PTTEP’s net profit in Q1 increases by 21% from recovered oil prices and Baht appreciation
26 Apr 2018
- Average selling price increased from USD 38 per BOE to USD 44 per BOE, while sustained competitive unit cost at USD 29 per BOE
- Maintained solid financial position with over USD 5,000 million of cash on hand and ready to bid for expiring concessions of Bongkot and Erawan fields
- Expanded investments through acquisition of additional stakes in the Bongkot project and explorations blocks awarded in Mexico and Malaysia
PTT Exploration and Production Public Company Limited (PTTEP) reported the first quarter performance of 2018 with net profit of USD 423 million (equivalent to THB 13,381 million), increasing by USD 74 million or 21% from USD 349 million (equivalent to THB 12,284 million) in the same period of last year. The profit improvement was primarily due to continuous recovery of the global oil prices and the effective cost management, resulting in robust operating cash flow of USD 1,044 million (equivalent to THB 32,896 million), cash on hand of USD 5,095 million (equivalent to THB 159,121 million) and Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) margin of 74%. The company endeavors to strengthen its long-term growth by participating in the bidding of the expiring concessions in the Gulf of Thailand in order to maintain the continuity in supply of natural gas for the country’s energy security, and expanding the investments through merger and acquisition (M&A) and investing in new petroleum exploration blocks in the prolific areas.
Somporn Vongvuthipornchai, Chief Executive Officer of PTTEP, revealed that in the first quarter of 2018, the company generated consolidated revenues of USD 1,240 million (equivalent to THB 39,105 million), an increment of USD 148 million from USD 1,092 million (equivalent to THB 38,377 million) in the same quarter of the previous year. Key factor driving such revenue increase was improved global oil prices, resulting in higher average selling prices of USD 44.01 per barrel of oil equivalent (BOE) in the reporting period, compared to USD 38 per BOE in the first quarter of 2017. However, the unit cost in the first quarter of 2018 slightly increased to USD 29.20 per BOE from USD 27.54 per BOE in the first quarter of last year. The sales volume drop in the Sinphuhorm project in Thailand and the Montara field in Australia resulted in the decrease of average sales volume of 293,099 barrels of oil equivalent per day (BOED) in the first quarter of this year, lower than 304,108 BOED recorded in the same period of 2017. With the aforementioned factors, PTTEP reported recurring net profit of USD 304 million (equivalent to THB 9,607 million), while non-recurring net profit was at USD 119 million (equivalent to THB 3,774 million) mainly from profits and tax benefits related to Thai Baht appreciation against US Dollar.
“We start this year with impressive operating results. In addition, we were able to expand our investments through the acquisition of more stakes in the Bongkot project which will add immediately to our sales volume and revenues after the transaction is complete as well as the successful bidding for exploration blocks in high potential areas” the CEO said.
The company will continue to seek investment opportunities in Southeast Asia and the Middle East as well as push forward the Final Investment Decision (FID) of key pre-development projects, particularly the Mozambique Rovuma Offshore Area 1. The project has recently secured a long-term LNG Sale and Purchase Agreement with EDF, an integrated electricity company based in France, to supply 1.2 million tons of LNG per annum.
In addition, PTTEP is gearing up for the the upcoming bidding of the Bongkot and the Erawan fields after the National Energy Policy Committee (NEPC) has recently announced the Term of Reference (TOR). With expertise and experience in operating the Bongkot project for 20 years, the company is confident that it will be able to continue the operatorship effectively with competitive operating cost and ultimately deliver greater benefits to the country. The company stands firm to its commitment to creating the energy security for Thailand.
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: P TTEPCorpCom@pttep.com