PTTEPs net profit in 2018 jumps 89% mainly from higher sales volume and oil price Approves dividend payment at THB 5 per share

Energy Press Releases Wednesday January 30, 2019 13:40
Bangkok--30 Jan--PTTEP

PTT Exploration and Production Public Company Limited (PTTEP) reported its 2018 net profit of USD 1,120 million (equivalent to THB 36,206 million), surging by 89% from USD 594 million (equivalent to THB 20,579 million) in 2017 mainly driven by higher sales volume as well as higher average selling price. PTTEP continues to pursue investment plan, accelerate pre-sanction projects to FID and strengthen reserves from exploration as well as capture opportunity in strategic locations both Southeast Asia and the Middle East.

The higher average sales volume of 305,522 barrels of oil equivalent per day (BOED) in 2018 comparing to 299,206 BOED in 2017 was the result of the acquisition of 22.2222% in the Bongkot project, which immediately contributed sales volume and cash flow. After the deal completion in June 2018, PTTEP holds a 66.6667% stake in the Bongkot field. The average selling price also improved following to the rally of global crude price to USD 46.66 per barrel of oil equivalent (BOE) or 19% raised from USD 39.20 per BOE in 2017.

2018 total revenue was recorded at USD 5,459 million (equivalent to THB 176,687 million), while total expense including tax expense stood at USD 4,339 million (equivalent to THB 140,481 million). The unit cost in 2018 slightly adjusted upward to USD 31.7 per BOE as a result of higher royalty expense from higher sales revenue, and increased expenses related to the acquisition of additional stake in the Bongkot field. PTTEP's financial position remains strong with operating cash flow of USD 3,276 million (equivalent to THB 106,058 million) and Earnings before Interest, Tax, Depreciation and Amortization (EBITDA margin) at 73%.

Based on the company's performance, on January 30, 2019, the Board of Directors approved the payment of dividend to the shareholders at THB 5 baht per share. PTTEP already paid the interim dividend for the first six months operating results at THB 1.75 per share, while the remaining dividend will be paid at THB 3.25 per share on April 11, 2019 after obtaining approval from the 2019 Annual General Shareholders' Meeting. The record date of the company's share registration for the right to receive the dividend is scheduled on February 13, 2019.

Phongsthorn Thavisin, PTTEP President and Chief Executive Officer, said "This year, PTTEP would actively move forward. Recently, the company has been granted the concessions of 2 offshore blocks in the United Arab Emirates and this marks our significant step in returning to the Middle East, where considered as the strategic investment destination. This opportunity granted PTTEP for partnering with world-class E&P companies, demonstrating our strategic alignment with the new vision of 'Energy Partner of Choice', which strongly emphasizes on joining forces with strategic partners to co-create long-term value for all stakeholders."

Readiness to invest as planned

Mr. Phongsthorn also said PTTEP would speed up the FID of key pre-sanction projects especially the Mozambique Rovuma Offshore Area 1, which targeted within the first half of 2019. Furthermore, the company also strengthens the exploration activities of its projects particularly in Myanmar and Malaysia, while seeking new investment opportunities in Southeast Asia and the Middle East to support long term growth and enhance petroleum reserves for the company.

Regarding to the winning of Bongkot and Erawan bidding late last year, PTTEP is in praparation for the signing of Profit Sharting Contracts and will proceed the transition and investment plans in order to deliver committed volumes from both gas fields to ensure energy security of the country.

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