PTTEP's 1Q Net Income Drops

Thai state-owned PTT Exploration and Production (PTTEP) April 25 said its net income during the three months to March 31 (1Q2019) was $394mn, down 7% year on year owning to sharp drop in profits from non-recurring items.

Profits from non-recurring items were $20mn, decreasing from $119mn in the same period last year. This was mainly driven by lower appreciation of the baht against the US dollar. 

During the quarter, company’s revenue stood at $1.42bn, up 15% year-on-year thanks to higher average sales volume and higher oil and gas prices. PTTEP’s average realised price during the quarter improved from $44.01/barrel of oil equivalent to $46.21/boe, it said.

PTTEP said it will mainly focus on investing in the region where it has expertise and experience, especially in southeast Asia. The Middle East is also an area where PTTEP said it will invest in partnership with strategic alliances.

Furthermore, the company will move forward in developing artificial intelligence and robotics business through AI and Robotics Ventures Company Limited (ARV), to increase the efficiency in petroleum’s exploration and production business, provide better safety in operations, minimise impacts on environment and reduce cost of operations, it said.

Increasing production volumes and adding values to its existing projects will be PTTEP’s priorities. “This includes increasing petroleum reserves by accelerating exploration’s activities and the final investment decision (FID) of key pre-development projects in the pipeline such as Mozambique Rovuma Offshore Area 1 project,” the company said.

In addition, PTTEP said it will carry at the transition of Bongkot and Erawan fields to ensure a consistency of natural gas production.