PTT Reports a Net Profit of ฿20bn in 3Q19 with an Increase in Average Sales Volume

PTT Public Company Limited (PTT) has reported its 3Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:

In 3Q19, PTT’s net income dropped by Baht 10,074 million or 33.2% when compared to 3Q2018, because of the drop in EBITDA as, the rise in depreciation and amortization of Technology and Engineering business from GPSC’s acquisition of GLOW despite the drop in income tax expenses related to the Oil business’s transfer in 3Q2018 and softened performance in 3Q2019 compared with 3Q2018.

In 3Q2019, sales revenue of PTTEP was Baht 46,805 million, increasing by Baht 1,718 million or 3.8% from 3Q2018. This resulted mainly from 15.7% increase in average sales volume from 304,940 BOED in 3Q2018 to 352,862 BOED in 3Q2019 according to the acquisition of Murphy project on July 2019 and an additional interest of 22.2% in the Bongkot field since June 2018. However, average selling price decreased by 3.6% from US$ 47.7 per BOED in 3Q2018 to US$ 46.0 per BOED in 3Q2019.

EBITDA in 3Q2019 was Baht 32,850 million, decreasing by Baht 189 million or 0.6% despite Baht 2,030 million increase in gross profit, as a result of higher petroleum exploration expenses around Baht 1,191 million from exploration wells written-off. Nevertheless, depreciation and amortization expenses decreased by Baht 646 million. Consequently, 3Q2019 operating income was reported at Baht 17,129 million, increasing by Baht 457 million or 2.7%.

 

The overall performance of Petroleum Exploration and Production Business increased by Baht 618 million primarily because of higher derivative gain mainly from oil price hedging by Baht 868 million in 3Q2019; Baht 656 million derivative gain in 3Q2019 versus Baht 212 million derivative loss in 3Q2018. However, in 3Q2018 PTTEP recorded loss from divestment of Montara field amounting to Baht 1,208 million.

Moreover, there was an increase in foreign exchange gain of Baht 818 million; foreign exchange gain of Baht 615 million in 3Q2019 versus foreign exchange loss of Baht 203 million in 3Q2018.

However, income tax expenses increased by Baht 2,478 million relating to the impact from foreign exchange rate of US$ 60 million due to the lower of Baht against US$ appreciation in 3Q2019 than in 3Q2018 (3Q2019: appreciation of 0.15 Baht per USD; 3Q2018: appreciation of 0.76 Baht per USD).

 

Moreover, in 3Q2019, PTT incurred additional labour compensation expenses as per the Announcement of the State Enterprise Labour Relations Committee.