PTT Chemical Public Co. Ltd. Oct 09

Standard & Poors, October 2009

Abstract
Favorable cost efficiency Strong market position Significant business integration with parent Inherent industry risk and product-price volatility Challenging outlook for the petrochemical industry Substantial capital expenditure (capex) plan and significant financial-risk profile The ratings on PTT Chemical Public Co. Ltd. (PTT Chem) reflect the following strengths: Favorable cost efficiency. This is attributed to PTT Chem's secured feedstock supply through long-term contracts with PTT Public Co. Ltd. (PTT; foreign currency BBB+/Negative/--; local currency BBB+/Negative/--) and extensive pipeline networks. The company also benefits from a netback pricing arrangement with PTT. Strong market position. PTT Chem is the largest olefins producer in Thailand. Although the outlook for the industry is challenging given increased capacity from China and the Middle East, we believe PTT...

Companies mentioned in this report are: PTT Chemical Public Co. Ltd.,Thailand (Kingdom of),PTT Exploration and Production Public Co. Ltd.,PTT Public Co. Ltd.,Thai Oil Public Co. Ltd.,PTT Aromatics and Refining Public Co. Ltd. (PTTAR)
Action: Review

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Research Type: Full Analysis

PTT Chemical Public Co. Ltd.,Thailand (Kingdom of),PTT Exploration and Production Public Co. Ltd.,PTT Public Co. Ltd.,Thai Oil Public Co. Ltd.,PTT Aromatics and Refining Public Co. Ltd. (PTTAR)

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