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ANNUAL REPORT 2013
PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED
shares in Myriant increasing the Company’s shareholding in Myriant to change from 47.18% to 72.21% and changes Myriant from an associate to subsidiary. Whereas in 2012, there was adjustment in accounting transaction of employees’ benefit on a share base program of 210 MB for Myriant and there was gain on bargain purchase from investment in Vencorex of 944 MB, which the whole amount was recognized as revenue in 2012 while in 2013 there was no such transaction.
(6) SG&A
In 2013, SG&A expenses increased by 1,839 MB or 17% mainly from the expenses related to the Oil Spill of 1,059 MB. Moreover, there was an increase of SG&A for Vencorex and Natureworks amounting to 801 MB from the investment in those companies since May 31, 2012. Whereas, in 2012 SG&A expenses from both companies was included for only 7 month while in 2013 the expenses was recognized for the full year. In addition, the incremental was from higher selling expenses of 361 MB, reduction of PTTUT SG&A of 170 MB from the change in method of performance recognition of PTTUT from Consolidation to Take Equity from lower shareholding portion in PTTUT.
(7) Depreciation and Amortization
Depreciation and amortization increased by 23 MB which was mainly from the decrease in depreciation and amortization of PTTUT of 926 MB and from the change in method of performance recognition of PTTUT from Consolidation to Take Equity from lower shareholding portion in PTTUT, whereas, the Company realized higher depreciation and amortization of 768 MB from the investment in Vencorex and Natureworks since May 31, 2012. In addition, for year 2012, there was higher depreciation and amortization of refinery, olefins and polymers business unit of 211 MB
from complete construction of some projects and maintenance of plants.
(8) Gain/(Loss) from Foreign Exchange
In 2013, the Company reported loss in foreign exchange of 2,272 MB due mainly to soften of Baht of 2.17 Baht/USD or 7% softer (Reference BOT exchange as at year end 2013 at 32.95 Baht/ USD and at year end 2012 at 30.78 Baht/USD) while, 2012 reported gain from foreign exchange of 911 MB from strengthen Baht of 1.05 Baht/USD or 3% strengthen (Reference BOT exchange as at year end 2012 at 30.78 Baht/USD and at year end 2012 at 31.83 Baht/USD) while the Company has foreign liability at end of 2013 was at 1,380 USD. However, the Company has hedging policies to use hedging instrument such as CCS and Sell Buy Forward which resulted in foreign exchange loss of 2,272 MB.
(9) Gain/(Loss) from Share of Investment
In 2013, the Company realized loss from investment of 78 MB which comprised of loss from Myriant 597 MB, gain from PTTICT of 88 MB, gain from PTTPM at 66 MB, and gain from GPSC of 327 MB while in 2012 the Company realized loss from investment of 44 MB.
(10) Corporate Income Tax
Corporate income tax increased 560 MB or 40% increased (Effective tax rate: ETR increased from 4% in 2012 to 6% in 2013) due mainly to tax privilege exercised from GT NOX project, thus causing lower corporate income tax than usual. In addition, HDPE I-1 plant tax privilege has expired since August 2012 from the expiry of BOI (Tax relief for CIT for 8 years) resulted for CIT of 10% (50% relief for normal CIT at 20%)