Investor Relations

The Company’s policy is to pay out dividends of not less than 30% of net profit.

As of 9 April 2008 onwards, per resolution number 37/2551 of the Board of Taxation on 9 April 2008, shareholders who are individual taxable persons receiving dividend payments from PTTEP which are paid out from net profits that are subject to Petroleum Income Tax Act, are not entitled to tax credits towards their personal income tax assessment.

However, dividends paid out from net profits that are subject to tax under the Revenue Code are still entitled to tax credits for shareholder’s personal income tax assessment.

1.1 Call the debentures registrar to declare the lost certificate and request for details of the lost certificate.
1.2 Proceed to the police station to declare the loss and provide details of the lost certificate.
1.3 Complete a request form for a new debenture certificate and attach the police declaration form and a copy of the debenture holder’s personal ID card.

       If making the request in person, a new certificate will be issued immediately. If delegating another individual to come in person, please complete a proxy form to duly delegate authority to that person.
       If requested via courier, the registrar will mail the new debenture certificate to the debenture holder’s address.

The Investor Relations section on the PTTEP website contains a subsection labeled “Events and Presentations.” The information is provided within the contents.

PTTEP has launched a new strategy EXPAND and EXECUTE in order to enhance the company’s competitive advantage and maintain sustainable growth amid the challenges the industry is facing now and in the future.

• “EXPAND” is the strategy to focus growth in strategic investment areas where the Company has full range of expertise including Thailand and South East Asia, “Coming-Home Strategy” and to expand investments to other prolific areas in the Middle East with strategic partners, “Strategic Alliance”, e.g. the United Arab Emirates (UAE) and Oman. For long term growth, PTTEP plans to accelerate exploration activities to increase petroleum reserves. In addition, PTTEP also looks to expand new business opportunities such as pursuing Gas Value Chain business in Myanmar.

• “EXECUTE” is the strategy to achieve competitive performance through efficiency and adoption of new technology and to maintain the production plateau, especially transition of operations after the signing of Production Sharing Contracts (PSCs) for Block G1/61 (Erawan field) and Block G2/61 (Bongkot field), and to accelerate the Final Investment Decision (FID) of the Pre-Development projects.

The Mozambique Area 1 Project, in Mozambique, have officially announced a final investment decision (FID) to develop the Golfinho-Atum natural gas accumulations located in offshore Area 1 with the onshore LNG facility of the initial two liquefaction trains, a total nameplate capacity of 12.88 MTPA. The project has successfully secured the long-term LNG sales of 11.1 MTPA with key LNG buyers in both Asia and Europe and has made a significant progress on the negotiation of project finance terms with the financial institutions. The signing of the loan agreements is expected by the end of 2019, with the plan for first Cargo by 2024.

The Algeria Hassi Bir Rekaiz Project, in Algeria, has started development on Phase 1 following the conclusion with partners and its approved development plan by government. The development activities has commenced since March 2019 with the expected first oil production for the initial phase around 10,000-13,000 barrels per day (BPD) in early 2021 and the second phase production capacity ramping up to around 50,000-60,000 BPD in 2025.

The Vietnam B & 48/95 Project and the Vietnam 52/97 Project, in Vietnam, are under preparation of PSC extension approval request and currently in the negotiation process on commercial terms in order to push forward the Final Investment Decision (FID) with the first production target at the end of 2022 and ramping up capacity to 490 MMSCFD. 

The criteria that the government applied in the bidding of Bongkot and Erawan consists of:

(1) Price Constant in the gas price formula

(2) Percentage of profit sharing with the government (after deducting expenses)

(3) Bonus

116 THB/MMBTU is the price constant in price formula which is different from the actual gas selling price. The actual gas selling price will be calculated according to the formula which includes other factors such as oil price, exchange rate, consumer inflation index, and oil & gas machinery index in order to obtain gas prices at that time. Therefore, from the price formula, the gas selling price can possibly be higher or lower than the price constant. For example, if oil price is around 60-80 USD per barrel when PTTEP starts production in the next 3 years, the gas selling price will be approximately 130 – 150 THB/MMBTU. The proposed profit sharing with the government (after deducting expenses), under the PSC, results in government’s take around 80%, while under concession regime (Thailand I), government’s take is around 60 – 65%.

Being an operator in both Bongkot and Erawan fields not only allows PTTEP to fulfill its obligations as a national petroleum exploration and production company that takes into account the country's energy security but also to seek an opportunity for cost synergy. PTTEP also considers the impact on all stakeholders, including

(1) Public sector who sets priority in the continuity of gas production to ensure electricity supply and revenues in terms of tax and royalty.

(2) Investors and shareholders to whom PTTEP still provides an appropriate return on investment. This bidding result will enable PTTEP to grow in terms of the production volume, reserves and operating cash flow from both fields without additional funding.

(3) People who will receive direct benefits from saving up to 17 satang per unit of electricity for at least 10 years with a total value of more than 500,000 million Baht as a result of the lower gas.

PTTEP is able to provide synergy from being an operator of both fields, which would result in significant cost reduction. Hence, even with lower gas price and higher profit sharing to government in the bidding proposal, PTTEP's profitability is still intact.

1. The acceleration of FID projects including the Algeria HBR Project which already started development activities in March 2019, the Mozambique Area 1 Project which already announced FID in June 2019, and Southwest Vietnam Project.
2. The winning of expiring concessions, Bongkot and Erawan fields
3. Mergers and Acquisitions which PTTEP focuses on the producing/ near-term producing projects, for example, the acquisition of Murphy’s business which was completed in July 2019
4. The acceleration of exploration activities

The International Maritime Organization (IMO) agreed to limit Sulphur content in all marine fuels to 0.5% (from current 3.5%) effective on January 1, 2020 onwards. As the result, demand of High Sulphur Fuel Oil (HSFO) is expected to decrease significantly and will likely lead to lower HSFO’s price. According to PTTEP gas sale agreement especially in the Gulf of Thailand, HSFO is a factor accounted in the gas pricing formula which led to a risk of lower selling price. However, PTTEP has realized in the impact of this issue while expecting minimal impacts thanks to lagging of fuel price linked to gas sale formula varied from 6-12 months. In the meantime PTTEP has started to hedge against volatility of HSFO. In addition, from 2022 onwards, PTTEP expects material decrease of the impacts according to gas selling price of Bongkot and Erawan under the new production sharing contracts linked to Dubai crude price.  

The enactments of tax law amendments allow tax filing in company’s functional currency that can be a currency other than Thai Baht. This will subsequently reduce the impact of foreign exchange volatility on financial statements and will become effective from the first day of accounting period in 2019 once approved by the Revenue Department. In Q2/2019, PTTEP received approval to change the currency for tax filing under Petroleum Income Tax and had recognized its effect in this quarter. However, for other companies in PTTEP’s Group, tax filings continue to be in Thai Baht; as a result, the impact of foreign exchange volatility on financial statements remain but in a reduced magnitude.