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

Good morning, analysts, fund managers, executives and staff of PTT Group. My name is [indiscernible] from Investor Relations PTT Group. I would like to welcome you to PTT Analyst Meeting for the Fourth Quarter of 2022 and Year End 2022. As the pandemic eased, we are meeting face-to-face. However, for those of you who cannot make it here, we continue to do online broadcast via Facebook Live which has both languages, simultaneous interpretation to ensure equality of access for analysts, both Thai and foreign according to good practice as well as via Microsoft Team. In case you have questions, you can raise your hand in-person and virtually or type in your questions using the chat box functions at all time. Our team will collect questions for the Q&A segment. We will start by presentation of Q4 results and year-end 2022 and followed by Q&A session. On oil and gas market outlook, we are honored by PTT Trading team. I believe that topic is very interesting given the present context. And our executives are ready. May I invite CEO, Khun Auttapol Rerkpiboon; and Khun Pannalin Mahawongtikul, CFO; Khun Wuttikorn, COO Petroleum and Natural Gas; Khun Noppadol Pinsupa, COO Downstream Petroleum; and Dr. Buranin Rattanasombat, COO New Business and Infrastructure. So they are here to present results of 4Q and 2022.

Good morning, analysts, fund managers, colleagues. I'm very pleased to meet again quarterly. This time around, we are still doing hybrid. If you're okay traveling here, be our guests. Otherwise, our virtual meeting facilities are available. May I just start straight away. In terms of key activities, starting with key drivers for our performance, crude Dubai price, Q4 average at $84 per barrel, which is down from $96, 12% down due to economic recession concerns, whereas supply increased from producers outside OPEC, resulting in price decrease year-on-year. Between '22 and '21, Dubai crude increased by 39% from $69 to $96 as we all know due to Russian-Ukraine war and PTT Group gas price at $10.7 per million btu Q-on-Q, down 16%, mainly due to LNG imports that were down, both in terms of volume and price. In Q3, we imported 19 shipments, while Q4 only 2 shipments. So the average is down year-on-year, down -- sorry, up 64% from all sources across the board on the back of higher energy price streams and LNG import is higher as we all know Gulf of Thailand volume was down during transition of concession. Q-on-Q olefins and aromatics are down between 6% to 10%, HDPE down due to sluggish demand and the lockdown in China, PX spread down on the back of less crude and naphtha and dampened demand for 2022 year-on-year both improved in the range of 20% to 22%, again, in parallel with increasing crude and naphtha prices. In terms of net income Q4 2022, THB 17.1 million, more than 100% over Q3 due to FX gains and less loss and segregated roughly PTT's own gas business up due to S&M and NGV higher profits as gas prices were down, international trading down due to unit costs and international crudes, less volume, and in part, a recognition of mark-to-market losses of inventory. So that's PTT account. But after netting increase for E&P down due to higher operating expenses and debt in Montara, which have been rolled and compensated and impairment of Mozambique and classification of assets for sale in Angola and average selling prices, which is down due mainly to liquid sales, P&R up, mainly FX gains, even though operating profits are down. Petrochem down due to less spreads; refinery, GRM down; oil business, oil retail profits are down a little bit due to higher cost of diesel import Q4. We have several refinery shutdown and the sales have been imported as contingency for Q4 selling, but maybe timing was not so right. The import came in tranches and Q4 prices dipped. New business and infrastructure down as pharma businesses profit. Plant and seasonal decrease of salable income and SPP and FT not as high as anticipated. And those are key drivers and performance. Let's take a look at highlights, key activities in 2022, starting with core business and future energy and beyond. We divide into 2 segments. In November, LNG Receiving Terminal #2 is complete. From Phase 1, we have 11.5 million and that's ramped up to 19 after completion of [indiscernible] and PTT Global LNG, we signed a contract to buy LNG with Cheniere Energy, 1 million tonne per annum over a period of 20 years, starting in 2026. And PTTEP and PTT signed an agreement of gas condensate and crude from T1 and T2 projects. And we have divested, as you'll hear from Pannalin, we have completed divestment of coal business, selling to Ascendo of Indonesia. We just completed the transaction and transfer in 15 -- on 15th of February, 2023. So that's done and dusted. Going forward, we shall pursue cleaner energy business according to our policy. Looking at future energy and