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

[Interpreted] I'm from the Relations department of PTT. Welcome, everyone, to Analyst Meeting of Q1 2025. So today, we will meet with the executives of PTT in this auditorium. And if you cannot attend here, you can attend via online through Facebook Live PTT-ir for Thai version and PTT-ir for English. And this is according to the principle of equality of the rights of the stakeholders or you can attend through MS Teams. For the first section, it would be the performance report by the CEO and CFO. The second session would be the Q&A session for any questions you may have. [Operator Instructions] Now may I invite you to meet the executives of PTT. The first one, Dr. Kongkrapan Intarajang, the CEO and President; Khun Pattaralada Sa-Ngasang, the CFO; and for the Q&A session, Khun Wuttikorn Stithit, COO, Upstream Petroleum and Gas Business Group; Khun Kris Imsang, COO, Downstream Petroleum Business Group; Dr. Buranin Rattanasombat, Chief New Business and Sustainability Officer. And for the first session, may I invite Dr. Kongkrapan to report the performance for Q1 of this year. Dr. Kongkrapan, please.

[Interpreted] Good morning. Good morning, all the analysts, the investors and all executive members. Today is the analyst meeting for Q1 of 2025. For the first session, let's look through our agenda here. I would touch upon the highlights of our performance for Q1. The second agenda, because we have updated our strategies for about a year already. So I would like to report it on the progress of our 1-year strategic progress and the key achievement. And three, I have to talk about this among the trade war and the recession economy because of the trade wars, PTT and PTT Group have responded to that, and I would be talking about that. Then the CFO would touch upon the performance and financial strategy for our agenda four. Now starting for our performance. Year-on-year, we see that crude oil price is down. Pool gas price is also down. What is significant is the downstream like polymers, plastic pallets, that's 6% year-on-year. PX also down quite a lot. For PX, Q1 is up, but year-on-year is down. GRM is also down. If you look at our performance in Q1 net profit compared to first quarter of last year, what is different is the extra items. Last year, we sold out some of the shares, and that's THB 4.6 billion. So that's quite significant. But if you look at the businesses, there are many factors impacting PTT Group. The first one is the upstream, like the downtrend of the oil price, gas business, we got impacted by single pool policy, P&R margin is down, market GRM is down, but trading, it is getting better. So this is offsetting each other out. The details would be reported by the CFO. For the past year, we have adjusted our strategies quite significantly, and we assess our achievement and our challenges. For the vision, we would like to be together for sustainable Thailand and the world. So that's our vision and what we have done so far. So we would like to focus on the growth in hydrocarbon, like gas, exploration, refinery, petrochemical plants. So this is to respond to energy security, and this is our focus. Geopolitics and many factors can create instability very easily. So we have to balance all of these factors and also to look after environmental factors as well. So we need to grow business-wise, but at the same time, we have to think about the sustainability as well. Looking at hydrocarbon business first, we refocus hydrocarbon business. These are the highlights. National Energy security, we added the volume of 80 MMSCFD per day. either in Thailand, in [indiscernible] onshore and also in the Gulf. E&P, we increased proved reserve a little bit by -- from 6.2 to 6.4 years. Renewable portfolio grow a lot through our subsidiaries, overseas like GPSC. Gas business, we have done quite a lot. And in this quarter, you would got an overview and more detail next quarter. So in short, we have to be the player. We have a lot of base load, and we are as the major player, LNG optimization is a must. P&R, we would update you more after this on our partners. Non-hydrocarbon business, we do the restructuring. We focus on our EV value chain, and we can save the capital of about THB 11 million -- THB 11 billion. So we follow the trend and adjusted our portfolio to be in line with it. So we can reserve some capital from that like Horizon Plus, we also cut down our capital by THB 4.1 billion. Life Science business, it is a good trend for us by our collaboration with our strategic partners. Decarbonization, our plan is now clear, and we know exact technology we would like to do for decarbonization with our solid plan and our interim plan. Decarbonization, we have a clear plan on CCS investment. With all of these factors ahead of us, either the instability of the world economy and trade wars, it's likely that there would be