Good morning, everyone. The analysts and fund managers and the management and all the staff of PTT. I'm Plerntaninee Harutai from the IR of PTT. Welcome everyone to PTT analyst meeting for Q4 and fiscal year of 2025. We would announce the performance of the Q4 and the fiscal year 2025 by the CEO and CFO, and then we would open the floor for question and answers. May I introduce our executives joining us today, Dr. Kongkrapan Intarajang, the CEO and the President. Khun Pattaralada Sa-Ngasang, the CFO. Khun Bandhit Thamprajamchit , COO, Upstream Petroleum and Gas Business Group. Khun Prasong Intaranongpai, the COO, Downstream Petroleum Business Group. Dr. Buranin Rattanasombat, the CNBO, Chief New Business and Infrastructure Officer. The three COO will be replying to any questions in the Q&A session.
Good morning, all the analysts and the fund managers and distinguished guests. We meet again today. This is for Q4 and fiscal year of 2025. We would start on what was going on last year. Last year it was quite challenging for us. The red here include geopolitics and the U.S. tariff policy, which is still not stabilized yet. Thai baht depreciation, decline in global energy and economic. PTT could do quite well last year for our performance. It is quite close, a little bit better than 2024, despite external factors, which is quite negative. For the net income, we have about THB 90 billion. There are many projects that we are doing internally in order to increase the level of our efficiency. We would go into details later on. Altogether, we have profit enhancement for about THB 40 billion. This one we are doing quite well.
Apart from our performance and achievement, we have to look into shareholders' return and credit rating. We still can maintain our credit ratings both for PTT and our subsidiaries. For the shareholders' return, we make sure that the dividend is the same as last year's. We still also have special dividend for 2025 as well. The CFO would give more details about this. We have a lot of cash in 2025. We still save some money for our future investments. Despite all the negative impacts, we still are doing our best. We had some share buybacks as well. Those are the key achievements in 2025. Looking into the upstream and power, we are still having the clear direction focusing in our upstream power security and the cutdown of carbon.
For the volume, the price is down, profit is down, but with sales volume and proved reserves lives, which increased from 6.4 - 6.9 years. This is quite significant because for PTTEP's acquisition, we got the volume, but the return is not so much. We have to split our portion to the grassroots, which higher return with a lot of reserves. We have to have good inventory both in Thailand and overseas. For domestic, it's for our energy security, but we can make better margin overseas. Another one is LNG optimization. We would invest more in this portion. We have trading, which is increasing from 1.8 million-2.4 million tons. This would help us gain more profit and access to the world market.
When the commodity is quite fluctuating, trading would help us to balance our portfolio. Domestic, we still maintain our long-term contracts. For RE, we have progress both in Thailand and in India. GPSC is growing well. Coming to downstream, major projects last year is A1 or infrastructure synergy, which we will be maintaining this year. PTT Tank is our major vehicle. Thaioil is lease and leaseback. GC is lease and leaseback. Acquisition, we would still doing some more this year. For Genesis, we have more clarity this year with the investors list for this year. We have talked with our shortlisted investors. All in all, what is still remain the same is that when we have the investors, the flagship would be strengthened. This year we would see a clearer picture.
Looking at non-hydrocarbon, we have a lot of activities going on, like EV value chain restructuring. In line with market trend, what we have received is a capital reduction in HORIZON PLUS, and we have gained more cash. The divestment gain, CATL. Altogether, that's about THB 13 billion. We still focus in our expert segment like EV, and we look forward for more growth. Life science business growth, we try to seek our strategic partner, the self-funding. Khun Buranin is successful in doing the share restructuring, and we have gained about THB 7 billion-8 billion. It is important in that we divest some portion, so we don't have to consolidate our debts. They have a good growth, but it is not our core business, so they can grow on their own raised fund.
