PTTEP records net profit of USD 569 million in first half of 2017

Energy Press Releases Saturday July 29, 2017 11:48
Bangkok--29 Jul--PTTEP
  • Lowered six-month unit cost to USD 28.29 per BOE
  • Joins hands with PTT in LNG business with the first joint-investment in Petronas' LNG plant
  • Maintains dividend commitment to shareholders with interim dividend at 1.50 THB per share

Somporn Vongvuthipornchai, President and Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP) revealed that the Company reported net profit of USD 569 million for the first half of 2017 and announced dividend payout at 1.50 baht per share. Moreover, PTTEP and PTT jointly set up a joint venture company PTT Global LNG (PTTGL) to expand its LNG business in order to align with growing domestic energy demands. The first project is the investment in LNG liquefaction plant in Malaysia.

For the first half of 2017, sales revenue of USD 2,121 million (equivalent to 73,693 million baht) was posted slightly lowered compared to same period of last year. Meanwhile, an average selling price at 38.04 USD per barrels of oil equivalent (BOE), increased by 6% from the same period last year, which was contributed by the rising global oil prices. Sales volume decreased by 10% from 325,257 BOED to 292,709 barrels of oil equivalent per day (BOED), due to declined sales volume of PTTEP Australasia, unexpected temporary suspension of the S1 project related to the Agricultural Land Reform and impact from lowered nominated quantity of natural gas in the Gulf of Thailand affected by the current low global LNG prices. The Company generated net profit for the first six months of 2017 of USD 569 million (equivalent to 19,820 million baht), an increase of more than 100% from the first six months of 2016 which was at USD 232 million (equivalent to 8,286 million baht) and of which comprised recurring net income of USD 378 million (equivalent to 13,154 million baht) and gain from non-recurring items of USD 191 million (equivalent to 6,666 million baht). Also PTTEP still managed to sustain low unit cost at 28.29 USD/BOE.

From the aforementioned, PTTEP's financial position remains solid with EBITDA margin of 71% and total assets at the end of June 2017 amounting to USD 18,872 million (equivalent to 641,314 million baht), of which USD 4,206 million (equivalent to 142,913 million baht) was cash and short-term investments, while interest-bearing debt stood at only USD 2,874 million (equivalent to 97,665 million baht).

"PTTEP closely monitors oil market situation and the world economy. We put our best efforts to increase production volumes of crude oil and condensate in order to compensate for decreased gas sales volume of projects in the Gulf of Thailand. In addition, we're accelerating the exploration and development activities in the Mozambique Rovuma Offshore Area 1, the Algeria Hassi Bir Rekaiz and Ubon field in the Contract 4 Projects. The company's also preparing for the bidding of expiring concessions both the Bongkot and the Erawan Projects and is under negotiation with the existing partners. All of these efforts will support the company in adding production volumes and petroleum reserves in the short and long term. We are also focusing on cost management to remain competitive with other oil companies," said Mr. Somporn.

In accordance with the company's strategy in looking for business opportunities in the LNG value chain, PTTEP and PTT have jointly set up PTT Global LNG Co.Ltd. The first investment under this joint venture is the acquisition of 10% stake in Petronas' MLNG Train 9 Project, a LNG Liquefaction plant in Malaysia with current capacity of 3.6 million tons per annum. The business cooperation with Petronas also allows PTTEP to gain a foothold in Malaysia, supporting further business expansion and investment in petroleum fields in country.

Interim Dividend at 1.50 THB per share

Based on the company's performance and financial status in the first half, on July 27, 2017, the Board of Directors approved the payment of an interim dividend from consolidated performance of PTTEP for the first six months of 2017 to the shareholders at THB 1.50 baht per share. The closing date of the company's share registration for the right to receive the dividend is scheduled on August 11, 2017, followed by a dividend payment on August 25, 2017.


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