Shares of PTT Pcl were down 0.63 percent at 314
baht on expectations of lower fourth-quarter earnings due to
seasonal low gas sales and lower profits from affiliates, after
Thailand's top energy firm reported an impressive third-quarter
earnings on Wednesday.
PTT reported its biggest rise in quarterly net profit in
more than a year, boosted by robust gas sales, higher income
from its upstream unit, and rising profits from its refinery and
State-controlled PTT posted July-September net profit of
36.1 billion baht ($1.2 billion), up 68 percent from a revised
21.47 billion a year earlier, and higher than the average 34.6
billion baht forecast by 11 analysts polled by Reuters.
Several brokers rated the stock a 'buy', while CIMB
Securities maintained its 'outperform' rating with a target
price of 391 baht, saying subsidy losses in natural gas (NGV)
and liquefied petroleum gas (LPG) may pose downside risks to
"Stronger-than-expected third-quarter results came from
higher earnings from subsidiaries which offset weaker core gas
earnings due to larger subsidies for NGV and LPG. Future growth
remains solid, though it could be tempered by growing
subsidies," CIMB said in a note.
"We believe price caps are unlikely to improve until 2015
when the government may need to liberalise energy prices to
prevent cross-subsidies in other ASEAN countries."
CIMB cut PTT's 2012-2014 earnings estimate by 3.4 percent to
8.1 percent to reflect rising subsidy losses, saying it
preferred subsidiaries PTT Exploration and Production
and PTT Global Chemical for "their limited downside
from subsidies and more attractive growth potential".
Shares of PTT Global Chemical were down 1.67 percent at 59
baht, while PTT Exploration and Production was 0.92 percent
lower at 161 baht.
1055 (0355 GMT)
For the company statement, click
(Reporting by Sinsiri Tiwutanond in Bangkok; Editing by
Subhranshu Sahu; firstname.lastname@example.org)
($1 = 30.7 Baht)