LNG and gas price is higher, clients would switch to fuel oil and diesel oil instead. For TM, EBITDA decreased Q-on-Q by 22%. Because the profit from sales is down, TD is adjusted since August affected from lower revenue from TD. But PTT is now appealing to the ERC on TD, and we already submitted our request. We are now waiting for the results from the ERC. Profit is down and also the cost for TM. Business is higher, and that's from the gas cost for our own use because we use the gas for our feedstock. GSP, the EBITDA is down by 36% because of the lower average selling price linked to petrochemical product price. NGV, we have the loss of about THB 1.7 billion. For others, it's down by THB 1.8 billion, mainly from PTT NGV because of the higher cost of gas and for the average price is linked to fuel oil price with lag time. With a lag time, sometimes it becomes our positive and sometimes it's negative factors. And now, it is the negative factors for us. For trading, EBITDA increased by 8%, mainly from margin and higher sales volume. 9 month EBITDA of PTT will be down by about 18%, mainly because of S&M and T&M business, but for GSP, for the first half of the year, petchem price is quite good. If you still can remember, GSP for the first 6 months, performance is quite good but is decreasing in Q3. But overall, it's still good. For trading, EBITDA is higher, more than 100% because of the sales volume and the margin which is better. So this is the PTT EBITDA breakdown by business for PTT only. Looking at financial position. Overall, total asset is higher by about 16% or THB 500 billion. So asset increased mainly from account payable and current asset, and that's increased by about THB 300 billion. Product price and higher sales volume with more activities, we have to stock more oil and we have more AP. For noncurrent assets, it increased by about THB 150 billion mainly from PTTEP's assets, the rise in G1/61 and G2/61. And the acquisition of pharmaceutical business with a long-term investment from GPSC divestment and the acquisition of Vinythai. For PP&E, it's increased by about THB 90 billion from PTTEP and construction -- projects under construction, CFP of Thai Oil. For interest-bearing debts, it increased by about THB 300 billion, because PTT group take more loans, both short term and long term, to be used in our investments. For equity, it's increased by about THB 100 billion, mainly from net income of 9 months. Other liabilities is increased by about THB 97 billion, mainly from increased price and increased sales volume. And also we expect decommissioning costs from G1/61 project. For interest-bearing debt, it's higher, resulting in net debt-to-EBITDA and net debt-to-equity ratio, a little bit increase from 1.37 to 1.74 for net debt to EBITDA and 0.4 to 0.57 for net debt to equity. For the cash flow, as of September 30 this year, beginning cash is about THB 310 billion. Free cash flow is minus THB 100 billion, mainly from our investment. Investment is around THB 128 billion, comprising of CapEx of PTTEP, TOP and PTT. And also for the investment, that's about THB 51 billion. Looking at the cash. We have cash inflow, and that's about THB 124 billion, mainly from the loans that we take more, and that's about 190 billion, repayment is about $50 billion. So we take more loan for the first 9 months. So cash ending is increased by about THB 9.6 billion, ending at THB 320 billion on top with the short term. So we have the ending cash of THB 338 billion.

Let's move on to the outlook. And I will review this pretty fast. I think we saw an estimation of plus 2.7%. Besides Thailand, we have China, which is expected to increase in the long run, is expected to see the relaxation of COVID-19 measure in China. As for Thailand, several institutions estimated of -- estimated an increase of 4.2. This is a result of foreign tourist drive. And at the beginning of next year, we see an optimistic opportunities. However, we see a delay of the export momentum. And however, we still see an increase of interest rate domestically. We still have to look at the competitiveness in terms of tourism. There will be competitors, tourism competitors. And it is expected to see tourists from neighboring countries. Now in terms of the petroleum product, it is estimated that the decrease in Dubai crude oil which is a result of the global recession, the zero COVID -- the Chinese zero COVID measure, and we see an increase in new supplies. In the short term, Dubai crude oil should be a plus in terms of the price. This is due to the Russian tension, the European ban on Russia. Analysts -- and less for crude oil. As for refi oil, it should be around $99 to $104 per barrel. This is due to the concerns of our economic recession. There might be a plus factor from the U.S. existing use. As for gas oil, average price is around $114 to $119 per barrel. This is due to increased -- Chinese increase on export. And there is also a supportive factor from gas oil switching in the end of 2022. And the original inventory is low. It's quite -- it's below the 5-year average level. In terms of HSFO, the price is around $75 to $80 per barrel due to the supplies from Russia to Asia. However, this is supported by gas oil switching as well. HSFO therefore, the estimation is at $98 to $103 per barrel which is pressured by increased Chinese export and the export quarter from also a plant in Kuwait. Also in the short term, there is a supporting factor from the marine transport demand. As for Singapore GRM, it is estimated to swing from 2022. In 2023, the price is at $7.3 to $8.3 per barrel. As for LNG in 2023, it is estimated to increase to $40 to $48. This is due to the decrease of gas transferred to euro