PTT Exploration & Production

PTT Exploration And Production Plc (PTTEP)
 

Volume growth and high oil prices are two key near-term earnings growth drivers, while higher capex to boost production growth post-2012 will help sustain earnings momentum for the next three years. Capital raising risk could cause some near-term overhang though. We upgrade our call to Trading Buy from Neutral as our CY11-14 forecasts are revised on changes in volume, selling prices, capex and discount rates. Our 12% higher target price is based on a 10% discount (vs. 15% before) to the DCF-based valuation given lower execution risk.