PTT : MD&A 2Q/2023

PTT Public Company Limited 2Q2023 2

Management' s Discussion and Analysis ( MD&A) and operating result for the three- month and six- month periods ended 30 June 2023

Executive Summary

Unit: Million Baht

Sales Revenue

EBITDA

Net Profit Earnings per share (Baht/share) Average Dubai Price (US$/barrel)

2Q2022	1Q2023	2Q2023	% Inc. (Dec.)	1H2022	1H2023	% Inc.
		(Dec.)
YoY	QoQ
926,954
756,690	778,065	(16.1%)	2.8%	1,685,419	1,534,755	(8.9%)
182,777	104,008	92,625	(49.3%)	(10.9%)	323,689	196,633	(39.3%)
38,843
27,855	20,107	(48.2%)	(27.8%)	63,635	47,962	(24.6%)
1.37	0.98	0.70	(48.9%)	(28.6%)	2.24	1.68	(25.0%)
108.1	80.3	77.8	(28.0%)	(3.1%)	101.8	79.0	(22.4%)

In the second quarter of 2023 (2Q2023), PTT and its subsidiaries reported Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in an amount of Baht 92,625 million decreased by Baht 90,152 million or 49. 3% from the second quarter of 2022 ( 2Q2022) of Baht 182,777 million mainly from Petrochemical and Refining business. Refining business's performance decreased primarily due to stock loss in this period. PTT Group's stock loss in 2Q2023 was approximately Baht 4,000 million, while in 2Q2022 there was a stock gain approximately Baht 19,000 million. Additionally, market GRM decreased from US$ 21.3 per bbl in 2Q2022 to US$ 4.1 per bbl in 2Q2023 due to lower spread of jet, gasoil, and gasoline over crude oil, despite the increase in sales volume. Moreover, Petrochemical business' s performance decreased mainly from Olefins business due to the decrease in products spreads. Exploration and Production business' s performance decreased following the lower sales revenue. Others business's performance decreased from completed disposal of coal business. Oil and Retail business and International Trading business's performance decreased mainly from the decrease in average gross margin per unit, despite an increase in sales volume. In addition, Gas business' s performance decreased mainly from Gas Separation Plant (GSP) business due to a lower average selling price in all products following the decline in petrochemical referenced price, in spite of a higher sales volume. Moreover, gross profit of Transmission pipelines (TM) business decreased due to the revised gas pipeline tariff.

In 2Q2023, net income of PTT and its subsidiaries was Baht 20,107 million decreased by Baht 18,736 million or 48.2% from 2Q2022 at Baht 38,843 million following the lower EBITDA. However, there was a higher gain on derivative and lower loss on foreign exchange rate, together with lower corporate income taxes. Moreover, there were gain recognition of non-recurringitems (PTT's portion after tax) in 2Q2023 approximately Baht 20 million mainly from the discount from production shortfall of PTT. While, in 2Q2022, there was a loss recognition approximately Baht 1,500 million mainly from Thaioil Public Company Limited (TOP)'s tax on investment for sales of Global Power Synergy Public Company Limited (GPSC) offset with the discount from production shortfall of PTT.

In 2Q2023, PTT and its subsidiaries reported EBITDA in an amount of Baht 92,625 decreased by Baht 11,383 million or 10. 9% from the first quarter of 2023 (1Q2023) at Baht 104,008 million mainly from Petrochemical and Refining business. Refining business' s performance decreased as market GRM decreased from US$ 8. 4 per bbl in 1Q2023 to US$ 4.1 per bbl in 2Q2023 due to lower spread of jet and gasoil over crude oil, despite higher sales volume. PTT Group

PTT Public Company Limited 2Q2023 3

also had lower stock loss. In 2Q2023 there was stock loss approximately Baht 4,000 million, while in 1Q2023 stock loss was Baht 6,000 million. Petrochemical business's performance also decreased both in Olefins and Aromatics businesses due to lower product to feed. Exploration and Production business's performance decreased due to lower average selling price and sales volume. Moreover, International Trading business's performance decreased mainly from lower margin per unit of crude trading following the decreased in product spreads, despite higher sales volume. However, Gas business's performance rose from Supply and Marketing (S&M) and NGV businesses due to lower gas cost, in line with pool gas price. In addition, GSP business also had lower gas cost following gulf gas price and higher sales volume, even though average selling prices were lower in all products following the decline in petrochemical referenced prices. In 2Q2023,

PTT and its subsidiaries' net profit amounting to Baht 20,107 million decreased by Baht 7,748 million or 27.8% from 1Q2023 at Baht 27,855 million mainly from the decrease of EBITDA and higher loss on foreign exchange rate. However, there was gain on derivatives, and the corporate income taxes decrease from soften performances of PTT and its subsidiaries. In addition, there was a gain recognition of non-recurringitems (PTT's portion after tax) approximately Baht 20 million mainly from the discount from production shortfall of PTT. While, in 1Q2023, there was a loss recognition approximately Baht 100 million mainly from non-cashaccounting transactions at the end of concession of Bongkot Project of PTT Exploration and Production Public Company Limited (PTTEP).

