PTTEP Q1 profit drops 29% despite higher petroleum sales
PTTEP reports Q1 2026 profit of 11.84 billion baht, down 29%, as hedging losses offset stronger sales and higher output
PTT Exploration and Production Plc, or PTTEP, reported a 29% drop in first-quarter net profit for 2026, although petroleum sales increased and the company stepped up natural gas production from the Gulf of Thailand to support national energy security.
Montri Rawanchaikul, chief executive officer of PTTEP, said unrest in the Middle East had pushed global crude oil and natural gas prices higher. As a result, PTTEP has focused on maximising natural gas production from the Gulf of Thailand in line with the Energy Ministry’s policy to ease the impact of the global energy crisis on households and industry.
The company has increased gas production to around 2.72 billion cubic feet per day, above its daily contractual quantity of about 2.5 billion cubic feet per day.
The additional output mainly came from the Arthit project, the Malaysia-Thailand Joint Development Area B-17-01 project, Contract 4 and the G2/61 project.
PTTEP said the additional gas is a key fuel for power generation, helping strengthen the stability of Thailand’s electricity system and energy security.
It also helps reduce reliance on more expensive imported fuels at a time of continued global energy pressure. Gas from the Gulf of Thailand is also an important feedstock for petrochemicals and related industries, including plastics, synthetic materials, synthetic fibres, packaging, fertilisers, construction materials and everyday products.
For overseas operations, PTTEP has made a final investment decision to develop the Sirung and Cenda fields under the Malaysia SK405B project.
The project is the company’s first in Malaysia to move into the development phase after several petroleum discoveries. Crude oil production is expected to begin in 2028 at about 15,000 barrels per day, supporting PTTEP’s long-term growth.
In the first quarter of 2026, PTTEP recorded total revenue of 78.84 billion baht, equivalent to US$2.49 billion.
Average petroleum sales volume stood at 553,369 barrels of oil equivalent per day, up 14% from the same period last year. The increase was mainly driven by higher output from domestic projects and new projects acquired during the previous year.
The average selling price was US$46.02 per barrel of oil equivalent.
Net profit came in at 11.84 billion baht, or US$376 million, down 29% from 16.56 billion baht in the first quarter of 2025.
The decline was mainly due to higher losses from oil price hedging contracts, following an increase in oil futures prices, despite stronger normalised operating profit.
Looking ahead to the second quarter and full-year 2026, PTTEP said sales volume, selling prices and costs would remain the main factors shaping performance.
The company expects average sales volume in 2026 to be around 560,000 barrels of oil equivalent per day, based on an assumed average Dubai crude price of US$80-90 per barrel.
Second-quarter sales volume is expected to rise from the first quarter, mainly due to higher crude oil sales in Africa and accelerated gas production from Gulf of Thailand projects.
Full-year sales volume is also expected to increase from 2025, mainly from the full-year recognition of projects acquired in 2025, including Malaysia SK408, Malaysia-Thailand Joint Development Area A-18 and Algeria Touat.
The G1/61 project is also expected to record higher crude oil sales.
PTTEP expects its average gas price for the second quarter and full-year 2026 to be around US$6.0 per million BTU, slightly higher than in the first quarter and the previous year, in line with higher global oil prices.
Unit costs are expected to be around US$30 per barrel of oil equivalent, lower than in 2025, mainly due to depreciation and operating expenses.
