PTT Exploration and Production Public Company Limited (PTTEP) announced its first quarter’s net income of USD 394 million which is decreased 7 percent when compared to the same period of last year

PTT Exploration and Production Public Company Limited (PTTEP) reported its first quarter’s net income of USD 394 million (equivalent to MMK 602,820 million).

Phongsthorn Thavisin, PTTEP President and Chief Executive Officer, said the company recorded recurring net income in the first quarter of this year at USD 374 million (equivalent to MMK 572,220 million) an increase of 23% from USD 304 million (equivalent to MMK 465,120 million) in the same period of 2018. However, profits from non-recurring items was USD 20 million, decreased from USD 119 million in the same period last year. This was mainly driven by a less appreciated due to currency changes, which mostly has no impact to the company’s cash flow. Consequently, PTTEP reported net income for the first quarter this year at USD 394 million (equivalent to MMK 602,820 million), a decrease of 7% from USD 423 million (equivalent to MMK 647,190 million) in the same period last year.

For the first quarter of 2019, the Company’s total revenues were USD 1,428 million (equivalent to MMK 2,184,840 million), this is an increase of 15% from USD 1,240 million (equivalent to MMK 1,897,200 million) in the same period last year. This was primarily driven by improved average sales volume to 319,230 barrel of oil equivalent per day (BOED), compared to 293,099 BOED in the first quarter of 2018 as a result of the acquisition of additional participating interests of the Bongkot Project, coupled with higher average selling price from USD 44.01 per barrel of oil equivalent (BOE) to USD 46.21 per BOE. Consequently, PTTEP has operating cash flow of USD 943 million (equivalent to MMK 1,442,790 million) and EBITDA Margin of 76% at the end of the first quarter.

“PTTEP is moving forward with the new “Expand & Execute” strategy which we’ve actively implemented since earlier this year and have successful achieved several major milestones. We marked our move in the Middle East by being awarded two offshore exploration blocks, along with our global strategic partners, in one of the world’s highly petroleum potential locations, the United Arab Emirates. We also extended our footprint in Southeast Asia by acquiring Murphy Oil Corporation’s business in Malaysia. This will help boost sales volume and sales revenue immediately. PTTEP were awarded additional two offshore exploration blocks in Malaysia as well.” said Phongsthorn.

For the Expand part in the “Expand & Execute” strategy, PTTEP says they will mainly focus on investing in the region where it has expertise and experience, especially in Southeast Asia. Meanwhile, the Middle East is considered as a petroleum prolific area that PTTEP will invest in partnership with strategic alliances. Furthermore, they say they move forward in developing artificial intelligence (AI) and robotics business through AI and Robotics Ventures Company Limited (ARV), to increase the efficiency in petroleum’s exploration and production business, provide better safety in operations, minimize impacts on environment and reduce cost of operations.

Under the Execute part, increasing production volumes and adding values to its existing projects are PTTEP’s priorities. This includes increasing petroleum reserves by accelerating exploration’s activities and the Final Investment Decision (FID) of key pre-development projects in the pipeline such as Mozambique Rovuma Offshore Area 1 project. In addition, PTTEP will efficiently carry at the transition of Bongkot and Erawan fields to ensure a consistency of natural gas production, while managing the production cost in order to increase its competitiveness with technologies and innovations.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/pttep-announces-2019-first-quarter-net-income )

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