Thai PTTEP 2Q Profit Drops 49% on Year

Thai state-owned PTT Exploration & Production's (PTTEP) net profit during April-June (2Q 2018) dropped 49% year on year thanks to higher expenses and weaker baht, the company said July 26.

PTTEP’s 2Q net profit was $113mn compared with net profit of $220mn in the year ago period. Company’s expenses were $908mn, up 21% year on year. There has been close to 3% drop in the value of baht against the American dollar this year. During 1H 2018, PTTEP’s net profit was $536mn compared with $569mn in the corresponding period of last year.

Revenue during 1H was $2.56bn, up 21% year on year while revenue during 2Q was $1.34bn, up 30% compared with the same quarter last year. The improved revenue was primarily attributed to higher average selling price of $45.51/barrel of oil equivalent (boe). Average selling price during 1H 2018 was up 20% compared with 1H 2017.

PTTEP said it will be focusing on the southeast Asian and Middle East regions. “We always open for opportunities and be resilient to adjust our investment plan so that we can cope with the changes in the industry landscape. Recently, we are successful in acquiring additional shares in the Bongkot field and, in July, announcing the divestment of the Montara field. For the rest of the year, we will press ahead with the bidding for expiring Bongkot and Erawan concessions. These reflect our business direction in focusing on the investments in our strategic areas - Southeast Asia and the Middle East – which have low risk and we also have experience,," said PTTEP CEO Somporn Vongvuthipornchai.