Another one is acquisition of Alvogen U.S., and Lotus is one of the top 20 in the U.S. Down here is resilience shareholder value, which we pay attention to. It's a combination of consistent dividend payment, 6%-7% share buyback to gain confidence maintaining credit rating. That's the overall picture of last year's. I walk you through upstream and downstream, then I have to walk you through decarbonization because this one is inseparable component of our business. We cannot do the upstream and downstream and gain profit without the action plan for decarbonization. Our net zero target is in 2050, 15% GHG reduction in 2035. We have seen the progress all along through our C3 framework. For CCS and hydrogen, that would take a lot of effort.
The master plans have been produced last year. We know what to do and by when. CCS, we already did our sandbox at it. We also complete our Eastern Thailand CCS hub study seismic survey under the sea that was already approved by the cabinet. Feasibility study is as planned. We would make some investment in our neighboring countries as well. The most important strategic location is in Thailand ourselves. Last year's PTT's performance is downtrend. Crude oil price spread of polymers and aromatics. GRM might be a little bit uptrend. For the big trend, prices are going down. Down here, EBITDA. We have quite a big red here. PTTEP is THB 33 billion. Sales volume is up. Net profit margin is down. P&R is down by about THB 13 billion because of polymer and aromatics.
Gas is down by THB 8 billion. Trading is a little bit better. All in all, profit enhancement, we can save about THB 38 billion and another THB 26 billion from FX. The CFO would give us the detail later on. Looking at our peer, last year PTT compared 2025 with 2024, it is quite the same with a lot of profit enhancement. Underlying businesses like E&P and Petchem, the prices of the products are down. It's in line with the global trend. Looking at our peer with crude oil and Petchem global price. We can see that the overall picture is downtrend among global major oil and gas, but we still can keep our performance. Breaking down, last year Thai Oil was doing better with special items. With Thai Oil, they did well in laying foundation of the CFP with a lot of cost overrun.
How can we raise confidence with the market and the investors? Thaioil was quite successful in doing so. They know their cost and with the exact timeline. With clarity with CFP, Thaioil would do the business as usual, focusing in the CFP as planned. For OR, they were doing better last year with their internal improvement. For Petchem, it's in the red all over the world. Now to agenda two for PTT, strategy progress and the way forward.
We have been making effort at transparency, making the picture easier for you to see and monitor. We seek to balance competitiveness and opportunity. This map we always revisit. Recap last year, P1 is group wide synergy. Trading feedstocks, international procurements. In 2025, target of THB 4.3, we achieved THB 3.4. In 2026, our target is THB 3.2. Day one, we started just last year domestically. Group wide energy unlocking value close to target nearly THB 700. We managed to achieve this year target is higher in the tune of THB 1 billion. MissionX is about EBITDA uplift, cutting costs, boosting EBITDA. This is PTT Group wide. These EBITDA last year THB 10 billion. 2026, we set the target of THB 20 billion. AXIS is digital transformation on three aspects. Building use cases.
This year, the target is THB 2 billion. Building use case, human capability, AI deployment, and infrastructure, such as cloud, cybersecurity. Not a lot of EBITDA, but it's brick-and-mortar to support other aspects down there. This year, we must press on cash generation. A1 is asset monetization across hydrocarbon, non-hydrocarbon, upstream, downstream. We gained cash of THB 17 billion last year. Three years target is THB 100 billion. THB 10 billion is helping as well. Cost saving, it would trickle in and momentum building up. We achieved TBH 13, nearly THB 14 billion last year. These are financial excellence. F1 discipline credit rating at PTT. When we are strong, we support our subsidiaries. Keeping an eye on discipline. Subsidiaries have to maintain discipline as well. Looking at medium term Genesis. Last year, according to plan, and this year, clarity.
New endeavors LNG, a big target this year. We aim at increase of volume CCS according to plan. This slide provides roadmap or guideline. We have multiple roadmaps. We have a macro roadmap. These are thematic roadmaps. Three themes we shall pursue this year, starting with spilling over from last year, continuing this year. That is shareholders value. We must continue. This is connected to financial performance. Last year, if we did nothing, it would dive, but we managed focusing on core business portfolio optimization, de-risking investments. For financial performance to be sound, we have to stay on our expertise and right timing of portfolios adjustment alongside risk appetite risk management. We de-risk investments and minimize exposure as far as we can. In terms of dividend share buyback, we will jointly set JUMP+. We will be amongst the pioneering lot. CFO will elaborate.
