PTTEP continues its digital treasury transformation journey
Published: Feb 2025
Best in Class Treasury Solution in ASEAN
Highly Commended Winner
PTTEP Treasury Center Co Ltd
Photo of Bee Lin Poh, Bank of America collects the award on behalf of PTTEP Treasury Center Co Ltd.
Thanat Thamrongsaksuvit
MD
PTT Exploration and Production Public Company Limited (PTTEP) is a state-owned enterprise in Thailand and a leading E&P company committed to sustainable exploration, development and production of energy supply to Thailand and other countries that they operate in.
PTTEP aims to become the energy partner of choice, distinguished by its performance and innovation.
in partnership with
The challenge
PTTEP treasury has implemented a plethora of solutions to help it realise its growth targets, leveraging technology advances to build a world-class treasury centre fit for a global energy company.
PTTEP was the first company in Thailand to introduce such advanced solutions in a regulated market and its treasury transformation journey continues to this very day for its treasury team and core banking partner, Bank of America. Its focus has gradually shifted from centralisation, automation and digitisation to creating a seamless data-driven company. In Thailand – where the regulators have been driving initiatives to facilitate the transition to a digital economy – PTTEP has been working with Bank of America to implement bespoke solutions that harness technology to optimise the performance of its treasury operations and improve straight through reconciliation.
The solution
This journey has delivered the following solutions:
Account receivables reconciliation – PTTEP has been using the bank’s International Receivables (IREC) solution to automate and accelerate the process of matching collections to invoices since February 2021. It had achieved a significant improvement to its straight through reconciliation rate and is looking to expand the programme to include more complex and customised business logic rules such as alias and alternative payer matching, as well as the ability to recognise intercompany payments and handle withholding tax (WHT)-related transactions, cross-currency receipts and cash calls for equity. With the recent enhancement, its straight through reconciliation rate further improved to above 90%.
Bespoke reference account type – PTTEP wanted a new reference account type that allows the retention of balances, as opposed to zero-balancing. This would enable PTTEP to streamline the management of joint venture equity cash calls while allowing it to continue to earn interest by remaining as part of the liquidity pool.
Integrated e-WHT solution for supplier payment and revolving loan – capitalising on a strategic digitisation initiative by Bank of Thailand and the revenue department to allow WHT to be submitted electronically, Bank of America implemented an end-to-end automated solution for PTTEP. Under this new arrangement, Bank of America will execute payment, remit the WHT certificate to the revenue department together with associated details, and generates advice to PTTEP and its suppliers. This has resulted in a drastic reduction of administrative burden for PTTEP by eliminating manual preparation and submission of the tax documents.
PTTEP has also introduced solutions to address social security contributions and excise payments, income tax refunds, tax invoice collection, utility payments and cash cards.
Collectively, these solutions have taken PTTEP to a new level of digitisation, providing real-time visibility into its accounts and generating data-driven insights that it could leverage for driving decision-making.
Best practice and innovation
PTTEP has all the hallmarks of a best in class treasury structure, and the result is a massive improvement in control and real-time visibility of its cash and transactions, reduced digital friction, new levels of efficiency and data-driven decision making.
Key benefits
Cost savings.
Headcount savings.
Process efficiencies.
Increased automation.
Risk mitigated.
Improved visibility.
Errors reduced.
Number of banking partners/bank accounts reduced.
Manual intervention reduced.
Future-proof solution.
“The future is digital, and our 30-member strong treasury team has been paving the way for a data-driven treasury for years where decisions can be made based on real-time insights by embracing technology. As regulators continue to drive initiatives to facilitate the transition to a digital economy, we have been capitalising on these developments to reduce digital friction across our treasury ecosystem. The result has been a massive improvement in control and real-time visibility of cash and transactions, further reduction in manual processes and new levels of efficiency and digitisation. We estimate these solutions have saved our treasury team over 1,000 man-hours annually,” says Thanat Thamrongsaksuvit, MD.
Bee Lin Poh
Head of Corporate Sales, SE Asia, Global Payments Solutions, Bank of America
PTTEP has demonstrated exceptional expertise and thought process in planning and navigating the fast changing economic and market conditions. They have implemented many best in class structures to help optimise their cash flow, as well as implement cutting-edge digital solutions that enhance automation, transparency and control for the group. All these have helped to set a new standard of treasury excellence in the industry. Bank of America is proud to be PTTEP’s partner on this journey and we look forward to many more years of working closely with the company as they expand their footprint.
in partnership with
The Adam Smith Awards Asia are the industry benchmark for best practice and innovation in corporate treasury. The 2024 awards attracted 406 nominations. To find out more please visit treasurytoday.com/adam-smith-awards-asia
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