beyond pharmaceutical, Innobic Asia and [indiscernible] in Alvogen, which is the main shareholder of Lotus Pharmaceutical. Some analysts have already visited the factory with Khun Pannalin. This is a Taiwan-based company. This is 475 million venture resulting in Innobic being indirect shareholder of Lotus 37%. So that's majority stakeholder. And our collaboration -- R&D collaboration with Chulalongkorn University on Manee Daeng Molecule. It's undergoing trial with monkeys. To date, no bad side effects reported, only encouraging news, because old monkeys, like human beings suffer high blood pressure, but after a while blood pressure has been abated. So we are monitoring. And the monkey trial should wrap up in March or April, and then we continue with clinical trial. In Nutrition business, we established Innobic Nutrition in order to focus on various nutrition businesses. And we started launching products alongside partners, namely Innobic Pro Beta-Glucan+ and Innobic Probiotics. I think we have some samples outside. So the products start coming out and Innobic Board's shares of Interpharma 20% to foster collaboration, commercialization, marketing. NRPT, which is joint venture between Innobic and Nove Foods half-half, they opened [indiscernible] selling plant-based food. I think they are doing brisk business. And in -- just in December, we started construction of plant-based food processing factory, a joint venture, for the capacity of 3,000 tonnes per year. Next, medical device business. We started production of non-woven fabric. This is joint venture between IRPC and Innobic. They started production capacity 5,600 per annum and there is investment in THB 800 million, accounting for 17.65% to strengthen business of medical device production. We plan to expand to markets outside Thailand. Now in terms of EV value chain, Horizon+ starts their construction to manufacture EV and broaden industrial estate, $1 billion investment for the initial capacity of 50,000 units per year. Nuovo Plus establishing JV with NV Gotion to import assemble and market battery models and battery packs for energy storage and for EVs as well. ARUN PLUS and CATL signed an MOU to conduct a feasibility study into cell-to-pack battery for [indiscernible] different sorts of use, for example, EVs. So this is in preparation. For the logistics and infrastructure, we established GML, global multi-model logistics for rail, waterborne and airborne logistics. So that's roughly highlights for 2022. Khun Pannalin will present financial performance.

So we also brought some products so that you can have a look and have a physical touch. We have Pacamara Coffee and also the [ bread ] is provided for you from our eatery, which is plant-based food. And also we have the booths coming up to display the Probiotics and Beta-Glucan+ available just outside for all of you. So please have a look during the break. So those are the products from the PTT Group with more varieties coming up. Now to the essence of this session, the CEO has just gave us the summary. Now we would get into the details starting from the PTT consolidated performance Q4 compared to Q3. Looking at the net income in Q4 Q-on-Q is down by 10% or about THB 87.4 billion, mainly from trading and petrochemical and refinery. As you may know well, in Q4, our refinery is under shutdown. So the sales volume internationally and P&R business is down. In Q4, the crude oil price is also dropping down. The global petrochemical products price is also coming down. So that's why we have lower revenue in Q4. For the gas business in Q4, S&M, we have lower average selling price in line with the pool gas and the decreased sales volume. And that's because the power plant clients, they just switched to oil instead. And also in winter, there is a lower and smaller demand than before. EBITDA Q-on-Q is down by 20% or about THB 18.735 billion. That is from almost all of the businesses, except gas and PTTEP. Starting from trading, EBITDA is down because the unit margin of petroleum product and crude price is down in line with the global trend. And also we recognized loss from mark-to-market of the inventory. NBI also is down because the gross profit of pharmaceutical businesses is down. And also gross profit from GPSC is down from the SPP with higher feed gas and coal. P&R also is down because petrochemical products prices is down. Refinery also is down, even though with higher market GRM index because of the lower sales volume. In Q4, there's some positive sign in that we have lower stock loss. And for the oil business, EBITDA is down, as the CEO has just previously mentioned. For the gas business, we are doing better from S&M and NGV, as the CEO has previously explained. Net income Q-on-Q increased about THB 9 billion or more than 100% in Q4 because of the higher FX gain because in Q3 of 2022, baht weakened by about THB 2.6. But in Q4, baht strengthened by THB 