We must excel in our performance for shareholders value through these approaches. This year, you will see what we hope. We have already planned. We have talked on global partnerships. The key would be creating value and strengthening flagship through collaboration. These two items on the checklist, stronger and value enhancement. Genesis, you follow closely. Global partnership benefits are the same. Stronger flagship with global partnership. Southeast Asia is still a big market. Instead of going on their own, they stay with us. Clarity will emerge this year. Infrastructure, PTT Group infrastructure. You recall that we start with leaseback, sale, leaseback, tanks, terminal, jetties scattered within the group. We consolidate, contextualize. Phase I is optimization, both in terms of operation and CapEx. We will update you in due course. This is straightforward in the pipeline next.
We spend our own money first and then leverage. PTT borrow is better than subs borrowing. A global infrastructure. Partners who can contribute. First, global partner downstream, second could be infrastructure funds. Non-hydrocarbon this year picture will be clearer. As I said, we've divested and et cetera. There are certain sections we can build upon, including EV charging. Things around EV, Khun Buranin's team is working on it. Partners shall contribute expertise. EV and life science. Digital and IT, this is more about infrastructure. What to do to bring down costs to serve and enhance capability. Talent development, we are seeking partners. Partners must make us stronger and coming up with sound value proposition. The third theme is growth, LNG alongside decarbonization. LNG boosting trade volume. We did KM session. We must identify supply-demand nodes.
We are after volume for trading and to secure supply volume. Sometimes we have to invest to get offtakes. It has to be competitive, such as U.S., Middle East. We get volume flexible contracts on the demand side. We must work on it as well. If extra investment regasification, that is good. We will see progress over the next couple of years. CCS progress, we must pursue per national target of 2050, but we must achieve CCS for our own decarbonization effort. We must not forget that underlying P1, D1, F1, A1, we have to continue because they will support, cushion us the three major themes on top. Just to short recap and update on asset monetization. The green are core, blue non-core, deep blue non-hydrocarbon assets. You will see that throughout 2025.
You will see developments, what we've done in terms of EV, PNR. We will have more A1 starting this year for GC. Power. THB 17 billion in enhanced by THB 14 billion. We thank, we acknowledge the finance communities for extending to us awards and recognitions. Even though some of these prizes are for individuals, we work on behalf of the company. Reflecting our commitment to stakeholders, shareholders. We are thankful, particularly to the right finance awards. Now, I give the floor to CFO.
I believe we did KM on CCS. We are planning site visit for LNG and digitalization. CFO would like to present performance. I will not go in details. I just want to share my innermost thoughts.
2025, if you recall Q1 last year, we had U.S. reciprocal tariff shocks round one, global GDP slowdown, geopolitical tensions, minus the earthquake. Q1 started with a lot of challenges. Apart from PTT itself upstream, downstream, we similarly face challenges of diverse kinds. With the CEO's leadership, brainstorming amongst everyone, sitting here, we all had to do rapid responses. Our strategy team, our team, CFO's team, we work very, very hard to arrive at the numbers of THB 90 billion. The profit enhancements mentioned by the CEO all totaled THB 38 billion minus from THB 90. If business as usual unplanned from the start of the year, we may end up at THB 50. Given our PTT spirit and the teamwork spirit, the group synergy, we achieve this performance top line revenue to the left.
You may say that revenue down not so good, but for PTT, you don't only look at top line because we are subject to global commodity prices. This is directly impacted by Dubai crude. Both, it's down and baht down. Baht is a major variable because our business is dollar linked. 14% down is external. Again, EBITDA is also down. You may ask why. At first, we thought 10% exchange rate. We earn from conversion. We earn less from conversion, but we gain from FX instead on the line down there. In part from EBITDA and also margin when crude price is down, margins of key businesses, PTTEP, PTTChem refinery, so their margins have shrunk. If we sit still, 16% already wiped out.
