News & Media

Bangkok, January 30, 2024 – PTTEP reported successful operational performances for the fiscal year 2023 as planned. The company remitted payments of THB 54,280 million to the government. The dividend payment for 2023 is approved at THB 9.50 per share. In 2024, total budget of THB 230,194 million (equivalent to USD 6,721 million) is set to invest in oil and gas as well as clean energy projects to support current energy demand and ensure energy security for the future.

Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), said that the company made significant progress in Thailand and overseas. PTTEP won bid for 2 exploration blocks in the Gulf of Thailand, G1/65 and G3/65. These new blocks are adjacent to PTTEP’s existing projects and will enable the development to serve the country’s energy consumption. The company has also partnered in Malaysia’s SK325 block, and discovered petroleum potential in three fields off the Sarawak coast, including Chenda-1, Bangsawan-1 and Babadon-1 exploration wells. The fields can be developed in a cluster model to speed up the production.

Furthermore, PTTEP has successfully expanded business into clean energy to support sustainable growth amid the energy transition. The company was awarded a large-scale green hydrogen project in Oman’s Block Z1-02, and acquired a 25.5% stake in Seagreen Offshore Wind Farm, the largest offshore wind power plant in Scotland that will immediately generate revenue. The first solar power project “Lan Sang Arun” was commenced at S1 Project in Phitsanulok Province, Thailand to reduce reliance on gas-generated electricity and Greenhouse Gas (GHG) emissions.

To support Net Zero Greenhouse Gas Emissions target by 2050, PTTEP to date could mitigate cumulative greenhouse gas emissions by approximately 2.4 million tons of carbon dioxide equivalent from the base year 2020. This was achieved through lower-carbon E&P portfolio management, production well management and various initiatives, including flare gas recovery and utilization, production efficiency improvement, energy efficiency enhancement and the use of renewable energy. Moreover, with aims to achieve near-zero upstream methane emissions by 2030, PTTEP signed the memorandum of understanding (MoU) to participate in the Oil & Gas Methane Partnership 2.0 (OGMP 2.0) under the United Nations Environment Programme (UNEP). The company also pledged the Oil & Gas Decarbonization Charter together with 52 oil and gas firms, as part of the United Nations Climate Change Conference (COP28), to reduce GHG emissions by 2050, near-zero upstream methane emissions and zero routine flaring by 2030.

For the 2023 financial performance, PTTEP generated a total revenue of THB 315,216 million (equivalent to USD 9,057 million), decreasing by approximately 6% from 2022. The average sales volume reached 462,007 barrels of oil equivalent per day (BOED), which is on par with the sales volume in 2022, while the average selling price dropped by 10% to USD 48.21 per barrel of oil equivalent (BOE) following a decline of global crude price. However, the company recorded significantly lower non-operating expenses, including oil price hedging and impairment charges. This resulted in a net profit of THB 76,706 million (equivalent to USD 2,208 million), around 40% of which was from the business expansion in Southeast Asia and the Middle East over the past years.

The net profit will be used for investment in 2024 under planned budget of THB 230,194 million (equivalent to USD 6,721 million). Key projects include production ramp up at G1/61 Project (Erawan, Platong, Satun, and Funan fields) to 800 million cubic feet per day in  April 2024, and the plan to maintain gas production from G2/61 Project (Bongkot field), Arthit Project and Malaysia-Thailand Joint Development Area Project. PTTEP will also accelerate petroleum exploration in Thailand and overseas to support future energy demands. This year, the company aims to increase petroleum production by approximately 9% to 505,000 BOED. In addition, a provisional budget of THB 67,822 million (equivalent to USD 2,022 million) is set aside for the years between 2024-2028 to advance various forms of clean energy.

In 2023, PTTEP paid THB 54,280 million of income tax, royalties and other remunerations to the government. This strongly supports national development in various areas such as community, education and research & development (R&D). Furthermore, the profit sharing from the petroleum produced in G1/61 and G2/61 Projects, under the Production Sharing Contract (PSC), also directly contribute to the government.

Based on the performance, Board of Directors proposed the 2023 dividend payment of THB 9.50 per share, amounting THB 37,715 million or 48.9% payout ratio. The interim dividend for the first six-month operating results at THB 4.25 per share was paid on August 29, 2023, while the remaining dividend will be paid at THB 5.25 per share on April 22, 2024, after obtaining approval from the 2024 Annual General Shareholders’ Meeting. The Finance Ministry will receive part of the dividend through its shareholding in PTT Public Company Limited, a major shareholder of PTTEP.

Developing clean energy, advancing knowledge for Thailand's energy future

Through investments in the green hydrogen project in Oman, the offshore wind farm project in Scotland, and the study of Carbon Capture and Storage (CCS) projects with global leading partners, PTTEP has an opportunity to learn and gain knowledge in the development of new forms of energy and technologies aimed at addressing global warming issues. These advancements will enhance PTTEP's expertise and experience, enabling the application of this knowledge to develop various clean energy projects in the future. This contribution is vital for ensuring the country’s energy security and achieving the national Net Zero goal.

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