3.43. So we have higher FX gain by about THB 52.56 billion, but also we have higher deliberative loss, mainly from PTTEP and GC. In Q4, we also recognized one-time net tax non-recurring items, and that's about THB 7.7 billion, mainly from the impairment of goodwill of Mozambique of PTT, and that's about THB 4.3 billion. And also, the expenses to pay the compensation for Indonesia from PTTEP, that's THB 3 billion. And also the support to the oil fund in crisis situation, and that's THB 2 billion. And also, we have the adjustment of the debt that might arise from Oman Block 61 of PTTEP. That's a positive factor, about THB 1.6 billion. So net NI in Q4 increased by more than 100%. When we compare 2022 to 2021, revenue shot up by almost 50% or by THB 1.1 trillion, mainly from the average selling price and the sales volume, which is higher after the pandemic. When we compare to 2021, it will increase by THB 63.3 billion or about 15%, up mainly from PTTEP core business, trading business and OR business. E&P is up from the higher average selling price and higher sales volume, mainly from G1/61 project started the operation last April and also from Oman Block 61 project, which recognize full year revenue. For the core business, the average selling price is higher in line with the global price, even though the cost of mining is higher, but the proportion of the price rise is higher. Trading EBITDA is also -- is up because of the unit margin is higher and also with higher sales volume. For oil business, EBITDA is higher because gross profit of non-oil is higher in line with the selling price, sales volume and also for the revenue from beverage and food. But all in all, for the gas, EBITDA is down mainly from S&M and NGV because the feed cost -- feed gas cost is higher in line with the LNG -- world LNG price. So our pool gas price is higher by about 64%. Also, if you look to the gas separation plant, the gross profit is higher because all of the products has higher average selling price in line with the world petrochemical price even though the feed gas cost is higher. For P&R businesses, EBITDA is down. We split it into 2 categories. For petrochemical business, EBITDA is down because the spread of aromatics and olefins is down. But if we are talking about refinery business, it's better because of better market GRM, which increased from $2.9 per barrel last -- in 2021 to $10.7 per barrel in 2022. And also, we have higher sales volume. But last year, we also have a lower stock gain when compared to 2021. In 2022, the stock gain is down by THB 42 billion. For the net income, net income decreased by THB 17 billion or about 16% down, mainly from the relative loss, which increased by about THB 42 billion for the previous quarters because of the war with Russia and Ukraine, which is unexpected. So the businesses that did derivative hedging with the war, the price of the oil is shooting up. So that's why we face with derivative loss. But we have the physical gain instead like we buy the insurance premium, it would be offset both physical and the derivative portion, but derivative portion would be done no more than 50%. So still, we have to enjoy the price which is higher from the physical portion. For the income -- for the tax expense, it's increased by THB 22 billion, mainly from better performance of PTTEP and Thai Oil. PTTEP is doing better, so we have to pay higher tax. And for Thai Oil, they just divested GPSC. So they have the gain and they may have to pay more tax. For the FX gain, it increased by about THB 12 billion. In 2021, it's a loss of THB 6.4 billion, but in 2022, it's a gain of THB 5.5 billion. So the difference is about THB 12 billion, which is the positive factor. In 2021, baht weakened by THB 3.38, but in 2022, it's weakened by THB 1.14. For one-time non-recurring items, which is the net in PTT portion, we faced a loss from non-recurring items, and that's about THB 10 billion, certainly from the impairment of the assets, both from Mozambique project and the mine project in Madagascar. Altogether, it's about THB 7 billion, mainly it's from Mozambique. For the compensation for the class action of THB 3 billion in Q4, for the whole year, we also inject the money into the oil fund and that's about THB 3 billion. While the positive factor is from the discount of the shortfall, PTT did about THB 3.4 billion. And also for the adjustment of the debt of Oman Block 61 of PTTEP, and that's a positive factor of THB 1.6 billion. So all in all, the net NI decreased by 16%. For the next slide is the waterfall Q-on-Q first, quarter 4 compared to quarter 3. So we would see that if you break down in items in Q4 compared to Q3, margin is down by THB 21 billion, and that is down from almost all of the businesses, except PTTEP, which has still good margin from the gas business. Stock loss is down by THB 7.5 billion in line with the crude oil price, which is down, but still better