On the right, the amazing thing is net income is not down because typically the pre-interest, we all made effort to reduce loan interest. The fact that NI is not down, I will share in details why we managed to sustain the NI. To the left, we report at THB 90 billion. Some ask whether that's magic number. Was it deliberate? Well, in a way, it was deliberate. It's about planning and fighting. Everything's transaction backed, and it takes Q1 through Q3 effort. It's not just instant achievement. 90 has been weathering all the negative factors, margins, global pressure, THB 66 all told already wiped out. You can see by sector the varying impacts, but the slow adjustment costs. Last year, costs were distributed, depreciation, other income, impairment, which was less last year.
2024, quite substantial from two pet chem items, but 2025 less FX derivatives. Within THB 66 billion, within $10 billion of EBITDA. We got offset and other extra items that we tended to them, mostly have to do with portfolios adjustment that we briefed you since 2024. To the right, we separate by item, starting with business performance. Second, extra item and external factors toward the end. We had steady workflows through the year. THB 60 billion. By December, oil price plunged by $8. Baht appreciation spreads deteriorated. We worked so hard November, December. - THB 2 and THB 3, business performance is THB 60 something. Within there, single pool price remain the factor, similar to 2024. At the same time, we manage OpEx savings, MissionX. We gained THB 19.
This is real cash, not book, not account item. We got BAU with internal improvements to offset single pool and +THB 8 billion extra item is about portfolios adjustment, deliberate attempt, Lotus Innobic. As you heard all along, we disclose since mid-year about adjusting our port slightly from 38 to reflect reality in the business for us because we don't have competency. We do not have controlling stake. We just send director 38. With control, we have to reexamine. The CEO's strategization on life science, that it has to be self-funding. We made the decision to stay equity. They manage top line, middle line, and we just wait for our share of profits. We just divested just about THB 800,000. We were off from the accounting trigger from consolidated to equity take basis.
At the same time, we can come up with fair value because Lotus in Taiwanese market increase from when we purchased. We gained THB 7.5, slightly less than what we had in mind. At one point, when THB was stronger, we would have gained more. This is THB at year end, THB 7.5. It's still okay. We still hold it. We can still stay to gain profits from it. Second downstream at Thaioil, Indonesia asset, PTTEP's acquisition of asset at fair value and GPSC's investment in Ratchaburi stake. Again, a gain on bargain purchase. Bond buyback, I commend GC and Thaioil for making the most of the right timing to buy back debentures with discount. We got a gain at THB 3.7 or altogether THB 3.4. PTT's portion is 1.7. This is so.
Encouraging. I think you all know very well. Down there, we just demonstrated FX gain dollar portion loan, THB 16 billion offset with plunged margin. THB 5.9 December, the stock loss across value chain. Despite this, with our solid preparation, we managed THB 90 billion. Q4 we can skip. Now gas sector. If you see the arrow, the direction, downward global gas price and slowing global economy, our clients buy less or import on their own. NG volume slightly down. At the same time, down there GSP ethane production slight gain from efficiency optimization. This is EBITDA for gas sector. The blue, Singapore still stay and customers demand, and slowing economy plus partners in PTTLNG. Equity take was 50% less. Down there TSO S&T EBITDA stabilized.
Trading business is our rescue factor. Trading managed very well. Volume was down, but margin per liter was higher from THB 0.09 to THB 0.11. In the end, EBITDA of trading is up 22%. This is our key, our core competency. As CEO said earlier that we will focus more on LNG value chain from 3 million to 15 million using our trading and gas business competency. This one is our financial position. Asset might be less, but we are not shrinking. We have the working capital, which is enough. Inventory, AR, and AP when offset according to the crude oil price, which is decreasing. That's normal. Cash is down to around THB 400 billion.
For PTT and Thaioil, they also can have the money enough to put in their investment, and they can repay their debt as well. At THB 400 billion, I would say we still have surplus cash, which is enough. For the debt, IBD is down from THB 1.1 trillion - THB 985 billion, mainly from the attempt to control the debt at the downstream level. At PTT, we see more debt, but still the room. Last year, PTT take the loan from financial institute for 15 years, and interest rate is quite good. In order to refinance shareholder loan like PTTLNG , this year we would maintain. We would like to utilize the sweet spot in PTT financial position. Like the bank would love it, and investors would love it. We would take it out piece by piece.
