PTT – Building Thailand's energy backbone

Our visit to TOP’s Clean Fuel Project (CFP) and PTT Tank Terminal (PTT Tank) reinforced the view that PTT Group is evolving beyond an integrated energy company into a long-term owner of critical national infrastructure. CFP bolsters refining competitiveness, while PTT Tank is building an infrastructure platform spanning ports, storage, LNG, pipelines, and logistics. Together, these assets enhance Thailand's energy security, support industrial growth, and provide exposure to future energy value chains. We believe infrastructure could become an increasingly important driver of earnings stability and long-term value of PTT. We reiterate our OUTPERFORM rating with a mid-2027 SOTP-based TP of Bt50.

CFP: enhancing the competitiveness of downstream platform. Management highlighted CFP's strategic role in strengthening PTT Group's downstream business and Thailand's refining sector. The construction is progressing as planned with full COD by 3Q28. As one of the country's largest refinery upgrades, CFP is expected to improve product yields, increase crude flexibility, and enhance operating efficiency. These benefits should support stronger competitiveness against regional peers. Beyond financial returns, the project reinforces Thailand's energy security by ensuring reliable fuel and feedstock supply. CFP remains a key asset within PTT's integrated value chain and supports long-term downstream strategy.

PTT Tank: emerging as PTT Group's infrastructure growth platform. PTT Tank has transformed from a storage-terminal operator into a strategic infrastructure platform. Through acquisitions, joint ventures, and investments in the Eastern Economic Corridor (EEC), the company has expanded into marine terminals, storage facilities, LNG infrastructure, and logistics networks. Management outlined a roadmap to build an integrated infrastructure platform, become Thailand's leading infrastructure provider, and develop a regional hub for LNG, hydrogen, ammonia, CCS/CCUS, and alternative fuels. Key projects include the GMTP LNG Terminal, Thai Tank Terminal, BTF Chemical Terminal, and partnerships with TOP.

Strengthening PTT's ecosystem through integration. The visits reinforced our view that PTT is evolving beyond an integrated energy company into a strategic owner of energy infrastructure. Alongside CFP, PTT Tank is expanding the group's footprint across terminals, storage, LNG, and logistics assets. We believe this infrastructure portfolio could become an increasingly important source of earnings resilience and long-term value creation, while providing exposure to emerging low-carbon energy and carbon-management opportunities.

Infrastructure is becoming a new growth driver for PTT. We remain positive on PTT's long-term infrastructure strategy. While investors have traditionally focused on upstream, refining, and petrochemical earnings, the growing infrastructure portfolio could become a meaningful source of value creation. These assets benefit from high barriers to entry, strategic locations, long operating lives, and alignment with national development priorities. Beyond supporting existing operations, they also position PTT to capture future energy-transition opportunities, improving resilience across commodity cycles and increasing exposure to structural growth.

Key challenges are execution and commercialization. CFP must deliver targeted operating performance and margin improvement amid a challenging refining environment. PTT Tank's LNG, port, and storage projects face construction, financing, regulatory, and utilization risks.