Higher Oil Prices Push PTTEP’s NP in 1Q Up over 360% to US$376Mn

Higher Oil Prices Push PTTEP’s NP in 1Q Up over 360% to US$376Mn

PTT Exploration and Production Public Company Limited (PTTEP) has announced its 1Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

In 1Q21, PTTEP had net profit of US$376 million, an increase of US$295 or 364% from a net profit in 4Q20 of US$81 million. The increase was primarily from an increase in sales revenue of US$99 million and a recognition of extraordinary gain from a bargain purchase of Oman Block 61 Project amounting to US$350 million, together with a decrease in operating expenses of US$60 million which were offset with increases in exploration expenses and income tax expenses of US$122 million and US$113 million, respectively. 


The increase was also driven by higher selling prices following the rising trend of global  crude oil prices. Crude oil price has increased to the US$60/barrel level from growing confidence on demand recovery as that lockdowns and international travel restrictions are expected to be relaxed given more vaccines are being administered globally and economic stimulus measures are being launched in many countries. 


Moreover, PTTEP was able to reduce unit cost from US$31.09/barrel of oil equivalent (BOE) to US$27.96/BOE. PTTEP, therefore, reported cash flow from operations of US$803 million with the EBITDA margin at 74%. 


As of 1Q21, PTTEP reported total assets of US$23,302 million, of which US$1,795 million was cash and short-term investments, while total liabilities were reported at US$11,151 million, of which US$3,895 million was interest-bearing debt. Total shareholders’ equity ended at US$12,151 million with debt-to-equity ratio at 0.32, reflecting strong and healthy financial structure.