from Russia. And the beginning of the winter season -- the extended winter season at the beginning of 2023, there is a small plus sector of Chinese zero COVID. The relaxation of Chinese zero COVID policy as well as the U.S. the recovery of U.S. Freeport LNG. Now compared to other factors, it is estimated -- the price is estimated to increase and those are the petroleum prices. In terms of petrochemicals, both olefins and aromatics in 2023 is expected -- the prices is -- are expected to decrease for all products. This is due to the decrease of purchasing covers, the economic recession, increased interest rate and depreciation as well as Chinese zero COVID policy. So it is estimated utilization rate of olefins should be at 80%, and that of aromatics should be at 70% next year. In terms of the plus factor, we have increased price of raw materials. These are the estimated prices. First, HDPE to decrease by 6% from $1,200 per ton to 1.1 -- [ $1.1 ] per ton. As for PP, it will be a decrease by 4% from $1,200 to $1,100 [ to $1,200 ] per ton. As for BC a decrease of 4% from $1,000 per ton to $980 to [ 1,000 ] per ton and PX decrease of 4% from 1,000 per ton to $1,000 to $1,100 per ton. Next, we have the 2023 guidance of the PTT Group. In terms of E&P, we hope to see an increase in sales. However, the average gas price is expected to decrease due to the recession price, the new recession price. In terms of the gas business, the demands of the natural gas should be increased. And gas volume in the [ gap ] of Thailand is also expected to increase. The cost of gas, average gas cost in 2023 should be affected by LNG price. We imported LNG at a higher price. As for OR, we also expect to see a higher sales volume, petrochemicals and with P&G. As for P&T Group unit rate is expected to increase since GC and IRPC plans are -- already went through maintenance this year. And this will be affected by a decrease demands and decreased purchasing power. As for GPSC, there should be a recover electricity demands in the country. Future energy, press company said to go to increase EV charger station to almost 4,000 units for both OR and PTT. They plan to add 800 more stations, EV charging station. As for new business, we expect to see a higher income from pharmaceutical business. There will be a major turnaround for gas refinery plants number 2 and 3. And with SCC Ole 1/2 there will be shutdown of 52 days, 65 days for Ole and 37 days for our OTA. As with GSC in the fourth quarter, there will be a major turnaround of 50 days for refinery plant and HDPE, there will be a major turnaround of 38 days and also a major turnaround of 28 to 30 days for the IRPC refinery plant. So the overall production should be less, but it is expected to see an increase next year. In terms of the commercial projects, we see an Innopolymed plant. That's also a solar power plant in India of Owada, which is -- which was invested by GPSC. As for the fifth pipeline, which are categorized into 3 phases. First one is already completely finished. As for phase 2, due to COVID, there has been some delay, but it is expected to finish in the first quarter of next year. Key businesses of PTT next year, we plan to review second unit of olefins plant of GC. It should be finished in the first quarter, high engineered plastic project of Kuraray GC. The production power of -- the production capacity of 13,000 tons per year. These are also expected to complete it next year. These are high engineering plastics. As for new businesses, we also have the plant-based protein plant. This is a joint venture. This plant is expected to finish in the second quarter of next year. Innobic, so already have stores, restaurants in [ Sinphuhorm ], we sell plant-based products. Plant-based is a little bit better than vegetarian because its taste is more similar to real meat. These are the results of our third quarter. As for -- furthermore, we have the net zero presentation. But I would like to talk to all of you. And after that, we will follow by the Q&A. We would like to begin with the costs. Well, there was a study on countries affected by climate change. And Thailand ranked #9. So it's quite alarming. And the impact is approaching all of us. So this is the figures to show that the world is emitting CO2, about 36,000 tons per year, Thailand is 257 tons. PTT is accounted for 45 metric tons from 257 tons. PTT Group is about 11 ton, 11 million tons. Now to just give you a brief on COP27. We declared that Thailand would become to net zero emission by 2065. And for COP27, the plenary agreed to set up the special fund to respond to climate change, to also give aid to poor countries. They set up the ad hoc committee to give out the advice on the measures to manage the fund and it would be reported, again, of the progress in COP28. So the world is seeing that the impact is approaching from climate change. And for G7 countries, they already declared the global shield financing facility to secure the fund and to give aid to the impacted countries. So these are like the measures to respond. U.N. Secretary General also set up the early warning system with the budget of about USD 3 billion to respond to extreme weather conditions. So this is like the early warning system for the mitigation measures. It was already declared in COP26, but we are not sure we can mitigate the impact effectively or not. So the world is expecting that society, in order to become carbon-neutral, we would need the budget of about USD 4 trillion to USD 6 trillion per year. So financing is quite important to support the plan. And PTT is also looking into the fact how much we can utilize the fund and our activities to cut down on CO2 emission. The major companies