Thailand's PTT Q2 Profit up 5%

PTT Pcl, Thailand’s biggest energy company has reported a net profit of 24.8 billion baht ($716.8 million) in the second quarter of 2016, up 4.8% on year.

For the first half of the year, profit was 48.5 billion baht compared with 46.3 billion baht in the first half of 2015.

Second-quarter sales fell 22 percent on the year to 420 billion baht due to a drop in selling prices following weaker crude oil prices, PTT said in a statement.

Revised investment plan

Low energy prices have dented company’s investment plans. PTT’s CEO and President Tevin Vongvanich said the company would invest about 43 billion baht in 2016 down from 51 billion baht estimated earlier. However, in the next five year PTT would increase the amount it would invest to 300 billion baht.

Vongvanich said next phase of investment would be in infrastructural projects such as ports, LNG terminals and oil and gas pipelines.

With domestic consumption of natural gas expected to grow amid shrinking local output, the state owned firm is likely to increase imports of LNG.

Speaking to reports after announcement of results, Vongvanich disclosed the company will import at least 5 million tons of LNG in 2017, up from 3 million tons this year, Reuters reported.

This year, PTT has inked some important MoUs with leading LNG suppliers. In May, PTT and Gazprom signed in Saint Petersburg the MoU on cooperation in the oil and gas industry. The parties would cooperate in hydrocarbon development, LNG project development and LNG and LPG trading.

PTT earlier inked a similar MoU with Novatek. It also signed an agreement with Kogas to cooperate in the LNG value chain.

Thailand’s second LNG terminal with a capacity of 5 mtpa is expected to come online next year. The Map Ta Phut LNG receiving terminal is already operational and has a capacity of 5 mtpa. PTT has plans to increase this capacity to 10 mtpa.