PTTEP sees surge in Q3 net profit to Bt10.4 bn 

The company attributed the jump to the rising average selling price (ASP) aligning with the rally of global oil prices, as well as increases in sales volume mainly from the additional stakes from the Bongkot field acquisition. 
The company endeavours to accelerate the development of pre-FID projects, capture mergers and acquisitions (M&A) opportunities and invest in new businesses to foster long-term and sustainable growth, the company’s CEO Phongsthorn Thavisin said in a press release yesterday.
 He added that in the third quarter of this year, the company recorded recurring net income of $292 million (Bt9.66 billion), driven by improved average selling price of $47.67 per barrel of oil equivalent (per BOE), compared to $38.78 per BOE in the same period last year (Q3/2017). Also contributing to the jump was the increasing average sales volume of 304,940 barrels of oil equivalent per day (BOED), up from 298,139 from the same period of last year.
Meanwhile, PTTEP also recognised profits from non-recurring items at $23 million. As a result, the company’s net profit was posted at $315 million, compared to a net loss of $264 million for the same period last year.
 For the nine-month performance of 2018, PTTEP generated revenues of $3.96 billion, growing by 22 per cent from $3.25 billion compared to the same period last year, primarily due to higher average sales volume and average selling prices. Net profit for this period was at $851 million, representing a more than 100 per cent increase comparing to $305 million last year and which recognised loss from the impairment of assets.
To date, the company has generated operating cash flow of $2.264 billion, with ending cash and cash equivalents at $3.8 billion, while the debt-to-equity ratio was about 0.17 times. According to this 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 deals and new business opportunities, said Phongsthorn.
He added that strong operating performance reflected the success of the company’s investment strategy commitments to refocus its key strategic areas, including Southeast Asia. Increasing stakes in the Bongkot field, its core producing project, enabled higher sales volumes with immediate cash flow.
The company continues prioritising strategic investing throughout the M&A and in exploration blocks within petroleum prolific areas in both the Middle East and Southeast Asia. 
“To be agile and able to maintain our sustainability amid changes and disruption of the industry landscape we prepared our readiness via organisational transformation, and will 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,” said Phongsthorn.
 Regarding their bids for expiring concessions in both Bongkot and Erawan fields, PTTEP has solely submitted a bid for Bongkot, while partnering with Mubadala Petroleum (Thailand) Ltd, which also operates an oil and gas field in the Gulf of Thailand, to bid for Erawan. The bid results are to be announced later this year, and PTTEP is ready to be the operator in both fields.
 In addition, PTTEP endeavours to accelerate the development of key pre-FID projects, especially the Mozambique Rovuma Offshore Area 1. The project has made progress, including building an onshore liquefied natural gas (LNG) liquefaction plant. As well, PTTEP are finalising sales and purchase agreements (SPA) with joint venture partners.
They include a proposed SPA with Tohoku Electric Power for an increase of 280,000 tonnes per annum and with Electricite de France to purchase volumes up to 1,200,000 tonnes per annum. A final investment decision is expected in the first half of 2019, while production is anticipated to commence in 2023.