PTT looking at higher quarterly earnings

PTT showed net profit of Bt36 billion in the first quarter.

At press time, PTT Exploration and Production (PTTEP) and Bangchak Petroleum (BCP) – two of five listed subsidiaries of PTT – have announced their second-quarter financial results. The other three are IRPC, Thai Oil and PTT Global Chemical. PTTGC is expected to start booking expenses incurred by the oil spill in the third quarter.

Much of PTT’s gain is expected to come from PTTEP, owned 65.29 per cent by the national and gas company.

PTTEP, which normally contributes more than 60 per cent of the group’s net profit, yesterday announced a net of Bt10.66 billion in the second quarter, which was 37.9 per cent above Bt7.73 billion in the same period last year. It attributed the increase to higher sales volume as well as higher prices. This boosted the first-half net profit by 18.83 per cent from Bt26 billion last year to Bt30.92 billion.

Asia Plus Securities painted an even more rosy outlook for PTTEP in the third quarter compared with the second.

“Sales volume is likely to increase after the Montara project has started its commercial run, and the income will be recognised in the third quarter, from the first sale at 10,000 barrels per day, probably rising to 30,000 in late 2013. Moreover, production capacity will increase,” it said.

Meanwhile, BCP, 27.22 per cent owned by PTTEP, reported quarterly net profit of Bt407 million, a reversal from the net loss of Bt385 million posted in the same period last year. Stripping out a foreign-exchange loss of Bt1.121 billion, an inventory loss of Bt919 million, a gain from oil hedging of Bt197 million, and an insurance pay-out of Bt1.562 billion, the quarterly core earnings would be Bt1.026 billion, up only 1 per cent year on year.

BCP’s first-half core profit represents 51 per cent of Asia Plus Securities’ annualised core-earnings forecast of Bt5.09 billion.