recessions in many countries. So we focused and would like to reiterate in profit enhancement internally, like P1 for the past year, we have got THB 5 billion at the bottom line. And for our D1, we have a clear target and initiatives. So these are all included. So we would get THB 3 billion from here in the next few years. Mission X, we have a solid plan already and implementation started already. The quick win for this year is about THB 1 billion. But for the next 3 years, we targeted 30 billion. Axis is an acronym for digital transformation with use case and infrastructure and human resource development. The target in 2029 is THB 11 billion. Asset monetization is also another focus P&L target is set at THB 8 billion, and we are quite confident that we can make it. Shareholders' value is also important. Payout ratio this year is 67%. Dividend yield is quite significant. THB 2.1 per share, and we would try to maintain this. Treasury stock is already done. and there are several months to finish the project. PTT would like to be together for sustainable Thailand. We pay a tax to the state for our revenue, portion of that is used to support Thai cost of living like when we got the disasters, we have the team by the name of SEAL to assist in natural disaster events. To the first group, competitiveness enhancement. We would like to secure national energy security. We add more volume like at Sinphuhorm, PTTEP added a stake to 90% in Sinphuhorm and also increased the sales volume. At Arthit GSA, we explored more through our joint venture, either through PTTEP, Chevron and Japan. PTT was successful to increase the volume of the sales of the gas to be 330 million cubic feet per day. So this respond to national energy security because our own gas is cheaper than imported LNG. PTTEP, they seek new sources in Ghasha, UAE. So we acquired 10%. COD is in 2028. PTTEP would have to invest now and also in the future. Renewable portfolio expansion, we have solar farm in India. Renewable portfolio for the whole group increased from 10 to 15 gigawatts. LNG optimization, we assess the key success factors in order to be a major LNG player with a large baseload. We have to start creating our scale. We have our infrastructure. We have to add the volume in, both the volume through import and also the investment overseas in LNG assets. And number two, geographically, we have to diversify our portfolio and contract should be flexible like we can trade the LNG ourselves. So next time, it would be more details. Thailand, we import spot and long term. overall is 11 million tonnes per year. Downstream P1 synergy, the value is about THB 5 billion, we've restructured beyond PTT, ORs, things not profitable. We've exited refineries. We all operate Euro 5 production, and GC is the only producer in Thailand of biojet. Looking forward, there are two issues. First, on petrochemical. On olefins in the U.S., ethane has become cheap. So GC has secured long-term supply of 400,000 tonnes per year at lower investment cost because GC plant has flexibility to use more ethane, whereas Gulf of Thailand's resource is depleting. So a little bit of additional investment to boost medium-term clean fuel project of Thai Oil greater clarity. At first, there were issues with contract negotiations. But today, we see a clear picture regarding contracts and solutions. So Thai Oil will continue doing it smartly and petrochemicals and flagship companies, we want to strengthen the three flagship companies. So they are implementing EBITDA uplift, cost-cutting asset monetization. Thai Oil GPSC, so in parallel between parent and subsidiaries at the same time, strategic partners with raw materials markets, we are in the process of dialoging. PTT is to remain a controlling stake in our flagships. It is important that we guard our value chain. For non-hydrocarbon business after revisited the steps I explained earlier. So for non-hydrocarbon business, we will focus on increasing charging points, PTT and OR working together. I touched earlier on Horizon Plus, the capital reduction in Horizon Plus, so Foxconn will lead. So we gained back about THB 4 billion. So capital preservation, we have saved THB 11 billion. So we all have to be super careful in terms of capital preservation during tough time. So we exit irrelevant business, train cargo, we exit. However, we will refocus on logistics and offer synergies, pipeline, terminal. So within PTT Group, we are discussing such synergies that a EBITDA uplift and cost saving. So more details next quarter. Life Science, we have clear plan about growth, self-funding or partnership. In parallel with hydrocarbon and energy security, we have to continue with the emissions plan. So this picture is clear. I would like to unpack. We -- looking at the small white band in the middle. So highest and lowest cost of emissions. So we have to operate on assumptions. So we have to increase gas