than Q3. OpEx increased by THB 4.7 billion, mainly from the personnel cost, royalty fee, which is increasing in line with higher sales volume, the P&R costs and also outside personnel costs. Other income is down by THB 1.5 billion, mainly from the compensation paid to the class action in Indonesia, and that's THB 4.7 billion, oil fund injection, that's THB 2 billion, the adjustment of the debt of Oman project Block 61 of PTTEP and also the profit that we buy AVT, AGC Vinythai under GC, which is below the fair value and also the profit from the investment in Thai Tank Terminal of GC. Interest revenue increased by THB 571 million. Impairment increased by THB 4.8 billion from Mozambique. FX derivative is better by THB 35 billion, and that's a positive factor because we have the FX gain about THB 52 billion. Derivative loss is higher by THB 17 billion. So net of it's THB 35 billion. And the last column is the interest, CIT and non-controlling interest. That's a negative factor of THB 1.4 billion. NCI is increased by THB 1.3 billion because of the better performance. Tax expense is higher by about THB 1 billion, mainly from the increased performance of PTT and the share of net income from JV and associates is getting better, higher by THB 1.9 billion, while interest expense is higher by about THB 214 million. Now starting to come into the key driver, we've explained, but now to share with you some numbers, starting with gas business. The natural gas price, which is a key driver, the gas costs decreased by about 16% Q-on-Q from 12.7% to $10 mmbtu due to less spot LNG import on the back of less domestic demand. Sales volume Q4 less 5% from 4,105 to 39% due to power plants and industrial users. The power sector demand less by 7% due to FTE's adjustments since September and it was cooler by year end and power plants switched to diesel to replace spot LNG as gas price increase. Industry users sales volume down 9% due to maintenance shutdown of [ cogens ] and refineries. GSP -- sales volume to GSP increased 5% on the back of increased supply from Gulf of Thailand. NGV sales volume remained the same. Let's take a look at GSP. Key drivers is, average price Q-on-Q down according to benchmark price feed costs at the bottom increased 13% according to the major price adjustment cycle and GSP sales volume down from 1.7 to 1.6 ethane. Propane volume down due to less demand in petrochem buyers due to less spreads. So they decreased capacity. Ethane sales volume up according to demand in Q3 due to this shutdown maintenance. And comparing year-on-year, likewise, starting for year-on-year basis, natural gas, pool gas price increased as high as 64% from -- well, as Myanmar and [indiscernible] gases went higher and LNG higher as well as a result of Russian-Ukraine war. In 2022, we imported spot LNG, price spot LNGs to replace Gulf of Thailand shortfall. Gas sales volumes, for top right, in 2022 less 6% from 44 to 41. similarly due to less demands from power plants and GSP, 6% down on power plant sector. So they called more dispatches from hydro plants and switched to diesel. GSP's sales volume down less by 14% in line with less production from Gulf of Thailand during transition and more maintenance shutdowns than last year. Industry user sales volume 5% higher due to more potent below energy 5 reactivated in 9th of March, and SPP replacement clients that changed to cogen due to expiry of the PPA. So this explains the increase in industry user segment NGV sales volume higher 7% and people switched to NGV as we continue the price caps. GSP, lower part of this slide, average sales price throughout the year increased according to global benchmark. Feed cost 6% higher from $293 to $312 per tonne. And sales volume, bottom right, down by 2% according to planned shutdown maintenance and adjustment of capacity in light of Gulf of Thailand supply. Actually, we have gone through it, just to put numbers together in a context, I'd just add about the pipeline business which we haven't discussed so far. So for pipeline business, both Q-on-Q and year-on-year, EBITDA of gas pipeline business are down because of the new pricing formula. So Q4, it was impacted. The impact was failed across Q4 or 5 months of the year, hence, less EBITDA. We take a look at trading business. Q-on-Q EBITDA of trading was down by more than 100% because of margins. You will see the nose-dive of margins from [indiscernible] in Q4 because of spreads -- less spreads. Over the back of recession concern and mark-to-market of inventories and condensate discount that is higher. As naphtha price decreased and compensate price often sales volume in Q4, down by 44% Q-on-Q due to less LNG import in Q4 and less crude imports due to refinery shutdown maintenance, resulting in less EBITDA from THB 4.9 billion to a loss of THB 366 million. So throughout the year for trading business, EBITDA improved by 61% due to both increasing sales