PTT hails annual profits
PTT Exploration and Production Public Company Limited (PTTEP) reported its 2018 net profit of US$1.1 billion (Bt36 billion), surging by 89 per cent from US$594 million in 2017 mainly driven by higher sales volumes as well as a higher average selling price.
PTTEP says it continues to pursue its investment plan, accelerate pre-sanction projects to FID and strengthen reserves from exploration as well as capture opportunity in strategic locations in Southeast Asia and West Asia.
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 22.2 per cent in the Bongkot project, which immediately contributed sales volume and cash flow. After the deal completion in June 2018, PTTEP holds a 66.7 per cent stake in the Bongkot field.
The average selling price also improved following to the rally of global crude price to US$46.7 per BOE or 19 per cent raised from US$39.2 per BOE in 2017.
In 2018, total revenue was recorded at US$5.5 billion, while total expense, including taxes, stood at US$4.3 billion. The unit cost in 2018 slightly adjusted upward to US$31.7 per BOE as a result of higher royalty expenses 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 US$3.3 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) at 73 per cent.
