PTT, Thai-land’s top energy firm, said it expected third-quarter net profit to be higher than in the same period last year, but it would be lower than in the second quarter due to weak refining margins.

Chief executive Prasert Bunsumpun also told reporters the PTT group had delayed a plan to sell 10 billion baht ($290 million) of bonds in the second half of this year as a political crisis in Thailand had dented investors’ confidence.
“Compared with the third quarter last year, our net profit should be better. But it should not be so good when compared with the second quarter because we expect average refining margins to fall from around $7-8 per barrel,” Prasert said.
The year-on-year improvement was mainly due to higher output from its two main subsidiaries, PTT Exploration and Production (PTTEP) and PTT Chemical, Prasert said.
The company maintained its earlier forecast that 2008 net profit should be close to the 98 billion baht earned in 2007 and expected 2008 revenues of 2 trillion baht, up from 1.5 trillion baht in 2007, he said.
“Our sales are still growing and we expect 2 trillion baht this year, but overall margins are not quite as good,” Prasert said.
Sixteen analysts polled by Reuters Estimates forecast a 2008 net profit of 101 billion baht, up 3 per cent, and revenue of 1.99 trillion baht.
In the first half of this year, PTT posted a net profit of 56 billion baht, up 15 per cent.
PTT, which controls more than 30 petroleum, gas exploration and petrochemical businesses, has major interests in five of Thailand’s seven refineries, including top refiner Thai Oil.