Press Releases

PTTEP records net income of USD 890 million in the first 9 months, raises this year’s target sales volume

28 Oct 2021

Bangkok, October 28, 2021 – PTTEP reported robust growth of the first 9-month financial performance with net income of USD 890 million, due to higher petroleum sales volume and higher average selling price following the rally of global crude oil price. The company has again revised up 2021 target sales volume to 417,000 barrels of oil equivalent per day (BOED).

​Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), disclosed that for the 9-month period of 2021, the company generated total revenues of USD 5,331 million (equivalent to THB 168,409 million), increasing by 31% from USD 4,082 million (equivalent to THB 128,369 million) for the same period last year. The growth was primarily from the improvement in average sales volume to 414,516 BOED, a 20% increase from 344,909 BOED last year. This was attributed to the acquisition in Oman Block 61 and the gas production from Malaysia Block H, adding to sales volume since the first quarter of this year, coupled with higher gas nomination from projects in the Gulf of Thailand. Meanwhile, the average selling price was adjusted upward to USD 42.34 per barrel of oil equivalent (BOE) from USD 39.69 per BOE of the earlier year, as a result of global crude oil price escalation.

Total expenses for the 9-month period were USD 4,453 million (equivalent to THB 140,571 million), up 29% from USD 3,459 million (equivalent to THB 108,762 million) last year. The increase was mainly from recognition of oil price hedging losses and assets write-off for the exploration projects in Brazil.

According to the aforementioned factors, PTTEP’s net profit for the first nine months of 2021 reported at USD 890 million (equivalent to THB 28,218 million), an increment of 39% from USD 639 million (equivalent to THB 20,137 million) for the same period of 2020. The unit cost decreased to USD 28.18 per BOE compared to USD 30.29 per BOE for the first 9-month period last year, as a result of effective cost management, coupled with the commercial production start-up of Malaysia Block H and the acquisition in Oman Block 61, which the unit costs are quite competitive. Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) margin stood at 74%, aligned with the company’s target. The financial position as of the end of this third quarter remained solid.

For the third quarter’s performance, PTTEP posted total revenues of USD 1,784 million (equivalent to THB 58,752 million), rising by 37% comparing with USD 1,305 million (equivalent to THB 40,887 million) for the same period last year. Net profit was recorded at USD 292 million (equivalent to THB 9,545 million), a 27% increase from USD 230 million (equivalent to THB 7,202 million) a year ago. These were also driven by higher average sales volume and average selling price.

“The energy industry is on the pathway to recovery, driven mainly from easing lockdown and travel restrictions across various areas of the world including the United States, many European countries and Thailand, which materially affects overall energy demand and the world’s economic improvement. This also sends out a positive signal to many industries, including PTTEP. To date, the successful results from our ‘Execute and Expand’ strategy implementation has led us to revise the target sales volume once again to 417,000 BOED from 412,000 BOED, announced in the previous quarter. In addition, capturing investment opportunities in petroleum prolific areas and the continued exploration success in Malaysia are also key factors that foster the company’s long-term growth.” Mr. Montri stated.

Significant operational progress in the third quarter

PTTEP, in the third quarter, successfully acquired additional participating interest of 24.5% in the Algeria Hassi Bir Rekaiz Project from CNOOC Limited, raising its stake in the project to 49%. First oil production is expected to come on stream in the fourth quarter of this year with the start-up production capacity of 10,000-13,000 barrels per day (BPD).

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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.