supply cut unit costs and et cetera. So we have to factor in the modeling, the emissions cut costs, so next is the cost curve of technology. Solar is cheapest. NBS, natural-based solutions, slightly higher cost. Now CCS, there are two technologies, high concentration that is carbon capture at production. So cost is lower, easier to capture, for example, gas separation plants. This we can do first, whereas low to medium CCS, so less intensity for higher and more costly technology and cost. For example, PTT GSPs can proceed first. For example, ethylene glycol can proceed first. Others will start later. We need to be very cost aware that there is a business case to it. SMR, we must study small modular reactor. Cost curve has promising potential. Hydrogen remains high, but price is decreasing. So all these would converge down there. PTT Group potential tech pathway where abatement costs will have to break even. So initially, we will use more electricity from solar, NBS and gradually reducing emissions at production, plant optimization and CCS will happen in 2035 or before. So next stage, SMR. CCS, low to medium concentration and eventually hydrogen. So there are time frames to these cost curve and cost of non-emissions having to pay tax or trade barriers. We have to layer these together. And so this picture is the real abatement profile gas emissions. Our commitment interim 15% in 2035. By that time, we should have high concentration CCS. We've already identified which plants within PTT Group and then net zero in 2050. So these are actual curves based on technology costs. If you recall, gas is transitional fuel for Thailand and Southeast Asia. As renewables grow, natural gas is here to stay over the next 30 years. And so carbon emissions reduction must go hand-in-hand and PTT has to collaborate with the government. So all these we have signpost to monitor if the white portion changes, if costs fluctuate lower or higher, it will affect speed of implementation. So if tax incentives arrive later, then we have to work that out through technology. If cost per tonne is lower, then we can implement faster. So two issues you may be familiar with this slide. So the whole group has signed MOUs regarding CCS division of labor emitters, the plants within PTT Group would do carbon capture and we will invest in capture technology, combination of mature tech and start-ups. In the middle, PTT invest in infrastructure for storage, liquefaction downstream, PTTEP would do storage. So PTT and PTTEP have explored beyond Thailand. There are several projects in U.K., U.S.A., already FID. What are the benefits? First, we can understand technology, ecosystem, regulatory state incentives. So we have better understanding for application in Thailand. Fourth, returns on investment. Now within ecosystem with returns include U.K., Europe, U.S.A. So this slide shows Eastern Thailand CCS hub emitter to the left. So with CO2 removal facilities, capture is easier, CO2 liquefaction terminal. So we have to have the infrastructure in place. In Gulf of Thailand, there are two approaches. It can be stored in depleted gas wells or the other interesting option is selling aquifer underneath the rock layer. So we can inject CO2 as semi-liquid semi gas onto these aquifer layer. So we have to work with the state for exploration license. We would do sandbox in Arthit and Kra Basin has potentials to store 10 million ton per annum. So there are two ways to transmit via pipeline, which is a cheaper option. However, it requires minimum base load to be worth the investment. Ship is possible. Japan, the emitter is interested in capturing it on ship to be stored in Malaysia. The strength of ship is we can find clients beyond Thailand. So we don't know which one to do first. We are studying depending on the load and the volume. Hydrogen study, we see progress as well. We have signed MOU. We explored both blue and green hydrogen. We are dialoguing with the Middle East and India. Initial investment must yield return, and we don't have to come back to Thailand. We can operate globally. At the same time, we collect knowledge in Thailand, it's mandatory for 5% hydrogen blend in 2030. Down there, PTT, PTTEP upstream, seeking business together. So securing partners for CCS and hydrogen. PTT would stay in the midstream, importing ammonia hydrogen, regasing at industry scale, hydrogen can be used to replace generation fuels or direct use, suppression plants, glass, et cetera, lots of options where hydrogen can replace natural gas. So in looking after ourselves, this is -- this has intensified greater clarity. We are very, very confident that we can achieve these numbers. D1 domestic. We can achieve group synergy, we've identified various projects targeting THB 3 billion per year by 2028. Mission X deploying technology to lift EBITDA, cut costs. We have already defined more than 270 initiatives, but we have to prioritize. So