volume by 61%, bottom right, and also higher LPGs due to higher demands and also in crude increased according to refineries demand because the economy was improving last year. Profit also improved, and therefore, EBITDA improved. For financial position, total assets of PTT Group increased by 11% from THB 3 trillion to THB 3.4 trillion. Major items. We see that other recurring assets increased mainly due to inventories and account receivables due to higher price as well as higher volume for non-recurring asset increased by about THB 96 billion due to long-term investment money in increasing JVs of GPSC and land PP&E increased, thanks to PTTEP mainly and assets for G1, G2 and under construction projects of Thai Oil CFP project. On the liability end, we see that other debts increased by THB 440 billion due to higher receivables, interest-bearing debt increased by about THB 200 billion due to longer term loans and more debentures. Equity also increased due to higher net profit, THB 91 billion net by dividend payment for the latter half of '21 and early half '22. So netting equity increased by THB 16 billion. Financial ratio is higher. Net debt to -- net debt EBITDA increased from THB 1.37 billion to THB 1.71. Net debt to equity from 0.4% to 0.55% because last year, we, as I say, across the Group, we borrowed more. Looking at the cash flows 2022. Cash flow of PTT Group beginning cash, THB 312 billion. Free cash flow positive at THB 5 billion due to cash flow from operation, which is higher by about THB 191 billion. At the same time, cash flow from investment outflow, THB 186,690 million. Investment activities concentrated around PTTEP and Thai Oil and receiving from loans bonds THB 50 billion. So from short-term, long-term loans and netting the whole year, receiving -- so at end, cash ending, including short-term investments, stand at THB 340 billion. Due to -- what we just announced, dividend payment for latter half of the year, I just want to summarize that the whole year earnings per share average at THB 3.2 per share and PTT Board approved THB 2 dividend. So payout ratio of 62.5%. This is going to be introduced at AGM and dividend will be paid on 18th of April. Thank you.

Let's continue with 2 more topics. Just because this is beginning of the year, I would like to share with you business directions and strategies. So we have 3 core business units; upstream, downstream, new business and infrastructure and each business stream has its own strategies and directions, which I would like to share. For example, upstream, the key words are sustainable growth through integrated gas value chain. Focusing on sustainable growth, as I said many times before, we always see gas as having long future and it can still grow. So we are determined to grow. In downstream, we calculate them in lasting legacies and go beyond downstream business. So old assets, we focus on strengthening them to expand the life cycle 3, 4 decades. So as much as possible, we recheck productivity synergy competitiveness for legacy assets. And we will invest in advanced materials and more specialization -- specialty materials and new business. The slogan is move PTT forward. It is going to be the main engine, the key driver to move PTT forward. And to the right, ESG. Last time, I already shared about our net zero goal for PTT 2050 within PTT Group depending on different business units, but all the flagship companies are striving to achieve before 2050. So we have 3 Ps pursuit of low emissions, improving production to emit less or carbon capture starch and utilization, energy efficiency. So that's the first P. Second, perform our transformation, accelerating charts, cleaner business. So increasing the shares of renewables in the portfolio. And third, partnership with nature and society. Basically, that's about growing trees, forestation. The Thai equivalent would be the 3 poplar, which is the troika of existing leadership, I dare not say. So the first P, we reckon it will contribute about 30%. Second, portfolio, about 50%. And third P 20%. So these will contribute to meeting 2050 net zero goal. Now I'd just like to dive into each business stream, starting with upstream business growth. There are key -- 3 main directions they are pursuing. First, strengthening E&P to ensure gas supply continuity and security. We seek to increase ramp up production in existing assets, Gulf of Thailand, JDA and accelerate development projects, for example, in Mozambique, [indiscernible] in Malaysia and increase supply in country and regionally negotiation as well, for example, in the overlapping claims area with Cambodia, with Vietnam and neighboring countries. Second, we seek to ensure competitive gas supply security, negotiating supply via pipelines and securing both long-term and spot LNGs and manage the appropriate supply from various sources. PTT during the energy crisis, we have demonstrated our potential for the