on your right column, they already have their initiatives targeting 2050 as a target year. PTT also declared our policy. Just the beginning of last month, saying that we are targeting at net zero in 2050 and carbon neutrality target by 2040. Before our announcement, we got together as a GNET group. So GNET brainstormed how to move forward under PTT flagship. So we set up our common target that in our flagship, we would declare net zero targets before Thailand's target because Thailand's targeted 2065. PTTEP and OR is 2050, PTTGC and PTT also declared at 2050. GPSC and Thaioil, probably they would set up as 2060. But anyway, all of us would declare something earlier than Thailand's target. So it would help bring down the average number of Thailand. But when we declared our plan, we have to come up with our strategies of 3P, the decarbonization pathways. The first P is pursuit of lower emissions, which would be connected all off our value chain, clean energy and technology would be used. And we also would add in the projects building CO2 utilization factory and also CCS, carbon capture storage. For the gas operation plants, we have a GSP #7. Once #7 is up, we would shut down GSP #1 because that was -- that is old already, 40 years already. Efficiency rate is not so good. It consumes a lot of energy. And the asset of GSP #1 probably it would be fully amortized. So we would run GSP #7 and would close down GSP #1. And for the CCU, we would be done under pursuit of lower emission and that would cut down the GHG emission by 30%. The second piece is portfolio transformation. We would adjust it in that we will invest more in renewable energy by 12 gigawatt by 2030. So all the beyond projects would help cut down by 50%. And the last piece, partnership with nature and society, mainly is the reforestation project with the target of new 100 -- new 1 million rai by 2030. The existing one is already 1 million rai. So we got together under the name of GNET Group. So we will split the job led by the expertise of each company like CCUS and CCS, carbon capture and storage. PTTEP would be the leader because they are the experts. They know well about the well and GO expertise. The pilot project is in [ Aztiq ] well, and that capacity is about 1 million tons per year. Another project under study is the nearshore project in Thai Gulf. In the Thai Gulf, there are many wells that can store carbon. And there is one site, which is not so far away from the shore, so we can lay the pipe and then to collect carbon from PTT Group and also non-PTT Group like in Map Ta Phut area. So it's very likely that we would have another big new project to store carbon from -- emitted from factories in the eastern part of Thailand and to store it nearshore. And PTTEP is now exploring the project with high visibility so we can store a lot of carbon here from this project. For CCU, carbon capture and utilization. So we would utilize carbon, CO2 from, for example, frozen business or the concert business. So we would use CO2 in 4 potential projects, sodium bicarbonate, animal protein, methanol and nano calcium carbonate. So PTT would be the leader. After it's fixed, then we would invest and construct the plants to help utilize CO2. For renewable energy, this is for our operation, not for our investment, and we would target about 350 megawatts by 2030. Another project is hydrogen project. We started talking about 2 years ago, but this year, it is very likely that we will come up with a real project. Like during APAC meeting, we signed MOU with Saudi Arabia to study a hydrogen project in Thailand, together with [ EGAT ] Saudi Arabia and the Electricity Authority of Lao. So it's quite a big project and Thailand can become a hub of hydrogen project in the region. Now coming to reforestation and conservation project. PTT already reforested about 1 million rai already. The total area is about 1.1 million rai covering 54 provinces. We commissioned our third party to make -- start a survey. And then we can remove the CO2 by 2.14 million tons per year. And for O2 emission, that's about 1.71 million tons per year. So the forest creates value for surrounding communities about THB 280 million per year. Because with the forest, the community can come up with a tourist attraction, revenue generation. And also they can revise their watershed. So reforestation, we benefit something more than carbon storage, and we would add 1 million more rai from now. So in total, we would have about 2.1 million rai of reforestation to remove CO2 by about 3.02 million, 3.04 million tons per year until 2040 -- until 2050. So for the next 3 years, we can be ensured that we would achieve our net zero target by 2050. Because PTT is quite a big corporate, so we joined hands with many sectors to respond to climate change. We signed the MOU with TGO to exchange body of knowledge on climate change. And also we have organized carbon-neutral Thailand or TNCC. And I am presiding that coalition. The network have about 270 entities altogether. And we just hope that the initiatives can help push Thailand towards our carbon neutrality target, like to propose policies and also to support stakeholders so that Thailand can have the international standard. So CO2 which we can store, can be traded and can be certified to be able to be traded internationally. So this is part of the work of the collaboration. So PTT would take the action seriously because climate change impact is approaching, and we should have concrete measures to support towards our target. And for the investors, fund managers, they also give importance to these initiatives. So this concludes our net zero policy. So the target is 2050. So that's all for the presentation.