front end, we will focus on those that yield the most. So THB 10 billion impact value for PTT only, we are accelerating. Axis is about digital transformation in three aspects: use cases, infrastructure and capability. We've identified 80 use cases for the next 5 years to generate money in various forms. So THB 11 billion within 3 years, a combination of income cost cutting and FTE. We are not downsizing the workforce. We may recruit less to replace retired employees. So use case, we already have. That's why we come up with these numbers, how to realize it. We need the infrastructure. We are working on new version of SAP with modules to support these use cases. In the end, the most important is uplifting capacity of the workforce and AI. So Mission X EBITDA uplift digital transformation Intersect in light of digital imperatives. So we have to transform business infrastructure and the people. Last but not least, financial excellence, the CFO will elaborate, dividend payment, treasury stock, we have repurchased 470 million shares to date. Parent support, financial discipline is important to both PTT and our group. We have done additional expenditure credit to our flagships, and this doesn't affect PTT's liquidity and credit rating, and PTT is of the three qualified for virtual bank license. This is ecosystem on which we can build upon further for digital transformation. PTT remains strong in terms of sustainability, corporate citizen, as seen in awards and recognition, balancing our role as both listed company and a state enterprise. Before giving the floor to the CFO, the last couple of months, there have been factors emerging such as the trade war. We -- what our take is it's not trade war, but the risk of global recession. The surely affect the economy the most important factor is uncertainty, policies of global powers, we do not dwell in conflicts, but we plan for looming recession as a matter of degrees. We believe still that surely economy will slow down, trading will be uncertain and investment slacken, and we all have to work harder. What we have to plan against is less oil, decline in oil prices and increase in volatility. However, these present both threats and opportunities. We have to monitor closely. Anything we do that can benefit PTT in Thailand, we will surely proceed. So amidst these context, it's just reaffirming our strategy that we strengthen our core business, implement EBITDA uplift. We believe that PTT Group strategy is resilient. If you recall, we used to be asked about the Trump factor, trade war. We constantly revisit our strategy, and we can only reaffirm it. And we set up a PTT Group war room to examine this five-point strategic plan, starting with money, liquidity, financial excellence, supply chain and customer. Apart from ourselves, we have to make sure that the whole supply chain is sound. We have to revisit all the projects, nothing stays static and communication with stakeholders. So this slide shows processes. The war room consists of nerve center, internal communication, the various enhancement and we expedite EBITDA uplift asset monetization. So basically, we speed this all up and planning is dynamic. So outcome for now, as highlights strategy, each member of PTT Group would look at planning, scenario planning. and the link with the group, for example, hedging strategy across group. Yes, each within the group has their own, but then looking at group-wide also. Financial excellence, discipline OpEx, supply chain conducting chain analysis, expedite uplift, customer support. Suppose trade war erupts, customers further down the chain could be affected also we have to look at how we support customers. Project management investment has to be more prudent. We have to review feasibilities of all ongoing investment plans, factoring in uncertainty, whether we should invest and for sure, asset monetization and the importance of communication with all stakeholders by way of summary, the upper part, we are doing it. Short term, we restructure D1 Mission X. So we know what we are going to do and tens of billions of baht will come for sure. Over the next couple of years, medium-term reshaping our P&R portfolio with strategic partners coming in to increase our competitiveness. expertise, we have to be LNG hub, long-term CCS hydrogen. So additional initiatives down there in light of the looming trade war recessions, we tighten up financial discipline and OpEx saving by THB 10 billion. Group funding strategy. So we work with all CFOs across the group. Cash is important, asset monetization. We have to optimize. There's a time when we expanded. But today, we have to avoid duplication and focus on synergy. So profit enhancement, THB 8 billion. This should be achievable this year. Cash from noncore divestment of THB 15 billion. We are quite confident. So I would like to give the floor to the CFO on performance and financial strategy.

