Thai PTTEP's profit up 29% in H1

Thailand's state-owned energy company, PTT Exploration and Production Public Company (PTTEP), on July 31 announced a profit of $1.18bn in the first half of the year, marking a 28.5% increase year/year. The surge in profits can be attributed to higher sales volume during the period.

According to PTTEP, the average sales volume in H1 2023 reached 452,799 barrels of oil equivalent per day (boe/d), reflecting a 1.4% yr/yr growth from the previous year's 446,519 boe/d. This increase was primarily driven by the full recognition of sales volume from the G1/61 and G2/61 projects.

PTTEP’s average selling price during H1 dropped 11% yr/yr, reaching $47.89/boe.

For the April-June quarter (Q2), PTTEP reported a net profit of $610mn, compared with $600mn in the same quarter of the previous year.

Looking ahead to the third quarter (Q3), PTTEP foresees an upswing in crude oil demand, driven by seasonal needs in western countries and a gradual economic recovery in China. However, the company also acknowledges concerns regarding a potential global economic slowdown due to the stringent monetary policies of the US Federal Reserve and EU central banks. These financial institutions are closely monitoring inflation levels and have been raising interest rates as a measure to combat inflation.

In the second half of 2023, PTTEP expects a slight tightening of the crude oil supply. Nevertheless, the market remains cautious, with economic factors continuing to influence crude oil prices, the company said.