government to see both in terms of managing pricing and adequacy of supply. In fact, many countries are suffering shortages. If you don't manage well, there are blackouts, brownouts, price spike. But until now, we manage the whole ports, not just natural gas, we manage other fuel types as well when diesel was cheaper than LNG we switched to diesel. Now, LNG's low spot price plunged then we adjust the Board to generate electricity from LNG [indiscernible]. And this has been proven LNG spot. At the start, the government would like to try the regulation. We bid competitively with [ ECAT ]. The first round, we proposed and then [ ECAT ] retreated because it's not viable for them, and we believe that if we supply through spot bidding competition, we have -- we are more competitive. We are highly competitive. Thirdly, we try to enhance competitiveness in terms of optimizing infrastructure -- for example, GSP7 project, we will build to replace GSP number 1, which is quite elderly, nearly 40 years old and GSP8 project, ethane separation plant and ethane starch for petrochem clients. GSP Logistics Management Phase 2 to improve facilities to import C3 from NT and expand the pipeline to gas efficient plants, which will enable us to be C3 for that hub. For infrastructure improvement, building the connecting pipelines between receiving LNG receiving terminals 1 in 2 or looking at supply portfolio by securing competitively priced LNG and marketing of LNG. In fact, that slowed down when LNG was expensive, but I believe that these commodities are cyclical. So potential to market LNG remain our facilities, R&D when we have the facilities ready and we bring in big lot to store reload and break out into smaller vessels. And we can distribute via ISO tanks then we have the ability to market either directly to industry uses or neighboring countries, both on sea and on land, the market potentials it's a matter of timing. Now price is softer, and we have established a marketing team already. So the LNG Hub strategy is still on the drawing board. The activities can be delayed. That's because of -- it's not the timing yet. But I think now the timing is coming closer and closer, and that's for the upstream. Now coming to the downstream business, we splitted into Lasting Legacies and Go beyond with Downstream. For Lasting Legacies, we stresses on synergy using technologies to increase the synergy throughout the value chain. We are looking not only to the downstream itself but also from the downstream with upstream as well. For the pillar of Go Beyond with downstream, we have a major investment like GC in Allnex [indiscernible]. And after this, we will try to build synergy and efficiency with the assets which is existing but we try to expand the markets like Allnex, they have the capacity to expand the market in Asia a lot more. So if you look into the portfolio of the market, it's in the west but for the East or in Asia, there are still a lot more spaces for them to penetrate into. It's a little bit delayed during the pandemic. But when the cities are opening, we can go full speed right now. For OR, we will focus in mobility and lifestyle so we are not focusing only on energy. For energy, we do not trade only oil, but we try to draw the most traffic as possible, like EV and charging and also we try to connect between online and offline businesses. OI is quite distinct in that when people said about platform, they have only the digital platform, but what OR will be doing, we would have both the physical platform and digital platform. We would launch in a short time, many more applications that would integrate all of the businesses of OR under one app. And then we would have business activities that can connect between the app, our mobile phone and the state physical station nationwide. So this is our distinct characteristics from others because others they would have the -- only the digital platform, which is becoming [ red ocean ] already. But if you can connect the physical and digital platforms together, I think this would be an appropriate platform for us. The soft opening would be in March and then the real opening is in the middle of the year. So that's the business from OR, which is downstream. And we also would focus on specialty chemicals, new material. We would ensure that we would have the focus on the old business and also the new businesses like the water businesses. We are looking into the feasibility whether we can commercialize -- on this slide, we show that our direction forward. We have done the study as split into different groups. We have 13 business group altogether. And if you want more details, Noppadol can give you more details, but mainly we split into 13 chemical segments. We are looking forward into advanced materials and specialty chemicals to build upon our existing business and also we have the membrane and filter products, chemical for live ingredients. So