Thai PTTEP Back in Black

Thai state owned producer PTTEP has reported a profit of $372mn for the year 2016 compared with a loss of $854mn in the year before despite a volatile and depressed energy prices globally. The company said this was a result of its continued effort to reset the cost base.

PTTEP’s sales revenue in 2016 was $4.4bn, a decrease from $5.6bn in 2015 primarily caused by the lower average selling price which fell to $35.91/boe from $45.29/boe in the previous year, it said January 26. On the cost side, the 2016-unit cost was brought down to $30.46/boe, a 20% reduction from 2015.

The company plans to focus on maintaining the production level especially from its core operations in Thailand, with average sales volume for 2017 targeted at 312,000 boe/d and unit cost maintained in the $30-31/boe range. PTTEP expects crude oil prices in the first half of 2017 to be the $50-60/b range, supported by the agreement on production cut. “Volatility is however expected to continue especially in the latter half of 2017 with key catalysts include next phase of Opec movements, US energy policy under the new president and other political factors,” PTTEP said.

Shardul Sharma