[Interpreted] Thank you, CEO. Now coming to the performance first, and then we would go to financial strategy later. For the performance of Q1, you already saw the number. We closed the deal at THB 23 billion, multiplied by 4 if the world condition is stable, then we would see the same number as last year. but that might not be possible. So we would get into the details of the performance of Q1 first. For the total revenue, it would be down a little bit, but I know that you would not be choked because it's related to the crude oil price. Last year, Q1, that is $75 to $80. And Q1 of this year, it's a little bit down to $70 something. And just recently, it's coming down to $64 to $65. So the top revenue is shrinking accordingly. But for the key indicator, our EBITDA after all the expenditures, Q1 ended at THB 93 billion. So it is quite similar to Q4. But year-on-year, it's a little bit down by the industrial factors. To the right, net income of THB 23 billion. Q1, we -- the extra items is offsetting each other. But in Q4 last year, we have extra items like to pay the management for pharmaceutical, that's THB 3 billion or onetime expenditures, closing some petchem plants, that's THB 2 billion and FX loss in Q4. But this quarter 1, we have the FX gain. So offsetting, we have the net income of THB 23 billion. But when we compare it year-to-year, major impact is on the recurring extra items. So performance is quite satisfactory among all of the world economies, but we are not complacent. We keep monitoring quite closely. Details would be presented afterwards. But looking at the screen, looking at the waterfall accounts, the bar chart, the red one and the green one, the red one is a negative impact compared to Q-on-Q, margin is the major factors. and other income from the divestment of pharmaceutical in Europe, that's THB 4 billion. The green one, Q1 of last year, currency is quite different. Q1 of last year, there's a lot of loss. But for the hedging, it would give the resilience for the whole year. Tax burden would be lessened compared to last year. It's down. So the tax is down as well. So from THB 28 billion to THB 23 billion, major components is for PTT. PTT is positive with the highlight of supply of trading. Trading is doing quite well and help offsetting despite the derivative gain. For the oil, OR is better, GPSC is better. Innobic is better with the production of their pharmaceutical, the pressuring factors, volume of PTT, EP is better with the volume, but the price is down, and there are some DD&A occurring when we developed the new investment. So it's down by 15%. P&R is mainly affected by lower GRM. Last year, it's $7, but this year, it's $4. And for aromatics, it's better, very good last year, but olefin is still doing good. So all in all, there are the external factors offsetting with our internal operation and management of our portfolio and last year's FX loss. So looking at the line segment, gas, energy price is up and feedstock costs to the GSP is up as well. So feed gas cost increased from $391 to $411. So the benefit of GSP would be affected because of higher costs. To the right is the sales of natural gas volume. It's down a little bit from 4,000 to 3,800. So we lost some part of SPP and IPP. The imported gas by themselves, while industrial users, they use more gas, and we can supply them for that portion. For the gas separation volume, we are doing quite well, increasing the utilization from 87% to 93%. So volume is quite good, but the cost is quite a burden with the higher gas cost. So EBITDA of gas segment is down a little bit by 7% Q-on-Q, but it is still strong at THB 13.8 billion. It's lower than Q1 of last year because at that time, single pool policy was not implemented yet. Once it was implemented, it affected Q2 last year. But now it is around THB 13.8 billion for the EBITDA. Trading business is doing quite good, while oil price in the world is quite volatile with the volatility, the trading team can make a better EBITDA to THB 2.6 billion in Q1, mainly from the better crude margin and the crude type, which is quite good, and we can hedge the risk. And for the LNG, mark-to-market, we have the gain compared to the real contract price. So it increased the EBITDA of the group by THB 1 billion compared year-on-year. Financial position, it is quite stable, THB 3.44 trillion. Cash increased a little bit by THB 400 billion, and this is for the dividend payment. And we would have some more cash in because we are going to strengthen our assets transfer the asset to the cash and then the whole group would have more cash and stronger in terms of