these are our 13 chemical segments in our downstream business. Now to Future Energy & Beyond, which is our new businesses, renewable energy, I mentioned it several times. We target E capacity at 12 gigawatt by 2030. PSC would focus into 2 main pillars -- overseas and in Thailand. We also launched the JV between GPSC and PTT that is GRP. They will focus in other areas apart from Thailand and India for example, China, Taiwan and ASEAN members. For Hydrogen business, this is the few -- one of the future businesses that we would like to keep an eye on to. We are doing the studies and also looking into the feasibility study to commercialize. For example, we target after the feasibility study to be hydrogen ASEAN hub beside the MoU with Saudi Arabian company to do the study on green hydrogen production in Thailand. We piloted to launch the station together with Toyota, BIG and OR, and we are now studying the application on hydrogen to mix with gas to produce the fuel -- not only the natural gas, but we mix hydrogen. EV value chain, we mentioned it several times, like a battery for the sales to PAT, we use technology of 24M, in order to upgrade our production. Investment of this technology is in China in Gigafactory. It would be completed before Thailand, so they can become our case study. We also study the sale to PAT business with CATL. EV infrastructure, the chargers, we produce it ourselves through ARUN PLUS, OR with a target to have the network to cover most areas as possible. Mobility services that EVME, we have our vehicles, and that's about 500 in the fleet. Our target is 2,000 vehicles. And if it's getting better, we can expand our market into ASEAN countries. We see some interest from some countries already. Swap and Go that's the motorcycles, electric motorcycles. We have the plan to expand in and started talking to our partners from Taiwan. For Lifestyle Pharmaceuticals, we already mentioned that we would like to expand continuously in all dimensions, like the factories to manufacture medication, and we also joined hands in Thailand with our Thai partners like the Pharmaceutical Organization in Thailand. For Advanced Medicine, we also mentioned that it's Manee Daeng Molecule, medication, medical technology, we would like to focus on consumable to build upon the non-woven fabric factory. Nutrition, we mentioned that already, the plant-based food factory. It's going to complete soon the factory, Innobic Nutrition. We have 2 products launched already. The real concept is that nutrition we see the products, a lot of products in the market. But for PTT and Innobic, we focus on the scientific results to support our products, all of our products. So we would not focus only on the presenter, which is the celebrities, but scientific data would be the strong and important ingredient of our products. So that's our distinctiveness. For logistics; the concept is that the [indiscernible] in logistics, especially rails in Thailand is quite large. So we don't focus in investing like the whole system like the whole rail system, we are not doing that, but we're just trying to fill the gap, the gap in sea logistics, air logistics or rail logistics. And we transport not passengers, but goods. And we can see that there are a lot of rules that we can fill in the existing infrastructure. We see a lot of opportunity in there. And when we started the logistics, then commodity trading would be following, if you can connect the rails to China, then products from China and Thailand would go back and forth if we have the rail connection. So we would focus on rail, air transport and the cold chain, storage business like sea food, fruits. We already established the company to do that beside the MoU with Thai Airways and China on rail transport. Once we start, which is expected to be within this year AI robotics. This is quite a large business. So we try to look into the feasibility. And after a while of exploring, we would stop focus and synergize. PTT, [indiscernible] company, which would focus on 5 areas. It might be through M&A like Power Tech, Mobility Tech, Health Tech, Soft Power Tech and Industrial Tech. AI Robotic is quite large when we talk about it. So we try to categorize it and focus. Otherwise, we would have our businesses here and there and scattering. For the AI platform, we are trying to construct a specific platform, not like Alibaba or Agoda, that's the large platform with high investment, but we would try to construct specialty platform like peer-to-peer energy trading to industrial estate or for the AI. We have a lot of talent to build upon predictive maintenance. We have predictor company to use AI in the prediction of machines. We started to join hands with digital partners in doing telemedicine businesses. So once we have our specific partners and once we construct the digital platform, we have about 2,000 platforms, physical platform to synergize. So