Earnings Report /
Thailand

PTT PCL: A slight 1Q22 miss; earnings growth expected for 2Q22

  • Slightly below estimates

  • PTT posted 1Q22 net profit of Bt25,571m

  • PTT’s 2Q22 core earnings look set to expand further YoY

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

Bualuang Securities
13 May 2022

Expectations of further earnings improvement for 2Q22 should support the share price going forward. Also, potential new investments would add to long-term earnings growth. The current valuation is undemanding—a YE22 PBV of 1.0x (1.2SD below its long-term mean of 1.6x) with an attractive dividend yield for 2022 of 4.8% (against 2.7% for the SET).

Slightly below estimates

PTT posted 1Q22 net profit of Bt25,571m, down 22% YoY and 7% QoQ. Stripping out extra items, core profit would be Bt40,302m, up by 126% YoY and 57% QoQ. The result was 9% below our estimate (12% below the consensus’), due to bigger extra losses than assumed.