First Read: PTT "Q126 meeting discussion focused on Genesis and dividends"

Research evidence excerpt

First Read: PTT "Q126 meeting discussion focused on Genesis and dividends"

matters according to the company. The JV initiative aims to establish a Thai

12/26E 3.36 3.70

petrochemical national champion, with expectations of meaningful synergies and

12/27E 3.35 3.73

improved industry dynamics. PTT indicated that the feasibility study of the JV is on track 12/28E 3.92 4.05

for completion by 3Q26 and confirmed its full support for progressing toward a

potential JV formation. Warayut Luangmettakul, CFA

Analyst

Dividends expected to remain competitive warayut.luangmettakul@ubs.com

+662-613 5753

There is no major change in PTT’s dividend policy messaging. The company aims to

maintain dividends at competitive levels relative to peers while ensuring long-term

sustainability. Further payout decisions will continue to balance the expectations and

returns (ROIC, ROE) of multiple stakeholders, including equity investors and debt

holders, as well as national security considerations. At the subsidiary level, PTT

encourages a focus on long-term growth, financial strength and sustainable returns

rather than maximizing payouts from short-term profits.

Yield remains key support amid uncertainty

PTT’s dividend yield of around 6–7% remains broadly in line with its historical range and

continues to provide key valuation support in the current uncertain energy environment,

in our view. That said, upside to dividend payouts may be constrained if energy prices

remain elevated and if government intervention requires PTT to help maintain affordable

domestic energy prices. We maintain Neutral rating on PTT.

Highlights (Btm) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 3,144,884 3,090,453 2,662,145 2,745,810 2,824,784 3,280,894 3,548,149 3,824,465