Year 2010

 January

PTT likely to merge three Rayong units this year

Higher court last gasp on Map Ta Phut

By Nareerat Wiriyapong

PTT Plc aims to complete the merger of its four petrochemical and refining units by 2012, with up to three companies potentially consolidated within this year, president and chief executive Prasert Bunsumpun said yesterday.

The country's largest energy company expects to conclude the merger plan of three listed subsidiaries - PTT Aromatics and Refining Plc (PTTAR), PTT Chemical Plc (PTTCH) and IRPC Plc - within the first quarter of this year.

Thai Oil Plc will not be included in the first phase of the merger because it is located in Chon Buri while the other three subsidiaries are in Rayong, according to Mr Prasert.

"We will be merging the companies less affected by the Map Ta Phut impasse," he said.

Details of the merger would be finalised within the first quarter for the plan to be submitted for shareholders' approval in April and later to stock exchange regulators for a final endorsement, he added.

"There is a possibility that two to three companies will be merged within this year. The merger of the four subsidiaries will be completed in 2012," Mr Prasert said.

So far, 18 PTT projects in Map Ta Phut, Rayong, including the US$780-million sixth gas-separation plant, have been stalled by court orders pending their compliance with the constitutional requirement regarding environmental and health impact assessments. A committee is now working on how the affected companies should proceed to comply with the provision.

The energy giant has estimated that its net profit will fall 5% this year from that of 2009 if all suspended 18 projects are delayed by more than a year.

Mr Prasert said the delay of the gas-separation plant would affect the operation of PTTCH's new olefins cracker in terms of feedstock. The 1-million-tonne cracker is being test-run now, a slight delay from the original schedule.

"The existing cracker plant will be [temporarily] shut down for the new cracker unit to be operated if the sixth gas plant has to be delayed because the new facility is more efficient than the old, smaller one," he said.

PTT shares closed yesterday on the SET at 247 baht, up one baht, in trade worth 812.74 million baht.

By Bangkok Post

January 15, 2010

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