these are all the business plan that we have in the pipeline during these coming 2 or 3 years from now. Next, let's take a look at the outlook and guidance. Starting with world economy we reckon it will grow slower than last year because of tight monetary policy, particularly in the U.S. where inflation is the main concern or the ongoing Russia-Ukraine war. However, the good news is the bounce back of China this year and Thailand's economy grows, which is better than the year before. We just opened the country officially end of last year. This year, we are going to recognize the impact across the year. Surely, tourism is bouncing back, investment, consumption should recover, what is going to slow down would be the stimulus programs, which the government shall face. [indiscernible] and export is contingent upon global economic health. Now product pricing, gas, LNG, we reckon it would be down, and it should be in the range of $3 to $9. Asian spot LNG should be about 26% down to $22 to $28 per million BTU, whereas Dubai price is heading downwards at $81, we reckon $81. Fuel oil should come down by about 10%. As well low Singapore GRM will be less versus last year. This year should be about $8 to $9 per barrel, we should keep an eye on this because looking at GRM alone last year, due to the war, a lot of premiums have suffered. So this year, premium should come down. And therefore, the spread would become -- would narrow down as well as premium costs. For petrochem the spread is not so good. we recur because recovery and demand remains soft with new supply coming online. Now business trends, business outlook, E&P of EP, we expect volume -- sales volume increase due to ramping up of GE1. Now at about 200, it should be up to 400 midyear and year 600, 800 next year and then gradually up. Gas, this is expected to be particularly demand from power sector and higher supply from Gulf of Thailand and capacity of GSP should be revised and also gas costs. We still have to monitor because LNG -- spot LNG price remains volatile or should improve on higher GDP and P&R business. GRM in the range of $8 to $9, as I said, utilization rate would be higher because last year, we've done a lot of maintenance shutdown. So demand is back for power plant. So projection is better, but to what extent we have to see in the past, higher cost, FTE request, but now less cost and FTE announced plays a part as well, whether it will dip according to the cost, but we don't reconcile because it's not just private power producers alone. [ ECAP ] has been hugely impacted as well in the tune of billions of baht. I think gradually, they have to pay back as well. And private power producers shall benefit from a gradual decrease of FTE. So that projection future energy ARUN PLUS intends to expand and deliver EV charger by 3,800 units and OR expand its EV charger network steadily in order to achieve about 800 stations in 2023. Again, it's not about installation. It's a licensing regime of the utilities authority. We start talking to utilities provider to authorize meters. If you go to OR petrol stations and you found machines, but you cannot charge not because we haven't done our work, it's just that we are not licensed to operate. Now we are trying to break that barrier. And beyond business, the various projects are starting to see early this year. I already said non-woven fabric, plant-based, food, et cetera, these plants should come online later this year. Let's take a look at PTT Group guidance; so the main COD for example, Fifth Pipeline, Phase 1, Phase 2, Phase 3 are due this year. It will contribute to energy security and connection, the East West connection to be completely GSP number 7 to replace GSP number 1. The technology will be tech-oriented. This will accelerate our performance because the new factory will -- considerably less than GSP number 1. This is expected to be COD first Q 2024 petrochemical of GCP, olefin 2 modification and the joint venture with [indiscernible], COD first Q this year. It will add value for us. New business, future energy and beyond [indiscernible], I already said, EV value chain, battery, the module battery production plant capacity of 1,000 megawatt hour. COD expected 4Q this year and EV-factoring plant, COD is expected in Q1 next year. Renewable energy projects includes solar power plants in India growing according to their quite aggressive plan and offshore wind energy in Taiwan under construction, COD is expected in Q1 2024. Maintenance, various maintenance work schedule, GSP '23 this year. There are major turnarounds up to 20 days. GSP number 3 in September, number 2 in November and Ethane Separation Plant 60 days and GCE, Ole 1 and 2 major turnaround. And number 2 Oleflex turnaround 65 days and ARO number 2 37 days. So these are all, I guess, for presentation. [Statements in English on this transcript were spoken by an interpreter present on the live call.]