PTTEP Projects 6% Sales Growth in 2021, Eyeing for More Investment in SEA and Middle East

PTT Exploration and Production Public Company Limited (PTTEP) expected sales volume in 2021 to average at 375,000 barrels of oil equivalent per day (BOED), an increase of 6% from 2020, which would be the result of Sabah H and Algeria Hassi Bir Rekaiz projects that will start production this year.

 

The company stated that it will continue to focus investments in strategic areas being Thailand and South East Asia. Moreover, PTTEP is also expanding business opportunities in the Gas Value Chain business in Myanmar in the form of Gas to Power, while aiming to capture investment opportunities in other petroleum prolific areas with strategic alliances by mainly focusing on the Middle East. The company set the budget of 4,196 million dollars (approx. 132,174 million baht) to maintain its core productions, while boosting other projects to start production as scheduled, and also for the long-term growth of exploration activities.

 

PTTEP reported a net profit of 22,664 million baht ($720 million), decreased 53.56% when compared to a net profit of 48,802 million baht a year before. The decrease was mainly driven by lower selling prices as a result of lower global crude oil prices.

However, PTTEP stated that the company was able to reduce unit cost and cash cost to 30.5 USD/barrel of oil equivalent (BOE) and 14.4 USD/BOE, respectively. As a result, PTTEP reported cash flow generated from operations of $2,799 million with EBITDA margin at 68%.

During 2020, PTTEP also recognized impairment loss on assets (before taxes) of $91 million mainly from the Mariana Oil Sand Project due to the forecast of low oil price in the long term indicating project development uncommercial and adjustments to the production profile of Yetagun Project.

 

In addition, PTTEP a dividend payment of ฿2.75/share from its retained earnings to be paid on April 26, 2021. The ex-dividend date is March 1, 2021.