It is looking to list its retail subsidiary PTT Oil & Retail Co in an IPO that could raise around $2b.
Thailand's largest energy group and national oil company PTT has decided to raise investments in the retail and industrial power sectors to offset the global economic slowdown in its oil refining and chemical activities. The group is facing thin profit margins in a context of low demand and chemical supply exceeds.
PTT aims to list its retail subsidiary PTT Oil & Retail Co (PTTOR) in an initial public offering (IPO), which could raise around $2b. Proceeds from the IPO would help PTT expand its retail business across Asia (Vietnam, Laos, Cambodia and other countries). PTTOR is also considering building an LPG import terminal near Thilawat in Myanmar, while PTT's power generation branch Global Power Synergy (GPSC) is developing a gas-fired power project in Myanmar.
PTT plans to expand GSPC, which acquired the 69.1% stake held by ENGIE in Glow Energy in June 2018; Glow Energy is the third largest IPP in Thailand with a capacity of approximately 3.1 GW (2018). Earlier in June 2019, PTT approved a 47% increase in its investment spending plan to support GSPC's projects in electricity and renewables.
This article was originally published by Enerdata.
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