Thai PTTEP's 2023 profit up 10%

Thai state-owned energy company PTT Exploration and Production Public Company (PTTEP) on January 30 announced a 10% year/year increase in net profit for 2023. The company attributed this growth to lower losses from oil price hedging instruments, impairment loss reduction on assets, and gains from the divestment of the AC/RL7 (Cash-Maple) project in Australia.

In 2023, PTTEP recorded a net profit of $2.2bn, up from $1.9bn in the previous year. The revenue for the year was slightly down at $9.05bn versus $9.66bn in 2022. 

The average sales volume for 2023 decreased by 1% to 462,007 barrels of oil equivalent per day (boe/day). This decline was primarily attributed to lower contractor entitlement and a shutdown in the Oman Block 61 project, coupled with the end of the Bongkot project concession in March 2023. Additionally, the average selling price witnessed a 10% decrease, settling at $48.21/boe.

Looking ahead to 2024, PTTEP anticipates stable oil prices in the first half of the year, ranging between $70-$80/barrel. This stability is attributed to economic concerns in Western countries, where high-interest rates are prevalent. Moreover, production from non-OPEC+ members is expected to increase after voluntary oil output cuts in Q1/2024. The latter half of 2024 may see an increase in the price of Dubai crude to $75-$85/barrel, primarily driven by seasonal demand, the company stated.

Shifting focus to the LNG market, PTTEP predicts a more balanced supply and demand scenario in 2024. Total production capacity from existing and new projects is projected to increase by 14mn tonnes/year from 2023, reaching a total volume of 422mn tonnes/year. This growth is expected to come primarily from the US and Indonesia. Despite the increase in supply, LNG demand is anticipated to be around 430mn tonnes/year, PTTEP said.