KTBST Upgrades PTTEP’s Target Price to Bt140 amid Surging Oil Prices in 1H21

KTB Securities (Thailand) (KTBST) has given a “BUY” recommendation on PTT Exploration and Production Public Company Limited (PTTEP) with an upgraded target price of ฿140.00/share, based on the assumption of an average Brent Crude at USD55/bbl.

 

The security company would receive positive momentum from 1) higher oil prices in 1H21, 2) the production from new projects and 3) higher sales volume from Oman Block 61.

KTBST upgraded 2021 and 2022 net profit forecasts of PTTEP to 21% and 22%, respectively, to reflect the increase in Brent crude, expecting an average of USD58/bbl in 2022 and USD57/bbl in 2023. The target price also reflected an upside from the Sarawak SK410B project (production capacity of 600-800 mmscfd) that is awaiting the Final Investment Decision (FID), possibly in 2022.