Bangkok, October 25, 2018 – PTT Exploration and Production Public Company Limited (PTTEP) reported net profit in the third quarter of this year at USD 315 million (equivalent to THB 10,401 million), increasing by more than 100% comparing to the same period last year, attributed from rising average selling price (ASP) aligning with the rally of global oil prices as well as increase of sales volume mainly from the addtional stakes from the Bongkot field acquisition. The company endeavors to accelerate the development of Pre-FID projects, capture mergers and acquisitions (M&A) opportunity and invest in new businesses to foster long-term and sustainable growth.
In the third quarter of this year, PTTEP recorded recurring net income of USD 292 million (equivalent to THB 9,664 million), driven by improved average selling price of USD 47.67 per barrel of oil equivalent (per BOE) comparing with USD 38.78 per BOE in the same period last year (Q3/2017), coupled with increasing average sales volume of 304, 940 barrels of oil equivalent per day (BOED), up from 298,139 BOED of the same period last year. Meanwhile, PTTEP also recognized profits from non-recurring items at USD 23 million (equivalent to THB 737 million). As the result, the company’s net profit was posted at USD 315 million (equivalent to THB 10,401 million). comparing to net loss of USD 264 million (equivalent to THB 8,682 million) in the same period last year.
For the nine-month performance of 2018, PTTEP generated revenue of USD 3,960 million (equivalent to THB 127,434 million), growing by 22% from USD 3,252 million (equivalent to THB 111,430 million) comparing to the same period last year (9M2017) primarily due to higher average sales volume and average selling prices. Thereafter net profit of this period was at USD 851 million (equivalent to THB 27,372 million), representing more than 100% increased comparing to USD 305 million (equivalent to THB 11,138 million) of last year which recognized loss from the impairment of asset.
To date, the company generated operating cash flow of USD 2,264 million (equivalent to THB 72,695 million) with ending cash and cash equivalents at USD 3,804 million (equivalent to THB 123,273 million), while debt-to-equity ratio was about 0.17 times. According to the robust financial position the company is able to accommodate planned investments, including expenses for the development of key projects in its portfolio, targeted M&A deal and new business opportunity.
Phongsthorn Thavisin, PTTEP Chief Executive Officer, said “Strong operating performance reflected the success of our commitments in investment strategy to refocus our key strategic areas like Southeast Asia. Increasing stakes in the Bongkot field, our core producing project, enabled higher sale volumes with immediate cash flow. We keep prioritizing to invest in strategic area through M&A and exploration blocks in petroleum prolific areas both the Middle East and Southeast Asia. To be agile and able to maintain our sustainability amid changes and disruption of industry landscape, we prepared our readiness via organization transformation and capture new investment opportunity mainly in E&P-related businesses with existing market such as, Gas to Power projects, as well as potential investments in AI and robotics, and renewable energy.”
Regarding the bids for expiring concessions both Bongkot and Erawan fields, PTTEP has solely submitted bid for Bongkot, while partnering with Mubadala Petroleum (Thailand) Ltd., who also operates oil and gas field in the Gulf of Thailand, to bid for Erawan. The bid results are expected to announce late of this year, which PTTEP is ready to be the operator in both fields.
In addition, PTTEP endeavors to accelerate the development of key Pre-FID projects, especially the Mozambique Rovuma Offshore Area 1. The project made progress included the onshore Liquefied Natural Gas (LNG) liquefaction plant construction and finalization of Sales and Purchase Agreement (SPA) that, joint venture parters and PTTEP have addtionally secured SPA with Tohoku Electric Power for 280,000 tons per annum increasing form SPA with Électricité de France, S.A. (EDF) for purchasing volume of up to 1,200,000 tons per annum to support Final Investment Decision (FID) expected in the first half of 2019 while the first production is anticipated to commence in 2023.