In the first half of 2023 (1H2023), PTT and its subsidiaries reported EBITDA in an amount of Baht 196,633 million decreased by Baht 127,056 million or 39.3% compared with the first half of 2022 (1H2022) of Baht 323,689 million mainly from Petrochemical and Refining business's performance. Refining business had lower performance from higher stock loss in 1H2023. In 1H2023 there was a stock loss approximately Baht 10,000 million, while in 1H2022 there was a stock gain approximately Baht 47,000 million. Moreover, market GRM decreased from US$ 13.7 per bbl in 1H2022 to US$ 6.3 per bbl in 1H2023 due to lower spread of gasoil, gasoline and jet over crude oil, despite the increase in sales volume. Also, Petrochemical business's performance decreased from Olefins business due to lower product to feed and sales volume. While Aromatics business's performance increased from higher spread of Paraxylene (PX), in spite of a lower sales volume. Gas business's performance decreased from GSP business which had higher gulf gas price and lower average selling prices of all products, as well as lower sales volume. In addition, gross profit of TM business decreased due to revised gas pipeline tariff. S&M business had higher performance mainly from industrial customers which the average selling price increased from higher referenced prices. Others business's performance decreased from disposal of coal business in 1Q2023. However, New Business and Infrastructure business's performance increased mainly from revenue recognition of pharmaceutical business, as aforementioned and GPSC's Small Power Producer (SPP) higher performance following higher Ft in line with energy cost. In 1H2023, Net Income of PTT and its subsidiaries was Baht 47,962 million decreased by Baht 15,673 million or 24. 6% from the net profit amounting to Baht 63,635 million in 1H2022 following the lower EBITDA. Eventhough there were lower loss on derivatives and higher gain on foreign exchange rate. In addition, there were loss recognition of non-recurringitems (PTT's portion after tax) approximately Baht 70 million mainly from non-cashaccounting transactions at the end of concession of Bongkot Project of PTTEP offset with the discount from production shortfall of PTT. While, in 1H2022, the loss recognition was approximately Baht 600 million mainly from TOP's tax on investment for sales of GPSC offset with the discount from production shortfall of PTT.

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As of 30 June 2023, PTT and its subsidiaries had the total assets amounting to Baht 3,421,537 million increased by Baht 5,905 million or 0. 2% from 31 December 2022 which had total asset amounting to Baht 3,415,632 million mainly from the increase in cash and cash equivalents and short-terminvestments primarily driven from PTT Group's operating activities, as well as the increase in property, plant, and equipment (PPE) contributed largely from PTTEP' s exploration and evaluation assets of G1/61 Project and G2/61 Project, including TOP's construction in progress of Clean Fuel Project (CFP). Whereas, the total liabilities were reported at Baht 1,829,145 million decreased by Baht 52,794 million or 2. 8% from 31 December 2022 at Baht 1,881,939 million mainly from the decrease in other liabilities from derivatives liabilities and income tax payable. In addition, the decrease in trade account payables due to lower cost and lower purchase volume. Moreover, the total shareholders' equity was Baht 1,592,392 million, increased by Baht 58,699 million or 3. 8% from 31 December 2022 at 1,533,693 as a result of the PTT and its subsidiaries' net income for 1H2023 offset with dividend payment from the operating results of the second half of 2022 amounting to 0.70 Baht per share.

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Economic Overview in the Second Quarter of 2023

The world economy in 2Q2023 accelerated from 1Q2023, following an expansion in major economies, namely the US and China. US economy expanded at a faster rate, mainly driven by continuous growth in private consumption amid a robust labor market, despite the rise in interest rates by the Federal Reserve (the Fed) in its July 2023 meeting to the highest level in 2 2 years, together with a surge in business investments stimulated by the government's industrial investment initiatives (CHIPS and Science Act and Inflation Reduction Act) and the unraveling of supply-chain snarls particularly in aircraft and motor vehicles. Chinese economy expanded at a faster rate, partly due to a low-base effect caused by strict lockdowns under a zero-toleranceCOVID-19 policy last year. While Euro Area economy expanded at a slower rate, as a result of the continuing monetary policy tightening in a bit to tame the remaining higher-than-target- threshold inflation. In the June 2023 meeting, the European Central Bank raised its key rates to the highest level in 22 years. The International Monetary Fund (IMF) in July 2023 revised up its global growth forecast for 2023 to 3.0% from its April 2023 forecast of 2.8%.

According to S&P Global's report in August 2023, the world's demand for oil in 2Q2023 averaged at 101.7 million barrels per day (MMBD), which increased from 2Q2022 and 1Q2023's average of 99.7 and 100.6 MMBD respectively due to Chinese economic recovery after country reopening and improving demand from developing countries (Non-OECD).

Unit: US$/barrel	2Q2022	1Q2023	2Q2023	% Inc. (Dec.)	1H2022	1H2023	% Inc. (Dec.)
YoY	QoQ
Average Dubai Crude Oil Price	108.1	80.3	77.8	(28.0%)	(3.1%)	101.8	79.0	(22.4%)
Gasoline Crack Spread	35.0	18.7	16.6	(52.6%)	(11.2%)	26.4	17.6	(33.2%)
Diesel Crack Spread	43.1	25.2	14.6	(66.1%)	(42.1%)	31.3	19.9	(36.4%)
FO Crack Spread (180 - 3.5%S)	(3.2)	(16.3)	(8.7)	<(100.0%)	46.6%	(5.8)	(12.5)	<(100.0%)
GRM-Singapore Crack	21.4	8.2	4.0	(81.3%)	(51.2%)	14.7	6.1	(58.5%)

Dubai crude oil price in 2Q2023 averaged at US$77.8 per barrel, decreased from 1Q2023 at US$80.3 per barrel and 2Q2022 at US$108.1 per barrel due to the concerns over macroeconomic indicators, the concerns over Chinese economic recovery amid inflation rate hikes in various countries, the remains sluggish of the industrial sector while OPEC and its allies (OPEC+) continued to cut production to support crude oil prices.

Petroleum product prices at Singapore spot market

• Gasoline crack spread averaged at US$16.6 per barrel in 2Q2023, down from US$18.7 per barrel in 1Q2023 and US$35.0 per barrel in 2Q2022 due to demand slowdown in monsoon season. However, the market was supported by the decrease in Chinese export quota resulted in lower export volume.