Analysts reward transparency and focus
THAI ENERGY CONGLOMERATE PTT tops both the overall most consistent and coherent business strategy category and the most improved category in Euromoney’s 10th annual survey of Asian companies. PTT and its subsidiaries reported Bt685 billion (US$16.6 million) in sales revenue from January to September 2005, 48% up on the same period the previous year. PTT president Prasert Bunsumpun says the company has paid specific attention to business transparency in an attempt to focus on and work towards good corporate governance. This focus, which is growing in the region, has clearly paid off as PTT also came in top position in the most transparent accounts and most accessible senior management categories.
Euromoney’s panel of analysts identified many reasons why PTT stood out. They like the fact that “as the bulk of its businesses is effectively a monopoly geared towards domestic consumption growth, 35% to 40% of its pre-tax earnings are derived from its gas distribution business on a fixed cost plus basis”, which they see as yielding a secure cashflow. Analysts also pointed to the fact that PTT’s “financial leverage continues to improve” and that it was very good at “turning around bad assets to enhance shareholders’ value”.