PTTEP net income in Q1 strongly achieved USD 394 million, Going forward with “Expand & Execute” strategy
25 Apr 2019
Bangkok, 25 April 2019 – PTT Exploration and Production Public Company Limited (PTTEP) reported its first quarter’s net income of USD 394 million (equivalent to THB 12,479 million), reflecting a successful “Expand & Execute” strategy and its readiness to build a sustainable growth in the short term and long term.
Phongsthorn Thavisin, PTTEP President and Chief Executive Officer, said the company recorded recurring net income in the first quarter of this year at USD 374 million (equivalent to THB 11,847 million) increasing by 23% from USD 304 million (equivalent to THB 9,578 million) in the same period of 2018. However, profits from non-recurring items was USD 20 million, decreasing from USD 119 million in the same reported period last year. This was mainly driven by a less appreciated Thai Baht against the US Dollar, which mostly have no impact to company’s cash flow. Consequently, PTTEP reported net income for the first quarter this year at USD 394 million (equivalent to THB 12,479 million), decrease by 7% from USD 423 million (equivalent to THB 13,381 million) in the same period last year.
For the first quarter of 2019, the Company’s total revenues were USD 1,428 million (equivalent to THB 45,147 million), increased by 15% from USD 1,240 million (equivalent to THB 39,105 million) in the same period last year. This was primarily driven by improved average sales volume to 319,230 barrel of oil equivalent per day (BOED), comparing with 293,099 BOED in the first quarter of 2018 as a result of the acquisition of additional participating interests of the Bongkot Project, coupled with higher average selling price from USD 44.01 per barrel of oil equivalent (BOE) to USD 46.21 per BOE. Consequently, PTTEP has operating cash flow of USD 943 million (equivalent to THB 29,815 million) and EBITDA Margin of 76% at the end of the first quarter.
PTTEP is moving forward with the new “Expand & Execute”strategy which we’ve actively implemented since earlier this year and have successful achieved several major milestones. We marked our move in the Middle East by being awarded two offshore exploration blocks, along with our global strategic partners, in one of the world’s highly petroleum potential locations, the United Arab Emirates. We also extended our footprint in Southeast Asia by acquiring Murphy Oil Corporation’s business in Malaysia. This will help boost sales volume and sales revenue immediately. PTTEP were awarded additional two offshore exploration blocks in Malaysia as well. The aforementioned investments will help PTTEP grow in both short term and long term.” Phongsthorn said.
Building on the success with the new “Expand & Execute” strategy
For the Expand part in the “Expand & Execute” strategy, PTTEP will mainly focus on investing in the region where it has expertise and experience, especially in Southeast Asia. Meanwhile, the Middle East is considered as a petroleum prolific area that PTTEP will invest in partnership with strategic alliances. Furthermore, the company will move actively forward in developing artificial intelligence (AI) and robotics business through AI and Robotics Ventures Company Limited (ARV), to increase the efficiency in petroleum’s exploration and production business, provide better safety in operations, minimize impacts on environment and reduce cost of operations.
Under the Execute part, increasing production volumes and adding values to its existing projects are PTTEP’s priorities. This includes increasing petroleum reserves by accelerating exploration’s activities and the Final Investment Decision (FID) of key pre-development projects in the pipeline such as Mozambique Rovuma Offshore Area 1 project. In addition, PTTEP will efficiently carry at the transition of Bongkot and Erawan fields to ensure a consistency of natural gas production, while manage the production cost in order to increase its competitiveness with technologies and innovations.
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