We would not inject all of the components in our balance sheet, but we just take out some sweet spots in order to incentivize the investors. We would have to maintain our financial discipline. Note that EBITDA should not be lower than two. Now we have one point seventy five. During the year, we would give the ETC to our subsidiaries, and that's about THB 200 billion, which is included in our loan portion. Looking at the overall picture, we can use this THB 200 billion to repay the debt. It's backed by our transactions according to the market rules and regulation. Down here, we would portray the picture that the whole group can maintain the credit rating, and we can maintain the ratings for this year as well.
For the cash flow, free cash flow is THB 135 billion. From operation, that's about THB 300 billion. THB 160 billion is upstream Thaioil's project and some minor projects of PTT. Like when we gain the tank infrastructure through PTT Tank. Financing to the right, it's to repay long-term debt, that's about THB 100 billion. We paid dividend during the year the first time treasury stock in last March, we succeeded half of that. Another half would be due in the future. We declare our dividend THB 0.1 + THB 0.2 . Please keep yourself updated on our dividend policy in the future. The COO has told us that when we have negative externalities, we try to focus on our expertise, which is hydrocarbon.
How can we maximize our asset and take care of our stakeholders and shareholders? In PTT Group, we start to see the optimization of the expectation of the stakeholders. Our subsidiaries just pay the dividend, and each company can make the decision by themselves using the same principles. The second one is ROIC and WACC improvement. We take out the one that is not working. To cut down our WACC, we have to look at the cost of our capital for the group so that we go for the best interest, so that WACC for the whole group is getting better. For the ROIC, we try to optimize the expectation of the stakeholders. F1, we have B1, P1, and for me, we have F1. First of all, we have to keep our liquidity and financial readiness.
Cash is king, but you have to do your work as well. The ETC, we have to provide the ETC to support the whole group. We have to look at our sweet spots in our assets. Asset monetization is not to gain only cash. PTT Tank, the profit is not coming into PTT, but we try to build new business model because we have the infrastructure downstream, which is PTT Tank. We bundle every investment here to be the first scale. It is not international scale, but it would lead us to more business in the future. The global infrastructure fund, they would like to talk to us every time that we do the roadshow. We'll try to have the cream of the cream to be our partner.
For these funds, for PTT Tank, we try to secure the loan, and then the ROE of PTT Tank would be much better to be two digits. We would invite all these fund managers to buy a small portion of us so that we have a seeding fund with us with no risk because of the fixed income. These seedings would help us to make the growth in infrastructure upstream and downstream, especially the clean and green projects in Thailand. Thailand is a good strategic location, and with the name of PTT, then many people are attracted to us, but we try to screen and select the best one. In the meantime, the CEO would pick the most appropriate strategic partner for us. For the new business and infrastructure, there are a lot of companies that we have in mind and in the pipeline.
For taking loans, PTT would still need to be careful in looking at the loan taking so that we have the best terms, that we do not compete each other. The last one, F1, is a strategy in action in order to respond to the needs of all of our financial shareholders. That's all from me right now. For the guidance, at the beginning of the year, I'm a bit relaxed because crude oil price is coming back to $70, and for the stock loss, we would gain it back. We have the news also with our GDP of Thailand. Everyone would have a smile on the face right now because when we go to the stock exchange and the capital market, there is a good signal in that. That would be a lot more that we can do this year.
For the share price of PNR, it's getting better. PTT, Thai Oil, PTTGC, because PX price is getting good at 97 already. Even though it's seasonal, but it's a good sign for us and for our group. To the right-hand side, the plus figure is the volume of E&P gas price utilization of petchem. Either OR, that's THB 7 billion, and this year is THB 10 billion. This is a target that we have to go forward to, both for mobility, lifestyle. It's a JV that we are careful about. Before we work with startup, now we shift to work with the strong partners, we make sure that the money that we inject would bring back the growth in the future. This is for the 1st Q that we are having the smile on our face.