financial position. For credit ratings, Thailand was downgraded the outlook from stable to negative. PTT and PTTEP affected as well, but it doesn't impact Thai Oil and GC because their balance sheet was already pressured, but we would try to help them so that they can maintain that investment grade. For the cash flow from THB 450 billion, it is getting up to THB 470 billion. So that's about THB 20 billion more. And it was strengthened by the operating process, that's by THB 68 billion. And for the investing for PTT and flagship, mainly to PTTEP and Thai Oil, and that is THB 27 billion. For the guaranteed claim from Thai Oil, about THB 10 billion, it's already here. For financing, we repay the debt. Some of the companies try to lessen the debt to strengthen their financial statement in order to earn the credit ratings. So it's the policies of some of the companies supported by PTT. So cash ending is almost THB 470 billion. And then April, we would pay dividend by THB 30 billion to THB 40 billion, then the refinancing of the assets among PTT would add up more cash to our financial statement, and it can cut down the financing costs as well. So we see the key drivers of Q1. For Q2, I would like to connect us to world factors. In April, the third to the fourth, there was a big headline that the U.S. would do reciprocal tariff initiatives. everyone would look at the stock market and the market and the share price. But for the trade wise, it is related to world economy and also Thai economy. Thailand was cut down from 2% to 1.8%. So this would pressure -- put the pressure on PTT Group as well, like Dr. Kongkrapan has mentioned that we established a war room immediately to keep an eye on the situation and to respond immediately because it might affect our customers as well. In order to strengthen our group, our supply chain and our customers would benefit positively as well. So GDP would affect the trade and the community. Crude oil price is down from $75 to $60 something. So that's about $10 down. Today, it's up to $64 to $65. And for the petchem spread, there was a pressure oil spread, there was a pressure as well. So we focus on how we can manage our costs and our profit. Also the management of interest rate and FX rate. And if you are from the financial institute, we are waiting for your support. We would like to make sure that there's enough liquidity for our group. So volume would incorporate all of these factors. We're also looking after dynamics scenario for testing. What we expect for 2025 for another 3 quarters, we look at the volume. We try to optimize the volume. And this one, we can do internally, we have to maintain our customer base and optimize the products. Crude oil procurement, we focus to get the best deal for the optimization. Cost reduction for the whole group, last year, we can save THB 18 billion. but we cost about -- we can save around THB 10 billion for the whole group, and we try to make the same thing this year. THB 10 billion can help us maintain our competitiveness in terms of unit cost to respond with the softened margin. So the team would go all across the board from E&P to gas and to downstream like petchem and refinery. For downstream, there would be more theme incorporated on risk management like how to protect the downside of the stock loss, power and oil and life science, oil retail and pharmaceutical segment, this is the opportunity for us. OR, first Q, they did quite well. And we try to expand that growth, both in pharmaceuticals in Thailand and overseas. So you might have the question like can we respond to all of the factors. So we do our best. Suppose crude oil is down by $10 to $60-something. So $1 down is THB 2 billion. So for the whole group, it is THB 20 billion. So we have to fight with this THB 20 billion, and we don't know whether it can come back to $70. So we have to focus on our profit enhancement of THB 20 billion. THB 10 billion might be from the cost saving. We should be able to do that. Asset monetization, minimum is THB 8 billion. Some happened in Q1 and the other would happen in Q2. But we need some more to fill the gap through the synergy with one identified group that is power plant and infrastructure. The whole group would sit together and talk about how to optimize all of these assets in order to generate enough income for the group. Details can be in the next Q, but what we can assure you that is that we try to fill up the gap remaining from this THB 8 billion. P1 last year, we have THB 3 billion. We would do the same for this year and D1 would also do the same, another THB 3 billion. Mission X, it's from THB 