PTT Global Chemical (GC) Reports Strong Q1 2025 Recovery, Doubling Adjusted EBITDA and Advancing Toward Sustainable, Resilient Growth
PTT Global Chemical Public Company Limited (GC) has announced its financial and operational performance for the first quarter of 2025, revealing a decisive turnaround from the challenges of the previous quarter. Through disciplined cost controls, strategic portfolio realignment, and continued execution of its Holistic Optimization initiative, the company delivered a substantial 102% increase in Adjusted EBITDA compared to Q4 2024, despite an uncertain global economic environment. This strong performance highlights GC’s ability to respond effectively to market volatility while laying the groundwork for sustainable, long-term value creation.
The company’s strategic focus on driving efficiency and transformation continues to show tangible results. GC has raised its annual target for operational efficiency improvements, increasing its goal from THB 4.5 billion to THB 5.5 billion. This revised target reflects the company’s confidence in its ongoing cost reduction programs and revenue enhancement efforts. At the same time, GC is accelerating its shift toward high-value, low-carbon business models and reinforcing its Asset Light strategy, ensuring that the company remains agile and resilient amid evolving market dynamics.
Q1 2025 Financial Highlights
During the first quarter of 2025, GC generated total sales revenue of THB 132,547 million. The company reported an Adjusted EBITDA of THB 5,377 million, up from THB 2,658 million in Q4 2024. This marks a significant quarter-over-quarter improvement of 102% and underscores the effectiveness of GC’s operational and strategic transformation efforts.
Despite reporting a net loss of THB 2,567 million, the company significantly narrowed its losses compared to Q4 2024, when it posted a net loss of THB 11,738 million, which included substantial non-recurring items. The reduced net loss in Q1 demonstrates the tangible benefits of GC’s proactive restructuring, portfolio management, and cost optimization strategies.
A major contributor to the improved performance was increased usage of ethane feedstock in GC’s Olefins business, which delivered higher operating margins. Cost control measures across the organization also contributed to margin improvements. In addition, the Specialty Chemicals business continued to perform well, with allnex reporting seasonal growth in sales, and Vencorex realizing cost savings from successful restructuring initiatives that streamlined operations and reduced expenses.
Operational Strength and Financial Resilience
GC ended the quarter with a robust financial position. Operating cash flow exceeded THB 12,000 million, while the company maintained a strong liquidity buffer with cash on hand surpassing THB 37,000 million. These figures reflect the company’s prudent financial management and strong balance sheet, positioning it to navigate future uncertainties with confidence and flexibility.
The improvement in operational metrics also supports GC’s broader transition strategy, which centers around diversifying its portfolio, reducing carbon intensity, and expanding into higher-margin specialty and sustainable products. This pivot is not just a response to current challenges but part of a long-term strategy to create a more resilient and future-ready enterprise.
CEO Statement: Building a Resilient, High-Value Business for the Future
Commenting on the results, Mr. Narongsak Jivakanun, Chief Executive Officer of GC, stated:
“While the global petrochemical sector remains under pressure due to persistent economic uncertainties, oversupply in key markets, and increased trade protectionism—particularly from U.S. countervailing measures—GC has been actively transforming its business model to ensure long-term competitiveness. Our approach focuses on flexibility, operational efficiency, and strategic alignment with global trends such as sustainability and circularity.”
He added, “The doubling of Adjusted EBITDA this quarter is a testament to our comprehensive turnaround strategy. Initiatives like Holistic Optimization and Asset Light have not only driven immediate gains but have positioned us well for future growth. As a result, we’ve revised our efficiency improvement target upward to THB 5.5 billion, reflecting our confidence in delivering sustainable performance amid market headwinds.”
Strategic Efficiency Target Raised to THB 5.5 Billion
In response to continued momentum in operational performance and transformation success, GC has increased its 2025 efficiency improvement target from THB 4.5 billion to THB 5.5 billion. This revision underscores the company’s commitment to sustaining competitiveness and improving profitability through four key strategic levers:
- Holistic Optimization:
GC is enhancing its end-to-end operational processes through the integration of digital technologies and data-driven decision-making. This initiative spans procurement, production, logistics, and customer service, resulting in smarter, more agile operations that reduce waste and boost productivity. - Portfolio Transformation:
The company continues to shift its asset mix to prioritize high-margin, value-added products while streamlining low-performing or non-core assets. This strategic transformation is aimed at reducing exposure to commodity price cycles and improving long-term return on invested capital. - Operational Expense (OPEX) Management:
GC remains focused on reducing operational expenditures without compromising safety, quality, or reliability. Organizational efficiency programs are being deployed across business units to drive cost discipline and eliminate redundancies. - Enhancements in Feedstock and Trading Excellence:
The company is also optimizing its feedstock sourcing strategies, leveraging global trading capabilities to secure cost-competitive raw materials while minimizing risk. Improved inventory management and market intelligence tools are being used to increase profitability and reduce volatility.
Navigating Global Trade Challenges with Strategic Foresight
GC has also taken proactive steps to address potential risks stemming from trade policy shifts, particularly those related to the United States’ countervailing duty measures. The company has conducted a thorough assessment of the possible impacts and concluded that its direct exposure remains limited. Most of the products manufactured by GC in the U.S. are consumed within the domestic market, while exports from other GC production sites to the U.S. account for less than 1% of the company’s total exports.
Nonetheless, GC continues to monitor global trade dynamics closely. Through rigorous scenario planning and the development of both short- and long-term mitigation strategies, the company ensures it is prepared for a wide range of potential disruptions. This level of preparedness contributes to GC’s agility and ability to maintain consistent performance despite macroeconomic or geopolitical headwinds.
Advancing Sustainability and Innovation Through GC StandOut
A central component of GC’s long-term vision is its commitment to sustainable development. Under the GC StandOut concept, the company is focusing on building a differentiated and innovative portfolio that aligns with global trends toward environmental responsibility and carbon neutrality.
Through investments in new technologies, modernization of work processes, and cultivation of core competencies, GC is creating competitive advantages in several growth areas, including:
- Specialty Chemicals:
Products in this segment—such as high-performance resins, adhesives, and industrial additives—offer greater value and margin potential compared to traditional petrochemical offerings. - Eco-Friendly Materials:
GC is expanding its footprint in sustainable materials, including bioplastics, high-quality recycled plastics, and coating resins. These materials are increasingly in demand as global markets transition toward greener consumption patterns and stricter environmental regulations. - Global Sustainability Platforms:
GC’s strategic investments in global companies like allnex and NatureWorks are key enablers of this transition. allnex is a global leader in industrial coating resins, while NatureWorks specializes in biopolymer production using renewable resources. These platforms allow GC to scale innovation and bring sustainable solutions to a wider customer base.
By embedding sustainability into its business model, GC not only reduces environmental risk but also creates new growth opportunities in line with customer expectations, regulatory requirements, and investor priorities.
Prepared for Volatility, Focused on Growth
Looking ahead, GC remains cautiously optimistic about the rest of 2025. While challenges persist in the form of economic uncertainty, potential geopolitical disruptions, and continued pressure on global petrochemical margins, the company believes its strategic foundation—built on efficiency, flexibility, innovation, and sustainability—will enable it to outperform the broader market.
The progress made in Q1 2025 provides a solid base for continued execution of GC’s long-term strategy. With a clear focus on creating shareholder value, protecting the environment, and supporting societal progress, GC is positioning itself not just to survive volatility—but to thrive through it.
