News and Announcement

PTTEP shows strong performance in the first half of 2017, net profit of USD 569 million

27 Jul 2017

  • Lowered six-month unit cost to USD 28.29 per BOE
  • Joins hands with PTT in LNG business with the first joint-investment in Petronas’ LNG plant
  • Maintains dividend commitment to shareholders with interim dividend at 1.50 THB per share

Somporn Vongvuthipornchai, President and Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP) revealed that the Company reported net profit of USD 569 million for the first half of 2017 and announced dividend payout at 1.50 baht per share. Moreover, PTTEP and PTT jointly set up a joint venture company PTT Global LNG (PTTGL) to expand its LNG business in order to align with growing domestic energy demands.

For the first half of 2017, sales revenue of USD 2,121 million (equivalent to 73,693 million baht) was posted slightly lowered compared to same period of last year. Meanwhile, an average selling price at 38.04 USD per barrels of oil equivalent (BOE), increased by 6% from the same period last year, which was contributed by the rising global oil prices. Sales volume decreased by 10% from 325,257 BOED to 292,709 barrels of oil equivalent per day (BOED), due to declined sales volume of PTTEP Australasia, unexpected temporary suspension of the S1 project related to the Agricultural Land Reform and impact from lowered nominated quantity of natural gas in the Gulf of Thailand affected by the current low global LNG prices. The Company generated net profit for the first six months of 2017 of USD 569 million (equivalent to 19,820 million baht), an increase of more than 100% from the first six months of 2016 which was at USD 232 million (equivalent to 8,286 million baht) and of which comprised recurring net income of USD 378 million (equivalent to 13,154 million baht) and gain from non-recurring items of USD 191 million (equivalent to 6,666 million baht). Also PTTEP still managed to sustain low unit cost at 28.29 USD/BOE.

From the aforementioned, PTTEP’s financial position remains solid with EBITDA margin of 71% and total assets at the end of June 2017 amounting to USD 18,872 million (equivalent to 641,314 million baht), of which USD 4,206 million (equivalent to 142,913 million baht) was cash and short-term investments, while interest-bearing debt stood at only USD 2,874 million (equivalent to 97,665 million baht).

“PTTEP closely monitors oil market situation and the world economy. We put our best efforts to increase production volumes of crude oil and condensate in order to compensate for decreased gas sales volume of projects in the Gulf of Thailand. In addition, we’re accelerating the exploration and development activities in the Mozambique Rovuma Offshore Area 1, the Algeria Hassi Bir Rekaiz and Ubon field in the Contract 4 Projects. The company’s also preparing for the bidding of expiring concessions both the Bongkot and the Erawan Projects and is under negotiation with the existing partners. All of these efforts will support the company in adding production volumes and petroleum reserves in the short and long term. We are also focusing on cost management to remain competitive with other oil companies,” said Mr. Somporn.

In accordance with the company’s strategy in looking for business opportunities in the LNG value chain, PTTEP and PTT have jointly set up PTT Global LNG Co.Ltd. The first investment under this joint venture is the acquisition of 10% stake in Petronas’ MLNG Train 9 Project, a LNG Liquefaction plant in Malaysia with current capacity of 3.6 million tons per annum. The business cooperation with Petronas also allows PTTEP to gain a foothold in Malaysia, supporting further business expansion and investment in petroleum fields in country.

Interim Dividend at 1.50 THB per share
Based on the company’s performance and financial status in the first half, on July 27, 2017, the Board of Directors approved the payment of an interim dividend from consolidated performance of PTTEP for the first six months of 2017 to the shareholders at THB 1.50 baht per share. The closing date of the company’s share registration for the right to receive the dividend is scheduled on August 11, 2017, followed by a dividend payment on August 25, 2017.

For more information, please contact Media Management Section
Tongchit Pongorapin  Tel. +66 (0) 2537 4587           
Kamolwan Chintarat  Tel. +66 (0) 2537 4381
Nalin Viboonchart  Tel. +66 (0) 2537 4834           
E-mail: PTTEPCorpCom@pttep.com

PTTEP Operation Update for the 2nd quarter of 2017
As of the second quarter of 2017, PTTEP’s domestic and international operations altogether sum to 37 projects in 10 countries with key project highlights as follows;

Projects in Thailand: Total sales volume from projects in Thailand amounted to 212,963 BOED, accounting for 76% of PTTEP’s total sales volume. The figure declined from the first quarter of 2017 due to the annual maintenance shutdown of Bongkot project and temporary suspension of S1 operation in areas of the Agricultural Land Reform.

Projects in Southeast Asia: Sales volume for the second quarter of 2017 from the projects in Southeast Asia amounted to 60,487 BOED, representing 21% of PTTEP’s total sales volume. Highlights of key projects can be summarized as follows. The Zawtika Project has maintained its production as planned. The project is in the process of drilling additional producing wells in Phase 1B and constructing 4 production platforms in Phase 1C with the objective to support the production plateau. The Vietnam 16-1 Project has begun the production of crude oil from 1 additional development well as planned. In addition, the project is in the process of drilling 1 appraisal well in order to maintain the production levels. The Myanmar M3 Project is being studied the commercial feasibility and assessed for petroleum potential. The Myanmar M11 Project and the Myanmar MD-7 Project are currently being assessed for geological structure and the fields’ resource potential. The Myanmar MOGE3 Project completed the 2D and 3D seismic surveys and is currently assessing the project’s resources potential and its prospects. The Sarawak SK410B Project is carrying out the 3D seismic activities.

Projects in the American Continent: The Mariana Oil Sands Project submitted the development proposal for Thornbury Phase 1 to the government of Alberta. Pre-FEED study of this project has completed in the second quarter and the project is currently under the process of contemplating way-forward with focus on cost reduction and risk mitigation. The Barreirinhas AP1 Project in Brazil is in the process of evaluating the basin’s petroleum potential through 3D seismic data processing. The BM-ES-23 Project is currently studying the petroleum potential and review prospect for commercial development.

Projects in Australasia: The Montara field in the PTTEP Australasia Project recorded the sales volume of 9,911 BPD on average, slightly declining from the production plans due to the cyclone storm occurred in April and May 2017. The Cash Maple Filed is carrying out the Pre-FEED study which is scheduled to be completed by the end of 2017 for further preparation of the development plans.

Projects in Africa: The Algeria Hassi Bir Rekaiz Project is currently under the preparation of the development plan, including development plan phase 1 at 10,000-13,000 BPD, with expectation to submit the plan to the Algerian government within 2017. The Mozambique Rovuma Offshore Area 1 Project made progress in receiving official marine concessions from the government of Mozambique. The resettlement plan is now in the preparation phase which is scheduled to start by the third quarter of 2017. The project is currently in the process of finalizing the LNG off-take agreements, and negotiating for project finance with financial institutions to support the Final Investment Decision (FID) for the project.


The information, statements, forecasts and projections contained herein reflect the Company’s current views with respect to future events and financial performance.   These views are based on assumptions subject to various risks.   No assurance is given that these future events will occur, or that the Company’s future assumptions are correct.   Actual results may differ materially from those projected.