10 billion from PTT alone, plus THB 3 billion from the other company. But we would like to set the target at THB 15 billion. So P1 is THB 3 billion, D1 is THB 3 billion and Mission X is THB 1.5 billion to THB 2 billion. So at least we would have THB 25 billion. So this is -- there are a lot more for us to do, but this is the target that we fix our eye on. So for the negative factors on the right-hand side, it can be offset by this THB 25 billion. So there would be a lot of downside along the year laying ahead of us. But what we do is that we focus on the potential side to offset those negative side. So we try to connect all the dots in our group, upstream, downstream, new business and finance. So we talk almost every day. In the balance sheet, I forgot to tell you that we already incorporated the buyback of the share, and that's THB 2.5 billion. We've got THB 72 million in order to preserve our liquidation, it is not to -- for the speculation at all. So PTT will try to do everything we can either in our corporate or to enhance our performance. So we work as a whole group. And also, we would like to ensure you that we always take care of our shareholders. As I mentioned before, Thailand was downgraded. PTT and PTTEP also affected. In a year or over a year, they would evaluate again. If it was worse, we would be downgraded by one notch to Baa2. But if it was so, it would not affect us because Thai Oil and GC, they also got support from us. But all in all, it was because of the downgrading of the country, not the downgrading because of our own performance. What we need is that we need your help. And we also would like to take care of our shareholders as well. Like let me ensure you that we would have the commercial rationale with your help. What we do more is that we don't give only the money to our flagship, but the balance sheet we give them additional extended trade credit, and we just gave more to GC and Thai Oil, and that's THB 50 billion. So altogether, it's THB 160 billion given to all our flagships with the LC backed up with financial institutes. So we would get the same amount of money, but they just have the more extended credit term. So that would have more liquidity to repay their debt with higher costs, like 5% or 6% interest rate. So our subsidiaries would have less interest expenditures in the second half with less debt, and that would help strengthen our balance sheet. And debt EBITDA ratio is no more than 2. And all the credit rating agencies told us that in Q3, they can reevaluate it. So ETC was done. So all of the subsidiaries would be better to strengthen the ratio and credit rating would not be affected. Last year, each of the company just doing their best for their own company. But for this year, we joined hands to tackle the problems together. many contacted our subsidiaries to try to have the joint venture. So we think that why not if others are attracted by our companies, why not we synergize among ourselves. For -- from P1 and D1 and asset monetization, the team call it the A1. So I would like to go with the F1 as well with the same perspective, budget control strategy, OpEx savings, asset monetization through both A1 and Mission X. A1 is monetization Mission X is asset utilization and portfolio reshuffle. We would like to support our portfolio downstream, finding strategic partners and find enough funding with reasonable cost. So this is one of our bodies in the war room. We talk weekly, but we have new information coming in daily. So I confirm with the CEO that we can make it, we should be able to make it the THB 12 billion -- THB 25 billion. So along the way, we would like to invite you the analysts to build the new knowledge base from the 9th to 11th June, we would go to Shanghai in China to have a site visit of Allnex, which is a specialty entities of PTT hold by GC. So China Hub is a group of five coating resins across China. So they demobilize a small one and then just establish the big one here. So we would look into their own key drivers. So they have a double times margin from basic chemical plants, and it's very difficult to replicate. Half a day, we would go to Huawei, the AI, Dr. [indiscernible] told us that we have [indiscernible] digital transformation to cut down the cost for PTT Group and to increase the capacity using technology. So we would go to gain insights at Huawei and their executives. Dr. Kongkrapan would also go with us with related management and executives to talk to Huawei. And for the analysts who already registered, we would go together. So this is all. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]