Press Releases

PTTEP posts strong performance in the first half with net profit of USD 536 million Approves interim dividend at THB 1.75 per share

26 Jul 2018

  • Average sales volume recovered and 2018 target upgraded to 310,000 BOED
  • Average selling price increased continuously driven by improved global oil prices
  • Significant achievements under the ‘Refocus’ strategy include the acquisition of additional stake in Bongkot field and the divestment of Montara field

Bangkok, July 26, 2018 – PTTEP revealed the first-half operating performance with net profit of USD 536 million as the results of increased average sales volume and average selling price that improved in line with global crude prices. The company announced the interim dividend payment at THB 1.75 per share.

Somporn Vongvuthipornchai, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), said the company reported first-half operating results with recurring net income recorded at USD 640 million (equivalent to THB 20,381 million), increasing by 69% from USD 378 million (equivalent to THB 13,154 million) in the same period of 2017. However, PTTEP recorded losses from non-recurring items of USD 104 million (equivalent to THB 3,410 million) largely driven by losses and tax expenses owing to the depreciated Thai Baht against the US Dollar, and oil price hedging losses, which mostly have no impact to company’s cash flow. Consequently, PTTEP posted net profit of USD 536 million (equivalent to THB 16,971 million), down by 6% from USD 569 million (equivalent to THB 19,820 million) a year ago.

Total revenue was generated at USD 2,562 million (equivalent to THB 81,343 million), rising by 21% from USD 2,121 million (equivalent to THB 73,693 million) a year ago. The improved revenue was primarily attributed to recovered average selling price of USD 45.51 per barrel of oil equivalent (BOE), representing a 20% increase comparing to USD 38.04 per BOE in the first half of 2017. The average sales volume showed a slight increase to 297,999 barrels of oil equivalent per day (BOED) from 292,709 BOED in the first half of last year. Six-month unit cost adjusted upward by 7% from USD 28.29 per BOE a year ago to USD 30.37 per BOE due to higher royalty expenses and depreciation, depletion and amortization expenses (DD&A) as a result of larger completed assets recognition essentially from the S1 project and the Contract 4 project. However, PTTEP is confident that unit cost this year will be USD 30-31 as targeted.

Interim dividend payment at THB 1.75 per share
Based on the company’s performance, on July 26, 2018, the Board of Directors approved the payment of an interim dividend from consolidated performance for the first six months to the shareholders at THB 1.75 baht per share. The record date of the company’s share registration for the right to receive the dividend is scheduled on August 9, 2018, followed by a dividend payment on August 24, 2018.

Business progress under 3Rs strategy
3Rs strategy (Reset-Refocus-Renew) remains the company’s key direction this year. In the first half of this year, under the ‘Refocus’ strategy, the company made significant achievements, particularly the acquisition in the Bongkot stake from Shell affiliates. This has increased PTTEP’s stake in the Bongkot field to 66.6667%, with the increment of average sales volume approximately 35,000 BOED.

“We always open for opportunities and be resilient to adjust our investment plan so that we can cope with the changes in the industry landscape. Recently, we are successful in acquiring additional shares in the Bongkot field and, in July, announcing the divestment of the Montara field. For the rest of the year, we will press ahead with the bidding for expiring Bongkot and Erawan concessions. These reflect our business direction in focusing on the investments in our strategic areas - Southeast Asia and the Middle East – which have low risk and we also have experience,” said Mr. Somporn.

Other business progress include the approval of development plans of the Algeria Hassi Bir Rekaiz project. The Mozambique Rovuma Offshore Area 1 project has also made a significant progress such as the preparation for construction of onshore LNG liquefaction plant and the finalization of other LNG Sale and Purchase Agreement (SPAs), which are key conditions to support the Final Investment Decision (FID) of the project, planned in the first half of 2019.

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
Website:
http://www.pttep.com
Facebook: http://www.facebook.com/pttepplc


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.