PTTEP cuts sales growth target for 2013 again to 7%
PTT Exploration and Production (PTTEP) has cut its sales-growth target for 2013 to 7 per cent after confronting several problems.
The previous target was 10 per cent, itself a reduction from the 13-per-cent goal set early this year.
Penchun Jarikasem, executive vice president for PTTEP’s finance and accounting group, said this second cut followed the delayed production of Montara field off Australia, a lightning strike at a natural-gas plant, and damage to a gas-export pipeline.
PTTEP now expects this year’s sales to be less than 300,000 barrels per day.
"This year, more than [these] three incidents came unexpectedly and the company had to adjust its targets to cope with them," Penchun said.
Next year, PTTEP expects growth of 10 per cent from more production at the Montara field and progress in Myanmar’s Zawtika project. Its sales target for 2020 remains at 600,000bpd. Of total targeted sales, about 400,000-500,000bpd are expected to come from the existing fields and another 100,000bpd from planned mergers and acquisitions.
Surong Bulakul, chief financial officer at PTT, said the parent firm might see lower financial performance than previously expected, given the global economic uncertainties and falling crude-oil prices.
According to Globlex Securities, PTTEP is expected to show a rise in net profit to Bt16.4 billion for the third quarter of this year, up 54 per cent from the second quarter, due to an increase of the average petroleum selling price to US$67 per barrel from $65.
The securities house cut PTTEP’s 2013 sales projection from 320,000bpd to 295,000. This year’s net profit is forecast at Bt61.9 billion, up 8 per cent from last year.
Phillip Securities (Thailand) expects PTTEP to record net profit of Bt15.1 billion for the third quarter. Sales volume is expected to drop by 1-2 per cent from the previous quarter to 287,000-289,000bpd.
Although the Montara field has started producing petroleum, there is a reduction of production in the Vietnam 16-1 field and a shutdown in the Bongkot North field.
PTTEP’s net profit is expected at Bt61.4 billion for the whole year, up 7.2 per cent from 2012, Phillip Securities noted.
